Careers in Finance


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Careers in Finance

  1. 1. Careers in Finance By: Lorcan Kilmartin & Ron Mandel
  2. 2. Introduction <ul><li>Canadian Securities Institute – CSC, CIM </li></ul><ul><li>Overview of well known designations </li></ul><ul><li>Investment Banking </li></ul><ul><li>Sales & Trading </li></ul><ul><li>Research </li></ul><ul><li>Private Equity </li></ul><ul><li>Asset Management </li></ul><ul><li>How much money? </li></ul>
  3. 3. Canadian Securities Course (CSC) <ul><li>A self-study program offered by the Canadian Securities Institute </li></ul><ul><li>Covers: </li></ul><ul><ul><li>Financial service industry </li></ul></ul><ul><ul><li>Fixed income securities, equities, mutual funds </li></ul></ul><ul><ul><li>Derivatives </li></ul></ul><ul><ul><li>Factors influencing market process of securities, and the economy </li></ul></ul><ul><li>CSC is typically taken by: </li></ul><ul><ul><li>Bank and trust company advisors, mutual fund advisors, professional accountants, insurance agents, business students, and individual investors </li></ul></ul>
  4. 4. Canadian Securities Course (CSC) <ul><li>Benefits: </li></ul><ul><ul><li>Demonstrate to prospective employers you are serious in your career </li></ul></ul><ul><ul><li>Launch a financial services career by fulfilling one of the required steps for registration to sell mutual funds or securities </li></ul></ul><ul><ul><li>The course is a requirement to become registered as a full-service Investment Advisor or broker </li></ul></ul><ul><ul><li>Enhance financial planning expertise with a deeper understanding of investment products and financial markets </li></ul></ul>
  5. 5. Canadian Investment Manager (CIM) <ul><li>Exciting time to become a discretionary money manager </li></ul><ul><li>Benefits: </li></ul><ul><ul><li>Build expertise to provide money management services to high-net-worth and institutional clients </li></ul></ul><ul><ul><li>Understand the application of portfolio management in the context of Canadian markets and regulatory requirements </li></ul></ul><ul><ul><li>Identify clients' objectives and constraints </li></ul></ul><ul><ul><li>Develop appropriate investment policies and strategies, taking into consideration market and economic conditions </li></ul></ul>
  6. 6. Canadian Investment Manager (CIM) <ul><li>To earn the CIM designation, you must complete: </li></ul><ul><ul><li>Canadian Securities Course </li></ul></ul><ul><ul><li>Investment Management Techniques </li></ul></ul><ul><ul><li>Portfolio Management Techniques </li></ul></ul><ul><li>Who should enroll: </li></ul><ul><ul><li>Senior investment advisors, investment counselors </li></ul></ul><ul><ul><li>Portfolio managers, research analysts </li></ul></ul><ul><ul><li>Investment Strategists, senior equity traders </li></ul></ul>
  7. 7. Chartered Financial Analyst (CFA) <ul><li>Offered by the CFA Institute </li></ul><ul><li>Entrance Requirements: </li></ul><ul><ul><li>U.S. Bachelor’s (or equivalent) degree or four years of qualified, professional work experience </li></ul></ul><ul><li>The curriculum develops a fundamental knowledge of investment principles </li></ul><ul><li>Three levels of examination </li></ul><ul><li>One of the harder designations to attain </li></ul>
  8. 9. A Few More Designations <ul><li>Chartered Accountant (CA) </li></ul><ul><li>Certified General Accountant (CGA) </li></ul><ul><li>Certified Management Accountant (CMA) </li></ul><ul><li>Certified Financial Planner (CFP) </li></ul>
  9. 10. Investment Banking <ul><li>Investment Banking Division </li></ul><ul><ul><li>Transactions include mergers, acquisitions, divestitures, the issuance of equity or debt capital, or a combination of these. </li></ul></ul><ul><li>Sales & Trading Division </li></ul><ul><li>Research Division </li></ul>
  10. 11. Private Equity <ul><li>Money is raised from qualified investors such as pension funds, financial institutions and wealthy individuals </li></ul><ul><li>PE firms typically hire junior professionals to: </li></ul><ul><ul><li>model out transactions & perform due diligence </li></ul></ul><ul><li>PE firms generate returns by: </li></ul><ul><ul><li>1. acquiring companies </li></ul></ul><ul><ul><li>2. taking them private </li></ul></ul><ul><ul><li>3. restructuring them and then taking them public or selling them </li></ul></ul><ul><li>Better hours and compensation than in Investment Banking </li></ul>
  11. 12. Venture Capital <ul><ul><li>Evaluate companies and business plans </li></ul></ul><ul><ul><li>Create strategies based on market trends </li></ul></ul><ul><ul><li>Make deals </li></ul></ul><ul><ul><li>Recruit the executives to head the businesses they fund </li></ul></ul><ul><ul><li>Sit on boards and advise the companies they fund </li></ul></ul><ul><ul><li>A lot of networking </li></ul></ul>
  12. 13. Asset Management <ul><li>Hedge Fund Management </li></ul><ul><ul><ul><li>Goal: Manage return versus risk </li></ul></ul></ul><ul><ul><li>Advantages </li></ul></ul><ul><ul><ul><li>Work on a variety of tasks </li></ul></ul></ul><ul><ul><ul><li>Relaxed, academic-like atmosphere </li></ul></ul></ul><ul><ul><li>Disadvantages </li></ul></ul><ul><ul><ul><li>Relatively narrow window of expertise </li></ul></ul></ul><ul><ul><ul><li>View of world is very different from non-hedge fund entities </li></ul></ul></ul><ul><ul><ul><li>A lot of new hedge funds out there </li></ul></ul></ul>
  13. 14. Asset Management <ul><li>Mutual Funds and Money Managers </li></ul><ul><ul><li>Mutual funds: manage assets for retail investors </li></ul></ul><ul><ul><li>Money managers: Manage assets for institutional investors such as pension funds, insurance companies, universities </li></ul></ul><ul><li>Major funds and money managers include: </li></ul><ul><ul><li>Equity: Fidelity, Alliance Capital, Vanguard, Putnam </li></ul></ul><ul><ul><li>Bonds: Federated, Nuveen, PIMCO, BlackRock </li></ul></ul>
  14. 15. Careers in Finance <ul><li>Corporate Finance </li></ul><ul><ul><li>Two key functions: accounting and finance: </li></ul></ul><ul><ul><li>Accounting concerns itself with day-to-day operations - balancing the books, tracking expenses and revenue, executing payroll, and paying the bills, compiling financial data for financial statements </li></ul></ul><ul><ul><li>Finance concerns itself with analysing revenue and expenses to ensure effective use of capital, looking at project costs, making capital investments, structuring deals to help the company grow </li></ul></ul>
  15. 16. Salaries 10+ years $300K and up $750K - 70MM Department head 7-10 years $200K and up $400K - 20MM Managing Director / Partner 5-10 years $200K - 600K $300K - 1.2MM Director / Principal 3-8 years $150K - 500K $250K - 1MM Associate Director 3-6 years $100K - 400K $250K - 800K Vice President 2-4 years $75K - 120K $200K - 600K Assistant Vice President MBA $120 - 250K $150 - 450K Third Year Associate MBA $70K - 150K $125K - 235K First Year Associate Bachelor's $70K - 150K $80K - 200K Third Year Analyst Bachelor's $30K - 70K $60K - 110K First Year Analyst Prerequisite (degree/yrs experience) Regional Player Bulge Bracket Job Level Salaries in Investment Banking (with bonus)
  16. 17. Conclusion <ul><li>There are many more finance related jobs </li></ul><ul><li>Some require only a bit of formal education while others demand significant amounts </li></ul><ul><li>Salaries range from alright to admirable to amazing </li></ul><ul><li>If you want to learn more, check out </li></ul><ul><ul><li> </li></ul></ul><ul><ul><li> </li></ul></ul>