ThePurposeofInvestmentBanking-MarriottSchool投资银行-万豪学校的目的

Jobsinthe

InvestmentsIndustryII:

InvestmentManagementBryanSudweeksFall20071JobsintheInvestmentsIndustryI.InvestmentBankingInvestmentbanking,AssetManagement,SalesandTrading,ResearchII.InvestmentManagementInvestmentManagement,InvestmentResearch,III.FinancialPlanningInvestmentadvising,Insurance,andEstateplanningIV.CorporateFinancePensionFundAdministrationandManagementV.FinancialConsultingPensionFundConsulting2I.InvestmentBankingandInvestmentManagementObjectivesA.UnderstandthepurposeofInvestmentBankingB.UnderstandthepurposeofInvestmentResearchC.UnderstandthedivisionsofInvestmentManagementD.KnowwherethepotentialjobsareinInvestmentManagementE.KnowhowtoprepareforacareerinInvestmentManagement3A.PurposeofInvestmentBankingAnintermediarybetweenthecapitalmarkets(investors)andcorporations(borrowers)OffersstrategicadviceandfinancialanalysisonMergers&Acquisitions,Divestitures,andCapitalStructureOffersEquityandFixedIncomeUnderwriting(e.g..IPO’s,HighYieldOfferings)ProvidesassetmanagementadvicetohighnetworthindividualsandinstitutionsProvidesSalesandTradingofEquity(Stocks),FixedIncomeSecurities(Bonds),Derivatives(Options).Offersresearchandadviceonpubliclylistedstocksandbondstoinstitutionalandindividualinvestors4StructureofInvestmentBanks(continued)InvestmentBankI-BankingDivision(IBD)ResearchSales&TradingAssetManagementPrivateClientServicesWorkwithHighNetWorthIndividualsIndustryGroupsCorporateFinanceProductGroupsM&AHighYieldDebtCapitalMarketsEquityCapitalMarketsBuyandSellFinancialSecuritiesandDerivativesAnalyzeallPublicinformationinordertogiveadvicetoinvestorsandsalesandtradinggroup5StructureofInvestmentBanks

(continued)InvestmentBankI-BankingDivisionResearchSales&TradingAssetManagementProductGroupIndustryGroup(CorpFinance)ManagefundsforinstitutionsandindividualsEconomicDerivativesFixedIncome EquityFixedIncomeEquityEquityCapitalMarketsDebtCapitalMarketsHighYieldDebtM&AConsumerProductsTechnologyTelecommunicationsRealEstateUtilitiesHealthCareRetailConsumerProductsTechnologyTelecommunicationsRealEstateUtilitiesHealthCareRetailPrivateClientServices6PurposeofInvestmentManagementMajorinvestmentmanagementdivisionsinclude:AssetManagementProvideassetmanagementservicestoinvestorsandinstitutionsincluding:PrivateWealthManagementPortfolioManagementAssetAllocationPerformanceAttributionResearchProvideresearchonpublicstocksandbonds7StructureofInvestmentManagement(continued)InvestmentBankResearchAssetManagementPrivateClientServicesWorkwithHighNetWorthIndividualsAnalyzeallPublicinformationinordertogiveadvicetoinvestorsandsalesandtradinggroup8StructureofInvestmentManagement

(continued)InvestmentBankResearchAssetManagementManagefundsforinstitutionsandindividualsEconomicDerivativesFixedIncome EquityFixedIncomeEquityConsumerProductsTechnologyTelecommunicationsRealEstateUtilitiesHealthCareRetailConsumerProductsTechnologyTelecommunicationsRealEstateUtilitiesHealthCareRetailPrivateClientServicesDerivativesAssetManagementCompanies9Top15AssetManagementCompaniesRank Firm

ASSETSUNDERMGMT(bill.)1 FidelityInvestments $8532 StateStreetGlobalAdvisors $7853 BarclaysGlobalAdvisors $7684 JPMorganFlemmingAssetMgmt. $6045 CapitalGroupCos. $5896 MellonFinancial $5377 MerrillLynchInv.Managers $5298 Citigroup $5039 AXAFinancial(AllianceCapital) $48110 MorganStanleyInvestmentMgmt. $41511 Vanguard $41212 UBSInvestmentManagement $40513 Allianz $38314 Amvescap(AIM/Invesco) $33415 PutnamInvestments $315Source:InstitutionalInvestor10WhataretheDivisionsofInvestmentManagement?Investmentmanagementdivisionsinclude:InvestmentManagementPortfolioManagementOperationsInvestmentResearchPrivateWealthManagement11PotentialJobsinInvestmentManagementWherearethejobsinInvestmentBanking?MostinvestmentbankingjobsareinanalysisEquitymarketanalystDebtmarketanalystHighYieldanalystIndustryAnalystConsumerproducts,telecommunications,realestate,finance,etc.12JobsinInvestmentManagement(continued)ResearchProductGroupIndustryGroup(CorpFinance)EquityCapitalMarketsDebtCapitalMarketsHighYieldDebtConsumerProductsTechnologyTelecommunicationsRealEstateUtilitiesHealthCareRetailAssistantAnalystResearchAnalystAnalystSeniorAnalystAssetManagementResearchAnalystAnalystSeniorAnalystPortfolioManagerPartnerAssistantAnalystResearchAnalystAnalystSeniorAnalystResearchAnalystAnalystSeniorAnalyst13JobsinInvestmentManagement(continued)

Whatarethedifferenttypesofanalystpositions?Analystspositionvarydependingonwhotheyaredoingresearchfor,i.e.,sell-sideversusbuy-sideresearchWhataresell-sideanalysts?Analystswhoseworkisusedforsellingsecuritiestoinvestors,i.e.Research,SalesandTrading,etc.AnalystspreparetheresearchforpotentialinvestorsinthehopethatinvestorswillbuyandsellcompaniesthroughtheI-bankWhatarebuy-sideanalysts?Analystswhoseworkisusedintheprocessofbuyingsecuritiesforspecificportfolios,i.e.AssetManagement,PrivateWealthManagement,etc.Analystspreparetheresearchandthenactonthatresearchtobuycompanies.14TheAnalystPosition(continued)WhyareInvestmentManagementanalystpositionssohardtoget?TheyprovideinstantexposuretoseniormanagementteamsofthelargestcompaniesintheworldTheyhavethehighestexposure,learningpotential,andsalaryofanyjobintheFinancialServicesIndustry(outofcollege)Theygiveopportunitytoworkinsmallteams,withlearningfromseniorpartnersAfteryouhavebuiltexperienceinthefield,itofferswonderfulopportunitiesattopbusinessschoolsandcompanies15CompensationThemediantotalcompensationforinvestmentprofessionalsis$170,000.Totalcompensationhasincreasedmateriallysincebottomingoutin2003duetopositivemarketconditions.

Source:CFAI&RussellReynoldsAssociates-2005InvestmentManagementCompensationSurvey16TheAnalystPosition(continued)Whataretheskillsgainedasananalyst?FinancialmodelingandstrongquantitativeworkSolidUnderstandingofCorporateCapitalStructure&CapitalMarketsSolidunderstandingofcompaniesandindustrycompositionandstructureProfessionalpresentationanalysis17TheAnalystPosition(continued)Whataretheresponsibilitiesofananalyst?FinancialAnalysisandModelingDiscountedcashflowandFreecashflowanalysis,ComparablecompanyPrecedenttransactions,andLeveragedbuyoutClientExhibitsandPresentationsMarketresearchandcompetitiveanalysisClientinteractionRoadshowexecutionmanagement18TheAnalystPosition(continued)

WhattypeofworkdoAnalystsdo?CompanyAnalysis(bothbuyandsellside)FinancialforecastingStrategicanalysisIndustryAnalysis(bothbuyandsellside)StrategicanalysisPortfolioimplementation,construction,andreportingandattributionInvestmentpolicystatementPortfolioconstructionandmanagementPortfolioreportingandattributionWhateverisneededtoattaincompanygoalsandobjectives19TheAnalystPosition(continued)

Whatarethecriteriausedtoselectanalysts?ThereisarecordofachievementAstrongacademicrecordAbalancedindividualwithextracurricularactivitiesAgoodemploymenthistoryStrongcommunicationskillsEvidenceofbeingateamplayerAtirelessworkethicAttentiontodetailAstronganalyticalcapability(withexamples)20HowtoPrepareforaCareerinInvestmentManagementUnderstandtheindustry,thepositions,andt