Master of Science in Finance

1. Discover this place Shape your world TM Master of Science in Finance Open doors to a career in finance

2. Agenda • Employment opportunities for finance graduates • Graduate degrees in finance • The Vanderbilt MSF • Next steps

3. The Vanderbilt MS Finance Employment Opportunities for Finance Graduates

4. Employment • The employment market for graduates is improving. • Hiring of 2013 graduates is expected to increase 13% over 2012*. • Most sought after majors are: • Finance • Computer and Information Science • Accounting • Business Administration/Management • Mechanical Engineering * NACE Job Outlook Survey 2013

5. Jobs in Finance • Many different roles in finance: • Investment banking • Investment management • Investment research • Sales and trading • Real estate finance • Private wealth management • Advisory services • Corporate finance • Etc… • Can be hard to decide which is best for you. • Important to take the time to explore all of your options and work towards making a decision.

6. Investment Banking • Investment banking covers a range of different roles, including: • Investment banking or corporate finance • Sales and trading • Research • The investment banking division includes: • Capital markets (raising funds via issuing equity or debt) • Mergers and acquisitions (advisory role for bidders or targets) • Generally organized along industry coverage (e.g. healthcare) and product coverage (e.g. M&A or leveraged finance) • Investment banking requires long hours and lots of flexibility. • Often have very structured analyst programs. • Viewed as an excellent launching pad for other finance roles.

7. Investment Management • Investment managers seek to grow capital and generate income for their clients. • Involves researching and analyzing potential investment opportunities and allocating clients’ funds according to their investment objectives. • Client may be retail (individuals) or institutional (companies and municipalities). • Includes hedge funds, mutual funds, pension funds, university endowments, etc. • Investment managers are on the “buy-side”. • Also known as asset management.

8. Private Wealth Management • Provide banking, asset management, insurance and fiduciary and tax services to high net worth individuals. • Coordinate a network of bankers, investment managers and other specialists. • Interact with multiple divisions. • Communication and “people” skills are very important. • UK / Vandy MSF graduates • Sam Gillespie ’13 (JP Morgan, New York) • Tony Cox ’09 (Goldman Sachs, Atlanta)

9. Investment Research • Conduct “fundamental” research: • Analysis of factors and trends driving an industry’s growth prospects • Analysis of companies within an industry • Company-specific financial analyses and forecasts • Valuation of companies’ securities • Activities include gathering information, writing reports, and selling research to clients. • Can be “buy-side” or “sell-side”. • You need to write well and be okay with an early start!

10. Corporate Finance • Many different roles when working inside a corporation: • Divisional Financial Analysis • Corporate development and strategic planning • Treasury • Cash management • Dealing with financial decisions of the company. • Combination of finance and accounting skills is important. • Often corporate roles have a better work/life balance than other roles in finance.

11. Real Estate Finance • Involves buying, selling, leasing, management, and development of property. • Network is extremely important and the working environment can be less corporate than other finance roles. • UK / Vandy grads: • Jonah Hescock ’10 (Healthcare Realty Trust, Nashville) • Ken Vereen ’11 (Deutsche Bank, Jacksonville) • Dallas Rose ’12 (Goldman Sachs, Dallas)

12. Finance Recruiting • Most but not all entry level jobs are called “analyst” positions. • “Associate” in investment research. • Many firms have 2 year analyst programs. • The recruitment cycles for different finance jobs are not the same. • Investment banking: Sept-Oct • Corporate finance: Oct-Dec • Investment research and real estate: just-in-time • Networking is the number one way that people land jobs in finance.

13. Where to find out more information • Websites: • www.vault.com • www.wetfeet.com • www.careers-in-finance.com • www.mergersandinquisitions.com • www.streetofwalls.com • www.wallstreetoasis.com • Visit your undergraduate career services center • Start talking to people • UK alumni • Local firms • Get an internship

14. The Vanderbilt MS Finance Graduate Business Degrees

15. Graduate Business Degrees • MBA • Established and well known. • Generalist business degree, will include classes on strategy, marketing and accounting as well as finance. • Can specialize in one or two areas. • Generally requires work experience. • Usually a 2 year degree with summer internship. • Usually a terminal degree. • MBAs go into jobs that require work experience. Often called an “associate” in finance.

16. Graduate Business Degrees • MSF • Designed for recent graduates with little to no work experience. • Focused on financial economics and analytical skills. • Usually 1-1.5 years. • Financial Engineering programs • More quantitative than MSF. • Often run by a math department. • May require work experience. • Graduates target heavily quantitative finance roles (“quants”). • PhD • 5 year research degree.

17. MS Finance degrees • MSF degrees are increasingly common but are still relatively new. • Attractive to: • Students with a non-finance major who want to transition into finance • Students who want additional finance training in a graduate b-school setting • Students from “non-core” recruiting schools who want access to a broader recruiting market • Students seeking a “brand” on their resume and to broaden their network • Lots of different programs available

18. Things to keep in mind • When choosing a business school some things to think about are: • Size • Location • Career management resources • Alumni base • Curriculum—electives vs “lock step” • Faculty • Brand • Cost

19. How to find the best school for you • Do your research • School website • US News & World reports • FT rankings (mostly European schools) • Talk to people and ask lots of questions • Alumni • Admissions personnel • People like me • Go for a visit • Decide what is important to you and whether the school can help you achieve your goals

20. The Vanderbilt MS Finance Vanderbilt MSF

21. Goals of the MSF • Develop a strong finance backbone in one year • Gain practical finance and business skills, such as: • Portfolio theory • Derivative pricing • Asset pricing • Firm valuation • Risk management • Work side-by-side with experienced MBA students from a variety of backgrounds and learn from their experiences • Expand your career opportunities in a competitive field

22. The MSF Curriculum • 32 hours of coursework • A strong core of required courses with a variety of advanced MBA electives • 7-week modular system • You can take more courses and have more flexibility to customize your degree • I will work closely with you to design your curriculum to suit your career goals

23. August Orientation • MSF students arrive on campus in late July / early August and attend intensive classes for two weeks.

24. Fall Semester • Modules I and II are mostly MSF “core” classes: • Students with prior accounting classes may be exempt from Introduction to Accounting.

25. Spring Semester • Modules III and IV are all electives:

26. Customize Your Degree Choose from a variety of electives, including: • Active Portfolio Management • Advanced Financial Reporting • Advanced Spreadsheets • Bond Markets • Business in the World Economy • Corporate Financial Policy • Corporate Restructuring • Derivative Securities Valuation • Equities Markets • Ethics in Business • Federal Income Taxation of M&A • Financial Data Analysis • Financial Institutions Financial Reporting Financial Statement Analysis Game Theory & Business Strategy Intl. Financial Markets & Instruments Launching the Venture Mergers and Acquisitions Negotiation Real Estate Financial Analysis Real Estate Investment & Development Analysis Risk Management Taxation of Corporations & Joint Ventures

27. Discover Your Career Path A selection of likely career paths includes: • Quantitative Finance Track • Sales & Trading, Investment Research, Proprietary Trading, Private Equity, Investment Banking and Risk Management • Asset/Investment Management/Brokerage, Treasury and Securities, Insurance, Mortgage Banking • Corporate Finance Track • Corporate/Industry Finance: Divisional Financial Analysis, Corporate Development & Strategic Planning, Treasury, Cash Management • Commercial Banking, Credit Card Services and Operations • Other • Real Estate • Consulting • Financial Economics/Finance PhD preparation

28. Spring Semester • Quantitative finance track:

29. Spring Semester • Corporate finance track:

30. Career Management • What is the Career Management Program? • Personalized support to help you meet your career goals • A multi-step series of interactive workshops and coaching sessions that prepare you for all steps of the job search • Goals of the program are: • To help you be successful in pursuing your career goals • To build skills necessary to plan and conduct a successful career search

31. Career Management • What is the Career Management Program? • Professional Development and Communications class • Resume and cover letter review • Mock interviews • One-on-one coaching and career advice • MBA Peer coaches • Networking treks: Wall Street, Houston, Asia • Professional clubs at Owen are another important career resource • Finance club • Consulting club • Max Adler Student Investment Fund

32. The Vanderbilt MS Finance What to do next

33. Next steps • Learn more about finance careers • Internet • Career center • Tap into your network • Internships • Visit Vanderbilt to learn more about MSF • Next campus visit day is Monday March 18. • Attend class, meet current students, experience b-school. • Welcome to attend on any other day. • Contact: msfinance@owen.vanderbilt.edu