CAREERS IN FINANCE U.S. TREASURY MARKETS
IT CO MM ALTH TR OD AD ITIE EF S LO WS
AL LO TH NG GL SH OB O AL RT TR AD E
ND AM EN TEC TA HN LS I C AL WE S ALT H US D
S RE TU FU GE LD AN GO CH EX S TE RA Y CN
D UN EF RK DG YO HE W S NE N I CO BTC
FT MS Y UIT EQ ION AT Y LU VA INT RTA CE
$!* Y UIT EQ ION AT Y LU INT VA RTA CE
GL Y CO OBA LT MM RA OD ITIE DE S
EN TA LS I C AL WE S ALT H US D
EN TA LS I C AL WE S ALT H US D
Acknowledgements: Editors in chief: Kevin Lu, Sharon Ho Authors: Sam Pham Alick Song Boyang Jiang Tom Barry Anas Ur Rasheed Khan Special Thanks: Adon Ewing Rebecca Zhang Andrew Zhang Software: Adobe Indesign, Adobe Illustrator, Adobe Photoshop © University Network of Investing & Trading 2018
Disclaimer 1. The information in this free guide is provided for the purpose of education and intended to be of a factual and objective nature only. The University Network for Investing and Trading (“UNIT”) makes no recommendations or opinions about any particular financial product or class thereof. 2. UNIT has monitored the quality of the information provided in this guide. However, UNIT does not make any representations or warranty about the accuracy, reliability, currency or completeness of any material contained in this guide. 3. Whilst UNIT has made the effort to ensure the information in this guide was accurate and up-to-date at the time of the publication of this guide, you should exercise your own independent skill, judgement and research before relying on it. This guide is not a substitute for independent professional advice and you should obtain any appropriate professional advice relevant to your particular circumstances. 4. References to other organisations are provided for your convenience. UNIT makes no endorsements of those organisations or any other associated organisation, product or service. 5. In some cases, the information in this guide may incorporate or summarise views, standards or recommendations of third parties or comprise material contributed by third parties (“third party material”). Such third party material is assembled in good faith, but does not necessarily reflect the views of UNIT, or indicate a commitment to a particular course of action. UNIT makes no representations or warranties about the accuracy, reliability, currency or completeness of any third party material. 6. UNIT takes no responsibility for any loss resulting from any action taken or reliance made by you on any information in this guide (including, without limitation, third party material).
Contents Table Section 1 Industry
Overview Investment Banking Investment Management Global Markets (Sales and Trading) Stockbroking Proprietary trading Professional Services Retail Banking & Fintech
3 5 7 9 10 11 12 15
Section 2 Applications Job search tips Resume Cover letter Interview Test/Assessment Centers Networking Qualifications
17 18 19 20 21 22 23
Section 3 Sponsors 27 29 31 33 35 37 39 41 43 45 47 48 49
Citi Commonwealth Bank BlackRock Nomura Australian Super Macquarie Group Deutsche Bank SIG CFA Institute Flow Traders InvestSMART Propex Aberdeen Standard Investments
Section 4 State of Finance Tech MiFID II Rise of passive investing Women in finance
51 52 53 54
Section 5 Subject Selection Guide 55 UNIT | 01
Section 1: The Industry
02 | UNIT
Overview of the Finance Industry What is finance?
What are financial services? Financial services refer to the services provided by the financial industry and organisations involved in the management of capital. Such organisations encompass banks, investment banks, insurance companies, credit card companies and stock brokerages. Its clients include individuals, businesses, non-profit organisations, and government agencies.
At its core, finance is the practice of allocating monetary resources under conditions of uncertainty (risk). As a subject or major, finance can be split into three distinct catergories; public finance, personal finance, and corporate finance. This guide will be mainly focusing on career opportunities arising from corporate finance, where you will learn about the financial markets: equity, debt, derivatives, commodities and more.
The financial services field offers a broad range of career opportunities which cater to different skills and interests. As such, employers will have different expectations in regards to your personal and professional qualities as they assess your compatibility for the role.
Corporate finance teaches you how a company makes choices about major investment decisions, how it finances its activities, and how it delivers value to all its shareholders. You will also learn about the international nature of financial flows, how to manage risks, and how to invest and trade yourself.
Careers Map: Investment Banker
Fixed Income Research Analyst Trader
Fixed Income Sales
Equity Sales Institutional Sales
Branch Manager Branch Manager
Mutual Fund Dealer Investment Dealer
Credit Risk Manager
Mutual Fund Dealer
Mutual Fund Rep
Market Risk Manager
Financial Services Careers
Operations Clearing & Settlements
Branch Manager Private Banker
UNIT | 03
Investment Banking & Corporate Advisory Overview: Investments banks are the institutions driving the growth of public and private companies. They are the intermediaries which fuel these companies with capital - the monetary means of growth. This is achieved not simply by handing out loans, but by finding investors and facilitating a transaction, whether it be in debt, equity, or another hybrid form. Investment banks are behind all the headline IPOs, billion dollar mergers, and cross-border investment deals - financing companies large and small. In facilitating transactions, these banks are described as being on the sell-side of corporate finance.
What they do: Raise Capital for clients
Investment bankers generally hold the role of corporate financial advisors. In this capacity, they help their clients raise money in the capital markets, provide various financial advisory services, and facilitate mergers and aquisition activity. Should a large company want to increase their number of warehouses and is looking to issue bond financing to pay for its expansion, it may seek the help of an investment banker. Or suppose a private company requires more money to grow and decides to raise funds through equity financing, an investment banker could help them find private placements (investors), or go public through an initial public offering (IPO). If a company is looking to purchase a smaller company or merge with a competitor to gain market share, an investment banker can assist in finding such target company and facilitate the transaction. Transactions involving the sales of entire companies can easily be in the millions, making for highly lucrative commissions, and a hugely profitable business.
Benefits of working in investment banking: Practical transferable skillset
Invaluable Business Network
As an investment banker, you will learn the nuances of selling, whether that be selling a million dollar company, persuading a boss, or enticing a client. Through discipline and hard work, you will develop an acute level of attention to detail, a vast network of business connections, and an adaptable skillset that opens up opportunities for you should you decide to transfer industries or start up your own business. To top that off, investment bankers are compensated handsomely for the hard work they put in. 04 | UNIT
Anatomy of an investment bank: Investment banks can be generally separated into three sectors; front office, middle office, and back office. Each office can be further divided into divisions, and within those departments are specialised teams.
Investment Bank Front Office Public
Sales & Trading Division
• • • • •
Risk Managment Financial Control Treasury Strategy Compliance
Back Office • • •
Operations Technology Support
‘Chinese Wall’ separates corporate-advisory area from the brokering department Private
Investment Banking Division
Mergers & Acquisitions
Debt Capital Markets
Typically, investment banks will be involved in large, complicated financial transactions. If a client is considering a merger, acquisition or sale, the investment bank may provide advice as to how much the company is worth and how to best structure a deal.
DCM teams provide advice on raising debt for acquisitions, refinancing of existing debt, or restructuring of existing debt. DCM roles are typically more client focused as they work with clients to organise borrowing and access a global pool of investors looking for opportunities. Generally, there is more focus on using different debt sizes, refunding and assumptions.
Equity Capital Markets ECM roles are focused on raising equity through the capital markets. This division may be involved in initial public offerings (IPOs) and public equity deals (PIPE deals). ECM roles will involve research on equity deals (IPOs and followon offerings) and compiling this information into pitch-books. ECM teams will also be involved in pricing the issue and putting together the term sheet for the deal which contains information regarding the price range, options and number of shares.
What it takes to be an investment banker: Investment bankers come from a diverse range of academic backgrounds, varying from accounting and finance majors, to mathematics, computer science and physics majors. However, before starting internship or graduate positions, they all generally have a firm understanding of the principles in accounting, risk, markets, financial statement analysis, and financial modeling. Investment bankers also have strong negotiation, communication and presentation skills, which will be further honed during their time in the industry. UNIT | 05
Investment Management Overview: Investment management refers to the selection, monitoring and allocation of a clientâ€™s assets in order to meet specific mandated investment objectives. Investment managers are entrusted with a clientâ€™s cash and have a fiduciary duty to invest that cash according to a pre-determined investment philosophy and process. Investable assets may lie in both the public (shares, debt, derivatives, commodities and currencies) and private markets (venture capital, infrastructure and real estate). In investing large sums of cash, firms in the field of investment management are described as being on the buy-side of corporate finance. The assets in which a fund may invest is tied to the risk and return expectations of clients who themselves can range from institutions such as insurance companies, corporations, charities and university endowment funds to private high net worth individuals.
What they do: Investment Due Diligence
Investment due diligence refers to the research, identification and assessment of potential investment opportunities. The typical tasks required for this include: analysing financial reports, keeping up to date with macroeconomic news including regulatory and political changes, and meeting with management of companies, their competitors, suppliers and clients. An investment managerâ€™s performance is often compared to an index benchmark such as the ASX200, and thus any deviations in the constituents and weighting of their portfolio is expected to generate above-benchmark returns (i.e. alpha). Client interaction becomes especially important during periods of market downturns and underperformance, when risk of fund redemption (withdrawal) is highest.
Benefits of working in investment management: Become an Investment Expert
06 | UNIT
Develop High-Profile Relationships
Working in investment management revolves around evaluating investments for your clients. Hence, it is a job where you will learn valuations, strategy analysis, economic trend identification, and other highly valued skills. Additionally, the role may involve speaking with the companies that are being considered as investments, and other financial professionals to form an opinion. This allows you to build fantastic business relationships for the future. Finally, the compensation you can be potentially offered is very attractive.
Hedge funds and other managed funds serve largely the same function of generating return on investorsâ€™ wealth through a managed portfolio, but there are large differences in methodologies and investment approaches. Hedge funds are not restricted by many of the regulatory requirements enforced on super and mutual funds, nor are they required to disclose strategies and abide by mandates. Moreover, hedge funds mostly only allow participation from a select group of wealthy investors. Therefore, due to such flexibility, a hedge fund career is ideal for someone who is skilled at adapting to emerging, unexpected situations, and at identifying unique investment opportunities. They should also possess higher risk tolerance, and be able to rationalise both the risks and returns of such investments in a flexible, dynamic environment.
Members may contribute to a super fund when they are saving or earning income prior to retirement, which are paid out once they have retired. The money provided through these super contributions does not sit idly â€“ the fund invests them in a variety of asset classes depending upon the superannuation product you have chosen. A super fund is generally more conservative due to the nature of their client base, opting for diversification across a range of asset classes to offset idiosyncratic risk. A career in a super or pension fund may be ideal for someone who possesses patience, and a rational, long-term outlook. Furthermore, due to the more community oriented nature of such investment, they should also possess a proactive stance towards sustainable and ethical investing.
Sub-sectors: Private Equity: Unlike hedge funds, private equity (PE) funds invest in the private markets and provide financing to unlisted businesses. The majority of PE funds pursue growth and seek to invest in businesses where there is an opportunity to eventually sell at a higher multiple. The holding period is often 3-5 years and usually involves private equity owners taking an active management approach. The key skill required to work in private equity is the ability to source opportunities and investigate their viability. This often requires an extensive professional network and well-developed financial analysis ability. Overall, private equity would be attractive for those interested in not just investing in businesses, but also playing an active ownership role in devising and executing a growth strategy.
Venture Capital: Similar to private equity funds, venture capital provides financing to unlisted businesses. However, venture capital tends to focus on start-up and early-stage businesses which they believe have high long-term growth potential. Venture capital generally provides financing in exchange for equity and this allows venture capitalists to have a say in management decisions. Many funds also provide strategic advice, access to existing customer networks and industry expertise in addition to financing. Deal-sourcing is the key skill required to work in venture capital and the majority of time will be spent meeting with entrepreneurs and networking. Unlike private equity, valuation and financial modelling play a more limited role given the prerevenue status of many potential investments.
What it takes to be an investment manager: Given the broad investable universe, no specific degree is required to work within the investment management industry. Instead, analysts are valued for their expertise in a certain field. For example, a person with previous experience in a biotech firm would fit well as an analyst covering the healthcare sector. Nonetheless, some financial and accounting training is required to competently analyse financial statements and value investments. To be successful in the investment management industry, the key personal quality is passion and a keen interest for the financial markets. Those who are passionate often manage their own share accounts and read the financial news daily.
UNIT | 07
Global Markets (Sales & Trading) Overview: The world’s global markets run 24 hours a day with markets operating across time zones in different areas of the globe. They involve everything financial from equities, fixed income, derivatives, currencies, and anything you could imagine in between. ‘Sales’ and ‘trading’ are two distinct but complementary operations. The function of a sales and trading division within an organisation is to ensure both the accurate structuring and orderly sale of financial products to institutional investors and other clients. Note that agency trading is client focused, and should not to be confused with proprietary trading which focuses on investing the company’s own money.
What they do: Execute Large Trade Orders
Develop Trade Strategies
The sales team effectively works as any other sales team in an organisation – they sell things (in this case financial products). The clients they’re selling to are generally financial institutions and high-net-worth individuals looking to buy equities, fixed income products, or any other financial instruments to meet their specific needs. Once the sales team has confirmed an order with a client the traders are responsible for completing the order in the market.
Benefits of working in global markets: Wide Breadth of Knowledge
Top-tier Client Relations
Work Life Balance
Working in global markets gives you the training to understand financial markets and the underlying fundamentals of multiple financial instruments. Additionally, as you’re constantly engaging with top-tier clients, from banks to hedge funds, you’re able to build an exceptional business network. The compensation in global markets is equally attractive.
Who would suit sales and trading? Evidently, sales and trading requires constant client communication. Clients’ needs change constantly and they require rapid responses to their requests. Being able to multitask effectively and quickly is evidently a vital skill in sales and trading. Mental maths skills are also needed, particularly for the traders.
08 | UNIT
On the trading floor: Unlike the riotous ‘trading pits’ depicted in old Wall Street movies, trading floors in large investment banks today operate in a much more orderly manner. On a trading floor today, you will find a large open room with no cubicles, with conference rooms and director’s offices on outskirts of the floor. On the floor itself, long desks with multiple monitors are sectioned off per person, and grouped according to the fields of trade. Swathes of data will light up the screens as traders keep up to speed with the latest consumer spending numbers, blue chip price swings, and other headline variables. As a trader, you are multi-tasking all the time, constantly assessing risk, calculating the best timing to execute trades, and keeping up to date with the client’s requests. Bloomberg is a key financial information service that all banks and traders have access to - it is more or less the portal to all relevant news and public financial data. If you are interested in sales and trading, it is recommended that you get acquainted with navigating its terminals. To trade, industry experts generally use in house trading platforms to execute their orders. Popular platforms include FlexTrade, Fidessa, and Goldman’s REDIPlus platform. There are various tradable asset markets, all with their own valuation techniques equities have their multiples and DCFs, options have binomial and Black Scholes models, and bonds have their yield curves. Learning these valuation techniques would be beneficial to your quest in gaining an internship or graduate position at a sales or trading desk. That said, agency traders generally do not engage with large amounts of valuation activities, but it helps to understand where such pricing figures stem from, and what they may be anchored to.
Cross-cooperation: Typically, a firm which offers sales and trading will have other divisions that complement this function. Sales and trading is inextricably linked to the work of financial analysts, who design and formulate bespoke financial products catered to the requirements of particular clients. These financial products may be as obscure as collateralised mortgage obligations or asset-backed securities or as simple as futures contracts. Additionally, the research division, which produces reports on financial markets, works with sales and trading to push that research out to clients in the hope of being mandated to execute their trades.
What it takes to be an global markets trader: Given the client-driven nature of the role, particularly sales, excellent inter-personal communication skills are highly desirable. However, having said that, both sales and trading roles entail significantly different types of work. For a trader, numerical problem-solving skills and an ability to work under pressure are more imperative.
UNIT | 09
What they do:
Stockbroking is one of the first professions to have taken root in the finance industry; as long as there have been markets, there have been stock brokers. Simply put, a stockbroker is an entity or individual that trades (buys and sells stock) on someone else’s behalf and charges a commission for it. Historically, the functions of investment advice and order execution were deemed as inseparable facets of stockbroking, but nowadays ‘discount brokers’, which charge moderate commissions and provide no investment advice, have turned the industry on its head.
Stockbrokers, whether they are actual brokerage firms or individual broker dealers, are often registered investment advisors and have the necessary certification by the regulators of an exchange to execute trades – something which ordinary retail investors are not allowed to do. In other words, if you need to buy a stock at a certain price, you tell your stockbroker and they do it for you, taking a slice of the pie along the way of course.
Benefits of working in stockbroking: One of the major benefits of working in stockbroking, as compared to many other finance jobs, is that once the stock market closes (around 4pm) your responsibilities wind down, since you’re not able to buy or sell stocks after that time. As such, your work-life balance could be outstanding. You’re also given the opportunity to build a strong client network which, if you’re a social person, can be very fun and rewarding. A client meeting could mean taking them to an exquisite lunch, sporting match, or arts event (and it counts as work!). Additionally, you’re put in a position of advising your clients on how they should invest their money. This is both rewarding and potentially frightening - if you make the wrong call you may lose your clients’ trust. However, if you’re able to give good investment advice you can form long-term client relationships.
What it takes to be a stockbroker:
10 | UNIT
If you have ever come across a live price chart feed on a trading terminal or have simply looked at live tickers on the market floor, you can deduce immediately that number have a huge role to play in trading and stockbroking. Therefore, a natural affinity for numbers, percentages and ratios is highly desirable; you can demonstrate your aptitude for numbers by boasting great results in mathematics or undertaking STEM courses at university. Aside from grades, boosting your presentation and soft skills can provide you with an edge over other applicants in this client focused industry.
Proprietary Trading Overview:
What they do:
Proprietary trading can be best viewed as an additional or peripheral function in an organisation. What it entails is simply utilising a portion of the company’s capital to trade in order to generate extra profits, boosting the overall financial position of the company instead of earning commissions by trading on behalf of its clients. It constitutes an additional stream of income separate from the company’s primary business. Proprietary trading is popular, particularly amongst brokerages, as they feel that they have a competitive advantage over other players in the markets.
Proprietary trading is very similar to managing endowments at elite charitable institutions and universities around the world, whereby a professional investment team makes use of dormant money to generate surplus income. An ideal example would be that of a proprietary trading desk at a brokerage firm, where the broker is making profit in two ways: one, by earning commission by trading on behalf of other people, and, secondly, by directly trading in the markets.
Implement & Monitor Trading Algorithms
Formulate Trade Ideas
Benefits of working in proprietary trading: Proprietary traders enjoy a lot of freedom. You have the freedom to choose the securities you trade, the decisions you make, and ultimately how you want each day to go. Since you are trading with the firm’s capital, the potential profits and compensation you can receive are significantly higher. With such flexibility, and no clients but yourself, some proprietary trading firms offer the possibility of trading from home - or on the fly. Proprietary trading firms generally provide extensive training for their graduates, nurturing a highly specialised skillset for which these graduates can use to independently earn an income (though it may not be as much because of lesser starting capital).
Work Life Balance
What it takes to be a proprietary trader: The type of skills you will need depend on the type of proprietary trading firm. Quantitative proprietary trading firms will usually require extensive mathematical, statistical, or computer science knowledge over a finance background. However, other discretionary trading firms may not require any specific skills as they’ll have training programs to teach you the technical trading methods. Finally, other prop trading firms may require fundamental valuation knowledge which is most suited to the typical finance skillset. UNIT | 11
Professional Services Overview: Professional services encompasses a broad range of various occupations, but ultimately a career in professional services involves providing support and specialist advice to clients. These clients are also diverse and can include small-medium enterprises, multinational corporations, governments and not-for-profit organisations and the assistance professional services firms provide include things such as tax advice, accounting services, restructuring advice and strategy consulting. By providing this expert knowledge, clients are able to carry on with the everyday running of their organisations.
What they do: Audit Client Accounts
Develop Business Strategies
A typical professional services firm will operate in four main spaces: Auditing/Assurance, Tax, Consulting/Advisory and Transactions/Corporate Finance and the work you do will differ depending on your chosen business line. Despite these differences, much of the work will be project-style and client-based rather than performing a set daily routine.
Benefits of working in professional services: Diverse Transferable Skillset
Top-tier Client Relations
Strong Network Base
Professional services firstly offers a diverse working experience; every situation differs in some way from the last, and provides an exciting opportunity for existing skills to be applied in a different manner. Just as the work itself does not become repetitive, the people working with you will be diverse in both experience and personality. Finally, as you work on each â€˜projectâ€™, you will be constantly liaising with the client, developing fruitful relationships which may prove invaluable in the future.
Who would suit professional services? Professional services would be an ideal field for someone interested in applying their skills and challenging themselves within a variety of different situations. Adaptability and confidence is thus required. Teamwork is similarly vital; projects require input from people working in various fields, and someone who is able to consider, synthesise and subsequently apply the talent available in their team will prove invaluable to professional services. 12 | UNIT
Divisions: In Auditing/Assurance, you will be responsible for assessing the legitimacy of financial reports and providing confidence for the external stakeholders of businesses like investors, suppliers and regulators. This may involve helping clients adjust to new accounting standards and liaising with clients to obtain information.
Auditing/Assurance: A typical day in Tax may involve identifying and implementing strategies to minimise tax liabilities, maximise tax incentives and researching and evaluating the impact of upcoming tax issues.
As part of a Transactions/Corporate Finance team, your role is to advise clients on how to best allocate and acquire capital. This may involve developing financial models, identifying M&A opportunities, compiling data on past transactions and prepare due diligence presentation materials.
Advisory/consulting offers the most varied work experience and you can expect to spend time researching current regulatory developments, constructing financial models, reviewing client business practices and contributing to strategy recommendations.
What it takes to work in professional services: A successful career in professional services requires the following personality traits: Business acumen: Being aware of changes in the commercial world and understanding how businesses operate and adapt is key to advising clients competently. Teamwork: The project-based nature of work will require you to work closely with colleagues from diverse backgrounds and this also requires having high emotional intelligence, patience and empathy. Communication: Client communication lies at the core of professional services - whether that be recommending a new tax strategy or a divestment, working in this industry requires you to communicate often complex issues succinctly and confidently.
UNIT | 13
Retail Banking Overview: Retail banking, or consumer banking, refers to the mass-market banking in which individual customers use local branches of larger commercial banks. Generally, this service aims to encompass all the financial services that may be required by an individual retail client. Retail bankâ€™s representatives cater for individuals and small businesses by providing an entire suite of services including; savings, checking accounts, mortgages, personal loans, internet finance, and certificates of deposits.
What they do: Advise on personal finances
Assess debt/ credit profiles
Develop financing plans
As a one-stop shop for all retail financial services, retail banks have a diverse range of services for which employees can specialize in, and transfer between. The main roles of a retail banker are generally managing client relations, advising on personal finances, and assessing loan grants to individuals or small businesses. Thanks to the systems and processes in place, the work is relatively straight forward, meaning there is more client face-time.
Benefits of working in retail banking: Structured work-life balance
Diverse work experience
Working in retail banks gives you the training to develop client relations and become an expert at personal finance. Given the amount of services provided by retail banks, internal mobility across departments may provide you with a diverse range of work experience, and the opportunity to foster an invaluable skillset.
Who would suit retail banking? Retail banking is ideal for someone with strong communication skills due to the large amount of client face-time required within the role. Similarly, high emotional intelligence and a problem-solving mentality are also necessary to understanding each clientâ€™s individual needs, and devising a solution. Furthermore, as a result of the high transferability of skills within retail banking, a career here would be ideal for someone seeking broad experience prior to, or instead of, a specialised role. 14 | UNIT
Fintech Overview: Currently one of the hottest sectors, fintech encompasses a broad range of businesses and roles. But as the name suggests, fintech refers to the intersection between finance and technology and a career in this industry involves devising technologybased solutions to collaborate with or disrupt the financial services industry. Despite its association with startups, there are plenty of established organisations engaged in fintech, notably the big banks. Nonetheless investment in financial technology has grown at an exponential rate, providing numerous career opportunities.
What they do: Given the diverse range of objectives of different fintech companies, there is naturally a wide range of career possibilities. Nonetheless, the demand is strongest for IT staff including app and site developers, especially iOS, Android, SRE and full-stack developers. This group forms the crux of fintech companies and are responsible for translating business ideas into tangible innovations. However, UX/UI roles are also being increasingly coveted as banks and fintech companies seek to make their applications user-friendly and intuitive. This may involve simplifying the design interface, increasing the functionality and the overall ‘look’ of the app.
However, for the less technology-focused individuals, a more suitable role may be the product manager. Their responsibility is to communicate with and understand the needs of the client and subsequently develop an innovative solution. This ensures that the product remains disruptive and continually responds to the market’s desires. Like product managers in other industries, they work with various departments throughout the entire product life cycle to conceptualise the product and bring it to market. However, there is a particular focus on regulatory compliance and security in the fintech industry which product managers may also be responsible for.
What they look for in hires: Given the scope of fintech is constantly being redefined by new systems and tech, the desired skillset for a career in fintech is quite different to that seen in ‘traditional’ financial services. Fintech hires generally have ‘dynamic range’ - that is they have a breadth of knowledge skills that range from finance and, media, to software and hardware expertise. However ultimately, the thread that ties all potential hires together is a shared vision for financial innovation, and passion for growth.
Fintech Ecosystem: Robo-Advisors & Personal Finance
Payments & Remittances
Insurance tech Blockchain & Bitcoin
Real Estate Solutions Regulation tech UNIT | 15
Section 2: The Application
16 | UNIT
Job Search Tips Get organised First, develop a system, a checklist of processes to make your time hunting for a job shorter, and less anxiety inducing. This system should include identifying your target industry and universe of organisations, allocating a realistic amount of time a week to research employers and setting attainable, quantifiable goals e.g. number of job applications/coffee chats/ interviews a week.
Active Linkedin presence: Despite popular belief, having a Linkedin itself is not enough! Rather, you should consider your profile from a prospective employer’s perspective and use your social media presence as a selling point. This means showcasing your projects like case competitions, blog articles and university society events, as well as following and liking posts from prominent organisations in your target industry.
Tap into a range of avenues A commonly touted, yet undeniably valuable piece of advice is that you should go beyond just advertised jobs in your search.
Knowing yourself is key to communicating with prospective employers and this means being able to identify your:
Like in any venture in finance, diversification is key and this means you should try your hand at cold-emailing, reaching out to contacts and university alumni in the industry and leveraging university careers centres and job boards. It should be noted that when sending out emails to organisations you are interested in meeting with, make sure to conduct background research and tailor your communication.
• • • • •
It is ill-advised to adopt a ‘machine-gun’ approach as your emails will lack passion and interest.
Goals Strengths Weaknesses Communication style Key experiences
Ultimately you want to be able to confidently sell yourself as a potential employee and clearly articulate what sets you apart from everyone else. The best way to do this is develop a succinct, interesting and memorable ‘Elevator Pitch’.
Remain persistent Even when incorporating all of the above into your job search, the market will always be competitive for students and it is imperative that you keep your chin up despite discouraging results. Some ways to maintain your focus include engaging in opportunities like case competitions, university societies, community service and sport. Although may not directly relate to your desired career path, they still provide an avenue to enhance your employability.
UNIT | 17
Remove clutter and work experiences unrelated to the role you want to pursue now. Give more space to detail about your current or recent jobs and less about the past.
Avoid using unprofessional sounding personal email addresses Be professional and discreet
Keep it under two pages
Avoid using your current work email address or phone number
Make sure you include specific skills that are relevant to the job youâ€™re applying for, even if that means adjusting your resume
Avoid cluttered and complicated layouts and tables
Format Use a logical format and wide margins, clean type and clear headings Selectively apply bold and italic typeface that help guide the readerâ€™s eye Use bullets to call attention to important points (i.e. accomplishments)
18 | UNIT
Clarity Use simple text in one modern, standard font that is easy to read, and that everyone can understand. As everything in your resume is about your experiences, avoid writing in first or third person. Avoid using unecessary jargon and verbosity
Specificity Focus on what you did in the job, NOT what your job was Avoid using the generic descriptions of the jobs you originally applied for or held Quantify your accomplishments Cater your resume to the industry
Cover letter tips Make it personal with your story: This is the hallmark of a memorable cover letter. Not only does it differentiate you from other applicants, but it also gives your application a tinge of authencity and some persona. How? Craft a story into your letter detailing the why and the how, stepping the reader through how you have come down your path, what makes you the person you are, and why you have decided on them as an employer.
Relate your relevant experience to the role: This is probably the most cliché tip you’re ever going to get, but it an essential one nonetheless. Always relate your prior experiences, whether it is in volunteer work, an internship, or even a part-time role that you’ve had to the actual role that you’re applying for. Be sure to clearly and concisely outline why having those past experiences make you a desirable applicant for the particular role that you’re applying for.
Keep it short and simple: First impressions matter! There is no going past this reality. So keep your cover letter visually appealing and easy on the eye. Now, by ‘visually appealing’ we don’t mean colour coding the document- you could if you like- but just make sure that you divide the points that you’re making into individual paragraphs. For instance, in the first paragraph start off with introducing yourself, in the second paragraph highlight your prior experiences, the third could be on why you’re applying for the role, and in the last one you can convey how much you really want it. All in all, keep it nice, tidy and visually simple.
Show you’ve done your research: This is extremely important. We can’t stress it enough. Do some research about the company and the role that you’re applying for. Look for unique characteristics and be sure to mention them in the cover letter to demonstrate that you’re genuinely interested in working in the company. For instance, a particular company might have generous study leave programs for employees. Mentioning things like these not only demonstrate your passion but also set you apart from the crowd and under a page.
UNIT | 19
Interview tips As an integral part of any job application process, you are bound to encounter an interview situation at some point or other in your career. Alongside assessment centres, interviews provide the employer with an evaluation of your communication skills, and an opportunity to delve deeper into what you have written on your resume. Below are a few tips as to how you can maximise your chances within an interview situation.
1. Do your research
2. Be marketable
First impressions count.
Perhaps one of the most important tips for interviews: make sure you know the nature of the company and what you are signing up for! For certain interviews, a degree of technical knowledge will be required. Ensure that you have read up on some of the skills that the job requires, and that you are up to date with current affairs and business news and trends. That being said, you will not be expected to know the answers to every single question. It is okay to say “I don’t know,” but it is always advisable to show your interviewer that you are willing to learn and even speculate as to what the correct answer may be. Remember, you are always selling yourself in an interview! Make it a point to tell and show your interviewer why it is they should be hiring you. Do you think you have great communication skills and the ability to perform in team situations? Make that obvious by providing anecdotal examples of where you have excelled in such situations. Better yet, show your interviewer evidence of your skills!
3. Strike a balance
Whilst it is important to sell your good qualities, it is important not to give off an arrogant, overconfident image either. Moreover, employers want to see you recognise your own weaknesses, as well as develop a plan of action to improve upon them. Not all people are perfect, and a degree of humility and honest self-reflection is an important demonstrator of someone who is willing to accept their shortcomings and constantly seek growth and development.
4. It’s ok to be nervous
Being nervous is normal! Anyone would be if placed in such a high-stress situation, with so much at stake. However, try not to let it get in the way of the interview. Fidgeting and constantly shifting eyes are a dead giveaway of someone who is both extremely nervous, and lacking in confidence. Plant your hands somewhere firmly, and ensure you maintain eye contact throughout (though excessive eye contact can come off as a little strange!).
5. Take your time
6. Smile and laugh
7. Stay engaged
20 | UNIT
In tandem with tip number 4, make sure to take your time during the interview. This can help with the nervousness and reduce the amount of stuttering and ‘um’-ing. If you are asked a question which you are unable to answer off the bat, it is perfectly fine to ask for the interviewers to give you a moment to think. Again, moderation is key! You shouldn’t be doing this after every single question, nor should you remain silent while pondering. Awkward silences are not fun for either party! Smiling and laughing is a great way to dispel the often exaggerated aura of formality in an interview. Your interviewers are human too, and a light-hearted comment may lead you to a lengthy conversation. This is also a great opportunity to show off your sense of humor, personality, and ability to communicate with others. Finally, make sure you remain engaged throughout the interview. Wandering eyes and asking interviewers to repeat questions are all signs that you are not interested in the job you have applied for, and is understandably a huge red flag against you! A great way to show your engagement is to flip the interview – that is, ask the interviewers questions about the job you have applied for. What other technical skills will you need? Where does your division fit into the greater company structure? Asking questions shows a keenness to learn, and genuine interest in the firm.
Tests / Assessment Centers Congratulations! Firstly, making it to the assessment center is a huge achievement so congratulations! You have made it through resume screening, numerous psychometric tests and phone or video interviews to be invited to the assessment center. You’ve arguably made it through the hardest part of recruiting where you’re evaluated as another set of skills and numbers on a page. This is a testament to your achievements and all round capacity to succeed in the position you have applied for. Keep in mind, you’ve been invited to the assessment centre because they want you. All that’s left for you to do is to confirm that choice.
Company and role research
Industry and technical knowledge
Preparation The assessment centre stage is used by companies to gain a personal insight into who you really are, your teamwork and interpersonal skills. In order to succeed at the assessment centre, it is vital that you cover at least three key areas: Researching the company and the role you have applied for is arguably the most important thing to prepare for. Being unprepared shows a lack of dedication and interest to the role. Furthermore, it benefits you as well - how do you know you’re interested in the job if you don’t know anything about it! An assessment center will of course involve interviews. Most assessment centers will involve more than one interview which are not always strictly one-on-one. To prepare, you should practise speaking and responding to certain behavioural questions (although try not to memorise any answers). Knowledge of the industry, economic news, or other technical skills (such as DCF modelling) are not always necessary for every role - but general awareness of the financial landscape is always appreciated.
What you will actually be doing: Every assessment center is different, however, most will combine a few key ingredients. To start with, you’ll likely receive some background presentations from the company and an overview of how the day will run. Keep in mind that you will be joined by 10-30 other candidates on the day so most activities will revolve around group activities. These may be: case studies, role plays, and problem solving games. In addition, you may have some solo activities, including tests (yes, written exams at a job interview!), interviews, and brainteasers.
Final advice: Be yourself: It sounds cheesy and unhelpful but there’s no need to pretend to be anyone else - just be your natural self. Be friendly: Try your best to get along with the other candidates and employees - they want to know whether they can spend long hours with you.
Don’t sabotage anyone: While the other candidates are technically competition, putting them down only makes you look bad. Enjoy it! You’ve made it this far so if nothing else, take the opportunity to meet new people, get a first hand look into the company, and eat some delicious food. UNIT | 21
Networking When in Rome, do as the Romans do: Though diverse, the industry of finance has its own culture, norms, and formalities that are important for you to acknowledge and respect if you wish explore its opportunities down the road. Simple things like understanding lingo and practicing etiquette may take you a long way.
Dress code: Clean, well-fitted clothing, and a hygenic presentation signals discipline and professionalism. It’s easier to trust a smile, suit and tie, than a dead pan hoodie and a pair of shorts. It may take some extra time and money, but you’ll be better off for the investment. Long lesson short, be easy on the eyes.
Quick fix to nervousness: Directors and executives may be immortals in your eyes, but they are humans. Being natural can be a fluid concept, but to break it down in this context, it means to remain calm and composed. A simple, ‘How are you going’ is all it takes to start a conversation, then let your curiousity drive it. Nervousness comes from focusing too much on yourself, so placing all your focus on the other person can get you out of your head, and out of your own way.
Engage, manners maketh man: Be humble, let them figure out what makes you brilliant rather than spewing your fiercely digested facts about recent market conditions. If you are truly interested about the industry, then you will no doubt have questions about it. Company representatives will feel appreciated when they can enlighten you, so don’t be afraid to ask. Equally as important as asking is sharing, whether that be an appropriately funny story, or some concern for the state of finance, open up to them, and they might just open their doors for you.
Follow up: If you made one good connection out of the hundred you spoke to at an event, try and follow up with them! Ask them to catch up for a coffee in the future, connect with them on LinkedIn if it’s appropriate, and if you’re applying for a job at their firm ask them for some more information on the position. A one-on-one personal connection is worth a lot more than vaguely knowing ten people you met once. Plus, it gives you the opportunity to ask questions that you might not be able to ask at a large event. If someone does meet with you for coffee, make sure to send them a thank you email afterwards (or it might be the last time they do meet with you). 22 | UNIT
The Chartered Financial Analysts Program is a 3-staged education curriculum which incorporates investment and portfolio management theory, ethical and professional standards. The knowledge acquired differs at each level, with the completion of all three tiers resulting in the award of the CFA Charter.
To earn the full Charter, you must first become a CFA candidate and enrol in the program. To be eligible for candidacy you must: •
• • •
Have a bachelor’s degree or be in the final year of a bachelor’s degree or have four years of professional work experience or have a combination of professional work and university experience that totals at least four years Be prepared to take the exam in English Have a valid international passport Meet the professional conduct admission criteria
Secondly, you must pass all three exams (Level I, Level II and Level III) which generally take place in June and December. This stage is the most arduous, with candidates spending an average 320 hours studying per exam and historically the pass rate is 40-55%. And thirdly, to become a regular Charterholder, you must acquire four years of professional work experience in investment decisionmaking before, during or after completion of the Program. Enrolment entails a one-off fee of US$450 and exam registration also entails a fee of US$650-US$1380 per attempt depending on lateness of registration. This exam fee covers the costs of curriculum materials and mock exams. Topic Focus:
Level I Investment Tools
Level II Asset Valuation
Level III Portfolio Management
Advanced Knowledge: The Program’s curriculum covers a wide range of financial theory and skills such as valuation of equity, fixed-income and derivative instruments, financial report analysis and ethical standards which are applicable at all stages of your career as well as in your personal finance management. Employer Recognition: Given the notorious difficulty of the CFA exams and with employment in the financial industry becoming increasingly competitive, becoming a Charterholder provides an opportunity to gain credibility amongst peers, employers and clients. Global Network: Becoming a Charterholder means joining an international community and a network of over 135,000 global charterholders with whom you can develop relationships, find mentors and discover career opportunities. Career Paths: The majority of CFA Charterholders enter the investing community, becoming either research analysts or portfolio managers. However, the breadth of knowledge acquired upon completion of the Program opens up a vast range of career opportunities including financial adviser, consultant, corporate finance analyst, risk manager and chief-level executive.
The Chartered Accountant Program is overseen by Chartered Accountants ANZ and is a five-module course encompassing taxation, audit and assurance, financial reporting, management accounting capped with three years of mentored practical experience. Upon completion candidates are awarded with the Graduate Diploma of Chartered Accounting and become full CA members.
First, enrol. This requires satisfaction of the following eligibility requirements:
Deep technical skill set: The rigorous academic training, coupled with extensive practical experience means that upon completion of the CA Program, you will be equipped with a skillset that will be highly valued and demanded by employers.
• A Chartered Accountants ANZ accredited degree which covers the prerequisite subjects or a non-accredited degree which has been assessed to be equivalent to at least an AU or NZ Bachelor degree. If you have not completed the prerequisite subjects, the CA Foundations program provides bridging courses Second, you must pass all four technical learning modules and the fifth capstone module. Modules can be carried out online and there are three studying terms per year. Third, and last requirement is three years of accounting employment with an Approved/Recognised Employer, totalling at least 17.5 hrs per week for 3 months or longer and under the guidance of a recognised mentor.
Global Mobility: The Chartered Accountant Organisation is a Global Accounting Alliance-recognised professional body and so you can be assured that a CA designation will be highly regarded in whatever location your career takes you. Expansive Network: As a Chartered Accountant, you join a 117,000-strong association through which you can stay aware of new industry insights, and develop relationships with industry leaders. UNIT | 23
Section 3: Our Sponsors
24 | UNIT
Sponsorship Overview Page Platinum Sponsor:
N.B. These sponsors are not representative of all UNITâ€™s sponsors, they are only representative of those in this guide.
UNIT | 25
Summer internship programs:
Citi is more than a global financial services company. • It’s an engine for enabling economic growth and progress. This is a place where the best come to get better. We’ve built a world-famous, trusted brand over 200 years across corporate, investment, private, commercial and consumer banking. • Join us and you’ll have the chance to get involved in progress in all its shapes and forms, right across the world. From the micro to the macro, from New Zealand to China, the work we do has a real positive impact.
Citi’s culture and values drive how we run our internship program – we don’t over hire interns and have a full-time spot for every deserving summer analyst. Focus on full-time success and teamwork. Competitive, but not cut-throat.
Over 600 Summer Analysts across over 20 programs globally
10-week paid internship
One-week of robust training to include technical and soft-skills training
At Citi, our people provide top-tier training for our • Senior exposure, mentorship, Lunch & Learns, graduates and interns. ensuring they have a strong Formal and Informal Networking Opportunities foundation on which they establish their career. Our collegiate culture, global network, and international office locations leaves open endless opportunities to • Rotations and Placements determined /by each line of business explore unique career paths. Working with us means exposure to high-profile business connections, multimillion dollar transaction deals and above all else, it Graduate analyst program: means making a difference and driving progress. Our Analysts are bright, accomplished and highly motivated people with outstanding communication What it takes: skills and a true passion for business. If you are in Our people at Citi are wholly committed to achieving your last year of undergraduate or Master’s degree the best possible outcome for out clients regardless study, consider our Full-Time Analyst Program. The combination of in-depth training, mentorship of how challenging the task may be. Passion is the delineating thread connecting all Citi associates and opportunities, and interaction with clients and senior management will help launch you on your career partners. Generally, this passion is directed towards path as an Analyst. financial markets and how it can be used to create optimal results for our clients. Our analysts and associates are enthusiastic, pro-active, team players with outstanding academic track records.
Career progression: Our career progression is accommodating and dynamic. Graduate and intern positions are open across all operating divisions including: global consumer banking, investment banking, markets and security services, treasury and trade solutions. Rotational programs offer global mobility, and opportunities to build expertise across various verticals are always open for your grasp.
26 | UNIT
Offices: Citigroup Centre, 2 Park Street, Sydney NSW 2000 120 Collins Street, Melbourne, VIC 3000
Departments: Markets & Securities Services Consumer Banking Treasury & Trade Solutions Capital Markets Origination Equity Research Corporate & Investment Banking
Key Application Dates: Summer internship program: Sydney deadline: 12:00 noon 31 July 2018 Melbourne deadline: 12:00 noon 17 July 2018
®2017 Citi, Citi and Arc Design and other marks used herein are service marks of Citigroup Inc. or its affiliates, used and registered throughout the world.
Last year, we helped more than 200 million customers all over the world make their own kind of progress.
What progress will you make?
We will give you access to valuable intelligence, decades of experience, and a wealth of perspectives on the future of the financial industry. So whether you will be advising on million-dollar mergers, scrutinizing banking practices, or opening a child’s very first account, you can make an impact and help make the right decisions at the right time. And it’s these decisions that help us all make progress – for our clients, for every employee, and for the business. Download the Citi on Campus app on the iTunes or Google Play store.
UNIT | 27
We are Australia’s leading provider of integrated financial services and one of the most recognised brands in the Australian financial industry. Being such a large and diverse organisation, we have a vast range of pathways for you to choose from, no matter what your degree discipline!
You’ll begin your CommBank career with an orientation conference in Sydney then spend time settling into your business area and meeting the business leaders and sponsors who’ll support you throughout your program. Throughout your program we provide loads of support to help you to maximize your experience and provide you with tailored development sessions.
Tower 1, 201 Sussex St, Sydney NSW 2000
Work perks: Participate in market-leading training to develop your technical and soft skills. This will help with the transition to full-time work from university and ensure you excel in your immediate and future roles. A very flexible, inclusive and collaborative environment. Join as part of a large cohort with lots of support and social opportunities
Internship Program: Our 10-week full time program gives you an intensive hands-on experience in a business area of interest to you. You will be an integral member of the team with the opportunity to be involved in a wide range of projects and deliverables. This will give you a taste of what it’s like to work with Australia’s best bank. You’ll be given full support and training to help you decide if CommBank is the right fit for you.
How to best prepare for the role:
CommBank is looking for Graduates and Summer Interns from a wide range of disciplines who are passionate about developing their skills, taking hold of opportunities and meeting the needs of our customers. We are looking for people that can encompass our values and vision.
Do your research to really understand the type of opportunities on offer across our different business areas and apply for the one what excites you most! We provide all training and support, so we don’t expect you to undertake any specific pre-work, but encourage you to stay up to date with what’s happening in the industry and business.
Career progression: Our Graduate Program is a challenging and rewarding way to kick-start a long-term career with us. You’ll start with us in February, but the length of your Program varies based on which business area you choose. You have lots of flexibility in your rotations to drive your own career pathway and we’ll off the support to help you get there.
28 | UNIT
Departments: Institutional Banking Enterprise Services (Tech) Retail Banking Private Banking Risk Management
Key Application Dates: Graduate Opportunities Applications open: 21/02/18 Applications close: 25/03/18 Internship Opportunities Applications open: Mid-year Exact dates TBA
Application Process: All applications to be submitted via our careers site: https://www.commbank. com.au/about-us/careers/ graduate-recruitmentprogram.html Our process will include a short series of online assessments, digital interview and attending an assessment centre in our Sydney office.
UNIT | 29
Global Investment Firm
BlackRock was founded by eight entrepreneurs who wanted to start a very different company. One that combined the best of a financial leader and a technology pioneer. Today, BlackRock is a global investment firm, trusted to manage more assets than any other. Our clients are companies, governments, foundations, and millions of individuals saving for retirement, their children’s educations, and a better life. BlackRock is passionate about providing products and services that can help them build a strong financial future. BlackRock employees from around the globe are students of the market and students of technology, respectfully anti-bureaucratic, and innovative at the core.
The graduate program is a two year journey designed to develop recent university graduates. Analysts begin their BlackRock careers on a two week orientation in New York City, followed by ongoing training and professional development in our Sydney and other BlackRock APAC offices throughout the program.
We have 70 offices in 30 locations worldwide. For more information, please visit https://www.blackrock.com/
Work perks: BlackRock rewards you for your contributions and gives you opportunities to share in the firm’s growth and success. BlackRock’s Pay for Performance philosophy connects individual, business and company results to employee compensation, which inludes a base salary plus a discretionary annual bonus. We’re also focused on helping employees manage their work and personal lives more easily. We’ve recently enhanced our time off policies globally and we now provide all employees with Flexible Time Off (FTO) giving people the flexibility to take as much paid time off as they need (with manager approval), while still fulfilling their work responsibilities and ensuring teammates cover for one another while they’re away.
What it takes: Our people are passionate about what they do and focused on performing at the highest levels. They are dedicated to putting the needs of clients first and to bringing new and innovative approaches to their work. They challenge themselves and others, and insist on the highest ethical standards.
Career progression: At BlackRock, you can have the career you want - challenging, rewarding and evolving. Whatever your interests, there is a place for you to grow here - across businesses, backgrounds and borders. 30 | UNIT
We have two programs available to Australian graduates: • Our Sydney program consists of four, six month rotations to gain a comprehensive understanding of all areas in the Australian business. • Our Aladdin Client Services (ACS) program. This program would be based out of Singapore, Tokyo or Sydney for two years in our ACS business. Our ACS team tackles the hardest, most sophisticated problems in FinTech. We utilize our indepth understanding of Aladdin, our clients’ businesses, and the investment management process to provide world-class customer service to our rapidly-growing, global client base. We all studied different things and bring unique skills and experiences to the table, but we all share a serious passion for solving tough problems and keeping our clients happy. If the program is overseas, at the conclusion you would have the opportunity to return to Sydney to work in the Australian business.
How to prepare for the role: We would recommend all candidates read the following Harvard Business Review articles on BlackRock • BlackRock: Diversity as a Driver for Success • Building a Game-Changing Talent Strategy • BlackRock Solutions • BlackRock: Integrating BGI • BlackRock: Acquire MLIM? Further information on our internship program will be released to all UNIT members later in 2018. The internships will take place in June/July 2018.
Departments: Advisory and client services Investments Relationship management and sales Technology
Key Application Dates: Applications open: Friday 2 March 2018 Applications close: Tuesday 3 April 2018
Application Process: Please submit your application via our website: https://careers.blackrock. com/campusrecruitment
Challenging, rewarding and evolving.
The career you want.
Join us online: careers.blackrock.com
ÂŠ2017 BlackRock, Inc. All Rights Reserved. BLACKROCK is a registered trademark of BlackRock, Inc. or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.
UNIT | 31
About us: Nomura is an Asia-headquartered financial services group with an integrated global network spanning over 30 countries. By connecting markets East & West, Nomura services the needs of individuals, institutions, corporates and governments through its four business divisions: Retail, Asset Management, Wholesale (Global Markets and Investment Banking), and Merchant Banking. Founded in 1925, the firm is built on a tradition of disciplined entrepreneurship, serving clients with creative solutions and considered thought leadership
Work perks: Working for our Australia office gives you the best of both worlds – global business exposure with the opportunity to work on both domestic and cross border transactions. Our flat organisational structure gives you high personal visibility and exposure to senior management. You get to work with highly experienced and supportive teams. You are given hands on experience from the get go and have the platform to assume significant responsibility early in one’s career. You have the opportunity to make a difference and drive change.
to have a successful career. You will have access to division-specific educational sessions specifically designed to aid your professional development. The program will also include 4 – 6 weeks of global training at one of our Regional Headquarters in your first year. Graduates joining the Global Markets team will have the opportunity to train with both the Trading and Sales desks. Graduates joining the Investment Banking team will start as a generalist, giving you the opportunity to work with all the sector teams (Natural Resources, Financial Institution Groups, General Sponsors, Retail & Healthcare, Debt Capital Markets & Leveraged Finance team).
Internship program: An internship with Nomura is your opportunity to see just what you could be part of. We aim to give our interns the same level of exposure as a first-year Analyst which means you’ll work as a full member of the team, participating in team meetings, potentially meeting clients, forming effective working relationships and showing a real commitment to our goals and values.
You will start with an initial orientation and training program to equip you with the fundamental skills What it takes: and toolkit needed to succeed. During the course of your internship you can expect to work closely Our goal is to attract and develop exceptionally talented people who share our passion for individual with a buddy who will show you the ropes of the business. This coupled with continual on-the-job excellence and our commitment to teamwork. You training, regular senior business presentations, social are an enthusiastic, self-starter, who is proactive, and networking opportunities, will allow you to get curious about financial markets and have a strong a feel for our culture. Internships are the perfect desire to work in the investment banking industry. Whilst your degree subject doesn’t matter, you must preparation for a subsequent full time role and we be numerate, have strong quantitative skills with an will extend full time offers to strong performers to return as a Graduate Analyst the following year. excellent academic track record. Challenging hours and demanding assignments are a constant reality in the investment banking field so we recruit graduates General tips: who will be able to withstand the rigours of a rapidly 1. Take the initiative to reach out to the Campus changing, demanding but ultimately rewarding Recruitment team campusrecruitingaej@nomura. environment. com . It’s never too early to start discussing your career aspirations and we are always interested in Career progression: meeting students. 2. Attend the UNIT Networking Events & Introduce Successfully completing a Summer Internship will yourself to our Business Reps. Early networking can see you return as a full time Graduate Analyst. At set you apart from the other applicants. Nomura we take your career seriously and we are 3. Attend our onsite events. You will have the committed to helping you develop your personal chance to meet the team and learn more about the and professional skills. We have past graduates company. advancing to Vice President and beyond, as well as 4. Before applying for a role, research our company. been given global opportunities to work with our Learn about our company http://www.nomura.com/ New York, Hong Kong, Japan and London offices. and our insights http://www.nomuraconnects.com/ You truly can establish a long term career with 5. Tailor your cover letter to Nomura. Be original. Nomura.
Graduate program: As a full time Graduate Analyst, you will receive all the dedicated training and support you will need
32 | UNIT
Offices: Local: Sydney, Australia Global: Hong Kong & Singapore
Departments: Global Markets Fixed Income - Sales & Trading - Investment Banking
Key Application Dates: Graduate Opportunities: - Applications open: March - Applications close: 12pm 10th April 2018 Internship Opportunities: - Applications open: May - Applications close: 12pm 31st July 2018
Application Process: To find out more and apply, visit our website; www. nomura.com/asia/careers/ To be eligible for either Australian program, you must be an Australian citizen or permanent resident.
UNIT | 33
Superannuation and Pension Fund
AustralianSuper is different to other financial institutions. Our sole purpose is to better the retirement outcomes of over 2.1. million Australians who are our members. We are committed to recruiting and developing a diverse workforce that share our values of Energy, Integrity, Generosity of Spirit and Excellent Outcomes.
Our graduate program is a two year rotation based program within the investment team. Graduates are exposed to four different asset class teams within the two years as well as receiving the benefits of a personalised training program, a mentor and a dedicated graduate program manager. All to make sure you get the most out of yourself as you start your investments career.
50 Lonsdale Street Melbourne, Vic 3000
Work perks: Being the largest Superannuation Fund in Australia gives those working in our investment team opportunities to be involved in projects and deals not available elsewhere in the market. Whether it’s the largest infrastructure deal in Australia, the in-house domestic or global equities team or working on macro-economics trends – whatever you are passionate about in the world of investing, opportunity awaits at AustralianSuper!
Skills required: People who work at AustralianSuper need to be driven by our Members First ethos. Helping everyday Australians retire well is important to us and it will need to be important to you too. A passion for investing is also essential. When you work with us you will be making recommendations and decisions about how we invest over $150B of our members’ money. That’s a lot of capital to allocate! We’d love to know your great ideas.
Career progression: Our interns and our graduates get exposure to different asset class teams from day one. This enables you to try out a variety of teams and working styles before you decide on where you would like to specialise. We have graduates, analysts, senior analysts and portfolio managers in each of our asset class teams. All of these opportunities are available to you at AustralianSuper. We also have personalised training programs and mentors to help you on your journey.
34 | UNIT
Internship Program: Interns joining our Internship program in the Investments team will: • Work on 2 real investment projects • Work closely with Senior Managers & analysts • Present their views and findings of their projects to members of the investment team • Have the opportunity to gain a permanent graduate position
Departments: Investment teams include: Equities Infrastructure Property Credit Fixed Income & Currency ESG Asset Allocation Research & Portfolio Construction
Key Application Dates: Applications open: 01/05/18 Applications close: 27/07/18
UNIT | 35
Asset management and finance, banking, advisory and risk and capital solutions
Macquarie is a diversified financial group providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities. As a graduate or intern at Macquarie, you’ll be part of a talented global team. Instinctively entrepreneurial. Ambitious in nature. Determined to succeed. Our programs can help you reach your potential and together we can create success for our clients, colleagues and communities. You’ll build your own future as you contribute to ours. We’re looking for students who bring something different; who can push boundaries, challenge processes and examine a problem from all angles.
We offer summer internships to students in their penultimate year of study. The program runs for 10 to 12 weeks from November. A summer internship offers you invaluable hands-on experience and can set you up for a successful career once you complete your studies. Working alongside leading industry professionals, you will receive a structured induction, on-the-job training and networking opportunities. We also offer a three week winter development program in Macquarie Capital for science, technology, engineering and maths students in their penultimate year of study.
• Sydney • Melbourne • Brisbane • Perth • Auckland
Join the Macquarie graduate program and become an integral member of the team from day one. Your career development starts with a tailored orientation Macquarie opens up a wealth of opportunities and business group specific workshops. You will and offers a wide range of benefits to employees then embark on a structured 12-24 month program ranging from a vast health and wellness package, with on-the-job training, access to a comprehensive retail benefits and offers and financial and insurance range of external and internal courses and the advice. opportunity to build your business network. With offices in 27 countries, Macquarie’s global You’ll sit side-by-side with business leaders and have footprint means there are also opportunities for staff the opportunity to work on projects from day one. to support our businesses around the world. Our employees have access to Macquarie Plus, our Skills required: holistic wellbeing program, designed to empower you to become your best possible self – both at At Macquarie, we value the diversity of thought work and at home. from people with different backgrounds. We’re Macquarie Plus provides access to a range of always looking for people who share our drive for benefits and initiatives designed to support you in innovation, ideas and excellence, no matter what optimising your physical, psychological and financial their university degree is. wellbeing, and encourage you to make the most of the rich culture and sense of community you’ll find here at Macquarie.
The Macquarie Group Foundation: The Macquarie Group Foundation is the philanthropic arm of Macquarie Group. It helps to strengthen the communities Macquarie staff live and work in by facilitating thousands of hours of staff volunteering and pro bono programs each year with community organisations around the world. The Macquarie Group Foundation have donated more than $A300 million to over 2,500 organisations globally since 1985.
36 | UNIT
Departments: • Banking and Financial Services • Corporate and Asset Finance • Corporate Operations Group • Financial Management Group • Macquarie Asset Management • Macquarie Capital • Risk Management Group • Commodities and Global Markets
Key Application Dates: Winter Development Program Opens: March Close: April Summer Internship Program Opens: May Close: July Graduate Program Opens: March Close: April
Application Process: Visit macquarie.com/graduates and use our Help Me Choose Tool to find which business group is right for you. Application opening and closing dates are listed on our websites. Apply by submitting your resume, cover letter and academic transcripts during these dates.
Where will a career at Macquarie take you? Be part of a talented global team. Instinctively entrepreneurial. Ambitious in nature. Determined toÂ succeed.
UNIT | 37
See where your background can take you: www.macquarie.com/helpmechoose
Deustche Bank is Germany’s leading bank with strong positions in Europe and significant presence in the Americas and Asia Pacific. We’re driving growth through our strong client franchise, investing heavily in digital technologies, prioritising long-term success over short-term gains, and serving society wiht ambition and integrity. We serve our client’s real economic needs in commercial and investment banking, retail banking and transaction banking, and provide ground-breaking products and services in asset and wealth management. That means a career packed with opportunities to grow and chance to shape the future of our clients.
Join us, and not only will you have an impact within the Bank and beyond, you’ll also be given the support, training and voice you need to build a rewarding global career where anything is possible.
• Sydney • Melbourne • Perth
Opportunities: There’s a lot to look forward to at Deutsche Bank. Wherever your interests lie, you’ll find a role here that suits you. We’re looking for people who can change an industry and if you want to be part of the transformation, we’ll give you the knowledge, skills and opportunities you need to choose your own path.
Internship Programme: The Deutsche Bank’s Internship Programme is recognised as one of the best in the business. And we’re searching for the best and brightest penultimate-year students to join our team.
If you are a final year student with the passion, intellect and fresh thinking to deliver to our clients, we invite you to apply for one of our graduate programme opportunities in the following business divisions in Australia: Sydney and Melbourne - Corporate Finance Global Markets Melbourne - Corporate Finance
Aspiring Talent Programme: The feeling that comes with discovering a new opportunity is exciting – register for our Aspiring Talent Programme and see for yourself. Through 5 introductory sessions to financial services, you’ll pick up crucial career skills, like teamwork and networking, as well as take part in real-life job shadowing. It’s been designed to give you a real idea of where you could fit in to our world – and the kind of impact you could have on our evolving global business. If you’re a first year on a three-year degree course, or a second year on a four-year degree course, it could be an invaluable first step in your career journey.
The Deutsche Bank’s Aspiring Talent Programme is recognised as one of the best in the business. And If you are a penultimate-year student with the we’re searching for the best and brightest female passion, intellect and fresh thinking to deliver to students to join our team. our clients, we invite you to apply for one of our internship programme opportunities in the following business divisions in Australia: Corporate Finance and Global Markets (Sydney) Corporate Finance (Melbourne)
38 | UNIT
Departments: • Mergers & Acquisitions • Equitiy Capital Markets • Debt Capital Markets • Leveraged Debt Capital Markets • Financing and Solutions Group • Risk Management • Asset Management
Key Application Dates: Internship Programme: Applications close Midday, Tuesday 17th July 2018 (Melbourne) Applications close Midday, Tuesday 31st July 2018 (Sydney) Graduate Programme: Applications close Midday Tuesday, 10 April 2018. Aspiring Talent Programme: Applications close Midday, Thursday 5th April 2018.
UNIT UNIT | 39
Global Quantitative Trading Firm
Assistant trader program:
SIG is one of the most successful privately held financial firms in the world. With offices around the globe, we trade essentially all listed financial products and asset classes. Our world class education program improves analytical decision making, game theory, and quantitative modelling skills. Building virtually all of our trading technology from scratch, we are leaders and innovators in high performance, low latency trading.
The Assistant Trader program involves working in a collaborative and collegial environment while learning to make positive expectancy decisions in financial markets. You spend your first six months in Sydney learning decision science skills, quantitative concepts, and understanding Asian markets. You then head off to the global HQ near Philadelphia, where you live (living expenses paid for by SIG) for 9-12 months and participate in an education program run by one of our founders, along with three senior traders. You get real-world experience working within a trading team, classroom learning, and also engage in ‘mock trading’ which teaches how to make trading decisions by simulating the trading floor of an open-outcry exchange.
Level 48, Tower One International Towers 100 Barangaroo Ave Barangaroo NSW 2000
The Graduate Developer program involves mentoring by some of the best technologists in the world. You’ll develop and build cuttingedge trading systems and infrastructure. Throughout your first year, we will introduce you to our technology environment and the specific technologies you will use at SIG. No matter what team you are on at SIG, getting a “big picture” perspective of the importance of SIG’s technology.
Work perks: At SIG, we host regular events for employees, including our annual on-site poker event (and weekly social games), regular sporting events and nights out, such as Night at the Cricket, have an 80 seater cafeteria overlooking Sydney Harbour, fully stocked kitchen, with breakfast, lunch and snacks provided, and a relaxed dress code (short and t-shirts every day).
Skills required: To apply for SIG’s graduate programs, you’ll need a STEM or Actuarial Studies background with at least a distinction average, as well as strong analytical and maths skills and an interest in financial markets and/or technology. To be considered for SIG’s quantitative research team, you will need a PhD in a STEM, Actuarial Studies or Quant Finance.
Career progression: SIG values education and encourages continuous learning throughout your career. For Assistant Traders, the career progression is to go from assistant trader to trader to desk lead. Your level of accountability grows with your demonstrated ability to apply strong quantitative analytical skills and manage risk. Our technologists work on real time systems with petabytes of data on a daily basis. As you grow in your expertise, you will have the opportunity to work on a variety projects at the cutting edge of technology. Currently we are working on building the successor to the best options trading system in the world.
40 | UNIT
Internship program: Assistant Trader: When preparing for your Assistant Trader interview at SIG, we recommend you dust off your probability and logic textbooks. We also love books like Predictably Irrational and The Theory of Poker, so if you have some spare time, they’re great books to read. Graduate Developer: We want to see your logic and programming ability when you interview at SIG, so start reviewing your object oriented programming theory, and take some online courses with Pluralsight. Our developers use Pluralsight for learning and absolutely love the content. Quantitative Research: If you’re preparing for a quantitative research role at SIG, you want to start reviewing math and statistics - review your linear algebra, probability and statistics, but don’t just think inside the box. We love to see people who can think about creative approaches to complex problems.
Departments: Trading Software Development Quantitative Research
Key Application Dates: Graduate Applications Close: 30th April 2018
Please visit www.sig.com/ careers to apply now Assistant Trader Program: Expect to do two phone interviews followed by an onsite, face-to-face interview day, and expect to be quizzed on game theory, logic, mathematics, probability and statistics. Graduate Developer: Expect to undergo two phone interviews and technical testing, followed by an onsite, face-to-face interview day, where you will be asked about various programming fundamentals. Quantitative Research: Expect to undergo three phone interviews, coupled with a data exercise and an onsite, face-to-face interview day, where you will discuss your experience in quant research, technology, and your interest in financial markets
UNIT | 41
Global Association of Investment Professionals
CFA Exam Centers:
CFA Institute is a global association of investment professionals that sets the standard for excellence in the industry. CFA Society Sydney is a member society of CFA Institute. CFAS is a memberfocused organisation, run by a group of dedicated volunteers elected by the members. The society is an association of local investment professionals across different industries.
The CFA Institute Research Challenge is an annual, global competition that provides university students with hands-on mentoring and intensive training in financial analysis.
CFA program exams are offered in over 170 cities in June and over 70 cities in December.
What we do: CFA Society Sydney is ultimately the conduit between local investment industry and CFA Institute. We manage the relationships between different stakeholders such as universities and regulatory bodies. We promote continuing education by organising educational seminar. We are in charge or prep course that assist candidates in study for the CFA exam. Last but not least, we endeavour to strengthen relationship within the investment management community by holding social events.
Each Research Challenge season leverages the efforts of over 140 CFA member societies, 3,500 member volunteers, and more than 5,000 students from over 1,000 universities. Local competitions (organized by societies) lead up to regional finals; regional champions then convene for the global final.
CFA Scholarships: Program scholarships contribute to our mission of promoting the highest standards of ethics, education, and professional excellence. The CFA Program Access Scholarship is a needsbased opportunity for those unable to afford the full price of the enrollment and registration fees. The online application is available from 1 March â€“ 15 September, for exams offered the following calendar year.
On-campus Seminars: CFA Society Sydney works in conjunction with various student societies (e.g. UNIT) to provide a glance to the investment management industry.
42 | UNIT
Register here: www.cfainstitute.org
UNIT | 43
Proprietary Trading Firm
Founded in 2004, with offices in Amsterdam, Hong Kong, Singapore, New York and Cluj, Flow Traders is a proprietary trading firm and one of the world’s largest liquidity providers in Exchange Traded Funds (ETF’s). We maintain a continuous market presence, trading in multiple asset classes around the world. Our proprietary software and sophisticated infrastructure give our people the power to respond instantly at any time to complex, changing environments. We believe in the power of flow. That’s why we are a lean organization with a non-hierarchical approach to stimulate innovation and achievement.
As a Junior Trader with Flow Traders you will follow an initial 6 months intensive in-house training program in ourHeadquarters in Amsterdam, the Netherlands, covering all intricate details of our trading processes. Upon successful completion, you will start in our Singapore office and begin to manage a desk together with a senior trader. Gradually you will take on more responsibilities, start to formulate strategies and begin trading/ monitoring markets at your own desk focusing on a wide range of financial products.
Singapore: 8 Marina View # 39-03 Asia Square Tower 1, Singapore 0189
Students must have a keen sense of the financial markets and hence familiarise themselves with trading terms and current events in the industry. Students can refer to apps and portals such as Financial Times, Bloomberg or Wallstreet Journal amongst others.
Flow Traders offers hands-on training in Amsterdam (housing and flights provided) and a steep learning curve within the most dynamic of environments, providing you exposure to a broad market scope of different asset classes and instruments. Apart from a competitive salary, we provide free breakfast and lunch, organize company trips, support your gym membership and offer a discounted health insurance scheme. On top of that we reserve a large percentage of our business results in our bonus pool and provide performance based rewards from day 1.
Skills required: • Degree in Finance, Economics or related and a demonstrable interest in Trading; • Understanding of Financial Products; • Knowledge of Excel and affinity with development languages; • Innovative & creative high potential with excellent mental arithmetic abilities; • Ability to reason logically and deliver under pressure; • Combine a distinct ability to spot arising opportunities and the assertiveness to seize them; • Fluent in English communication skills; • Ambitious, assertive, outgoing and an entrepreneurial mind-set; • Quick response time to any issues that affect mission critical trading decisions.
44 | UNIT
How to best prepare for the role:
As our 6 months training program provides students with the required skill set - we mainly look for the curiosity and passion for trading more than anything else.
Hong Kong: Room 2802 Hysan Place, 500 Hennesy Road, Causeway Bay Hong Kong
Key Application Dates: Open all year around
Application Process: Interested candidates, please upload your resume and motivation letter via https://www.flowtraders. com/careers/jobs/trading/ singapore/junior-trader
UNIT | 45
Founded in 1999, InvestSMART Group Limited (ASX:INV) brings together three leading companies to give members actionable investment tools, wealth advice and independent ASX-listed stock research: InvestSMART, Intelligent Investor, and Eureka Report. We believe everyone should have the confidence to control their financial future and it shouldn’t be hard or expensive to do so.
On completion of your internship, you can apply for our graduate programme in one of our business streams where you will have multiple team rotations throughout the department to enable your development. You’ll also have the opportunity to expand your network and gain a broader understanding of the business area. In addition to a structured development programme in a highly supportive team environment, you will gain valuable skills and experience on which to build your future career.
Work environment: We’re a constantly growing company with friendly people, good work-life balance, and a fun, collaborative workplace. There are regular team drinks and company events, and you get to develop several internal and external relationships, which can provide you with social networking opportunities.
Skills required: We have several different departments, which require different skill sets and experiences. Overall, you need a passion for finance, investing, and technology, with excellent written and verbal communication and presentation skills. Excellent attention to detail, being organised, and being adaptable to suit our continuously evolving brand is essential.
Internship program: Working at InvestSMART would provide you with invaluable experiences, and as a constantly evolving brand, there are plenty of opportunities that can be taken. A career at InvestSMART can offer differing options depending on the department, and a quick career progression is available.
Offices: L10, 255 George Street Sydney NSW 2000 Australia
Departments: Investments – Fixed Income, Alternatives, Equities Distribution – Client Services, Business Development, Marketing, Product Business Management includes Finance, Business Systems, Performance, Human Resources, Compliance, IT, Legal, and Investment Operations divisions
Key Application Dates: TBA
46 | UNIT
UNIT | 47
Proprietary Trading Firm
Propex Derivatives is a renowned and wellestablished proprietary trading firm with offices in Sydney, the Gold Coast and Singapore. At Propex, we specialise in providing capital for established traders as well as training and funding junior traders. With a supportive culture and successful track record of growth, today we focus on futures, equities, foreign exchange and commodities.
Propex’s training program has been running for many years and is the perfect avenue for novice traders looking to take their trading to the next level. If you’re interested in potentially become a full time professional trader, this program is ideal for you. We run the program approximately every 8 weeks and each one runs for 4 weeks initially. Successful candidates will then be invited for an interview to discuss the requirements to progress to the next stage of becoming a professional trader at Propex.
Work environment: We have modern offices in the Sydney CBD close to all transport lines. Importantly, we have the fastest access to the major futures exchanges. We constantly update our trading infrastructure and systems to provide our traders with all the technology they need. Being a large group of traders, we offer knowledge and support to junior traders.
Skills required: You need to be truly passionate about financial markets. With this career choice you need to learn many skills that only comes with a lot of hard work and experience. It takes time to gain the knowledge required to become a successful professional trader. You will need to demonstrate that you have a lot of resilience which is required when you face the inevitable challenges that trading involves. We recommend students to be proficient at some level in of the following areas: economics, mathematics, programming and financial products.
How to qualify for the training program: We require candidates to demonstrate some level of trading experience. Trading regularly on a Demo account is useful to gain a good understanding of the financial markets. Read a few books, focus on topics such as the psychology of trading, economic or macro fundamentals and day trading. Please see our website for more details about Proprietary Trading. Useful Links: Trading- Futures exchanges: https://institute.cmegroup.com/?redirect=/ education/getting-started.html http://www.asx.com.au/products/interest-ratederivatives.htm News: www.bloomberg.com www.reuters.com www.businessinsider.com www.forexfactory.com Internet: Follow on Twitter – ASX, CNBC’s fast money, Peter Switzer, ANZ Research, Peter Martin, Atlanta Fed, Reuters Business, RANsqwark, Westpac economics, Financial Review, RBA, Markit Economics, CME Group, Bloomberg Markets, zerohedge, Macro Business and many others you find interesting
48 | UNIT
Offices: Sydney Gold Coast Singapore See website for more detail
Key Application Dates: Futures trading program every 2 – 3 months Experienced apply at any time
Application Process: Online : Application, Online Program, Interview, In house role Inhouse: Application, interview, In house training, Interview round 2, In house role
Aberdeen Standard Investments Global Asset Manager
Aberdeen Standard Investments is a leading global asset manager dedicated to creating long-term value for our clients. We offer a comprehensive range of asset classes from developed and emerging market equities and fixed income, to multi-asset, real estate, alternatives and private markets.
On completion of your internship, you can apply for our graduate programme in one of our business streams where you will have multiple team rotations throughout the department to enable your development. You’ll also have the opportunity to expand your network and gain a broader understanding of the business area. In addition to a structured development programme in a highly supportive team environment, you will gain valuable skills and experience on which to build your future career.
We employ over 4,500 professionals in 50 offices around the world, giving us the resources to transform new investment ideas into practical investment products and the scale to deliver real value for money to investors. We conduct our own primary research, focusing on the fundamentals of Internship program: any prospective investment, to build high-conviction, long-term investment portfolios. The investment Our internship programme acts as a springboard needs of our clients drive everything we do. to our graduate programme, with most Aberdeen graduates completing an internship before applying Work environment: to join our graduate scheme. Our internship programme gives you a valuable opportunity to Our Australian office offers a small, team-focused learn about our business, our people and our and friendly environment. We have a collaborative culture. You’ll have exposure to real business culture focused on quality, ambition, teamwork, situations, with real responsibility – allowing you to integrity and challenge. Our people are our most make informed decisions on your future career, while important asset. We are social and encourage our having the chance to show us what you can do. people to be involved in regular events including lunch and learns, our social, charity and diversity Interns are offered a realistic preview into jobs in committees and innovation initiatives. Other benefits the asset management industry and hands-on include casual Fridays, regular social gatherings, bi- experience performing real work. This allows you to weekly fruit deliveries and a weekly group personal develop your practical and professional skills while training session. gaining an excellent insight into the business.
Offices: L10, 255 George Street Sydney NSW 2000 Australia
Departments: Investments – Fixed Income, Alternatives, Equities Distribution – Client Services, Business Development, Marketing, Product Business Management Finance, Business Systems, Performance, Human Resources, Compliance, IT, Legal, and Investment Operations divisions
Key Application Dates: Please refer to our website for updated information
Throughout the experience, each intern has the opportunity to work one-on-one with our team members on projects and daily transactions, At Aberdeen Standard Investments we are looking while gaining exposure to both the strategic and for people who are curious, bright, articulate and operational aspects of our business. In previous hard working to succeed across all areas of our years our interns have added value through work on business. Whether you are looking for a career in assignments including: Investments, Distribution, Product or Marketing, • Analysing financial and operating information Operations or Risk, we can offer experience in a • Attending client meetings and company visits with variety of disciplines. company leaders • Performing statistical analysis and financial The size of our operation, both locally and modelling internationally, has increased dramatically over the years, and through multiple acquisitions and organic • Conducting research for our social media strategy • Undertaking competitor benchmarking growth, our strong culture has prevailed. We are committed to recruiting and retaining talented and motivated individuals who put clients at the heart of our business. Our investment philosophy and process are founded on high quality teams of people, dedicated to delivering consistent service to our customers
Section 4: State of Finance Section 4 Cover Art (Articles)
50 | UNIT
Technological Disruptions Innovation & Finance We live in an era where change is at the forefront of almost every facet of our lives; whether it is the way we live, the way we interact or the way we work. Technology is at forefront of this change. It is allowing us to reimagine how we do things in manner that drives efficiency and optimum performance. Technology has been influencing the realm of finance for a considerable period of time. Long gone are the days where the brokerage houses and stock exchanges were full of telephone operators- placing a trade today is merely a matter of a click. But much more profound things are happening in finance where tools such as artificial intelligence, big data and algorithms are pushing boundaries and redefining how certain operations are conducted.
AI Of all the prospects that come with pioneering technology, artificial intelligence is without a doubt one of the most appealing. There is huge potential for financial institutions to cut costs and drive efficiency, with UBS’ strategists seeing a 3.4% revenue uplift coupled with cost savings of 3.9% over the next three years courtesy of incorporating artificial intelligence into operations.
Effects One of areas of finance most affected by artificial intelligence is investment advisory. We have seen the advent of amazing applications such as ‘Cleo’, which is an intelligent assistant that helps everyday users manage their finances and provides them with prudent investment advice according to their requirements. Similar applications include UBS’s ‘RoboAdvisor’, which is tailored towards a more sophisticated user base. Artificial intelligence is also taking its toll on money management, where self-learning machines are starting to take the front seat in investment decision-making. BI suggests that by 2020 around $1 trillion will be managed by ‘robo-advisors’ globally. JP Morgan’s latest LOXM platform is a pioneering example of this. Whether it is investment advice or money management, the trend, however, is clear. More and more institutions are starting to recognise the potential of artificial intelligence and have started pouring money into its development; UBS has spent in excess of $11 billion on artificial intelligence since 2010. Artificial intelligence certainly seems to be an exciting prospect in Fintech at this stage.
Big Data They say ‘knowledge is power’, we can modify this adage in the context of machines by saying that ‘Data is power’. With increasing automation, more and more data is being produced than ever before. Every google search, every click on facebook is being recorded and stored away. Access to data enables analysis of it, and derivation of valuable insights. This has huge potential in finance. Institutions are increasingly looking to formulate algorithms that have the ability to filter through large amounts of data. We have seen this take off in the realm of algorithmic trading where algorithms are fed with live streams of data to make optimal trading decisions. Another reason why machine analysis is preferred is because it eliminates the human vulnerability of incorporating emotions into decision-making. Pure, objective decisions based entirely on facts, enabled by machines are much more desirable. An example of how big data is being leveraged in finance to attain a competitive edge is that of the ‘Ant Financial’, Ali Baba’s digital payments arm. It is estimated that Ant Financial has a client base of more than 500 million , which is almost 10 times the level of the world’s biggest banks. This enables Ant to make better credit decisions using ‘huge amounts’ of data.
Algorithms Algorithms are not, by any means, alien to finance. Today they are being utilized in almost every type of financial institution from brokerages to investment banks to power decision making and cut costs. Algorithmic trading has is credited for eliminating arbitrage opportunities in financial markets, thereby making them more efficient than ever before. The ability of algorithms to process and filter large amounts of data live make them an incredible tool to be used in forecasting financial markets. Algorithms are used in valuation, forecasting (predictive models), trading and other generic types of decision-making in finance. Recently we have seen algorithms move into areas such as compliance, regulation and even fraud prevention. The applications are seemingly endless. These are just a handful of examples of how technology and finance are intermingling to power innovation - a brief glimpse into the next steps of finance. UNIT | 51
MiFID II What is MiFID II? Taking effect on January 3rd, MFID II is a law which was designed to protect investors and restore the trust in the financial system that was lost during the GFC. Despite only currently affecting the EU, the global presence of many of the investment banks and fund managers makes it likely that these regulatory changes will have an impact on the local Australian market.
Impact on Equity Research The area which MiFID is expected to have the largest impact is equity research and to understand why it is useful to understand the traditional broking model. Previously, investment banks and brokers provided equity research to fund managers essentially free of charge with the expectation that by providing these investment ideas, brokers would be compensated by the commission on the execution of the fund managerâ€™s trades. Under this model, commissions flowed to banks that Research Report had the top analysts rather than those with the most competitive prices. Following MiFID II, investment banks will need to charge separately for research and brokerage services
Investment Bank Sales & Trading
Asset Manager Trade Instructions
Now what does that mean to you as an aspiring research analyst? Well, it is widely expected that fund managers will need to be more selective with the research they are willing to pay for. And as a result, MiFID II should benefit top-rated equity research analysts whose access banks can charge a premium on.
On the other hand, the industry is likely to shrink as analysts with a poor record are let go. In fact, McKinsey & Co. expects investment research to cut $1.2b in research spending.
Howevever, surveys conducted by Bloomberg indicate that headhunters expect banks to give their analysts one to two quarters to prove their ability to bring in revenue. Moreover, profitable research teams may decide to leave the investment bank structure and set up their own independent research shops, increasing the fragmentation of this industry. Despite the uncertain future of the equity research departments of investment banks, there is some potential upside as investment managers are expected to beef up their internal research departments. For example, Vanguard, one of the worldâ€™s largest asset managers, has indicated an increased reliance on internal analysis.
Impact on Sales & Trading Despite the global markets divisions of investment banks having already been subjected to strict regulation following the GFC, primarily Basel III, MiFID II places a further compliance burden on these segments.
Measures enacted include:
Bond traders must now report deals within 15min of the transaction
Traders must now report and time-stamp trades almost immediately Brokers and investment managers must record conversations relating to a transaction
This complicated mess of new regulation means that aspiring traders must have an intimate understanding of the new requirements and structures and be able to communicate and educate buy-side managers. The most desirable traders will be those that can provide advisory services as well as liquidity. On the downside, there is a chance that the increased compliance expense associated with operating trading desk makes them uneconomical and thus further consolidation is expected in the sector should be expected. 52 | UNIT
Rise of passive investing A Turning Tide The active vs passive investing story is not a new nor is it unknown; as these days it is unusual to go a few days without seeing a hedge fund manager vehemently warning of the dangers of ‘index-tracking’ or ‘lazy investing’ in the local papers. But it is hard to ignore the numbers with Bloomberg finding that more than a third of US assets now live in passive funds, up from a fifth a decade ago.
Reasons for change Poor relative performance of active management
Passive Investing is lower in cost
Development of Innovative ETFs (‘Smart Beta’)
Impact on employment prosects Now why does this matter for you, a student about to enter the financial services industry? Naturally, the active management industry has been forced to become more efficient and cost effective in order to survive the ongoing assault on management fees and this could make finding employment in the sector increasingly challenging. On the other hand, the asset management industry as a whole faces significant tailwinds which could boost your employment prospects.
Firstly, Australia’s savings pool continues to grow at a blistering pace with superannuation assets now at a record high of $2.5 trillion. However, the Australian population also continues to age, and so the distribution phase of their pension/super funds becomes increasingly important. The management of this pension payout process is expected to be an ongoing struggle for the industry and presents strong employment prospects for those willing to tackle the issue.
Record low interest rates and bubbly equity markets have forced investors into alternative asset classes such as infrastructure and private equity to achieve sufficient risk-adjusted rates of return. Given the difficulty in replicating an index of these assets due to their illiquidity and delayed pricing, ETFs have not yet taken a hold of this segment. Furthermore, the deal-based nature of work in private equity and infrastructure funds requires significant levels of human intervention and negotiationn
Quant Funds also represent a significant growth opportunity, with Morgan Stanley finding that although they currently only represent 7% of the market’s assets under management, this is growing at a 17% CAGR. These active funds use mathematical models to pick stocks and with huge data sets becoming more available than ever, demand for roles like quantitative analysts can only grow. UNIT | 53
Women In Finance A changing environment Recently, the finance industry has been swept with tides of change, as businesses and financial institutions recognise the importance of gender diversity. Impressive statistics paint images of progress, with 83% of BFGEI (Bloomberg Fixed Gender-Equality Index) firms now sponsoring financial education programs for women, and female representation on financial boards growing to 20% in 2016.
A drop in the Ocean However, the reality is not so rosy. The great financial sea of opportunity remains dominated by men. Only 5% of ASX200 companies have female CEOs, and nine ASX200 boards remain all-male. Men are still promoted at materially higher rates, fuelling perceptions of a “glass ceiling” for women. Companies are plagued by poor female retention rates and a drought of talented women.
Turning a ripple into a splash In Australia and around the world, firms are rising to the occasion, introducing flexible hours, parental leave measures and mentorship schemes to support female employees. Resistance to reforms is evaporating in the face of Key Performance Indicators (KPIs) and other financial incentives introduced to increase diversity. The Australian Council of Superannuation Investors has also vowed to vote against the re-election of incumbent directors on all-male boards, while advocacy organisations such as Women in Finance and Banking, and Male Champions of Change have committed to the “significant and sustainable increase in the representation of women in leadership”.
Making waves Improving female representation is crucial to broadening cognitive and experiential diversity, widely acknowledged to enhance decision making within firms. Female empowerment in financial services therefore has the potential to make waves in financial services by driving diversity of thought, which ultimately breeds innovation. 1
Women bring unique skills, which have tangible effects: Neuroscience research has found that women are more likely to possess traits such as empathy, trust-building and listening to others -- essential skills in the finance industry.
Female representation is improving: Women now make up 26% of ASX200 directors, up from 8% a decade ago, and the Australian Institute of Company Directors has set a target for 30% female directors by the end of this year.
Financial institutions have thrived under the guidance of women: Under Shemara Wikramanayake’s leadership, Macquarie Asset Management has become Macquarie’s fastest growing and most successful operation. In a male-dominated environment, Wikramanayake’s “willingness to develop, grow and challenge herself” has ultimately triumphed over any underlying discrimination, cementing her reputation as one of the most successful executives in Australia. As one story among many, Wikramanayake’s narrative serves as a reminder that ambition, determination and passion will eventually prevail, illuminating the path for other women to follow.
Very often as a little girl, then as a young woman, I have suffered my lot of discrimination. I was brought up with brothers; I grew up in a boys’ world. You have to elbow your way in. Every day, you have to prove yourself and convince - move forward and challenge yourself. And doubt all the time.
54 | UNIT
It’s a question of not so much pushing the boys out of the picture, but making the whole frame bigger so that both men and women access the labor market, contribute to the economy, generate growth, have jobs, and so on. Christine Lagarde, Managing Director of the IMF
Section 5: Subject Selection
55 UNIT |55
USYD Subject Selection Guide: At USYD, the finance major falls under a bachelor of commerce degree. After completing the requisite and core 2000 level units, students are allowed to begin studying finance elective subjects. Certain finance electives are geared towards specific financial services. To the right are financial sectors and the electives that will best prepare you for those sectors. Finance is a broad discipline, and its best to try a bit of everything to see what you are interested in. Note, you may choose to do more than 2 electives if you have enough credits remaining
Requisites: BUSS1020 Quantitative Business Analysis BUSS1040 Microeconomics
Investment Banking & Advisory: FINC3015 Valuations: Case Study Approach FINC3013 Mergers and Acquisitions FINC3022 Alternative Investments
Investment Management: FINC3020 Financial Risk Management FINC3021 Finance Theory FINC3301 Applied Portfolio Management A FINC3302 Applied Portfolio Management B
Markets: FINC3014 Trading and Dealing FINC3019 Fixed Income Securities FINC3012 Derivatives FINC3023 Behavioural Finance
Core 2000 level units: FINC2011 Corporate Finance 1 FINC2012 Corporate Finance 2
Core 3000 level units: FINC3017 Investments & Portfolio Management FINC3600 Finance in Practice
BANK3011 Bank Financial Management FINC3011 International Financial Management FINC3025 Real Estate Finance
Sample Finance Major Roadmap (Geared towards investment banking) Requisite Subjects 1
FINC 2012 FINC 3014 FINC 3017
56 | UNIT
FINC 3015 FINC 3022
FINC 3013 FINC 3600
UNSW Subject Selection Guide: At UNSW, students studying a Bachelor of Commerce degree can opt to major in Finance which consists of 48 units of credit. Meanwhile, a minor in Finance consists of 30 units of credits. There are four compulsory courses and various elective courses focused on various topics including Banking, Corporate Finance, Funds Management and International Finance. These guide explores some of the most popular courses.
Compulsory: FINS1612 Capital Markets and Institutions Provides an overview of the functions of financial institutions and financial markets as well as provide an understanding about key financial terminology
Investment Banking & Advisory: FINS3625 Applied Corporate Finance Builds on FINS1613 and provides a more in-depth understanding of corporate finance FINS3630 Banking Financial Management Focuses on the theory of banking from a financial management perspective FINS3623 Venture Capital Introduces the characteristics of venture capital and private equity investments
FINS1613 Business Finance Introduction to quantitative areas in finance such as financial mathematics, investment valuations, capital budgeting and costs of capital
FINS3635 Options, Futures & Risk Mgmt Overview of derivatives pricing and covers areas of exchange traded options, futures contracts and fundamental pricing principles and hedging techniques in derivative markets
FINS2624 Portfolio Mgmt Introduction to into investment theories and will teach students how to price different assets
FINS3641Security Analysis & Evaluation Primarily focuses on analysing the value of security and evaluating their potential performance
FINS3616 International Business Finance Focuses on adopting a global mindset while managing risk and exploiting exchange rates
FINS3636 Interest Rate Risk Mgmt Explores interest rate risk and risk management techniques with an emphasis on problem solving
FINS2643 Wealth Management Delves into the investment and financial issues arising from personal wealth management activities
FINS2622 Asia-Pacific Capital Markets Aims to increase studentâ€™s understanding of investing in emerging markets in the region
FINS3637 Wealth Management Advice Focuses on developing key planning financial and skills required to become a financial planner
FINS3626 International Corporate Governance Explores tiers of a corporation including director responsibilities, board structure, regulations, auditing and shareholder activism
FINS3634 Credit Analysis and Lending Explores the concept of credit risk and how to mitigate such risk through various tools FINS3637 Wealth Management Advice Theory-based course which provides knowledge to understand a clientâ€™s legal and economic situation FINS3633 Real Estate Finance Covers commercial and residential real estate
FINS3650 International Banking Covers the global marketplace, international services and recent global market collapses
Other: FINS3655 Behavioural Finance FINS3775 Research Methods in Finance FINS3639 Estate Plan & Asset Protection
UNIT | 57
UniMelb Subject Selection Guide: Basics: • Unimelb only offers ~8 different degrees so most people (interested in investing/trading) will do BCom, but you could also do the other degrees and take some Commerce breadth subjects.
Finance: • Currently, you are only permitted to take one third year course. • General recommendations have been for:
• They’re all three years long, four subjects per sem, so 24 subjects total.
Entrepreneurial Finance - really in depth valuation experience, exposure to CFA Equity Research Challenge.
• You can do Honours at the end of your degree as well.
Algorithmic Trading - great for those people inclined towards trading or quantitative analysis.
Bachelor of Commerce Structure: • Commerce has a range of compulsory subjects plus you choose up to two majors (if you’re doing Actuarial you can only do one). • Major options: Actuarial Science, Management, Marketing, Economics, Finance, Accounting. • Most people would choose Finance + one other (unless you’re doing Actuarial in which case you can only do that). Accounting/Economics seem similarly popular as second majors (I wouldn’t recommend Management/Marketing to anyone interested in investing/trading). • Subjects in the third year are widely considered the most practical, but it is important to lay a strong foundation in your first and second years to excel in your third year subjects. • But, for each major you have to do three third year subjects to complete it so you don’t get much choice.
58 | UNIT
Economics: • You get to pick all three of your third year subjects now (and there are a lot to pick from). • There is no general consensus or strong recommendations in Economics aside from Economics of Financial Markets. For those looking to get into quantitative trading, Econometrics 2 is recommended.
Monash Subject Selection Guide: Basics: • A finance major at Monash involves 4 compulsory units and 4 elective units:
Compulsory Subjects: BFC2140 Corporate Finance 1 • Evaluate investment options and value of equity and debt instruments • Analyse cost of capital, asset pricing and issues of risk and return BFC2751 Derivatives 1 • Discuss derivatives markets • Pricing options, futures and other derivatives • Implement trading strategies BFC3241 Equities and investment analysis • Manage asset classes and returns • Analyse and select equities • Fund management skills ETC2410 Introductory econometrics • Understand regression modelling • Understand issues around data modelling
Elective Subjects: (Select 4)
BFC3140 Corporate finance 2 • Extension of BFC2140 including equity financing and asset pricing • Evaluate investment and financing decisions including risk management • Critical evaluation of finance theories, concepts and arguments BFC3170 Management of financial intermediaries • Understand various risks to banking and regulation intended to manage these risks • Evaluate mathematical models and techniques available to manage risk • Distinguish sources of retail and commercial debt BFC3240 International finance • Analyse exchange rate systems • Examine theories of exchange rate determination • Management of foreign exchange rate risk BFC3340 Derivatives 2 • Understand concepts underpinning options pricing • Analyse interest rate derivatives • Quantifying risk and risk management using options BFC3440 Pension and financial planning • Overview of financial planning and superannuation • Financial planning regulations • Understand investment environments
ACX3150 Financial analysis and valuation • Extract information from financial reports • Calculation and use of financial ratios • Apply different valuation methods
BFC3540 Modelling in finance • Development and application of financial spreadsheets • Implementation of robust financial models including asset allocation and portfolio analysis
BFC2340 Debt markets and fixed income securities • Overview of debt markets and different debt instruments • Factors affecting bond prices, yields and volatility • Apply quantitative skills for pricing and risk management
BFX3355 Property investment • Analyse property valuations and investment characteristics • Evaluate property investment vehicles and property management and development
BTC3200 Finance law • Understand legal and regulatory requirements of the banking and finance sector • Understand legal rights and obligations of those involved in banking and finance BTX3130 Stock exchange and derivatives law • Analyse financial market regulation and administration • Describe liability stemming from misleading and deceptive conduct
BFX3871 International study program in banking and finance • Overseas visitation program • Compare structure of international banking and finance markets • Understand financial techniques used by multinationals ETC3460 Financial econometrics • Application of asset pricing models • Describe statistical characteristics of financial data
UNIT | 59
Macquarie Subject Selection Guide: Basics: • A finance structure at Macquarie University involves 8 core level 100 units followed by, 2 level 200 units, and 4 level 300 units.
Core: 1st year core Commerce subjects: • Accounting in Society - ACCG100 • Finance 1A - ACST101 • Principles of Management - BBA102 • Microeconomic Principles - ECON111 • Marketing Fundamentals - MKTG101 • Business Statistics - STAT150 1st year core Applied Finance subjects: • Accounting in Society - ACCG100 • Finance 1A - ACST101 • Finance 1B - AFIN102 • Macroeconomic Principles - ECON110 • Microeconomic Principles - ECON111 • Business Statistics - STAT150
60 | UNIT
Core: Subjects required for completion of Finance major in standalone Commerce degree: • Finance 1A - ACST101 • Finance 1B - AFIN102 • Financial Modelling - ACST201 • Investments - AFIN250 • Issues in Corporate Finance - AFIN312 • Financial Statement Analysis - ACCG350 • Applied Portfolio Management - AFIN352 • Advanced Corporate Finance - AFIN353 Subjects that best suit sub-industries in finance: • Financial analyst: Financial Risk Management - AFIN328 • Investment banking: Derivative Instruments - AFIN329, Finance and Financial Reporting - ACST252
ÂŠ University Network of Investing & Trading 2018
Published on Mar 7, 2018