Finance Career Workshop

1. FinanceCareer Workshop Presented by Frank L. Ciminelli Family Career Resource Center

2. Areas of Finance • Corporate Finance in Industry • Insurance • Real Estate • Commercial Banking • Investment Banking • Portfolio & Asset Management • Research & Analysis

3. Corporate Finance in Industry • Work for a company to help it find money to run & grow the business • Make acquisitions (M&A), plan for its financial future and manage cash on hand • Run the day-to-day accounting activities of a business, like accounts payable and accounts receivable, as well as the higher-level strategic financial analysis • Usual career path begins as a business or financial analyst, other job titles include financial officer, treasurer, strategic planner, assistant controller, controller, VP of Finance, Chief Financial Officer (CFO) Some benefits of working in corporate finance: • You generally work in teams • It's a lot of fun to tackle business problems that really matter • You may have many opportunities to travel and meet people • The pay in corporate finance is fair, especially at higher levels

4. Corporate Finance in Industry(continued) Sample Job: Financial Analyst , IBM DUTIES/RESPONSIBILITIES: • Considered a trusted advisor to the units and functions they support. • Demonstrate business judgment, leadership, creativity, experience, decision making skills, and integrity. • Determine business objectives and short range projections of income / expenses, as well as long range strategic planning for the business environment. • Responsibilities vary with position, typically work in: revenue and volumes financial analysis/reporting, services contracts gross profit margin analysis and financial support, Hardware/Software cost analysis and forecasting, sales, marketing or development expense analysis and forecasting, and Balance Sheet analysis. Qualifications: • Ability to analyze, leadership, good written and verbal communication skills, and experience with financial tools & desktop software packages. • BS candidates in Finance, Accounting or Business with relevant course credits in Finance.

5. Insurance • Insurance is a trillion dollar business that employs more than 2.5 million people in the United States alone. • As the population ages and wealth grows, the demand for insurance professionals will increase dramatically. • Not just sales: underwriter, a sales representative, an asset manager, a customer service rep or an actuary. • Jobs involve helping individuals and business manage risk to protect themselves from catastrophic losses and to anticipate potential risk problems. • Help clients understand their insurance needs, explain their options to them and hopefully help them purchase appropriate insurance policies. • Industry theme: helping people when they need it the most.

6. Insurance (continued) Sample Job: Financial Analyst, Allstate Financial Corporation DUTIES/RESPONSIBILITIES: This entry level analyst position will entail (primarily) the following duties: • Statistical analysis / reporting • Providing requested data • Creating models for tracking and analyzing data • Developing projections and identifying trends • Discussing data findings with peers/supervisors • Preparing exhibits as directed • Writing narratives on routine topics • Participating in brainstorming & identifying hypotheses Qualifications: Desired candidate should have an accounting, finance, math or economics background with a minimum GPA of 3.5; have good communication skills; have some proficiency in the Microsoft office products.

7. Insurance Firms from Wetfeet: AAAAetna Inc.Aflac Inc.The Allstate Corp.American Financial Group, Inc.American International Group, Inc.Aon Corp.AXA GroupBlue Cross and Blue Shield Assoc.Cigna Corp.Chubb Corp.CNA Financial Corp.Conseco, Inc.Fortis SA/NVGEICO The Guardian Life Insurance Co. of AmericaThe Hartford Financial Services Group, Inc.John Hancock Financial Services, Inc.Marsh & McLennan Cos., Inc.MetLife, Inc.The Mutual of Omaha Cos.Nationwide Mutual Insurance Co.New York Life Insurance Co.Northwestern Mutual Life Insurance Co.Principal Financial Group, Inc.Prudential Financial, Inc.State Farm Mutual Automobile Insurance Co.St. Paul Travelers Companies, Inc.UnumProvident Corp.USAAZurich Financial Services

8. Real Estate • There are more than five million people in the US employed in identifiable real estate fields such as title insurance, construction, mortgage banking, property management, real estate appraisals, brokerage and leasing, and real estate development • Everything we do, commercial and personal, real and virtual, requires space and therefore the land on which space sits. The real estate industry is powered by agents who work in concert to make land available—physically, legally, and financially—for every imaginable human need. This real estate profile focuses on careers in real estate sales, development, and asset management. • Real estate agents, brokers, asset managers, assessors, property managers, and developers perform a wide variety of tasks, from buying, selling, renting, and leasing, to assessing, developing, and managing land. Real Estate Job Titles: Property Manager Real Estate Broker Real Estate Developer Real Estate Sales Realtor

9. Commercial Banking • Commercial banks provide banking services to individuals, small businesses and large organizations. • Far more people are employed in the commercial banking sector than any other part of the financial services industry. • Jobs in banking can be exciting and offer excellent opportunities to learn about business, interact with people and build up a clientele. • Diverse range of opportunities, starting at the branch level where you might start out as a teller to a wide variety of other services such as leasing, credit card banking, international finance and trade credit. • Management Development Programs offer excellent entry-level training in a variety of areas in the bank from sales and relationship banking, to research, to fixed income, consumer credit-risk, consumer lending/mortgages, etc. to non-traditional-finance areas like operations, HR (compensation, recruitment), MIS, corporate training, marketing, etc.

10. Commercial Banking (continued) Sample Job: Management Development Program (Intern’l Trade Finance), M&T Bank Corporation DUTIES/RESPONSIBILITIES: • Must learn the entire set of International Trade Finance products and services offered by M&T Bank • Must study and understand the international trade environment, on both micro (customer) and macro (conditions prevailing in foreign countries, U.S. regulations governing transactions between M&T and foreign entities, etc.) • providing ITF products and support to a geographic portion of M&T Bank's customer base • Must be willing to spend more time out of the bank than in the bank; some travel required Qualifications: • Thorough understanding of accounting principles, or higher level of accounting and finance • Strong sales skills with both internal and external customers • Command of Excel and Word, ability to learn quickly and work both independently and in a team

11. Buy-Side vs. Sell Side Buy-Side: • Finance entities (i.e. Fannie Mae), Commercial banks, Mutual funds & Money Managers, Insurance companies and Hedge funds • Purchase investment products to increase assets • Jobs: • Portfolio managers/Trader invests money on behalf of clients • Research analysts, Credit Analyst or Risk Managers who provide managers with potential investment recommendations • Marketing and sales professionals or Client Relationship Managers who distribute the investment products to individual and institutional investors Typically start as an assistant or associate _____ in these areas

12. Buy-Side vs. Sell Side Sell-Side: • Investment banks & Commercial banks • Issue, recommend, trade and "sell" securities for the investors on the buy-side to "buy” • Sell-side firms earn a trading fee every time a security (such as a bond or a stock) is bought or sold in a buy-side firm's portfolio • Jobs: • Institutional Sales, Retail Brokers, Private Client Services • Traders

13. Investment Banking - Sell Side • Investment Bankers raise capital and provide investment advice for their clients. Three main categories: • Corporate Finance – raising $ for clients … traditional role • Sales & Trading – buy and sell securities and commodities – high pressure … the job you see on TV • Research Analysts – focus on fixed income or equity, predict stock movement … very quantitative role, get your CFA • The leading investment banks including Morgan Stanley, Goldman Sachs, Citigroup, Credit Suisse, Deutsche Bank, UBS and JPMorgan Chase are said to be in the bulge bracket. • Other investment banks are regionally oriented or situated in the middle market (e.g. Barclay’s, Piper Jaffray). • Others are small, specialized firms called boutiques which might be oriented toward private equity, bond-trading, M&A advisory, technical analysis or program trading. Many found outside NYC.

14. Recruitment in “IB” Department Head (MBA, 10+ yrs) Managing Director/Partner (MBA, 7-10+ yrs) Director/Principal (MBA, 5-10+ yrs) Vice President (MBA, 3-6 yrs) 3rd year Associate(MBA) 2nd Year Associate (MBA) 1st Year Associate (MBA) 2nd Year Analyst (BS) 1st Year Analyst (BS) Intern (BS)

15. Investment Banking (cont.) • Skills needed: superior quantitative and analytic skills, ability to work under extreme stress, think quickly, learn quickly, be ambitious and aggressive, and have a PASSION for the market • Sales & trading staff are high-profile, individual players who work on commission. Work revolves about the markets (NYSE, NASDAQ), they make cold calls, use information that the research analysts provide to push your securities your investors. Job Titles: brokers, traders, securities sales reps • IB is one of the most lucrative career choices, but you won’t have time to use the money you make • CorpFins and research analysts work 80 – 100 hours/week, sales and trading closer to 55/week • Excessively competitive industry, recruitment targets top 1% at top-ranked schools only • Recruitment only takes place at top schools or those located in NYC • Best chance if you get recruited as a sophomore/intern

16. Vault’s Top 50 Banks to Work Forin 2009 (Investment & Commercial) Firm 2009 Rank 2008 Rank Headquarters Goldman Sachs & Company 1 1 New York, NY The Blackstone Group 2 2 New York, NY Morgan Stanley 3 3 New York, NY Lehman Brothers 4 4 New York, NY J.P. Morgan Investment Bank 5 5 New York, NY Merrill Lynch 6 6 New York, NY Lazard 7 8 New York, NY Credit Suisse's Investm’t Bank 8 9 New York, NY Deutsche Bank 9 12 New York, NY UBS Investment Bank 10 10 New York, NY Citi Institutional Clients Group 11 7 New York, NY Chase Commercial Bank 12 11 New York, NY Greenhill & Co. 13 16 New York, NY Barclays Capital 14 17 New York, NY Rothschild 15 19 New York, NY Bear Stearns 16 13 New York, NY Bank of America 17 15 Charlotte, NC Wachovia Corporation 18 18 Charlotte, NC Citi Consumer Banking 19 14 New York, NY HSBC North America Holdings 20 20 London, UK HoulihanLokey21 21 Los Angeles, CA Royal Bank of Scotland 22 25 Edinburgh, Scotland Perella Weinberg Partners 23 23 New York, NY Jefferies & Company 24 22 New York, NY Evercore Partners 25 26 New York, NY

17. Portfolio & Asset Management – Buy Side Convert that money into assets—stocks, bonds, derivatives, and other types of investments, try to make that money make more money as fast as possible. Traditional Investment Managers : Manage assets for retail investors (Mutual Funds) Alternative Investment Managers: Manage assets for institutional investors, such as pension funds and insurance companies and universities, etc. (Hedge Funds, Private Equity, Venture Capital) Typical job titles to investigate: Buy-Side Research / Portfolio Analyst (Fidelity, Vanguard, TIAA-CREF, Oppenheimer, etc.) Financial Advisor / Financial Services Sales Private Wealth Manager Fund Accountant Portfolio Manager Private Banker Private Client Services Money Manager Stockbroker

18. Financial Planning • Financial planners help individuals plan financial futures (plan for retirement, paying for college, etc.) • Must understand investments, taxes, estate planning & knows how to listen • This work can be done within a company or as a sole proprietor (Entrepreneurship) • Commission could = high salary if you are good • Rewarding if you like to help people • Obtain Certified Financial Planner (CFP) designation for upward mobility Sample Job: Financial Advisor, Waddell & Reed, Inc. DUTIES/RESPONSIBILITIES: Advisors provide expert guidance and innovative solutions for families, individuals & businesses in the areas of retirement planning, insurance & investment services, estate planning, business planning, education funding & employee benefits. They strive to understand their clients' goals & visions in order to uncover financial solutions that put them on a path to success. REQUIREMENTS: Excellent communications skills, motivation, high morals & integrity, competitive spirit & one who appreciates the need for financial planning.

19. Money Management • Hold stocks and bonds for institutional clients, on the buy side of Wall Street • Use both quantitative techniques & simple intuition • Buy and hold fixed income securities including mortgaged-backs, corporate bonds, etc. Others focus on equities, including small stocks, large caps and emerging market stocks. • It is hard to get started in money management, first try in bank trust departments, state and local pension funds and in insurance companies • Study portfolio theory, learn fixed income investments, take the CFA exam and, above all, learn the industry. Sample Job: Trust Associate Portfolio Manager, Chevy Chase Bank DUTIES/RESPONSIBILITIES: Review client portfolios with senior managers for asset allocation and portfolio structure for preliminary analysis. Management of client liquidity. Working with trust investment trader on purchases and sales for client accounts. Coordination and implementation of investment strategies. Monitoring gains and losses for client tax liability. Participation in investment team meetings. Report preparation REQUIREMENTS: BS, superb organizational skills, ability to multitask, good interpersonal communication skills, flexibility; ability to work in a team effort, ability to initiate and follow-through on projects. Proficiency with and experience using MS Word and Excel. Some familiarity with Bloomberg, Baseline, and/or Telemet. General understanding of the financial markets and investment vehicles.

20. Wealth Management Upper, upper end of financial planning for those with years of experience, a superb track record on Wall Street or investment management and a strong network. Sample Job: Private Banker, JPMorgan Chase DUTIES/RESPONSIBILITIES: • Acquire maintain & develop relationships with affluent clients with comprehensive financial service needs. Emphasis on lending skills. Structure, negotiate & manage complex private lending portfolio. Conduct client needs assessments through profiling, introduce strategic partners, & proactively manage relationships . Qualifications: • BS required, MBA preferred • Minimum of  3+ years directly related experience, must be a top individual contributor • Knowledge of basic tax provisions, investments, estate planning, and insurance • Strong business development skills, exceptional customer service skills and an ability to creatively solve problems. • Strong listening skills, able to conduct high-level sales presentations • Proficiency in building and maintaining positive client relationships, excellent verbal & written communication skills • Formal commercial (large corporate or middle market) credit training and lending background • Demonstrated experience in cross-selling products and an ability and track record to meet or exceed aggressive sales goals

21. Research & Analysis • Both Buy & Sell side • Research equity or fixed income markets • Analyze company or industry fundamentals • Predict earnings and cash flow • Determine values • Typical career path: • Sell side: Associate  Junior Analyst  Analyst • Buy side: Assistant  Analyst  Portfolio Analyst  Portfolio Manager

22. Research & Analysis Sample Job: Financial Analyst, AIG Enterprise Risk Management Support macro-economic and econometric modeling efforts.  Apply macro-economic and econometric models to various business issues. Support the macro-economic and econometric modeling efforts for scenarios analysis and risk aggregation. Participate in daily risk measurement and management process such as asset/liability management, investment benchmarking, capital allocations, etc.Qualifications: Masters Degree in Finance, Statistics or Economics Familiarity with time series models and other standard statistic/econometric models/methods Excellent technology skills including MS Excel, Access, MATLAB Experience with financial data analysis, & risk management tools & methods Knowledge of financial markets Good communication skills, ability to work in a team environment, and willingness to learn and extend self beyond specified job responsibilities

23. Finance-Specific Resources • Finance-Function Research Page on CRC website http://mgt.buffalo.edu/career/students/prep/research/tools/resources/finance • The American Banker www.americanbanker.com • The Association for Financial Professionals www.afponline.org • Treasury Management Association of New York www.tmany.org/index.htm • WSJ Career Journal www.careerjournal.com/ • American Banking Assoc. www.aba.com • Hedge Fund Information Portal www.hedgeco.net • Hedge Fund Conferences www.hedgefundconferences.com • Venture Capital Institute www.vcinstitute.org

24. Finance-Specific Resources (cont.) Buyouts www.buyoutsnews.com/ Investor Dealers Digest www.iddmagazine.com Institutional Investor www.institutionalinvestor.com/default.asp National Venture Capital Association www.nvca.org Dow Jones Financial Information Services www.fis.dowjones.com IPO Monitor www.ipomonitor.com The Q-Group www.q-group.org The Chicago Quant Alliance www.cqa.org Securitization.Netwww.securitization.net Asset Securitization Report www.asreport.com Commercial Finance Association www.cfa.com Futures Industry Association www.futuresindustry.org International Association of Financial Engineers www.iafe.org International Swaps and Derivatives Association www.isda.org

25. Finance-Specific Resources (cont.) Vault Guides http://mgt.buffalo.edu/home/career/students/prep/research/tools/company Vault Career Guides: Investment BankingInvestment ManagementPrivate Wealth ManagementReal Estate CareersSales and TradingVenture Capital 50 Banking Employers Business Services Employers50 Consulting FirmsFinancial Services EmployersInsurance EmployersReal Estate Employers

26. Citations for this Presentation • Wetfeet.com • Vault.com • Indeed.com • www.careers-in-finance.com • www.mgt.buffalo.edu/crc • www.bls.gov/oco • Jungle Magazine • REALTOR Magazine Make an appointment at the CRC 645-3232