UNSW Finance and Banking Society 2021/2022 Careers Guide

2021/2022 UNSW FINANCE AND BANKING SOCIETY

CAREERS GUIDE

ACKNOWLEDGEMENTS CO-PRESIDENTS

SUBCOMMITTEE

Merrynal Anthony

Salena Bhalerao

Emily Weng

Chrystal Mao

VICE PRESIDENT

Kevin Wu

(OPERATIONS) Rishi Chhugani

SPONSORSHIP DIRECTORS

Jeremy Wang Janice Low Vikas Arkalgud Rebecca Li Wilson Yang

Shane Mammen

Matthew Sulistyo

Alex Cai

Avaneesh Shrestha

PUBLICATIONS DIRECTORS

Andrew Park Lily Zhang

Katherine Mo Mimi Zhou Alex Wong Tom Morton Cindy Lam Mandy Zhou

MARKETING DIRECTORS Kelly Liang Jessica Qiao

EDUCATION DIRECTORS Vedant Shah Bryan Gunawan

Carl Braganza Oliver Ryan

SPECIAL THANKS TO Victor Rodriguez Christina Manonian Hart Lestari William Lee Lauren Davies Tony Chen Nahum Adeel Samantha Chen Jacqueline Liu

SPONSORS Special acknowledgements to our sponsors for their ongoing support throughout the year

HSBC RB Franklin Templeton TMGM Bain & Company Neu Capital Greenstone Partners AMP Capital Deustche Bank Longreach Alternatives Bloomberg Pottinger FPA Flow Traders CFA Society Lendlease Bridgestreet Capital Challenger Limited

PRESIDENTS' ADDRESS

As

we

approach

the

end

of

another

towards your chosen career path. We seek to

challenging year of online learning, we would

upskill you through our many workshops and

like to warmly acquaint you with the UNSW

professional

Finance

UNSW experience – one that equips you with

and

Banking

Society

(FINSOC).

events

offer

you

seasoned

technical skills to take the reigns and plough

we

are

enthralled

to

have you with us. Our goal is to guide you through

the

sea

of

job

social

vital

the

year,

professional,

the

Whether you are fresh and keen first year or a final

required

to

and

forward into the horizon that is your future.

applications,

interviews and their respective hard skills as

Hence, we are proud to present to you our

you

inaugural 2021 UNSW FINSOC Careers Guide

dive

deeper

into

the

dynamic

and

multifaceted world of corporate finance.

which

features

the

major

financial

institutions

Regardless of the many adversities you would

landing

face

overview

as

a

university

student,

you

would

your of

dream the

recruitment

role,

different

to a

process

assist

at

you

in

comprehensive

finance

electives

always have the support of UNSW FINSOC

offered at UNSW Business School as well as

every step of the way. Our mission as the

our

constituent Finance and Banking Society, is

this guide is able to provide value to your

to push you to your boundaries beyond the

career aspirations and we wish you well in all

scope

your

of

the

classroom

and

embrace

adversity as they open doors of opportunity

sponsoring

company

professional

profiles.

endeavours

remainder of 2021.

Emily Weng & Anthony Merrynal

We

for

hope

the

VICE-PRESIDENT OPERATIONS' ADDRESS Thank you for taking the time to read UNSW

student. Further, if you find yourself straying

Finance

from

and

Banking

Society’s

first-ever

a

career

in

finance

and

down

a

careers guide developed by our Publications,

different path, you can still refer to this guide

Sponsorships,

as many of the recruitment processes remain

Educations,

and

Marketing

team. This guide was made with the purpose of

helping

themselves

finance for

the

students

variety

of

similar.

prepare

application

processes that they may undergo.

A parting thought I would like to leave you with is – write your own story. Remember that there is no set path to success, and everyone

A

career

in

finance

entails

a

multitude

of

has to manifest their own destiny. Do not feel

unique career progressions you can take. This

intimidated

guide

completed several internships and seem like

will

career

explain

paths

you

the can

number take

as

of

different

you

if

those

around

you

have

decide

they have everything figured out. Do not feel

what your goals are. As we emerge from the

disheartened by rejections. It is okay to feel

COVID-19 pandemic in 2022, companies will

like you are lost and falling behind. It is okay

be gearing up to return to larger recruitment

to change your mind. Stay resilient, keep an

intakes.

open mind, and you will find the right path for yourself.

Whether

you

are

approaching

your

Take

opportunity.

every

Educate

failure

as

yourself,

a

dig

learning deep

to

penultimate or final year in 2022, this guide

find out your own goals, work hard to achieve

will

them, and stick to your gut. Things will work

act

as

a

critical

preparatory

tool

providing you with a solid understanding of

out, trust me.

what you can expect. If you are in your prepenultimate years, this guide will shed light

All in all, I would like to wish you all the very

on the potentially daunting rumours you have

best with your futures, and I hope that this

heard about recruitment processes and will

careers guide will aid you in achieving your

hopefully

goals.

inspire

you

about

the

countless

opportunities available to you as a finance

Rishi Chhugani

contents

01

LAUNCHING YOUR CAREER

01

Connecting your Linkedin

Perfecting your Cover Letter

Polishing your CV

Acing the Interview

02

04

08

10

02

FINANCE COURSE BREAKDOWNS BREAKDOWN

14

Core Courses

Electives

Work Integrated Learning

Subject Testimonials

15

15

16

17

03

FINANCE FIRM PROFILES Investment Management

Asset Management

Wealth Management

Private Equity

Sales & Trading

Investment Banking

Financial Planning & Analysis (FP&A)

Venture Capital

Capital Markets

Equity Research

Treasury

Risk Management

Institutional Banking

Brokerage

21 22

24

26

28

30

32

34

36

38

40

42

44

46

48

04

INSIGHTS FROM INDUSTRY PROFESSIONALS

50

Victor Rodriguez

Christina Manonian

Hart Lestari

William Lee

Lauren Davies

51

53

55

57

59

05

GRADUATE AND STUDENT TESTIMONIALS

61

Nahum Adeel

Samantha Chen

Tony Chen

Jacqueline Liu

62

63

64

65

Launc

your c

ching

career

01

CONNECTING YOUR LINKEDIN Connect Now

More

About Linkedin LinkedIn is the largest business-to-business social network in the world with over 756 million users and 31 million monthly active users (as at 6 June 2021)! With 87% of recruiters using LinkedIn, there has never been a better time to join this professional network and get a head start on your career as an ambitious student.

Your LinkedIn profile is your online resume.

Profile Picture Your profile picture is the most

Making Connections

striking feature of your profile and

If you want to improve your

what potential connections or

chance of getting a connection

recruiters will see first.

request accepted, send a note

A profile with a professional photo

to accompany the connection

will, on average, get 14x more views

request!

than other profiles so make sure you

Compliment your prospective connection - but make sure it is

have one!

When uploading your profile picture, make sure:

specific and genuine! e.g.

Face is clearly visible

Background is neutral

“I

thoroughly

Facing the camera

Appropriate attire

your

article

enjoyed

on

the

reading

impacts

of

inflation in Venezuela”

Experience Use the ‘Experiences’ section to expand upon your key achievements in jobs/activities.

A good way of keeping it succinct and relevant is to give quantifiable business impact if you can. Using action words similar to what you would have in your resume helps.

However, you would generally go beyond your resume and include more detail. For example “The new strategy I was in charge of implementing led to a 12% decrease in overhead expenses over 12 months”.

Find common ground Something about the person that both of you can relate to.

Perhaps you are both FINSOC alumnis, are interested in the same career path, or even support the same soccer team!

Never ask for a job out of the blue - If you want to have a coffee chat, make sure to properly introduce yourself and respect the other person’s time. After all, you are looking to build long-lasting professional connections – not one-off referrals.

02

LinkedIn Tips Sort

by:

Top

...

UNSW Finance and Banking Society 1m

Background banner –

Your

background

banner

should

be

simple

and

relevant.

For

example, if you are looking to work in the corporate sphere, you can have the banner image contain a few city skyscrapers.

Headline – The headline is the part beneath your profile picture and name. It should clearly state your current job title. If you are not currently working because of study, you may want to put a title you currently hold in a university society. As with everything on LinkedIn, keep it clear and concise!

About –

For your ‘About’ section, avoid the temptation to use a lot of fluffy adjectives and

buzzwords. If you are a student without a job, you can use this as an opportunity to outline what you are studying and the key career path/s you are interested in.

Custom URL – Click on the pencil icon towards the bottom right of your background banner and scroll to the bottom to make your very own custom URL. Copy this link into your resume to make finding and selecting you easier for recruiters.

External media – this

by

clicking

Remember that you can add external media to your profile! You can do

on

the

pencil

icon

on

the

top

right-hand

side

of

the

‘Experience’

or

‘Education’ section and scroll to the bottom ‘Media’ section. Examples of media you can attach include an academic article you have published, educational video content you have created, your winning case competition slides etc.

IMPORTANT:

If you do not want other LinkedIn users to know you have been viewing their

→

→

profile, you need to make sure your profile viewing option has been set to ‘Anonymous LinkedIn Member’. This can be done by going to 'Settings & Privacy

Visibility

Profile

viewing options' and selecting the ‘Anonymous LinkedIn Member’ option.

03

PERFECTING YOUR

COVER LETTER Purpose of the Cover Letter The cover letter serves as an introduction to your overall application and provides the

skills, qualities and experiences you can bring to name implies, your cover letter is read before your

initial platform for you to market the the job and the company. As the

resume

- hence, it is essential that your cover letter captivates the recruiter’s interest

and incentivises them to look at your resume.

individuality to come through. Your choice of wording gives express your personality and style of communication in a way

The cover letter allows your you the opportunity to

that a resume can not. A great cover letter should not just repeat your resume in a contracted form, but really demonstrate to the employer the

motivations you possess for

the job and the organisation.

Although there is no single correct method to your tone and choice of words, it is crucial to provide the right information required to market yourself.

Employers want to see that: You have researched the job and their organisation You will fit well with their organisational culture You understand and are motivated to work towards their values

04

Recommended Structure Opening Paragraph: Brief Introduction

This section should be kept relatively

Your academic background

short (recommended 1-2 sentences).

Rationale for writing the letter The specific role/service line in which you

Make sure to mention:

are applying for at the company

Body Paragraph 1: Demonstrate your motivation

In some countries, the cover letter is referred to as a

motivation”.

As

this

name

suggests,

it

is

“motivational letter”

integral

that

you

use

the

or a

cover

“letter of letter

to

demonstrate what motivates you to apply.

Questions to consider are: What attracts you to the company?

What attracts you to the particular position/type of work/service line?

This is the perfect place for you to demonstrate your knowledge of the position and research into the organisation. It is not sufficient to just say:

“I would like to work at firm XYZ because it works on high profile deals.”

Your

motivation

needs

to

be

more

personalised.

For

example,

if

a

firm

has

a

strong

international presence, you could say something along the lines of:

“Cross-border M&A deals are especially captivating to me because I have explored the implications of globalisation on businesses through XY extra-curricular activity/subject/work experience. Given firm A’s international focus and renowned reputation for cross-border work, evinced by deal AB (referencing a deal is helpful but not necessary), I am excited to begin my [career] at the firm."

Note If you reference a deal in your cover letter, be prepared to talk about it in your interview. While you don’t need to know all the details, make sure you know the general information surrounding it.

05

Recommended Structure (Continued) Body Paragraph 2: Demonstrate your suitability

After communicating your interest in the job, demonstrate to the recruiter why you are a good choice for the position.

Questions to consider are: What qualities/skills make you a strong candidate for this particular position?

What situations/experiences do you possess which serve as strong evidence for the aforementioned attributes?

As noted before, this section is not just a rehash of your resume. Rather, you need to identify which skill sets/experience are most relevant to the position you are applying for. A good starting point to determine what the firm is looking for in candidates is the selection criteria.

Body Paragraph 3 (Optional): Pro-bono and D&I initiatives

If you have space and would like to talk about the firm’s pro-bono or D&I initiatives, this paragraph can be included to show that you are a cultural fit for the firm. You can also highlight any volunteering experience that you have here and why they are similar to what the firm is passionate about. However, remember that this paragraph is only relevant if you have space.

Closing Paragraph: Ending on a hopeful and positive note

Make sure to express gratitude and thank the recruiter for spending time to read and consider

your

application.

Also

take

this

space

to

reiterate

your

interest

and

open

opportunities for further contact.

Additional Tips If you have attended any events related to the company, the cover letter is a good place for you to mention this For example, if you had attended a networking event and listened to a speech from a senior-level employee, do not hesitate to mention this, or even name-drop the particular individual in your letter Make sure to use fonts which are easy to read - Times New Roman, Calibri, Arial etc.

06

COVER LETTER TEMPLATE Name Address (optional) City, Post Code (optional) Phone Number Email Address XYZ Group 50 Martin Place Sydney NSW 2000

17 May 2021

Re: Application for [Program] 2021/2022 Dear XYZ Recruitment Team,

Opening Paragraph

Body Paragraph(s)

Closing Paragraph

Sincerely, First Name Surname

07

POLISHING YOUR CV The purpose of your resume is to compel the recruitment manager to invite you to the next round of the application process by communicating to them that you have the skills and experience required for the position. To ensure that your resume introduces yourself in the best light, below are some tips before you send out your next application.

COMPONENTS OF A RESUME HEADINGS Print

your

name

and

contact

information

including

mobile

number,

email

and

LinkedIn.

Avoid

including an image of yourself as this may introduce bias.

SUMMARY SENTENCE A summary statement concisely summarises your experiences, motivations and distinctive traits which serves to efficiently convey the key points of your resume to the recruiter This is optional and usually not necessary if the application requires a cover letter

EDUCATION Briefly state your educational background along with any educational achievements you have accomplished. Key points to include: Tertiary education: University, degree and majors you are studying, expected graduation date Academic achievements: WAM, scholarships, Dean’s List, courses you have achieved within the top 5-10% of the course High school education: School, ATAR, academic or leadership awards

PROFESSIONAL EXPERIENCE Outline your prior work experience and the responsibilities and accomplishments you achieved in these roles Stand out by providing specific and quantifiable examples which have positive results and highlight characteristics such as your soft/technical skills and proactivity. Some examples could include:

"Exceeded

daily sales targets of $XX by consistently prioritising customer service and

building strong team rapport, averaging customer service rating of XX"

"Performed analytical procedures for a diverse array of industries including XX, XX..."

LEADERSHIP AND VOLUNTEERING List experiences outside of your studies and work which further build on key traits which align with

the

role

you

are

applying

for.

Here,

relevant

experiences

could

range

from

student

societies to passion projects you may have had. Some examples include:

"Proactively

formed partnerships with industry senior leaders and sponsors to deliver the

annual XX Event for XX event attendees"

"Placed in the finals of the XX Case Competition by delivering a recommendation aimed at solving XX"

08

GUIDELINES FOR CONSTRUCTING YOUR RESUME

1

CONTENT Ensure that the responsibilities you include

highlight your positive qualities

through appropriate examples tailored to the requirements outlined in the role description. Keep in mind that you will need to be prepared to expand on any points you include if raised in an interview To provide context to your experiences, each role you include the dates during which they were relevant as well as the geographical location if applicable

2

WRITING STYLE

Your writing style should be

unbiased whilst also concise and quantifiable.

Some guidelines to follow: Avoid statements beginning with “I” and replace these with action verbs instead Denote past experiences in past tense and current roles in present tense Avoid abbreviations Where possible, instead of conveying your skills through responsibilities you had in a role, demonstrate these skills through specific results you achieved

3

FORMAT AND LAYOUT The format and layout of your resume should be

consistent and easily scannable. The

standard approach should include: List experiences in chronological order with your most recent experience at the top Devote more space to more relevant and more recent roles Place the role before the organisation. E.g. Audit & Assurance Intern: KPMG Australia 1-2 pages. Standard font Appropriate margins and paragraph spacing to avoid cramping the page with text Consistency between font sizes, bullet point styles and colours

4

ADDITIONAL TIPS

Have someone else review your resume. Whether it be a friend or the UNSW Resume Checker, simple mistakes such as grammatical errors can be avoided.

Maintain a master copy resume with all your experiences without the limitations of length and tailor this for each application Maintain consistency in formatting and font across your resume and cover letter While optional, additional components of your resume could be Interests and Skills.

Referees can be provided upon request

09

ACING THE INTERVIEW RESEARCH ON COMPANY Understand what makes the company unique Companies tend to have certain strengths that set them apart from other companies. This could be through strength in a particular sector/geography, a unique investment philosophy, technological innovation, or social and ESG initiatives Familiarise yourself with the different groups of the business Core values and culture: Learn about the firm's culture and what key values they emphasise Key events, deals and transactions: Understanding recent key events that have involved the firm is beneficial. Knowing deals and transactions done by the firm is a must if you are applying for investment banking How to find this information: Company website Talking to company employees at networking events or through linkedin News articles

RESEARCH ON ROLE Read the job description carefully Understand the day-to-day tasks of the role or at least the high-level overview of what your role entails Understand the key skills and qualities required to do the role successfully.

Most finance roles typically look for basic proficiency in Excel, PowerPoint and Word, strong communication and teamwork skills, an analytical mindset, and ability to handle pressure During your interview, speak to how your background and qualities align with the qualities from the job description to maximise your chances of success

RESEARCH ON INDUSTRY Understand how the industry has changed over the past few years, and how it might change in the future. Consider: Has the market size for this industry increased or decreased, and why?

What are the key trends of this industry, and what are the key factors influencing these trends?

How has COVID-19 impacted this industry?

What are the key threats and challenges facing the industry?

10

STAR INTERVIEW METHOD The STAR method is a technique used to answer behavioural interview questions in a structured manner.

Situation Explain the situation. What was the project, challenge or event you were faced with?

Task Identify what your task was. What was your responsibility in this situation?

Action Describe the action you took. What did you do and what were the skills you used?

Result Describe the result. What was the outcome of your actions? Can the outcome be quantifiably measured?

Reflection Share your reflection. What did you learn from the experience? How do the skills you portrayed link to the job you have applied for?

ADDITIONAL TIPS

Aim for an answer of roughly 1-2 minutes Be direct and straight to the point Make sure to not sound rehearsed and speak naturally The best way to achieve this is to prepare your answers with rough guidelines and dot points of what you want to say, and not trying to say your answer word-for-word

11

TYPES OF INTERVIEW QUESTIONS PERSONAL & RESUME Almost all interviews will begin with the interviewer asking to know more about you; possibly in the form of

“Tell me about yourself”, or “Walk me through your resume”. This is where you need to

tell your interviewer about your experiences, the skills you have gained, and how this has led you to applying for this firm. This is the key opportunity to link together the skills you have gained with your passion for this role and the company you are applying for.

BEHAVIOURALS

EDUCATION

Behavioural questions are designed to

Employers may be interested in where you

understand how an interviewee will act in

passion stems from and how the knowledge

specific scenarios based on past

and skills you have gained from your degree

experiences. A good approach to most of

will help you succeed in the job you are

these questions is using the STAR method.

applying for.

Commonly asked questions:

Commonly asked questions:

Tell me about a time when you were

Why do you study your degree?

faced with conflict whilst working in a

What are your least and most favourite

team

subjects?

Describe a time when you showed resilience Tell me about a time you delivered value to a client or customer Describe a situation where you had to adapt to an unexpected change

WORK EXPERIENCE

TECHNICALS It is important to prepare for technical questions if you are applying for investment banking, financial markets, or investment management roles. The number of questions and their difficulty varies widely. Therefore, it

Interviewers are interested in understanding

is a good idea to research or ask the HR

what skills and experiences you have gained

representative if there will be an emphasis

from past work experiences, and how you

on technical questions.

developed from them.

Types of technical questions: Commonly asked questions:

Deals based questions

What were your responsibilities in your

Markets based questions

role as XYZ?

Accounting

What were the key challenges you faced

Valuation

in your role as XYZ?

Financial Modelling

12

QUESTIONS FOR THE INTERVIEWER Make sure to ask questions to the interviewer at the end of your interview, as the interview is also regarded as an opportunity for you to get to know them. Asking questions will show you are interested in the role and you want to learn more about the company.

Prepare

2-3 questions in advance of your interview

Tailor your questions to the person who is interviewing you.

For example, your interviewer might have mentioned that they have significant experience in a particular sector or they have worked on a project that aligns with your interests. Asking questions about these is beneficial as it shows you have good listening skills, in addition to making the conversation more natural and personal

Examples What are the three most important attributes of a successful candidate?

You mentioned that whilst working here, you gained significant experience in [Sector]. As this is a sector I am interested in, I would like to know more about the projects you were involved in What’s your favourite thing about working at this company?

13

finance breakd

course downs 14

Majoring in

FINANCE

Core Courses

The Bachelor of Commerce degree has undergone a few changes hence the course roadmap will depend on the stage of your degree. The below guide is split into

COMM1180

Value Creation

core courses and

electives. Note that students must take a minimum of 48 UOC for the completion of this major. 30 UOC is

FINS1612

Capital Markets and Institutions

taken up by the core courses. The remaining 18 UOC are filled with

FINS2613

electives.

Intermediate Business Finance

Asset Management

FINS2624

FINS3640

Investment Management Modelling

Portfolio Management

FINS3616

FINS3641

Securities Analysis and Valuation

FINS3625

International Business Finance

Trading FINS3666

Applied Corporate Finance

Trading and Market Making

FINS3635

FINS3635

Options, Futures and Risk

Options, Futures and Risk

Management

Management

FINS3644

FINS3636

Sustainable and Responsible Investment

Interest Rate Risk Management

FINS2643

FINS3645

Wealth Management and Client

Financial Market Data Design and

Engagement

Analysis

15

Other ACCT3563

Corporate Finance FINS3625

Issues in Financial Reporting Analysis

Applied Corporate Finance

FINS3623

FINS3631 International Corporate

Venture Model

Governance

FINS3630

FINS3626 Personal Risk, Insurance and Superannuation for Financial Planning

Bank Financial Management

FINS3640

FINS3633

Real Estate Finance

Investment Management Modelling

FINS3634

FINS3641

Credit Analysis and Lending

Securities Analysis and Valuation

WIL

FINS3646

Toolkit for Finance

COMM2222 Industry Experience Program

FINS3650

International Banking

COMM3020 Global Business Practicum

FINS3637 Wealth Management Advice and

COMM3030

Ethics Social Entrepreneurship Practicum

FINS3647

Bitcoin and Decentralised Finance

COMM3101 Industry Experience Placement 1

FINS3655

Behavioural Finance

COMM3202 Industry Experience Placement 2

16

SUBJECT TESTIMONIALS FINS1612 - Capital Markets and Institutions What was the

best part about the subject?

Taking it alongside

sets up the basics of finance.

FINS1613, it

Probably more applicable than 1613 as well

Gaining a solid understanding of the financial markets and

equations for personal finance

What about the

Mostly a

rote-learning

course which means your effort directly correlates with your results

worst part about the subject?

Tutor was upset about losing his banking job at Goldman Sachs during the GFC in 2007. It was an awkward first tutorial

First grasping some of the more

complex topics

especially with derivatives

The content can be

boring

at times

and options

Advice for future students

Nothing in particular, just

don't underestimate the finance exam for any fins

Take advantage of university resources like

PASS classes

It's worthwhile spending your time studying during

or FINSOC's very own

this course as it is the

courses. This one was

revision workshops for

surprisingly hard

harder topics

easiest Finance core course you will do

Tim Xue Commerce/ Computer Science

Daniel Xu Commerce/ Law

Alex Wong Commerce/ Law

17

SUBJECT TESTIMONIALS FINS1613/FINS2613 - Intermediate Business Finance best part about the subject?

What was the

If you like the basic theory of maths, this one is for you. You'll spend a lot of time looking at how to use

important financial concepts that Learning

will remain very relevant in the future as a

NPV and discounted cash flows

professional

What about the

A

fun lecturer who tries

very hard to relate course content to his very original dad jokes

worst part about the subject?

Worst part is that it wasn't

The topics on cash flow

very memorable. I don't

and dividends/capital

think it's a terrible course

raising can be

quite

tbh, but you will see all of

challenging to digest

this theory again in later

without enough practice

courses

and studying

With exams being online, be careful when transcribing numbers from your calculator/excel onto Moodle

Advice for future students

Take advantage of the This is obviously

essential. Remember how to use NPV properly and you'll be fine

university's resources for topics such as CFs. These include the weekly

PASS

classes and FINSOC's

revision workshops

Tim Xue Commerce/ Computer Science

Daniel Xu Commerce/ Law

A fundamentally simple course, if you are updated with most of the lectures and tutorial work, this course is easy to do well in

Rebecca Leigh Commerce (International)

18

SUBJECT TESTIMONIALS FINS2624 - Portfolio Management What was the

best part about the subject?

The technical concepts were

easy to grasp and very practical in application.

Really sets you up for the rest of your finance degree

From the start to the end the content is useful in terms of personal portfolio management, anything you will see in a finance role and everything in between

This course was one of the

best courses in my finance degree for my WAM. It's very much a retread of previous courses in finance, and my tutor was a gun (funny mohawk man)

What about the

worst part about the subject?

It was all quite technical, if

The last two weeks of content;

you want to learn more

the Black-Scholes method

about how portfolio

and option parity pricing. The

managers use these concepts in the real world

do your own research.

you will have to

textbook has poor practice material, and you don't have

not really learning much new that you

You're

couldn't have learnt from FINS1612 or FINS1613. Also, the labs were bland and I

much time before the exam to

don't remember anything in

perfect the topics.

them.

Advice for future students

It requires

consistent effort.

Do the problem sets,

Know all the formulas

participate in tutorials and

and you'll smash it

study regularly. It's a fun course and probably the most useful out of the mandatory subjects.

Vedant Shah Actuarial Studies/ Commerce

James Layland Commerce/ Economics

I mean it's

compulsory.

Remember to do these courses with friends for study groups and you'll be fine

Tim Xue Commerce/ Computer Science

19

SUBJECT TESTIMONIALS FINS3616 - Internation Business Finance best part about the subject?

What was the

A lot of calculations, if that's your thing. Very applicable in the real finance world, these skills are quite essential

wellstructured and wide in scope to cover all interests,

The course is extremely

including exchange rates for your future travel plans and the global economy

What about the

The content may not seem relevant now but it helps develop an understanding of the nuances of

international transactions, which will only continue to increase in relevance

worst part about the subject?

Sometimes the teaching can be confusing and hard to grasp, and quite dull

The course is more content-

Very punishing of silly

heavy than other finance

mistakes and it can often be

electives and leans more

confusing when multiple

towards the quantitative side

currencies are involved

Advice for future students

Spend effort perfecting the first few weeks and the rest should come naturally

This course has been one of

Don't take the first 4 weeks

my favourite subjects.

chill, they are arguably the

Contextualising the material

most important part of the

and applying it to the global

course, as everything else

world helped me with

builds upon them

studying for this subject

Vedant Shah Actuarial Studies/Commerce

Yolanda Zhang Actuarial Studies/Commerce

Alex Wong Commerce/Law

20

Financ prof

ce firm files 21

INVESTMENT MANAGEMENT

OVERVIEW Investment managers play a key role in the global economy via managing the assets of institutional investors, mutual funds, government agencies and high net worth individuals. This traditionally refers to allocating the clients’ money toward various assets, including stocks, bonds and commodities.

FUNCTIONS Investment Management firms core duties include: Interpreting the client’s goals in relation to their risk appetite Involves

discovering

clients’

current

financial

situation,

additional

required

amounts

(if

necessary), investment timeline and how much they’re willing to risk.

Observing markets for investment opportunities This involves extensive research into different asset classes, recent economic trends, global policies etc.

Composing investment strategies Delivered as reports. They provide a holistic overview and analysis of the clients’ current portfolio (including selling/buying suggestions) and new opportunities (including investment thesis and related strategies).

KEY ROLES Investment Management Firms are primarily comprised of: Investment Managers Collaborate

with

analysts

to

research

prospective

investments,

and

allocate

client

funds/assets to generate profit. This involves disclosing investment strategies/rationale to clients, and as such are required to be broad in scope.

Investment Marketers Acts as the firm’s rainmaker. Additionally, they advise clients on new investment decisions.

This often includes selling new financial products and updating clients regarding current rates and policies.

Internal Auditors Monitors firm’s accounting records to ensure misinformation is minimised.

Portfolio managers Execute investment strategies and are responsible for making buy/sell decisions across various asset classes Compliance Officers Ensures the firm complies with regulations and legislations.

22

TRENDS Given

the

11%

increase

(USD

$92.7

trillion

to

$103.1

trillion)

in

global

assets

under

(AuM)

management, the Investment Management industry emerged from a global pandemic with relative promise.

This primarily refers to North America, the world’s largest centre for asset management, with AuM growing from $43.2 trillion in 2019 (USD) to $48.6 trillion in 2020 (12.5% increase).

This resilient growth is nothing new, particularly when considering how the industry withstood significant economic shocks during the GFC. This can be attributed to the nature of investment clients, where“investors are increasingly turning to alternative asset classes… hedge funds, private equity, real estate” (Fabozzi, Focardi and Jonas, n.d.).

In particular, Real Estate assets have improved performance, in which Financial Year returns (%) for Australian Listed Properties jumped from 13% in 2018 to 19.3% in 2019. This likely stems from an overall increasing population, where Australia has experienced a 16.6% increase over the past decade. Additionally, Work From Home protocols have enhanced the viability of Real Estate as an alternative investment, given the exponential growth of the Housing Price Index from -1.8% in July 2020 to 6.7% in July 2021.

Case Study: One such Investment Management firm is Challenger, an investment management firm that focuses on providing clients with financial security for retirement. Established in Australia in 1987, the firm aims to create wealth for clients in the accumulation phase of superannuation, by converting it into safe

and

reliable

income

channels

for

retirees.

Given

the

above,

Challenger

primarily

offers

products tailored toward aiding a client’s retirement. These products include lifetime & fixed-term annuities, aged care solutions and superannuation products. These can be categorized into two core investment businesses:

Challenger Fund Management: A fiduciary funds management division. It is composed of: Challenger Investment Partners and Fidante Partners.

Challenger

Investments

Partners

(CIP

Asset

Management)

monitors

global

opportunities,

specifically across real estate, fixed income and solutions regarding liquid asset classes.

Challenger Life Company The life division that is regulated by the Australian Prudential Regulation Authority. Currently have AUD $21 billion in Assets under Management.

As the largest provider of annuities, the Challenger Life Company provides safeguards against various long term risks (E.g. Inflation, Interest and Exchange Rates etc.). As such, investors are guaranteed income without needing to worry about insufficient funds in the future.

In addition, Challenger’s ‘Accurium’ provides actuarial certificates and education regarding self managed super funds to individuals during their retirement phase (or the transition to it). This involves ‘TechHub’, an online learning platform that provides ‘Continuing Professional Development’ accredited by the Financial Adviser Standards and Ethics Authority (FASEA) and the Self Managed Superannuation Fund Association.

Challenger offers careers in a variety of different fields, including portfolio management, asset management and financial analysis. These fields often work with various asset classes (fixed real estate, income and equities.

Recruitment Timeline for Summer Intern Applications: Open: June, Close: Mid-July

23

Asset Mana OVERVIEW Asset management is the practice of increasing the total wealth of individuals, investment banks and other financial institutions over time through acquisitions, management, and trading of investments that have potential to grow in value. Asset management aims to maximize the value of an investment portfolio over time while maintaining an acceptable level of risk.

Asset management is practiced by a wide range of parties such as banks, individuals, financial institutions, and more. To maintain a stable asset management system, organisations which participate in asset management must consistently maintain and analyse data from multiple sources which may affect risks, benefits, and any other factors which can alter the success of an asset management strategy.

Some examples of asset managers include corporate buyout asset managers, infrastructure or mining asset managers, and real estate asset managers.

KEY ROLES AND RESPONSIBILITIES

1

COVID-19 shifting asset management trends Since the sudden introduction of COVID-19, investors have started to value assets which have longevity and stable returns over a long period of time EG 10 years . In recent years, investors especially in the US, have been looking to invest in infrastructure with the 2.2 trillion infrastructure investment valuation .

2

ESG A prime example of ESG investment is the Queensland Treasury Corporation Green Bonds (QTC Green bonds). There has been a recent investment of 2 billion dollars into decreasing carbon emissions in the Australian economy . A recent project which has been funded is Gold Coast Light Rail – a transport system fully electrically powered .

Huge rise in assets and shift in investor base

3

EG Blackrock is one of the largest investment firms, and has recently started to invest in Superfunds and expand their investment base. Recently, they have started to target markets which other firms have been abandoning EG Vanguard, which was valued at an approximate 2 billion dollars

24

agement Case study: ABOUT Blackrock is one of the largest investment firms based in America and roots its history back to 1988. It is currently one of the world’s largest asset management firms and their assets are valued at over 9 trillion USD. Blackrock currently provides financial solutions through their professional services and servers organisations and individuals such as not-for-profits, corporate firms, and high net worth individuals.

RECRUITMENT CV and Cover letter

Submit a cover letter and a resume online to express interest in joining the firm! Show your individuality and demonstrate why they should pick you

Video Interview

You will be asked a series of questions on an online platform in a given time frame. If you are successful, you will be invited to the final stage

Group Interview exercise through presentations and/ or case studies

The final stage is a group interview / assessment centre, where the firm will provide you with a case study for you to work together with other candidates.

TYPES OF ASSET MANAGEMENT Digital Asset Management (DAM) Fixed Asset Management IT Asset Management (ITAM) Enterprise Asset Management Infrastructure Asset Management

25

Wealth Ma

OVERVIEW

Wealth management is an investment advisory service that uses a combination of other financial products and services to fulfill the needs of high net worth individuals. The advisor gains information about the client’s wants and specific financial situation, then tailors a personalised strategy that uses a variety of different financial products and services.

The global wealth management market has an expected growth rate from “$1162.66 billion in 2020 to $1263.34 billion in 2021 at a compound annual growth rate (CAGR) of 8.7%” (Businesswire, 2021). As COVID-19 continues to dominate domestic and global markets, global wealth managers have had to restructure business operations as global assets plunged in value due to reduced consumer confidence as capital allocation divested across diversified asset classes. However, as business activity returns to normalised levels, there is expected significant market growth as global economic activity recovers and the wider industry is expected to reach $1755 billion in 2025 at a CAGR of 9%.

KEY ROLES AND RESPONSIBILITIES A Wealth Manager is the professional who is in charge of advising individuals and families in undertaking this process. These professionals often operate as either an individual financial advisor or group collective under an integrated brand offering with key players in the market such as Morgan Stanley Wealth Management. Their overarching responsibility is to conduct due diligence across the financial planning process and assist in preserving and generating wealth for their clients. Key responsibilities of wealth managers may include Understanding the key objectives of retail and institutional clients to determine their current financial situation and objectives, such as their income, expenses, insurance coverage, risk tolerance, or other information critical to developing a financial plan.

Recommending an integrated service offering across key strategies in cash management, insurance coverage, investment planning, or other areas in order to assist clients in achieving their financial aspirations.

Implement financial planning recommendations or refer clients to external parties someone who are able to assist key capabilities across the wealth management process.

Investigate available investment opportunities to determine compatibility with client financial plans.

Monitor financial market trends to ensure that strategic objectives are achieved and client plans are responsive.

Recommend an integrated offering across various financial products, such as stocks, bonds, mutual funds, or insurance.

26

anagement TRENDS Wealth management firms are integrating emerging technology into their systems that include artificial intelligence (AI), machine learning, and data analytics applications to provide a unique and hybrid experience across the wealth management process. Whilst the traditional financial management industry is racing to apply key technological innovations within existing processes, an interesting application of technological leverage within financial decision making is AI-enabled insights derived through natural language generation (NLG). This application of emerging AI technology aims to bridge the gap between data analysis and investment decisions to real-time insights in an automated trading frameworks.

Additionally, wealth management firms are currently offering a bigger portion of hybrid services including standardised and personalised tailored advice to global clients. Due to growing demand for consistent and robust solutions among consumers, the significance and need for standardisation and personalisation of advice arise. Therefore, wealth management firms are producing computer-driven analysis in order to offer standardised advisory services, while also maintaining granularity in their offerings with bespoke solutions.

Case Study: Morgan Stanley Wealth Management is a multinational financial services corporation based in America that specialises in retail brokerage, and they are the wealth & asset management division of Morgan Stanley. They have $38B wealth management client assets.

Morgan Stanley has been a global leader for 85 years in financial services, with the scale and stability to help bring you valuable opportunities. Managing wealth with the highest standard of care and providing financial advice to help support the goals of clients at any stage of life is their priority. Their teams provide “custom solutions for institutions, families and individuals with significant wealth, sports and entertainment professionals, and business professionals living outside the U.S” (Morgan Stanley, 2021, Wealth Management).

Morgan Stanley Wealth Management has an international sector, which focuses on a specific country or region, understands the culture, and recognises the fluctuating economic and regulatory climates. Through combining their investment knowledge with the global resources and intellectual capital of Morgan Stanley, the International Wealth Management are able to deliver relevant solutions that help clients pursue their personal, familial, and community goals (Morgan Stanley, 2021, International Wealth Management).

Recruitment roles open in Sydney right now, Internships aren’t available right now but usually occur in May-July time period.

27

Private

Equity OVERVIEW Private equity refers to capital investment made into private or publicly traded companies. Due to the nature of direct investment, investors gain a degree of influence over the companies’ operations by taking a stake in the company’s ownership, therefore requiring significant capital requirements. Private equity typically offers stronger returns that are less correlated with public markets, with the trade off that these investments lack liquidity.

Depending on various factors including the size of funds under management, investment strategy and economic conditions, a PE firm may seek to exit its investments in 3-5 years in order to generate an internal rate of return of 20-30%. In order to achieve these returns, PE firms will typically perform a “Leveraged Buyout” (LBO), which involves financing the investment with significant levels of debt thereby minimising initial equity.

KEY ROLES AND RESPONSIBILITIES In recent years, several key themes have been dominating PE in Australia and globally.

The interest in the technology sector has been accelerated by the pandemic resulting in PE investment into tech companies representing around 40% of total deal value. This trend is expected to continue with opportunities within SaaS, Fintech, HealthTech and mobile.

Valuations have remained relatively high as PE firms remain concentrated on growth-oriented businesses An underlying focus has been placed on ESG, even throughout the pandemic. As consumers place a greater preference on companies that employ ESG initiatives, PE firms must align their strategies in order to create value.

Capital market liquidity has encouraged increased activity in the financial sponsor space. This has grown by 7.4% in Q1 of 2021 driven by strong deadflow within the market as businesses are looking to expand on record low interest rates and cheap capital Large PE activity in the infrastructure space, notable parties include MIRA, The Partners Group and Palisad As investors have increased demand for stable and non cyclical cash flows due to the results of the pandemic

28

Case Study: ABOUT

KKR is an American private equity firm that was founded in 1976, and currently manages USD$153B. KKR is recognised as one of the earliest and most successful private equity firms, with offices globally.

KKR offers various private equity investment strategies including Infrastructure, Energy Real Assets, Health care growth and TMT growth. Within Australia, some notable companies within its portfolio include Arnott’s, Laser clinics Australia, MYOB and Pepper Group. KKR aims to create value through a three stage assessment process.

Asset Selection: Identify operational improvement opportunities during the due diligence stage.

Transformational Change: Work closely with key management to support operation improvements within the company.

Leverage KKR Scale: Employ cross-portfolio programs that aim to improve operations and enhance value.

RECRUITMENT

Recruitment at KKR is highly competitive, with only a few positions available each year with thousands of applicants.

1

The recruitment process typically begins with a first-round interview with an investment team member via phone call or zoom.

Eight individual interviews from various members of the team. These

2

interviews

will

assess

technical

skills,

cultural

fit

and

will

often

involve case studies to test their abilities under pressure.

KKR does not have a defined background of ideal candidates, however, have historically displayed a

preference

towards

candidates

with

a

developed

corporate

finance

background

within

investment banking, consulting or law at top firms.

29

sALES & TRAD OVERVIEW

Sales and Trading (S&T) is a division at an investment bank that consists primarily o execute orders and advise clients on entering and exiting financial positions.

KEY ROLES AND RESPONSIBILITIES

As part of S&T activities, the key roles and responsibilities of traders are buying and

specialise in different investment areas such as stocks, bonds, or commodities. Spec

Traders are responsible for managing both risk and capital and for security analys

traders engage with other counterparts in other investment firms or commercial ba sell securities or derivatives.

The key functions of S&T are as follows:

Sales

Salespeople are split up by products such as equities, fixed income etc. In addition to the product, salespeople are split up even further such as by client type which includes Hedge Funds, Corporates, Insurance companies and Buy-side Investors (i.e. Asset Managers, Pensions Funds and Insurers).

Trading

Traders

execute

trades

such

as

buying

and

selling

stocks,

futures

and

other

securities on behalf of their firms or clients.

Structuring

Structurers work directly with traders when executing trades. They have expertise in complex products and are responsible for pitching their area of expertise to clients.

Research

Researchers

provide

insights

and

potential

investment

and

trade

ideas

to

salespeople, traders and investors. Different types of researchers include: equity research which is focused on equities and credit research which is focused on the fixed income side.

Quant/Strat

Quants, also called strats, are responsible for maintaining electronic trading or algorithmic

trading

platforms.

This

area

of

the

business

is

growing

as

certain

trades such as cash equities and FX are increasingly being done electronically.

30

DING

of salespeople and traders. Salespeople call institutional investors with ideas and opportunities, and traders

d selling securities, either on behalf of the investment firm they work for or on behalf of their clients. Traders cialisation in sales and trading typically goes much deeper than what individual traders are assigned to.

sis. In most large trading firms such as investment banks, because of the large amounts of trading activity, anks. Salespeople work with different products and with different client types to pitch ideas and to buy or

Case Study: ABOUT Morgan Stanley is a leading provider of execution services and solutions across global equity derivatives markets. The product suite encompasses “equity options, equity swaps, warrants, structured notes, and futures on individual securities, indices, and baskets of securities. They are a global leader in executing transactions in cash equity and equity-related products for institutional clients around the world. These products include common stocks, global depository receipts, and exchange-traded funds. For more than 25 years, Morgan Stanley has led the industry and set the standard for excellence in prime brokerage. Their broad and deep client relationships, marketleading platform, and intellectual insights enable them to be a world-class service provider to their clients for their financing, market access, and portfolio management needs.” (Morgan Stanley, 2019)

In a variety of areas, such as municipal securities, investment-grade, and high-yield bond and credit derivatives trading, Morgan Stanley trades all assets that are fixed income with embedded credit. In addition, Morgan Stanley “structures, underwrites, and trades the full range of collateralized securities, including those backed by residential and commercial mortgages, in both the cash and derivatives markets. Our global sales function connects Morgan Stanley’s resources with our institutional clients, such as banks, insurance companies, hedge funds, money managers, pension funds, and mutual funds. Sales executives help institutional clients to achieve their particular investment objectives, providing them not only with product expertise but also with access to all areas of the firm.” (Morgan Stanley, 2021, Sales & Trading).

31

Investment banking OVERVIEW Investment banking is a sector of the financial services industry which functions as intermediaries between organisations and investors. They assist governments and corporations in raising capital through Initial Public Offerings (IPOs) and carrying out transactions such as mergers and acquisitions (M&A). What started as a partnership firm that focused on supporting security publications evolved into a "full-service" range which included investment management, proprietary trading, and securities research.

KEY FUNCTIONS Investment banking is known to be sectioned into three key functions; front office, middle office, and back office. The front office manages revenue generation, including divisions such as corporate finance as well as sales and trading. The middle office includes activities that support processes associated with revenue generation, like treasury and risk management. Lastly, the back office comprises roles that are unrelated to revenue generated, such as human resources (HR) and information technology (IT). These offices are “traditional” classifications, however it may be easier and more convenient to think of these in terms of revenue-generating roles, risk-related roles, and supporting roles. It is recommended that you aim for the front office if you are high achieving as these roles usually offer higher salaries along with better career options, exit opportunities, and promotions.

Front Office Divisions:

LevFin division (leveraged finance division) - responsible for providing advice to Private Equity firms and corporations to raise debt capital.

M&A division - advise clients on various buy-side and sell-side deals. Other responsibilities include sourcing deals and creating pitch books for VPs and MDs to pitch transactions to their clients.

Restructuring & Special situations division - provide financial restructuring solutions for distressed companies in navigating financial distress to avoid insolvency.

32

TRENDS Sourcing new opportunities through strengthening relationship capital

Corporations with secure governance around relationship management attentively track deal influencers while leveraging technology to assist dealmakers in fueling social strategies and amplifying the value of their relationships over time. This focuses more on the long term goal of developing relationship value, rather than the individual transactions, creating generational impact and growth.

Accelerate deals and transactions through AI and predictive analysis

As technology innovation continues to advance across market capabilities, global investment banks are beginning to understand the benefits key technology can provide in improving existing operational capacities. As an example, leading integrated investment bank Goldman Sachs is beginning to equip the potential power of machine learning and artificial intelligence (AI) to receive “proactive alerts when their professional networks change.”

Whilst robots obviously cannot replace the role of executives or directors, they can and will facilitate collecting information and accelerate the pace of making deals. In addition, key artificial intelligence capabilities can also offer sufficient value towards high-pressure deals by ensuring meeting scheduling are seamless, thus eliminating possible human errors on complex contracts, or simply automating the signing process.

Case Study: Deutsche Bank is a German international investment bank founded in 1870 and is known as a leading European Corporate Bank. It began with a goal to assist German businesses into the world. Ever since then, Deutsche Bank worked across borders to enable societal progress as well as economic growth through its constructive impact. With its network spanning over 58 countries, the bank is not only listed on the Frankfurt Stock Exchange but also on the New York Stock Exchange. Deutsche Bank operates where it feels is competitive along with where clients want it to be, allowing it to be less complex and more profitable.

33

Financial p analysis OVERVIEW Working with Chief Financial Officers (CFO), Financial Planning and Analysis (FP&A) groups play a significant role in firms as they provide support for major corporate decisions made by the board of directors through executing analysis, forecasting, and budgeting. Without the incorporation of careful financial planning and cash flow management, it is almost impossible for companies to profit and grow consistently. FP&A differs from accounting in a sense that it concentrates on forward-looking data while attempting to predict future developments, rather than reviewing information from the past to measure the current financial position of a company. FP&A professionals can identify opportunities for investment, savings and efficiency, which can effectively assist leaders of the finance department in prolonging and mitigating additional costs.

KEY ROLES While specific roles and job titles of FP&A team members may differ by organisation, here are some of the commonly used titles and the respective responsibilities that come with them:

Corporate Financial Analyst

Focuses on analysing trends and forecasting to advise recommended actions.

Assess financial performance through comparing genuine results with predictions and plans.

FP&A Manager

Works intimately with leadership teams to construct short term and long term strategic plans.

Communicates recommendations and outcomes to senior management which will result in cost reduction, revenue generation, and more efficient operations.

Director of FP&A/Vice President of FP&A

Improves and pushes existing management reporting to be increasingly timely and precise.

Cooperates with IT and the general organisation to advance forecasting by system optimisation and automation.

34

planning &

s (FP&A) TRENDS

According to Unit 4 Communications (2021), the influential role of technology in helping change the way we do nearly everything in, not only our professional, but also personal lives is anything but new. Here are a few of the emerging FP&A trends AI becomes an expanding role in FP&A : Artificial intelligence (AI) making the list is certainly no surprise. With the smart algorithms used to predict the potential content we are likely to enjoy on

social

media,

AI

is

working

hard

in

the

financial

industry,

particularly

in

the

role

of

forecasting. Overall, trends like these that are related to technology will quickly grow and lead to endless data-crunching possibilities.

Finance leaders eventually turn into storytellers: Unit4 Communications (2021) continued stating that

forward-thinking

dashboards explore

and

and

leaders

data.

uncover

Just

in

like

critical

the

finance

journalists,

information

industry

they

about

are

are

now

crafting

their

working

compelling

company,

beyond

just

narratives

delivering

these

sharing

while

they

stories

and

headlines to the board and their colleagues.

Case Study:

The

Financial

Planning

Association

(FPA)

is

a

professional

organisation

for

the

financial

planning

industry in Australia, representing more than 13,000 members where 11,400 of them are practising financial planning and 5,700 are certified professionals. Founded in 1992, the FPA has changed the image of financial planning, from just another industry to a profession that earns customers trust and confidence.

FPA

believes

that

better

financial

advice

will

influence

the

financial

wellbeing

of

all

Australians.

Consequently, the associate of FPA offers the CERTIFIED FINANCIAL PLANNER certification program, which

aims

addition, Through

to

FPA its

develop

professional,

represents

members,

members’

FPA

stands

compliance interests with

and

with

ethical

standards

legislators,

Australians

for

a

for

regulators better

CFP

and

financial

professionals.

consumer future

in

In

bodies. better

understanding consumer needs and tailoring financial products and services to meet such needs.

35

Venture capital

Overview

Venture capital is a type of financing and private equity where investors help provide for emerging companies, small businesses, and start-ups with high growth potential but cannot yet access equities markets.

Apart from access to capital, many venture capital programs also provide portfolio companies with access to skills and professionals. Venture capitalists invest in high-risk start-ups in return for earning interest on invested funds, equity ownership in the companies, and in hopes of the portfolio company’s future success. Venture capitalists research potential investments, new companies, and market trends to inform their decisions.

Trends The future of venture capital is expected to see an increase in the number of mega-deals from companies worth over $1 billion with venture capital funding rounds getting larger. In 2020, the median fund size in the US grew by 69% to $75 million - the largest growth since 2008.

VC has also become prominent with the popularity of angel investing TV Shows such as Shark Tank and The Social Network as well as the increase in start-up accelerators, and the growth of VC companies like Google Ventures and Bain Capital Ventures who offer a platform of networks and a range of services on top of simple funding. Venture capital is thus becoming increasingly prevalent with the rapid growth and demand of technological start-ups.

Key Roles Whilst the number of levels vary between different firms and their different structures, the standard Venture Capital Career path involves beginning as an Analyst, progressing to an Associate, then Senior Associate, then Principal or VP, Junior Partner, then Senior Partner.

A graduate analyst role involves predominantly numerical calculations, industry research, assisting with due diligence and other internal processes. Analysts may learn some financial and market analysis to equip. them for driving deals during future Associate and Principal roles. Most venture capitalists receive remuneration in the form of salaries, bonuses, and commission on their portfolios.

36

Case Study:

About Bain Capital is one of the world’s leading private multi-asset investment firms with approximately $140 billion USD in assets being managed, including the ownership of Virgin Australia in a $3.5 billion sale in 2020.

They operate as a separate spin-off company from Bain & Company, specialising in Private Equity, Venture Capital, Credit, Public Equity, Impact Investing, Life Sciences, and Real Estate. They began in Boston Massachusetts USA, but now span globally across many regions and a range of industry sectors. Bain Capital has made over a thousand investments, earning $106 billion USD in revenue in 2020.

Description

Bain Capital Ventures is a leading venture capital firm that operates on both a domestic and international capability across 26 countries globally. It is a value-yielding subsidiary of Bain Capital, focusing on fostering the next generation of innovation through venture capital, and in particular, investing in seed to growth-stage start-ups that focus on using technology to disrupt existing markets.

As one of the world’s leading venture capital firms, Bain Capital has strong support and backing from institutional investors, government agencies and global fund managers. They achieve global success by utilising a mix of key capital allocation and tailored strategic initiatives to support businesses in transforming major global industries such as Saas, Fintech, and the diversified healthcare sector. Bain Capital accesses investments between $1million to $100 million whilst creating a streamlined platform for founders to connect through networks, partners and customers.

Careers In Australia, Bain Capital focuses predominantly on Private Equity and Credit. Whilst they do not have a formal internship or graduate program for students in Australia, they offer broad careers in all of their practice areas across Asia-Pacific, Europe, and the Americas.

37

Capital Mar OVERVIEW

Capital Markets facilitate capital transfers between investors and institutions. These include Equity (Shares, ETFs), Debt (Corporate and Government Bonds), Foreign Currencies, Commodities and Derivatives.

Primary and Secondary Markets Primary Markets Placements: The company sells directly to select private investors (E.g. Banks, Hedge Funds).

These are sold to private investors without needing to be publicly available.

Preferential Allotments: The company offers shares to select investors at special prices. These prices are unavailable to public.

IPOs: Occurs when a private entity goes public and issues stock to the public for the first time. The shares purchased from the underwriter of the stock.

SEOs: A public company issues new stock.

Secondary Markets Secondary Markets facilitate trade amongst investors. These transactions are executed through various securities exchanges (E.g. ASX, NYSE and NASDAQ)

TRENDS

During

COVID-19,

the

Australian

government

provided

significant

stimulus

to

corporations,

which meant that capital markets fully unlocked during the pandemic This allowed many companies to raise debt in order to extend their liquidity runway and accumulate cash on the balance sheet This

also

allowed

for

an

M&A

boom

as

companies

started

using

their

accumulated

cash

balance for inorganic growth, which also provided impetus to boost the demand to access capital markets Infrastructure

boom:

Transurban

bid

for

Westconnex,

Consortium

bid

for

Sydney

Airport,

Mastermyne’s acquisition of PYBAR, Allegro’s bid for Toll Group Interest rates are record low, allowing for cheaper financing, providing further momentum for strategic and financial buyers Attractive equity market as economies recover and investors start deploying funds, more than 30 IPOs occuring in the last 6 months, with almost 50% at positive performance Iron ore price plunged by up to 50% since its record high in June (from $US257/t to $US110/t) due to weak demand from China Average steel mill production in China dropped by 5% on a daily basis to promote clear skies for Olympics and to meet its environmental targets

38

rkets Case Study: The most well-known players in Capital Markets are major financial institutions within their Investment Banking Divisions (J.P Morgan, Goldman Sachs, Citigroup). This represents the ‘Sell Side’ of Capital Markets, most of which conduct annual internship programs.

One prominent example is Morgan Stanley, a leading financial institution known for executing transactions in equity-related products for institutional clients around the world. Morgan Stanley can be categorized into 3 divisions, including the Investment Banking Division, Wealth Management, Investment Management.

The investment banking division provides key services within capital markets, particularly, capital raising (IPOs and SEOs). The division also provides financial advisory services, including M&A advisory, restructuring, real estate/ project finance, and corporate lending.

Services within the Wealth Management division include stock brokerage and advisory. It merged with Citigroup’s Smith Barney in January 2009.

Finally, the Investment Management division provides asset management services to retail and institutional clients via distribution channels (Third-party retail channels and Morgan Stanley’s Institutional channel). The division also offers products in equity, fixed income, alternative investments and private equity.

There are also ‘Buy Side’ institutions who invest in corporations (E.g. Tesla, Alphabet) in exchange for debt and equity securities (bonds & stocks). These include: Bridgewater Associates – The Carlyle Group – Apollo Global Management

39

EQUITY RESEARCH OVERVIEW Equity research provides an analysis on certain stocks across diverse industries to support financial services and investment division within firms. Their market analysis, industry research and trend projections allow them to provide guidance in whether to buy, hold, or sell certain equities. Their constant monitoring of the market and financial valuations is what provides them accuracy and reliability in the recommendations they provide.

KEY ROLES The equity research division within firms works in a flat organisational structure. In most cases, there will be associates working for one analyst, and that team researches into a group of equities. The team’s

main

responsibility

is

to

produce

reports

to

inform

their

clients,

ranging

from

in-depth

analysis to higher-level, quickly produced reports.

TRENDS Recent industry trends have shifted heavily with the impact of COVID-19 and investors showing different trends and preferences. The standard practices have been reinvented, with clients now demanding different types of reports and information. In recent years, investors have shown strong demand for forms of passive income over a long period of time.

The recent strategy priorities for the equity research industry has shifted to: 1. Diversifying and expanding through joint ventures across different industries and areas in the economy 2. Valuing ideas and innovative thinking, and understanding different client preferences for reports and analysis 3. The importance of client preferences and tailoring solutions and research to such preferences 4. The adoption of technology such as Artificial Intelligence, Machine Learning, and Big data has become a fundamental part of equity research. The multitude of sources of data online has made technology a necessity, such as social media, supply chains, constant market information requires financial analysis which is integrated with technology to take into consideration client preferences and markets with a positive outlook. Analytical tools’ leverage data analytics to provide value to clients and ease processes.

40

Case Study:

ABOUT JPMorgan Chase is one of the world’s most famous investment banks located in the states, with their headquarters in New York City. Not only this, JP Morgan’s outreach also extends to Australia and has a deep root of 100 years and is one of the largest financial institutions in Australia. Clients such as high net individuals, companies, and public sector organisations including the government seek JP Morgan’s financial services. Their expertise in asset management, equity research, and investment banking makes them a heavily relied on financial institution. JP Morgan has aimed to invest in CSR initiatives, and has invested an approximate $1.75 billion, and also offers volunteering services for communities and charitable initiatives through their extensive network, funds and global expertise.

RECRUITMENT PROCESS The equity research division within firms works in a flat organisational structure. In most cases, there will be associates working for one analyst, and that team researches into a group of equities. The team’s main responsibility is to produce reports to inform their clients, ranging from in-depth analysis to higher-level, quickly produced reports.

Explore 3 preferences – navigate through their website to find different roles which interest you – you can have up to 3 preferences

Apply - Upload your resume and use pymetrics to undergo psychometric tests to examine your personality, behavioural psychology, and analytical thinking

Interview: Complete the video interview via HireVue and answer the questions asked in an allocated time frame If the role is technical EG software development, there may be a technical interview where you will have to complete coding challenges The final round will entail either an in person or online interview where you will have the opportunity to meet firm members, where you will be asked technical, behavioural, and situational questions. Make sure to have questions prepared to ask the recruiters

Offer: Depending on your performance and multiple factors, you may be offered a position!

41

TREASURY OVERVIEW Treasury refers to the management of cash flows and financial risks within an organisation to ensure they are efficiently managed and optimised. The underlying focus of treasury is to ensure that cash and risk is managed on a daily basis, whilst maintaining the long term strategy. The ultimate purpose of treasury is to manage and maintain a company's liquidity and mitigate any risk, in order to align day to day operations with a long term goal. A career in

treasury

can

be

broken

into

three

functions:

Cash

management,

risk

management,

corporate finance.

Cash management:

This aspect of treasury is heavily focused on the operational side of

the business. Optimising efficiency and processes to assist with cash management will ensure the company has the right amount of cash on hand at all times.

Risk Management:

Risk management is concerned with unexpected expenditures. It has a

strong focus on operational controls and planning for the potential impact of technological changes, economic changes and company changes.

Corporate Finance:

Corporate finance is related to the strategic planning of financing

expenditures through borrowing and investment. The treasury will ensure that the sources of funding allows the company to meet long term objectives of the company.

TRENDS Treasure as an industry has been subject to new trends and directions as we recover from the

global

pandemic.

A

key

underlying

trend

is

the

employment

and

optimisation

of

effective hedging tools to mitigate foreign exchange risk. A key concern is whether the hedging tools complexity and operational costs justify its cost savings.

Treasury

has

recently

gone

under

a

significant

degree

of

automation,

as

companies

continue to integrate and automate risk management programs. Many companies have therefore increased their budget capacity to strategically adopt efficient technology and utilise software that promotes data-driven decision making.

42

Case study:

ABOUT Westpac

is

a

leading

Australian

commercial

bank

founded

in

1817

with

over

16,000

employees and offices globally, including London, New York, Hong Kong and Singapore.

Westpac has a developed treasury team that aims to provide funding, liquidity and risk management to Westpac’s balance sheet, thereby enabling all other functions of the business to operate effectively. Westpac also extends its treasury services to small to medium sized businesses, helping them manage their financial risks and liquidity needs.

RECRUITMENT PROCESS The first step in the recruitment process to join the treasury team at Westpac is the online application.

This

involves

sending

a

cover

letter,

resume,

and

academic

transcript

in

addition to selecting team preferences. The second step in the process is an online assessment. The step helps Westpac determine whether your values align with Westpac and how suitable you are for the role. There are two online tests; Culture fit assessment and Psychometric testing. The third step in the process is a video interview with one of the team members.

43

OVERVIEW

Risk man

Risk management is the mitigation of costs associated with risks for corporations.

Corporations face five main risks including liquidity, operational, market, default, and pure risk. Financial risk management seeks to understand a corporation’s risk appetite, what risks the corporation is willing to take and which to avoid and develops a strategy to control the risks faced. Risk management involves identifying risk exposures, quantifying the exposure, and making decisions to hedge against the risks.

TRENDS

Risk management continues to evolve with increased regulatory compliance requirements around the world as corporations continue to face modern problems and new risks. These include risks associated with increased technological use and increased global and political risks as more and more multinational companies emerge. Coupled with increased regulatory compliance requirements over time and higher business stakes from the threat of financial and reputational damages for failure to adhere, risk management becomes more important than ever.

KEY ROLES There are many roles in risk management from broad backgrounds including but not limited to engineering, finance, statistics, and law due to the diverse nature of risks faced by modern companies. Jobs in these areas may vary in seniority and roles but include:

Risk Analyst: Examines the risk involved in a firm’s investment portfolio, project possible losses, and recommend risk-mitigation strategies through diversification, currency exchanges, and more.

Risk Manager: Works in an organisation to implement and manage their enterprise risk frameworks, monitor and inform them of potential risks, and make decisions on such identified risks.

Risk Management Consultant: Advises multiple organisations and individuals on their risks and develops plans to mitigate risk exposures.

Risk Control Supervisor: Supervises a team of risk analysts who handle claims, plan and direct business analysis, risk modelling and loss prevention strategies.

Director of Corporate Risk Management: facilitate risk management in the organisation and are responsible for ensuring the security and safety of all people, processes, and assets in the organisation.

Chief Risk Officer: are responsible for the implementation of all policies and procedures to mitigate risk and supervising the organisation’s risk identification and mitigation procedures.

44

nagement

Case Study: ERNST & YOUNG

ABOUT Founded in 1989 in England, Ernst & Young (EY) is one of the largest professional services companies in the world and is considered one of the Big Four accounting firms with $40 billion USD revenue in 2021, and 312,250 global employees. EY’s service offerings encompasses Assurance, Consulting, Strategy and Transactions, and Tax. Each service line includes numerous subdivisions such as risk management.

EY is a leader in risk management, aiming to create value and a competitive advantage for corporations by effectively navigating financial disruptions. The large multinational firm offers risk transformation, internal audit, technological risk services, actuarial services, financial services risk management, and forensic & integrity service offerings to help corporations manage risk. Within financial services risk management consulting, EY helps corporations minimise enterprise, liquidity credit, operational, compliance, and market risks, whilst also offering capital management, structured finance, and quantitative services.

CAREERS EY offers multiple career programs for students at different points of their career paths.

Pre-Penultimate

Cadet Program: A two year program where students combine full-time work with part-time university to help students accelerate their development.

Career Compass Program: A short two day program to help students explore a range of career opportunities.

Penultimate

Vacationer Program: A 6-8 week internship program to gain exposure work within a chosen practice area, and take a step towards landing a graduate position at the firm.

Graduate

Graduate Program: Students can apply for this position when they’re in the final year of their degree or within 18 months of graduating from university. This is an 18 month entry-level program where new graduates begin their careers.

Application proces Online written applicatio Online Portal Assessmen Online Job Simulation Recruitment Day meeting recruiters either face-to-face or virtually 45

Institutiona Overview

Institutional banking is a special division within a bank that provides specialised services to businesses, inclu research - you could think of institutional banking as like financial consulting. Institutional banks deal wit distinction between institutional and investment banks are blurred, since they both offer overlapping service HISTORY AND TRENDS In Australia, the main institutional banks are the big four banks CBA, AN , NAB and Westpac. These banks are strictly separate, under the four pillars policy which was introduced in .

The big four banks make up a uarter of the A 2 by market cap CBA is the largest by market cap, and has an overview below. ince institutional banks focus on much larger clients (corporations and government departments), their operations haven’t been as affected as other divisions such as retail As a graduate, institutional banks are considered a safe ob, since their services are always re uired and their clientele are low risk.

:

Z

1990

q

SX

00

S

j

q

CAREERS There are different career prospects for people who work in institutional bank ou can move around the different divisions of the bank In a retail bank; product or marketing In an investment bank; M A, trading, etc.

Consulting :

Y

&

Case Study: Commo

About Commonwealth Bank is an Australian multinati including business and institutional banking, sup products and services. Commonwealth Bank’s solutions to both private and public sector organi capital raising solutions, transaction banking servic

Recruitment Recruitment Online application Advice Knowledge Assessment Phone Interview (Nine tips for the interview on C Academic Qualification Checks Online Assessments Interview (Ten tips for this interview on CBA’s w Background and Reference checks (At least 2 r

Case Study:

About National Australia Bank is a multinational bank corporate and institutional banking, business operations. NAB provides institutional banking th where it provides a range of specialist solutions i risk and specialized financing solutions.

Recruitment Application Phone Interview Formal Interview (Behavioural Event Interviewin Assessment (Mix - online/face-to-face and ma competency testing) Work reference and Background checks 46

al Banking

uding debt structuring, fund management, trading and th large corporations and government institutions. The es.

onwealth Bank

ional bank that provides integrated financial services perannuation, funds management, insurance and retail Institutional division forms relationships and provides isations through a range of financial market capabilities, ces and risk management products and services.

CBA’s website)

website) recent managers)

that operates in four key divisions; personal banking, and private banking and technology and enterprise hrough its Corporate and Institutional Banking division including financing corporate growth, managing market

ng) ay include cognitive, psychometric and or/

47

BROKERAGE OVERVIEW Similar to investment banking, a brokerage service’s major duty is to act as an intermediary and link their clients to the other side in a trade, bringing together sellers and buyers at the best price possible for both parties. These services involve transactions such as trading shares, stocks, or other financial assets on either a transaction fee or commission basis. There are many different types of brokerage firms, contributing to a wide variety of goods and services.

THREE MAJOR BROKERAGE TYPES Full-service brokerage (traditional brokerages) This type of brokerage company employs professional financial advisers who control all investment choices and delivers ongoing support and advice. These brokerages are undoubtedly the most expensive option as their services are higher quality compared to the other brokerages.

Discount brokerages Coming in next is the more affordable discount brokerage. What was once a face to face operation is now regularly online as this allows self-directed investors to decide their own trading deals for lower commissions. As a result of this, there has been a boost toward zero trading commissions for exchange traded funds on many self-directed online platforms. These brokers may attempt to deal fairly low flat fees for trades in radio, internet and television advertising.

Robo-advisors Robo-advisors, also known as automated investment advisory platforms, are a somewhat new form of digitalised financial advisors. These inexpensive digital advisors deliver investment management services executed by algorithms with minimal human intervention. Various robo-advisors provide zero fees or commissions, where buyers can begin with as little as $5.

48

Case Study:

TRADEMAX TMGM is one of the leading innovators providers of contract for differences (CFD) trading.

They

are

continuously

pressing

the

boundaries

through

cutting-edge

development

and

research. TMGM has more than 15,000 shares and ETFs along with 5 cryptocurrencies and commodities.

TMGM aimsto provide its clients with the best trading conditions, powered by both industryleading

and

cutting

edge

innovative

platforms.

It’s

R&D

efforts

constantly

push

the

boundaries of liquidity and usability to empower clients to benefit from a truly exceptional trading environment. At TMGM, as one of the leading brokerage firms across Australia, and with

rapid

growth

across

the

Asian-Pacific

market,the

business

connects

the

everyday

investor to the widest range of markets through both industry-leading platforms and its own proprietary cutting edge platforms. TMGM provides both the best breadth of markets and depths of liquidity. Utilizing OneZero’s cutting edge pricing engine to support multi-tiered best bid/ask aggregation, its smart order routing executes customer orders on the best price available in its deep liquidity pool, allowing customers to trade a wide range of markets at truly competitive rates.

49

insights indus profess

s from stry sionals 50

Victor Rodriguez

HEAD OF FIXED INCOME INTRODUCTION & CAREER JOURNEY I’ve been working in financial services for 27 years, initially starting in banking before very quickly making the move into investment management. I then spent over 13 years in the Asset Management division at Credit Suisse (CSAM), initially starting as a dealer. trading a wide range of bond and derivative investments for portfolio managers. I then moved into a credit analyst role, analysing companies issuing debt

in

bond

markets

and

putting

forward

buy

and

sell

recommendations,

before

becoming

an

investment manager, helping manage a range of different portfolios and funds for institutional and retail clients. On New Year’s Eve 2008, global asset management firm, Abrdn acquired the division I was part of at CSAM, and I was tasked with leading the merged Australian fixed income team. This 8 year stint also included a few years in Singapore heading up the Asia Pacific investment team before returning home to my current role at Challenger in 2017.

WHAT DOES A TYPICAL DAY IN YOUR CAREER LOOK LIKE? I’m

not sure there is such a thing as a typical day, the role is wide and varied, but maybe I can just use

today as an example: As a member of the Investment Committee, an assessment and approval of a $150m loan following private equity sponsored acquisition of an Australian medical services company Negotiating

amendments

to

our

investment

management

agreement

with

large

Australian

superannuation fund, including discussion on management fees Internal

meeting

ahead

of

discussion

with

regulator

seeking

our

thoughts

on

the

liquidity

we

witnessed during times of market distress such as witnessed last year Portfolio construction meeting with members of my team, discussing how to position portfolios given seemingly stretched valuations in public credit markets (and most other risk asset classes!)

Funds Management Leadership Team meeting discussing potential launch of a new total return fund in our product suite End the day with an evening zoom call interviewing for candidate in our London based securitisation team

51

WHAT ARE THE MOST ENJOYABLE ASPECTS OF YOUR WORK? I quickly moved from banking into investment management and felt more at home. I enjoy the fact that in this industry, we only succeed if our clients succeed. Our fee structures are such that we need to keep clients (saving for or already in retirement) over the long term to ensure a profitable business, consistent with our fiduciary obligations as investment managers. Other parts of the financial services industry can be more transaction fee based, where incentives may differ.

Day to day, the fast-paced environment (even more so in lockdown!) and the intellectual challenge of understanding a business well enough to determine whether we should be lending to it or not are the two things I would call out as providing lots of enjoyment. In the second half of my career, I have also been

surprised

with

how

much

I

have

also

enjoyed

the

people

management

that

comes

with

a

leadership role. Every person is different, and whilst sometimes that can create more issues than one would like, understanding what motivates people, their hopes and their fears, finding ways to help them develop their skills and progress their careers are all a source of great joy – I would not have said that when I started managing people I stress!

WHAT DO YOU BELIEVE ARE SOME OF THE MOST IMPORTANT ATTRIBUTES TO SUCCEED IN THE INDUSTRY YOU WORK IN? The Investment Management caters to a wide range of potential career opportunities from risk-based roles in areas like Compliance, to Accounting/Finance or even a career in Sales, the pathways are wide ranging.

Just

focusing

solely

on

a

career

as

an

investment

manager,

quite

obviously

a

thirst

for

knowledge and passion for investing is critical. I might just single out one less obvious attribute here that I have witnessed over the years. As an investor, you will also need to be prepared to be wrong sometimes and learn from those experiences. An accountant probably fails if they get things wrong 1% of the time, whereas an investor can succeed getting things wrong 20% of the time. That doesn’t make it easier, it’s just the difference between accurately recording the past and trying to predict the future.

It’s an attribute and a mindset that some people embrace much more than others.

WHAT CAREER ADVICE WOULD YOU GIVE TO YOUR YOUNGER SELF? Even if you love what you do, that can sometimes be easy to forget, particularly when you’re less experienced or during times of heightened market stress and turmoil, like we saw for example during the GFC in 2008. With that in mind, I would simply say to my younger self “Remember Vic, you’re far more likely to perform at your best if you’re having fun” :-)

52

Christina Manonian

SENIOR DIRECTOR INSTITUTIONAL BUSINESS

INTRODUCTION & CAREER JOURNEY I actually started my career in the insurance industry – probably influenced in part by my father, who spent the bulk of his career after starting in public accounting. I worked for a reinsurance broker in New York City, and while I found the concept of risk transfer and pooling very interesting, I found the insurance industry fairly narrow in scope. I moved on to a role in Investor Relations with an agency that represented many different types of businesses, so got a broader scope and worked with CEOs and CFOs from a range of industries.

I learned so much about both capital markets and corporate communication – and discovered my passion for blending the two. I moved west to San Francisco, taking a role in a tech PR firm within their financial services team – working with clients mainly in venture capital, private equity, and investment banking. However, I missed the analytical side of things and when an opportunity came up at Franklin Templeton, I jumped at it. I worked first in the Institutional Marketing & Communications team, and then in the Institutional Product Management team. After a few years in California, an opportunity to do a 2year stint in FT’s Melbourne, Australia office came up – and being newly married to someone who loved both traveling and surfing – it wasn’t a tough decision to make the leap down under. I found the superannuation industry both welcoming and dynamic – and the close knit nature of most asset owners being in Sydney and Melbourne meant that there were ample opportunities for networking and learning through conferences and events. We ended up staying 8 years and having both of our children here.

From there, we moved back to California for 2.5 years, and I worked on FT’s US Institutional Consultant Relations team. But… we missed so much about Australia, so when the opportunity again arose to move back – we followed our intuition and crossed the Pacific Ocean once again.

53

WHAT DOES A TYPICAL DAY IN YOUR CAREER LOOK LIKE? There’s no typical day necessarily, but the one element that’s constant is a focus on our clients. My time is split between business development (new client relationships) and working with existing clients. It’s fast paced, and the industry is constantly changing. I have a lot of client meetings, some internal meetings, make phone calls and spend a good amount of time on email. Another element is staying current on the markets and news, so I read a lot. I studied Economics in university and do a lot of work with fixed income strategies, so knowing what’s happening with rates, political regimes and economies around the world is critical.

WHAT ARE THE MOST ENJOYABLE ASPECTS OF YOUR WORK? The most enjoyable element of my job is the interaction – both with clients and with our team. I’m an extrovert by nature, so enjoy talking to different people with different backgrounds and perspectives. I feel like I’m constantly learning about different markets, companies, industries, and economies. I also love writing and developing clear communications, which is an important aspect of the job.

WHAT DO YOU BELIEVE ARE SOME OF THE MOST IMPORTANT ATTRIBUTES TO SUCCEED IN THE INDUSTRY YOU WORK IN? First and foremost, persistence, but I’d say that more and more it’s the ability to be flexible. Being able to build a rapport with clients and also internal resources is key, and being diligent in follow up to clients is absolutely critical. As mentioned, communication skills are also important, as is staying abreast of industry information. It doesn’t seem like a creative industry per se, but being able to think outside the box and develop new and customised solutions for clients is increasingly important.

WHAT CAREER ADVICE WOULD YOU GIVE TO YOUR YOUNGER SELF? Back yourself. Ditch your self-doubt, but also your ego. Do great work and put your hand up and things will work out. Also, you don’t have to have everything figured out all at once, and life (and your career trajectory) may not always be linear. You will have ample opportunities to contribute and help others throughout your career, and it is these elements that you’ll find the most meaningful.

54

Hart Lestari

FOUNDING PRINCIPAL INTRODUCTION & CAREER JOURNEY I grew up in Indonesia and Singapore and pursued my BS in Commerce degree at the University of Virginia, concentrating in Finance, Accounting and Social Entrepreneurship. After a few internships in asset management and investment banking, I joined J.P. Morgan’s financial institutions coverage team in New York. I worked in investment banking and venture capital for a few years in New York and Sydney before joining Barrenjoey in early 2021. I work in the financial services and technology coverage team now.

WHAT DOES A TYPICAL DAY IN YOUR CAREER LOOK LIKE? This changes a lot, so it’s hard to pin down.

Some days involve working on live transactions (equity, debt, or M&A). During my first year on the job, I worked on a few debt transactions, and IPO, and a spin-off. No year is the same, and your involvement in these transactions will mostly be driven by your experience and initiative.

Some days involve working through strategy or pitch decks. Since these outputs are less straightforward, the team usually starts with an internal meeting to set out key messages and identify analysis needed to help find the answer. The team will then go off to do the work and have a few check-ins / turns of comments before presenting the book to the client. You might get a few follow ups after the client meeting…or a deal to be worked on further!

Some days will require sprinting at both types of work, and others are nice and quiet, so you’ll have time to brush up on other deals / pitch decks / industries in the coverage universe…or take it easy.

55

WHAT ARE THE MOST ENJOYABLE ASPECTS OF YOUR WORK? One of the best parts of the job is working with your team to answer tricky client questions and arrive at the best advice to deliver. This involves workstreams such as running financial analysis, doing research on the industry, looking into the outcomes of what other companies have done, or speaking to people with more specialised knowledge.

It’s also very rewarding to see your team’s advice and work come into fruition, whether it be an IPO, an M&A deal, a shift in the client’s strategy, or even just helping the client to further their internal analyses.

The most enjoyable part is the people. Having a great team makes a huge difference when you’re struggling with finding the right answers, doing more tedious tasks (which are unavoidable), or looking for guidance on how to develop into a better adviser. I’ve met most of my closest friends at work so I think that says something!

WHAT ARE SOME OF THE MOST IMPORTANT ATTRIBUTES TO SUCCEED IN THE INDUSTRY? Resourcefulness – it’s important to be able to and have the initiative to figure things out on your own.

Yes, you’ll have someone to point you in the right direction when you’re stuck, but I’ve learnt that it’s much better for your learning and the team’s overall productivity when you are able to look for answers and develop ideas on your own as well.

Grit – it’s not all sunshine and roses. There will be times when you are tired and stressed, and in these times it’s important to remember why you are doing what you are doing, lean on your team, be transparent about your capacity and take care of yourself.

Ability to work (well) under pressure – as much as we try to minimise panicky last-minute sprints, they will happen. Being able to process and integrate new information accurately and quickly under pressure is important.

Ability to balance work / life / health – it’s important to know when to say no, whether it be pushing back on a new staffing because you are already working at 100%, skipping that workout because you haven’t slept enough, or taking a raincheck on that dinner in favour of a quiet night in after a long week.

Ability to accept (or rather, invite) constructive criticism and develop from it – self-explanatory, but remember that work is very different from university, and that everyone always has something to improve upon (no matter how senior they are).

Ability to connect with different personalities in your team / client base – this will reduce friction in everything you do, help you get more information and do a better job, and will only become more important over time.

WHAT CAREER ADVICE WOULD YOU GIVE TO YOUR YOUNGER SELF? Feeling overwhelmed at first is normal – it’ll get better.

Everyone makes mistakes, don’t freak out too much when you do.

It’s never too late to do something different.

You are not superhuman (no matter how proud you are about able to work with 4.5 hours every night in your early twenties – it’s really not something to be proud of) – watch your health!

56

William Lee

NATIONAL FINANCE MANAGER BUILDING

INTRODUCTION & CAREER JOURNEY After graduating from university with a Bachelor of Commerce from the University of Western Australia, I started my career in the Audit and Assurance division of KPMG. I spent over three and a half years providing audit services to client across a diverse range of industries, specialising in, energy and natural resources, mining services, transportation and media. It was during this time that I completed my Chartered Accountants post graduate qualification.

I am currently the National Finance Manager for Lendlease’s Australian Building business. My role is focused on providing operational financial support and ensuring consistent application of financial process and framework, and leading the Building finance function’s support of origination activities. I have previously held roles across Property and Urban Regeneration during my time at Lendlease.

WHAT DOES A TYPICAL DAY IN YOUR CAREER LOOK LIKE? In my current role, each day is challenging and varied. My key responsibilities include ensuring effective financial risk management, the smooth coordination of finance and reporting activities and continuing to build a positive culture in the team so that everyone feels supported, engaged and is equipped to provide the best service possible to the business. This includes reviewing regional forecast data and validating

embedded

assumptions,

supporting

teams

in

tender

activity,

engaging

with

non-finance

stakeholders to understand the financial implications of operational decisions and helping to establish team strategy and future focus areas.

57

WHAT ARE THE MOST ENJOYABLE ASPECTS OF YOUR WORK? What I enjoy most is the diverse range of stakeholders that I engage with each day. This includes individuals within the Building business, but also across other functions/businesses and with external stakeholders. The ability to collaborate with others and contribute to a common goal is very fulfilling.

The people that I get to work with is what keeps me motivated, engaged and excited to come to work each day. Finance are sometimes seen as the number crunchers behind the scenes, but what makes my work enjoyable, is the ability of our finance team to challenge the status-quo, influence stakeholders and drive positive change throughout the business.

WHAT DO YOU BELIEVE ARE SOME OF THE MOST IMPORTANT ATTRIBUTES TO SUCCEED IN THE INDUSTRY YOU WORK IN? I believe that the most important attribute to develop in the construction industry, is the ability to rapidly respond to change. Each day brings new challenges for our construction projects, this has been particularly evident over the past 18 months with projects managing the impacts of COVID-19 and the various government mandated regulations. As a finance team, we engage closely with commercial and operations teams, and the ability to pivot and proactively respond is key to enabling finance to provide the

insights

to

support

management

decision-making.

In

addition,

it

is

critical

to

always

look

for

opportunities for improvement and optimisation of process so that as a finance team, we can continue to evolve and better support the business.

WHAT CAREER ADVICE WOULD YOU GIVE TO YOUR YOUNGER SELF? For someone starting out in their career, I think that one of the most important skills to develop is to be a good listener. In my career to date, there is so much knowledge and capabilities that I have acquired through listening, actively seeking feedback and learning from others. Having confidence in your own abilities but maintaining a growth mindset, will ensure continued development at every stage of your career. Asking lots of questions and having a keen interest in what others do has helped me immensely in developing my financial and commercial knowledge. I continue to be amazed, inspired and educated by the people I work with each day and their wealth of knowledge. But most importantly, don’t be afraid to step outside your comfort zone and challenge yourself, you will surprise yourself at how much you are truly capable of!

58

Lauren Davies

MANAGEMENT CONSULTING MANAGER

INTRODUCTION & CAREER JOURNEY I

have

been

at

Accenture

for

6

years,

split

between

London

and

Sydney.

I

started

my

career

in

recruitment in London, hiring project management professionals into the Financial Services industry for a start-up boutique agency. About 18 months later, I started at Accenture on their grad programme, starting my career in Contract Management within retail, and moving to Capital Markets after 6 months, where I have been ever since. I made Consultant in London, and then decided that I wanted to transfer to one of Accenture’s other global locations. I picked Sydney, making connections in 2017 and moving over in 2018. I have now been here for 3 years, making Manager along the way, and I am currently working towards Senior Manager.

WHAT DOES A TYPICAL DAY IN YOUR CAREER LOOK LIKE? Typically check emails and clear inbox between 7-8am on the Accenture side. We often have a lot of internal work that we have to balance alongside our client work so I find it helpful to get on top of this early in the day. I then typically log on or arrive at client site between 8 and 8.30am.

My day typically consists of 70% meetings, depending on the day and the stage of the project. I usually catch up with my team first thing to set intentions for the day, in a measurable way. I would then have a range of internal and client meetings to run/attend, reporting packs to create, emails to respond to and team catch ups to attend.

59

WHAT ARE THE MOST ENJOYABLE ASPECTS OF YOUR WORK? I enjoy the people side of the job the most. I looked forward to becoming a People Lead (Career Counsellor) for most of my career, and currently have 5 counselees. It is good to be able to give back to the company and contribute towards people’s careers and it’s certainly a rewarding element of the job.

I also enjoy working with clients to help them to achieve their strategic goals and building continued relationships with them over several years, working together as delivery partners.

WHAT DO YOU BELIEVE ARE SOME OF THE MOST IMPORTANT ATTRIBUTES TO SUCCEED IN THE INDUSTRY YOU WORK IN? Grit and determination. Management Consulting can be a tough but rewarding industry. Hard work is a must, a clear communication style is hugely beneficial. Being your genuine self is the best advice I could give to succeed – people buy people – and overly-engineered, gimmicky sales techniques are not usually successful.

WHAT CAREER ADVICE WOULD YOU GIVE TO YOUR YOUNGER SELF? Working hard in the junior stage of your career will pay off in the long-term and help you to move quickly. Be proactive, reliable and useful. Take every opportunity to learn, do training, travel with the company. Enjoy it – the first few years in your career will shape the decades to come!

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graduate testimo

& student onials 60

NAHUM ADEEL

Private Equity Intern at Pemba Capital 4th Year Bachelor of Commerce (Finance) & Bachelor of Actuarial Studies

What motivates you to pursue a career in finance?

For me it has to be the breadth and range of the

commercial deal

acumen,

process

and

but

what

also

learn

about

considerations

go

the into

structuring transactions.

work. Each deal is different and you’re working

refreshing - that also means you’re continuously

What was the most challenging part of your work?

learning. I also like to work hard and I thought

Probably time management – as an intern, you’ll

finance

you’re

be working for multiple analysts at the same time

basically packing 3 years of experience in 1 with

each with their own deadlines. Being able to set

the amount of projects you get involved in!

expectations and being transparent about your

on

something

new

suited

every

my

day

which

personality

is

type

always

–

capacity is very important to make sure all the

What do you do in your current role?

work gets done on time. On top of that, making

My role involves working directly with the deal

sure

origination

means

attractive

and

the

industries

investment and

niches

team

to

based

find

on

our

investment mandate. When I’m not researching potential

target

companies,

I

spend

my

you’re

completing

it’s

difficult

all

to

your

achieve

work

on

time

perfection

–

knowing where to put your effort can make all the difference.

time

working with analysts to put together slides on

Advice to students:

industry and company analysis for the investment

Do lots of case competitions! They’re a great way

committee. I also got a chance to sit in on the

to see what finance professionals get up to at

meetings with the management team of target

work, and they really do capture the essence of

companies and the bankers assisting us on the

what

deals.

finance. Case competitions are a lot of work,

it's

like

to

work

in

buy-side/sell-side

when you sign up it's important to be ready to

What do you enjoy the most about your work?

spend the majority of your time during the week

Definitely

on the case. Secondly, take a genuine interest in

the

variety

of

the

work

–

every

company is different, and you get a chance to

finance!

analyse them from an investor standpoint and

what’s going on in the industry (in your area of

think about all the factors they could potentially

interest).

affect

whatever financial modelling you can – it goes a

returns.

You

get

a

chance

to

directly from professionals and build your

learn

That

Try

means

to

use

being

online

up

to

date

resources

to

with

learn

long way especially in 1st/2nd year of uni!

62

SAMANTHA CHEN Private Wealth Intern at Westpac 3rd Year Bachelor of Commerce (International) (Finance and Accounting)

What motivates you to pursue a career in finance?

I

chose

to

major

in

finance

as

the

finance

industry is a necessary, fast-paced and evolving

units in the bank fit together and coordinate. I am often encouraged to make enquiries about other departments and areas of the bank which I find engaging.

industry that provides access to a variety of job

new

What was the most challenging part of your work?

programs, talk to new people and learn about

The most challenging part of my work is being in

new cultures. A major in finance perfectly aligns

an unfamiliar environment and given tasks that I

with my strengths and interests.

am not 100% confident in. I navigate through new

opportunities in various industries. As a curious individual,

I

love

to

learn

new

skills,

tasks

and

projects

by

setting

my

own

What do you do in your current role?

working

I am currently working as a Private Wealth Intern

utilising all resources available to me.

in

collaboration

with

goals,

colleagues

and

at Westpac. In this role, I work with my team to streamline Wealth other

processes

sector

and

business

experience

within

improve

units

for

to

Westpac’s

coordination

create

Westpac’s

Private

a

Private

with

seamless Wealth

Advice to students: As

a

university

important

to

student,

be

opportunities

that

believe

proactive will

and

allow

you

job

develop

would like to pursue a career in. A lot of my work

find

programs.

We

suggestions

also

for

respond

procedural

experience

to

and

customer service, where I learnt many skills such

from

as

conflict

resolution,

working

in

collaborating

retail

you

and

improvement

from

industry

technologies feedback

comes

the

to

for

is

procedures that are inefficient or redundant and new

to

look

it

transferable

through

relevant

that

customers. My team aims to identify the areas of

solutions

skills

I

in

a

and

team

staff in other teams and prioritise our workload

and working in a fast-paced environment. These

through cost-benefit analysis.

skills were transferable to my role as a Customer Service Representative at CBA, where I served

What do you enjoy the most about your work?

clients for their financial needs. It is important to know your motivations, your passions and your

What I enjoy about my role is that I am given

strengths:

this

will

allow

you

to

“sell

yourself”

exposure to many different areas of the business

when you go through the application progress

and I can observe how the different business

and interview stages.

63

TONY CHEN

Investment Banking Analyst at Neu Capital 2020 Graduate Bachelor of Commerce (Accounting and Finance)

What motivates you to pursue a career in finance?

My role at Neu Capital has helped me realise that

client

value

isn't

created

by

successfully

It's really fun, you learn heaps and also my mum

executing a transaction but rather the terms and

told me too. A career in finance is a great way

conditions that are negotiated in their favour.

to learn the nuances of and be exposed to a

you'd get in another career path. For example, I

What was the most challenging part of your work?

worked on a CAPEX facility for cherry orchards

The most challenging part of my role is framing

and now I know all these interesting facts about

the credit story to accurately depict our client's

how to grow cherries, their harvest cycles and

situation and cover off any potential commercial

the insane premium Asian countries are willing to

contention

pay for them.

lender's due diligence and delay the transaction.

broad

range

of

industries

which

I

don't

think

points

that

could

arise

during

the

The primary concern for debt investors is capital

What do you do in your current role?

Neu

Capital

specialising leveraged property.

is in

a

boutique

mid-market

finance, We

transactions

structured

quite

firm

across

finance

need

who

to

volatility.

deal

ensure

with

that

Therefore,

non-bank

our

debt

lenders, papers

and

papers

that

handling

managing

Q&A

with

they

are

lenders

taking

as

potential

we

ability to recover their loan for the additional risk

get

reflect

credit

as

includes preparing deal materials such as credit

and

the

advisors

from

to

and

so

loss

scenarios

models,

team,

of

analysts have quite a lot of responsibility which

communications

small

and

risk

models

financial

a

advisory

financial

and

are

debt

preservation and ensuring that equity wears the

stressed

comfortable

this

on

determines

their

the

pricing and terms that we can negotiate for our

investors and clients.

clients.

What do you enjoy the most about your work?

Advice to students:

Really clique but what I most enjoy at work is

I highly recommend that if you are interested in

helping structure transactions and participating

finance,

in commercial negotiations as there are always

societies such as FINSOC so you can meet other

different

considerations

like-minded students. Your friends will be your

which

find

I

for

grades play a critical role in securing internships

know

and graduate roles!

your

deal

team

has

negotiated

are

finance

been working on reaches financial close and you that

referrals

the

powerful. Also, study hard from day 1 as your

that

as

of

have

transaction

network

one

you

a

feels

join

greatest

when

It

transaction

you

extremely

rewarding

interesting.

every

that

extremely

excellent commercials on the client’s behalf.

64

JACQUELINE LIU

Investment Banking Analyst at Credit Suisse 2019 Graduate Bachelor of Commerce (Finance and Accounting)

What motivates you to pursue a career in finance?

What do you enjoy the most about your work?

Investment

assist a diverse range of clients through providing

banking

appealed

to

me

as

the

I enjoy working closely with a supportive team to

increasingly complex challenge faced by firms

our

analysis

today to grow would mean new demands for

solutions to their unique business, and facilitating

creative solutions, so no one day would be like

deals. Our teams are quite lean, so juniors are

the next. In particular, working in finance does

given a lot of responsibility in taking ownership of

not limit you to any one sector as finance is

producing meaningful work that is presented to

applicable to and touches upon all industries

clients

(e.g. industrial, real estate etc.).

assisting

and in

on

current

released drafting

trends

to ASX

the

and

potential

public,

such

announcements

as and

prospectuses.

What do you do in your current role? capital

What was the most challenging part of your work?

advisory

The most challenging part of work was definitely

services for real estate clients. This is a broad

at the start, trying to pick up on all the jargon

sector,

specific

I’ve

recently

coverage raising

team,

and

with

Scentre Group),

day,

(e.g.

pubs,

childcare,

may

look

(e.g.

Goodman

Office

others

storage like

retail

(e.g.

Centuria and

Estate

provide

including

industrial

Dexus)

Real

transaction

sub-sectors

(e.g.

the

we

strategic

office

this

into

where

Group),

diversified hotels,

rotated

to

the

clients’

industry

group

as

this

information is not readily available online in the

REIT),

public domain. In addition, the work is very fast-

(includes

paced and it is quite common for people to be

etc.).

Day

preparing

to

working on different work streams simultaneously.

client

presentations and updating financial models for

Advice to students:

clients to assess potential ideas to pursue or

I advise students to apply for internships since the

bespoke deal-specific work. Previously, I worked

best way to understand the role is to have first-

in

hand experience. In addition, it is helpful to reach

the

Financial

Institutions

Group

(FIG)

coverage team, which is similar kind of advice

out

work but focused on advising financial services

applying to and try to schedule a coffee catch-

clients such as the banks, wealth management,

up to understand more about the role. The juniors

asset

companies.

have been in your shoes previously and will be

Deals I have worked on include being on the IPO

able to share their experiences and what they

of

found most useful during the hiring process. This

management

Liberty

and

Financial,

insurance

Latitude

Financial

and

Pepper Money, and the strategic review of AMP.

to

current

employees

of

the

firm

you

are

will allow your application to stand out by being able

to

tailor

responses

to

the

firm

you

are

applying for. Good luck

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