Career FAQs Investment Banking

realjobs realpeople realexperiences
Published by Career FAQs

Australia wide
Investment Banking
Do you want to earn big bucks and work on deals that are making headlines
in the nancial press? Would you like to have your nger on the pulse of
nancial markets and have the opportunity to work in the major nancial
centres of the world? If so, a career in investment banking may be for you.
Investment banking can be intellectually stimulating, fast paced and
extremely well paid, but it also involves hard work, long hours and can be
high-pressured. Not everyone has the drive, the burning ambition and the
passion for making that next deal.
Career FAQs Investment Banking explores the many possibilities available
for a career in investment banking. One day you could be structuring large
mergers, helping companies raise capital for growth, investing in start up
companies or trading in shares or bonds.
Hear from professionals in this industry and learn how to break into this
competitive eld, including tips on how to stand out in a recruitment proc-
ess where sometimes only one in a hundred applicants are chosen for a
graduate program. Find out whether you have what it takes!
Foreword by David Gonski, AO
David is Chairman at Investec Wentworth Pty Limited, Coca-Cola Amatil,
The National Institute of Dramatic Art, Australian Council and Sydney Grammar School.
He is Chancellor of the University of New South Wales and President of the Art Gallery
of New South Wales Trust.
Throughout school and then university I never really had
any concept of investment banking as a career. I later made
the switch after many years in the legal and accounting
professions and regret not doing so much sooner. Career
FAQs will no doubt allow those starting their careers to
make the right choices early. Without reservation I highly
recommend the publication.
David Phillips, Head of Structured Finance, Investec Bank (Australia) Limited
This book provides a window into all levels of Investment
Banking in a way that no other publication does. The variety of
opinions and experiences will only act to better prepare those
who are considering this profession.
Nick Grogan, Associate Director, Hindal Securities Pty Ltd
Other titles:
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Allied Health
Engineering
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Information Technology
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Marketing
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Xtreme
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Investment
Banking
Investment
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Investment
Banking
Covers December 05.indd 5 20/12/05 2:50:39 PM
Investment
Banking
By Zilla Efrat
Australia
Published by Career FAQs Pty Ltd
IB - 191205.indd i 20/12/05 6:49:41 AM
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Copyright Career FAQs Pty Ltd
First published in 2005
This book is copyright. Apart from any fair dealing for the purpose of private study,
research, criticism or review, as permitted under the Copyright Act 1968, no part
of this publication may be reproduced by any process or by any means, electronic,
photocopied, recorded or otherwise without prior written permission of the
copyright owner. Inquiries for reproduction should be addressed to the publisher.
Published by
Career FAQs Pty Ltd
Suite 76, The Hub
8997 Jones Street
Ultimo NSW 2007
National Library of Australia
Cataloguing-in-Publication entry:
Efrat, Zilla.
Investment Banking: Australia.
ISBN 1 921106 16 6
1. Investment banking Vocational guidance Australia. 2. Investment bankers
Employment Australia. I. Title. (Series : Career FAQs).
332.6602394
Publisher: Sue Stevens
Author: Zilla Efrat
Editor: Kerrie Eyers
Researchers: Louisa Veidelis, Amanda Evans
Design: Terri Marzullo, H2M Creative Services; James Manning, Rain Agency
Illustrations: Tim Hutchinson
Desktop Publisher: Terri Marzullo
Proofreading: John Sims, Sims Editing & Proofreading
Printed by Paragon Printers Australasia
Career FAQs acknowledges the following copyright owners for permission to
reproduce their work.
Graduate Careers Council of Australia, www.gradlink.edu.au
Hudson Recruitment
Michael Page International
Every effort has been made to contact copyright owners and obtain permission.
However, should an infringement have occurred, Career FAQs apologises for the
omission and requests that the copyright owner make contact.
Disclaimer
The opinions and statements made by people who contributed to this book from
the investment banking profession are their own and are not those of Career FAQs.
The publishers do not claim to represent the entire extent of the investment banking
profession and career choices. The aim has always been to provide a broad overview
of the possibilities available. As such Career FAQs Investment Banking does not
purport to be a true and accurate record of the investment banking profession, relying
on the voices of those working in the industry to tell their stories. Inaccuracies may
arise as a result of the nature of this book. Users should follow the links to actual
websites of organisations to ascertain current investment banking practice.
IB - 191205.indd ii 20/12/05 6:49:47 AM
iii
Foreword
Investment banking has been my life for the last almost 20 years.
It has been kind to me, providing a life of enormous variety and
professional excitement.
I have often reected on how I came to be in investment banking. It
was undoubtedly more by accident than by design. As a commercial
lawyer, I had dealt with many in investment banking and over the
years I drifted towards that eld of endeavour.
Whilst I was lucky to nd my true milieu by happy accident, I have
always felt that there was need for a publication, and/or course of
seminars, to allow those coming behind me to make a more scientic
choice than I had.
There are so many questions to ask and to have answered; so many
branches, different rms and geographies to consider.
This is why I have agreed to provide the foreword to this publication,
which I believe will provide much needed contemporary information
about corporate nance and investment banking to those who, like
me, have an instinct that this industry may be for them.
I hope that this publication does help and, more importantly, I hope
that if the reader does choose corporate nance and investment
banking, they have the joy, excitement and rewards that I have had
from this industry.
David Gonski, AO
Chairman, Investec Wentworth
Pty Limited
Chancellor, University of New
South Wales
Chairman, Coca-Cola Amatil
President, Art Gallery of New
South Wales Trust
Chairman, National Institute of
Dramatic Art
Chairman, Australian Council
Chairman, Sydney Grammar
School
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iv
Investment Banking
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v
Contents
About Career FAQs ix
How to use this book xi
The big picture
Why investment banking? 1
What do investment bankers do? 2
Whats happening right now? 5
Current size of the profession 6
What are the job opportunities? 7
Corporate nance and advisory services 10
Structured nance 11
Project nance 11
Trading 11
Equity, xed income and currency research 11
Sales 12
Derivatives 12
Private equity and venture capital 13
Women in investment banking 14
How much can I earn? 15
Performance-based bonuses 16
Who are the main employers? 21
Banks 21
Boutiques and smaller companies 22
Private equity rms and funds 22
Venture capital rms 23
Accounting rms 23
Government 24
The Treasury 24
Reserve Bank of Australia 24
The Australian Prudential Regulation Authority 24
Corporate Australia 24
What are employers looking for? 25
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vi
Investment Banking
Meet some employers 26
Jan Swinhoe Global head of property,
industrials & consumer 27
Mark Thexton Associate director 28
Chania Higgins Graduate recruitment executive 31
What support organisations exist? 33
Main industry bodies 33
Australian Financial Markets Association 33
International Banks and Securities
Association of Australia 33
Finance Sector Union 33
Australian Venture Capital Association 34
Australian Bankers Association 34
Accounting and Finance Association of Australia and New
Zealand 34
Securities and Derivatives Industry Association 34
Women in Finance 35
Support organisations for new recruits 35
Financial Management Association of Australia 35
Securities Institute of Australia 35
Insider info
What jobs could I do? 41
What do real people say about their jobs? 42
Damian Motika* Business analyst 42
David Schultz* Private equity analyst, mergers and
acquisitions 44
Brett Ryman Associate, investment banking 46
David Smith Associate director, corporate nance 49
Tamal Saad* Associate director, corporate nance 51
Teresa Ericchello* Senior analyst, corporate nance 53
Duyen Nguyen* Senior manager 55
Isabella Ebbitt Executive, real estate advisory,
corporate nance 56
Anthony Farrace* Manager, boutique investment house 59
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vii
Kevin Gabaldon* Senior executive, boutique
corporate advisory 62
Kara MacCauley* Chief investment ofcer 64
Phuong Tan* Finance analyst 66
Nadia Gosper* Manager, structured investments 69
David Stanton Healthcare analyst, equities 71
Madeleine Newland* Manager, equity capital markets 73
Angela Capone Credit trader, global markets 75
Itay Tuchman Director, short-term interest rate trading 77
Tim Waggett Vice president, sales 79
Langer Sieben* Manager, development of nancial products 82
Mark Murray Senior analyst, nancial risk 84
Larya Meyrick* Senior analyst 87
Suzannah Faulkes* Senior analyst 89
Mark Williams Associate director, So Paulo, Brazil 92
Ready, set, go for it!
What qualications do I need? 101
University courses 101
Do I need postgraduate qualications? 104
Masters of Business Administration 104
Securities Institute 107
What are the entry requirements? 108
Can I study by distance? 108
How much does it cost? 108
Will employers pay course expenses? 108
Industry-based courses 109
How do I get that job? 110
How are people recruited? 110
Graduate programs 110
Vacation programs 113
Advertised positions 114
Recruitment agencies 114
Headhunting 115
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viii
Investment Banking
Government recruitment 115
Networking 116
Stand out from the crowd 117
Create an outstanding application 118
The rsum 119
Tips: Rsum writing 121
The cover letter 123
Tips: The cover letter 124
Selection criteria 125
Tips: Selection criteria 127
How can I stand out at the interview? 128
Preparing for the interview 128
Making a good rst impression 131
Making an impact at the interview 132
Tips: The interview 133
Dealing with disappointment 137
What can I do right now? 138
Buzz words 141
Appendix 1 147
Comparative starting salaries of various professions 147
Appendix 2 148
Sample job advertisements 148
Appendix 3 150
Sample rsum 150
Appendix 4 152
Sample cover letter 152
Appendix 5 153
Different types of interviews 153
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ix
About Career FAQs
Want to choose your ideal career but dont
know where to start?
Will Santow, Managing Director, Career FAQs
Career FAQs publishes a diverse range of career books that focus on
different professions, industries and lifestyles to make the search for
your perfect career that much easier.
Each book proles real people doing
real jobs and talking about their real
experiences the good and the bad
from the day-to-day routine of working
life through to the more dynamic
aspects of a job. In addition to this,
Career FAQs books feature practical
information about qualication requirements, the key educational
and training institutions, industry bodies and support organisations,
earning capacity and job-hunting tips.
With all of the above covered in each book, it is easy to see why
Career FAQs provides a dynamic new approach to nding the
right career.
Career FAQs was conceived in 2004 as a result of my own quest
to settle on a particular career path through my 20s and early
30s. At times of career angst or just indecision about where I
should go for my next move, I would try to get my hands on
empowering, high-quality, up-to-date career information that
related specically to the market in which I wanted to work. I
could nd nothing. When I asked around, the only thing I found
was a shared frustration amongst many of my contemporaries.
The Career FAQs books will address this critical information and
educational gap and so reduce the future mismatches between
careerlifestyle aspirations and careerlifestyle realities.
Dont end up in
someone elses life,
a career choice is as
much a life choice as a
vocational decision.
Career FAQs
real jobs
real people
real experiences
IB - 191205.indd ix 20/12/05 6:49:50 AM
x
Investment Banking
The range of Career FAQs titles is constantly expanding as we
continue to talk to people who have carved out interesting and
dynamic careers and to hear their stories in their own words.
For a list of current titles, please visit our website,
www.careerfaqs.com.au.
Best of luck with nding the right career for you!
Will Santow
Managing Director
Career FAQs
Thank you!
A special thanks from the team at Career FAQs to the many
people who have contributed their time and shared their
experiences and insights to help make this book possible.
It is always inspirational to nd people who are willing
to give of themselves, particularly their time a scarce
commodity for most people today to help make a
difference to others.
That you all gave so willingly and provided such compelling
insights into your working lives so that others can make
better informed career choices is truly appreciated.
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xi
How to use this book
All Career FAQs books are structured with a similar layout, so if
you are familiar with one book, you will be able to navigate easily
through all the others and nd the information you need quickly
and easily.
Our books prole real jobs and the people doing them to provide
a broad overview of possibilities. It is not a denitive list but is
intended to provide some insights into what it can mean to work in
these particular roles.
Career FAQs books are divided into three main sections.
The big picture provides an overview of the industry,
employment opportunities and salary scales. It provides
information about the main employers and the variety of support
organisations that exist.
Insider info proles the personal experiences of people who are
currently working within the profession. It allows you to discover
what people working within the industry say you should expect
from working in different jobs at various levels of seniority.
Ready, set, go for it! tells you how you can get the appropriate
training and experience to ultimately get that job you want and
guides you through the process of gaining employment.
Style elements are used in Career FAQs books to help you navigate
through the information.
is a snapshot of a persons career pathway
it shows some of the key job stepping stones
along an individuals career path that led to
the current position
indicates that another Career FAQs title has
more jobs of this type
gives you directions to nd out more about a
particular topic or organisation
Career FAQs books that
are grouped by theme and
focus on a particular lifestyle
choice or personality type,
such as Xtreme, have the
three sections covered for
each of the extreme jobs
listed.
fyi
f i nd out
more
cv
detour
Words, phrases and
acronyms appearing in
bold typeface are dened
in buzz words at the back
of this book.
fyi
IB - 191205.indd xi 20/12/05 6:49:52 AM
xii
Investment Banking
provides additional information or an interesting
fact and provides directions to relevant appendixes
is used as a margin note to help clarify the
meaning of a word (in bold typeface) within text
also dened in buzz words.
are jobs in the industry or profession that, at the
time of writing, are in demand
is a short prole of a specic job, with
characteristics such as salary, qualications,
number of hours worked, the ability to balance
personal and work commitments and the exibility
afforded by the employer
explodes popular myths surrounding a particular
career choice
is a day-by-day overview of the typical work-
specic activities required of an individual in a
particular job
jobs that have an unconventional, interesting
or out of the ordinary focus
tells the story of real experiences of people
working in the industry
highlight some of the issues associated with a
particular career such as difculties or obstacles
that you might face in the featured industry
glossary
tradeoffs
myweek
brief
in
q&a
fyi
f
a
c
t
MYTH
hotjobs
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1
The big picture
Why investment banking?
Do you want to earn big bucks and work on deals that are making
the prominent headlines in the nancial press? Do you want to
develop innovative ways to grow Aussie businesses and structure
the deals that keep oiling the cogs of our economy? Perhaps a
career in investment banking is for you. Investment banking involves
working at the more sophisticated end of the nance sector. It can
be intellectually stimulating, challenging and fast-paced, and it can
provide you with great opportunities to work overseas.
In recent times, the high earning power of investment bankers
has caught the medias attention. For example, Macquarie Bank,
nicknamed the Millionaires Factory in the press, recently had to
fend off criticism of the $10 million-plus pay packets handed to its top
executives. Of course, the majority of investment bankers wont earn
this much, or anywhere close, but its still a high-paying environment.
But, with high rewards come high demands. You can expect to
work long hours and to endure lifestyle challenges. Youll be under
pressure to get things done quickly. You could face many moments
of frustration where you are stretched too thin and then moments of
exhilaration when a plan does come together.
IB - 191205.indd Sec1:1 20/12/05 6:49:54 AM
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2
Investment Banking
What do investment bankers do?
They say that money makes the world go round. And, if it does,
investment bankers help direct and facilitate its ow. Generally
speaking, investment bankers provide a wide range of nancial
services to clients, who typically include companies, nancial
institutions, governments, institutional investors and individuals.
Investment bankers make a massive contribution to the Australian
economy by promoting savings and investment, and through their
activities they help allocate the countrys resources more efciently.
They structure deals that will help companies grow in the future
or that will get infrastructure such as roads or airports built where
theyre needed. They also create vehicles to help individuals grow
their wealth.
Investment bankers may perform the following tasks:
restructure companies
buy and sell companies
raise debt and equity capital
prepare client pitch materials
help clients list on the stock exchange
deal in shares or bonds
analyse the prospects of listed companies
conduct nancial analysis build nancial models, write
information memorandums
oversee project management to ensure clients objectives are
obtained
draft presentations, board papers and various shareholder documents
customer calling, preparation and presentation of proposals, drive
sales revenue targets, lead specic sales initiatives
represent business externally
review companies their regulatory requirements, history of current
operations and assess whether a change in regulation is warranted.
f
a
c
t
MYTH
at the age of 25 one
can become the next
Rupert Murdoch or
Gordon Gekko (from
the 1987 movie
Wall Street)
Not everyone will reach
this league, but hard
work is the way people
rise through the ranks
to get to a position
where they can inuence
the future of big and
important companies.
IB - 191205.indd Sec1:2 20/12/05 6:49:57 AM
3
The bi g pi cture
What skills and characteristics does it take to be a successful investment
banker? To nd out, we went straight to the source investment bankers
themselves. Here is a compilation of what they said.
entrepreneurial
people skills team player, ability to network, relationship builder
good time management ability to work smart and delegate tasks
highly ambitious driven to succeed, aggressive, A-type personality
energetic
commercially minded
thick-skinned calm under pressure, stress-resistant, resilient
motivated/self-starter
logical thinker analytical, able to reason, objective
condent
quick-thinking
organised
focused
individual thinker/creative thinker/dynamic
attention to detail
good listener
hard-working
has emotional intelligence
prepared to sacrice personal time
strong numerical skills
strong communication skills
integrity.
glossary
A-type means:
a hard-working, ambitious
person preoccupied with
schedules and the speed
of their performance,
as opposed to B-type
personalities, that are more
creative, imaginative and
philosophical
IB - 191205.indd Sec1:3 20/12/05 6:49:58 AM
4
Investment Banking
tradeoffs
As in any profession there are some drawbacks for those working
in investment banking. Many of the people interviewed commented
on the long hours, the stress, or the competitive nature of the job.
Downsides described include:
excessively long hours 24/7 is standard during high-pressure times
frequent overtime and weekend work
very little spare time and commitments outside of work are difcult
not unusual for young people in their early 20s to burn out
work on average around 12 hours a day
hard work, challenging expectations, tight deadlines
uncertainty of the market, ckle nature of the nance industry,
frequent and unexpected legislative changes
ultra-high stress levels and ultra-competitive results-driven
work environment
Investment bankers work in many different capacities. The following
illustration shows a range of jobs that people work in though this, by
no means, covers all the possibilities.
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5
The bi g pi cture
Whats happening right now?
The demand for graduate recruits is affected by many factors, including:
macro factors such as the business cycle, economic conditions and
business forecasts
the level of regulation for example, increased regulation may
prompt a greater demand for professionals in the compliance function
competition with other banks
consolidation in the industry as a result of bank mergers
and takeovers
global staff movements.
The Finance Sector Unions Angela Jolic notes that the past decade has
seen the nance industry go through incredible changes. The bigger
companies in the industry have reduced their staff numbers. At the
same time, there is now a rising number of smaller companies growing
their businesses and taking over some of the functions the larger
companies had. A lot of jobs that were plentiful have disappeared,
while other positions have experienced a boom.
Allan Ritchie, the investment banking consultant at Hudson Recruitment,
notes that the Asian Crisis in 1998 spread swiftly across the AsiaPacic,
affecting currencies, interest rates and other markets. This was followed
by trouble in other emerging markets, from Latin America and into
Russia. Trading volumes fell as investors took their money out of the
markets. Mergers and Acquisitions (M&A) activity also slowed.
It was an ugly time. I was working as an investment banker
in London at the time where about 20 per cent of the people
working in investment banking lost their jobs and that affected
other ancillary businesses.
Allan Ritchie, Hudson Recruitment
In 1999, conditions in the investment banking industry began to
improve on the back of the tech boom and investment banks started
hiring new analysts again. But a few years later came the bursting of
the technology bubble, September 11, SARS, and war being declared
on Iraq. Again, job prospects turned gloomy.
Prospects are currently rosy, but like other industries, investment
banks are inuenced by economic conditions and how these affect the
perception of their clients and their investment appetites.
glossary
Consolidation means:
private equity investment
strategy that involves
merging several small rms
together and exploiting
economies of scale or
scope.
IB - 191205.indd Sec1:5 20/12/05 6:50:02 AM
6
Investment Banking
Some market setbacks, such the collapse of Enron and HIH, and
the National Australia Bank trading scandal, have created new jobs
in merchant banking, especially in the area of compliance and risk
management, as the regulators step in to try to prevent any
future shocks.
Current size of the profession
According to the Reserve Bank, the total assets of investment banks
operating in Australia topped $73.4 billion in January 2005.
By May 2004, there were 53 authorised banks in Australia, 39 of
which were foreign-owned. Some are full service banks while others
are specialists focusing on niche markets. Many of the foreign banks
entered the market after it was deregulated over 15 years ago,
creating a highly competitive playing eld.
The International Banks and Securities Association of Australia
(IBSA) estimates that there are about 25 000 Australians employed
in investment banking. Most of these jobs are concentrated in Sydney
and Melbourne. Sydney, however, dominates. It has developed as the
nancial capital of Australia in recent years and has attracted most of
the foreign-owned banks.
Many global banks also export nancial services by servicing regional
and global operations from Australia. Some examples include:
Citigroup AsiaPacic processing hub for foreign exchange,
employing 85 staff
Deutsche Bank global operational, information technology and
support services, employing 135 staff
JPMorgan Chase AsiaPacic institutional equities and
futures/options operations, and human resources, accounting,
procurement and compliance support, employing 135 staff;
custodial services in Adelaide, South Australia, with 165 staff
Morgan Stanley global foreign exchange, AsiaPacic accounting,
structured products, equity operations and human resources
support, employing 80 staff
UBS global information technology call centre in St Leonards,
New South Wales, employing over 120 staff.
One niche branch of investment banking is venture capital. According
to Australian Venture Capital Journal editor Victor Bivell, there were
In 2001, HIH Insurance Group
went into liquidation and it
is currently the subject of a
Royal Commission. For more
information see:
www.hihroyalcom.gov.au
fyi
glossary
Risk management means:
being able to manage
different risks and anticipate a
wide range of circumstances
that have to be managed
and having procedures and
systems in place to manage
circumstances as they arise
IB - 191205.indd Sec1:6 20/12/05 6:50:03 AM
7
The bi g pi cture
128 venture capital rms in Australia, managing $10 billion and
employing 663 professionals at the end of 2004.
The 2005 nancial year was a good one for mergers and
acquisitions (M&A) all over the world, and Australia was no
exception. In the rst half of 2005 alone, global M&A increased
by 31 per cent over 2004 to be worth $US1.3 trillion ($A153
trillion), according to market research rm Dealogic.
In Asia excluding Japan, announced M&A volumes rose 14 per
cent, to $US114.9 billion, in the rst half. Led by the $7.7
billion takeover of WMC by BHP Billiton, Australia made up
nearly 24 per cent of the regions activity.
According to Thomson Financial league tables, over the whole
nancial year M&A activity involving Australian players rose by
43 per cent, to $US108.5 billion, although the number of deals
remained relatively static up from 2041 in 200304 to 2141
last year.
CFO Magazine (August 2005)
What are the job opportunities?
In Australia, most investment banking jobs are in Sydney and Melbourne.
While many media reports suggest that nance employment is in
decline, in reality, according to the Australian Bureau of Statistics, the
number of people employed in the industry has increased by 14 per
cent from 1999 to 2004.
Like other sectors of the economy, investment banking is suffering a
skills shortage and, at present, demand for staff in this industry is
high, although theres some uncertainty where this will go over the
next six months.
Edmund Gill, a director at Hays, says theres a general need across the
investment banking industry for good quality people.
Theres a need for analysts generally and demand for compliance
people is growing. Investment bankers have to think globally.
Compliance in the US and UK is a lot stricter and investment
banks here in Australia are trying to stay a step ahead of this.
People with nance and accounting skills are always needed, and
theres also demand for business development people.
Edmund Gill, Director, Hays Recruitment
According to the International Banks and Securities Association of
Australia (IBSA), demand for new recruits in investment banking has
glossary
League tables means:
measure by which
investment banks compare
their performance in the
key areas of M&A, equity
and debt underwriting.
Skills shortage means:
shrinking labour market
due to an ageing
population, slowing
birth rates and skilled
immigration rates
IB - 191205.indd Sec1:7 20/12/05 6:50:03 AM
8
Investment Banking
been fairly stable over the past few years. New graduates make up
about ve per cent of the IBSA member workforce.
IBSA adds that there are growing opportunities for recruits in a range
of new products such as securitisation and in expanding areas
such as funds management.
Other areas where there is currently growing demand for staff include
nance and accounting, as well as compliance. The compliance demand
is driven by rising regulation of the banking sector following some high-
prole corporate collapses in recent years in Australia and overseas.
International developments like BASEL II and Sarbanes-Oxley have
boosted the need for investment bank staff. There are also new global
standards for the prevention of money laundering and the need for local
operations to comply with their parent company policies. However, the
positions created by these developments generally require industry
experience and would not be suitable for new entrants into the industry.
Historically, there has always been a signicant demand at the
18 month to three years experience level in most disciplines,
which allows for internal growth and development for existing
staff. With limited recruitment over the last three years, there
have been few graduate recruitment schemes or juniors being
taken on for training.
As a result, a gap has developed in the market, which is forcing
clients to compete for that experience in terms of salary and
benets, hence looking to bring on staff with more experience
than would traditionally have been necessary. This has resulted
in salaries being driven up. A quick glance at the press will
provide plenty of evidence of the demand for candidates, with
agency and client led advertising reaching fever pitch.
The next stage in the cycle is likely to be a switch to recruiting
graduates and school-leavers, which will help to stabilise the
market at that mid level.
Currently, however, the experienced professional on the
job market is the hottest commodity for any employer and
competition is incredibly erce.
The skills in heaviest demand at present fall within the
international equity and derivative arena.
Whilst xed income over the last three years has seen a level
of consistent recruitment, the peaks in volume recently have
noticeably been for equity and derivative product knowledge.
Hays Investment Banking Salary Guide 2005
glossary
Securitisation means:
pooling and re-packaging
of non-tradable securities into
marketable securities.
BASEL II means:
round of deliberations by
central bankers from around
the world, under the auspices
of the Basel Committee on
Banking Supervision in Basel,
Switzerland.
BASEL II, which comes into
affect in Australia in 2008,
aims to produce uniformity in
the way banks and banking
regulators approach risk
management across national
borders. Banks are currently
changing their systems
to comply with Basel IIs
requirements. See:
www.bis.org/bcbs/index.htm
The Sarbanes-Oxley Act
(SOX) was passed by the US
Senate in 2002 in response
to the collapses of major
public companies such as
Enron, Tyco and WorldCom. It
aimed to strengthen corporate
governance Australian
companies that have
exposure to US securities
markets have to comply to
SOX.
fyi
IB - 191205.indd Sec1:8 20/12/05 6:50:04 AM
9
The bi g pi cture
Typical entry-level positions for new recruits include:
Research assistants
Trainee private client advisers
Corporate services advisers
Institutional dealers
Information technology trainees
Client services
Assistant portfolio managers
Administration and support staff.
The investment banking industry is very fast-paced, which is
reected in employment trends. What is considered to be a hot
job today may very well have changed a couple of months down
the track. When making career choices, students should not
rely on perceptions of which areas are growing. Instead, they
should take the time to research all aspects of a banks business
to locate areas that may be of interest to them, and are most
relevant to their qualications.
International Banks and Securities Association of Australia
hotjobs
We asked some HR experts what jobs were currently hot in investment
banking. Heres what they listed:
Private equity, principal nance, corporate advisory, mergers
and acquisitions, divestments, capital raisings and general
corporate reconstruction.
Jon Michel, Founder of Jon Michel Executive Search
Corporate nance, alternative assets, leveraged nance and
private equity.
Allan Ritchie, Investment banking consultant, Hudson Recruitment
There are some interesting entry-level positions in mergers
and acquisitions and equities research that offer a broad and
exciting scope for work.
HR manager, ABN AMRO
IB - 191205.indd Sec1:9 20/12/05 6:50:05 AM
10
Investment Banking
There are many pathways open to you in investment banking. They
could include:
corporate nance and advisory services
structured nance
project nance
trading
equity, xed income and currency research
sales
derivatives
private equity and venture capital.
Corporate nance and advisory services
This involves providing acquisition, merger, fundraising and strategic
advice. You are likely to get involved in helping companies raise the
capital they need for ongoing operations, new projects or acquisitions.
Youd work out how much capital they need and how best to get it
for example, by borrowing from a bank or by issuing bonds or shares
or other securities. Transactions may include divestments, initial
public offerings, takeover defences, equity-linked and debt capital
issuance and, of course, M&A.
In M&As, you would help one company buy another or merge with
another. You might also advise clients how to ght off any unwanted
takeover bids. You are likely to be part of a team which gives advice,
values transactions, structures deals or negotiates favourable terms.
In the beginning, you could work as an analyst, running lots of
valuation models on spreadsheets and doing background research
into the companies and industries involved in any potential deals. As
you gain experience and move up the ranks you are likely to get more
client-focused.
You might also work on the privatisation of government-owned
enterprises such as Telstra. Here, you could advise a government
about the nature, timing and pricing of asset sales, or get involved in
marketing the sale to investors.
People dealing with corporate nance often work for investment
banks, but they could also nd opportunities at accounting rms,
the larger commercial banks, boutique corporate nance practices,
private equity companies and at large Australian companies.
IB - 191205.indd Sec1:10 20/12/05 6:50:06 AM
11
The bi g pi cture
Structured nance
Structured nance involves non-standard ways of raising money,
through tailor-made securities. These could include asset-backed
commercial paper, collateralised bond obligations (CBO), and
repackaged asset vehicles. The investment banks job is to create the
security so that it meets the needs of both the buyers and issuers,
set out the legal terms of the agreement, and price the deal. Here,
youll be looking for hidden risk and value in structured securities and
at ways to repackage and renance a companys assets so that it is
best placed to meet its future funding goals. The job requires a solid
combination of spreadsheet, accounting and legal skills.
Project nance
Investment banks have made their mark as the nanciers and
facilitators of large-scale business projects on behalf of companies
or governments. Project nance deals often bring together a
large number of investors, including commercial banks and even
development banks. Investment banks can be involved right at the
start by identifying needs, conceptualising projects, introducing
partners or structuring nance and they might continue by managing
funding during the construction and commissioning stages.
Trading
As a trader, you might be buying or selling shares, bonds, currencies
(referred to as Forex or FX), options, futures and other securities.
Traders often make snap decisions worth millions of dollars and work
in a fast-paced environment where world events can have a big impact
on the markets. As a trader, you would need to have very strong
analytical know-how, sure instincts, fast reexes and sometimes,
poker-faced bargaining skills. Youd also need to understand markets
and the inter-relationship between markets. Along with numerous
other traders on the trading oor, you are likely to spend your
working hours in front of computer screens, watching prices move up
and down and tracking news and events that could affect prices.
Equity, xed income and currency research
Equity analysts examine the strength of listed companies and
their future prospects. They are usually assigned to an industry or
region. They research stocks and come up with buy, hold or sell
recommendations for investors. Their duties might involve visiting
glossary
FX means:
Foreign Exchange
The classic image of a trader
a man on the trading oor,
shouting buy and sell
is now an extinct breed.
Today, trading is almost
paperless and takes place
in cyberspace. Although
a gut feel for markets
will always be important,
traders increasingly rely on
mathematical pricing models
and statistics.
fyi
IB - 191205.indd Sec1:11 20/12/05 6:50:06 AM
12
Investment Banking
companies and developing close contacts with big investors or
individual clients. Investment banks often like to hire people with
industry experience into equity analyst positions (as opposed to fresh
MBAs or undergrads). For example, they might hire someone who has
worked previously in a mining or energy company to be their resources
analyst because this person will already have a good understanding of
the resources sector and will be able to ask the right questions.
Fixed interest and currency analysts research the prospects of bonds
or exchange rates. Each type of security requires different skills and
expertise. In foreign exchange markets, an understanding of general
macroeconomic and political conditions is useful while in xed
interest markets having quantitative skills, a knowledge of pricing
models and arbitrage theory will pay off.
If you work in research, you will produce written reports on markets
or companies and their prospects. These reports will be distributed to
clients and read by the banks traders. Researchers spend their time
sifting through companies annual results and announcements, and
talking to companies about developments that could inuence their
protability and future prices of their shares or bonds. Researchers
need to be numerate, inquisitive and have strong presentation and
communication skills.
Sales
In sales you would be responsible for conveying information
about particular securities to large professional investors like
fund managers, charities and superannuation funds, or to wealthy
individual investors. Sales skills and product knowledge are crucial
in this area as is the ability to get through to busy investors. Youll
also need charm and persuasiveness, and should enjoy dealing
with people. You are likely to spend a lot of your time working the
telephones, often talking to clients from the moment the nancial
markets open to the moment they close (as well as several hours
before and after).
Derivatives
Derivatives are types of nancial instruments. Their value is derived
from the price of some underlying asset for example, an interest
level or stock market index. They are designed to help organisations
protect themselves against the risk of price changes, or to be
speculative investments. Options, swaps and futures are examples
glossary
MBA means:
Masters of Business
Administration
Arbitrage means:
simultaneous buying and
selling of one security at two
different prices in two different
markets, which results in
prots without risk.
IB - 191205.indd Sec1:12 20/12/05 6:50:07 AM
13
The bi g pi cture
of derivatives. To structure derivatives, you will need to be innovative
and to be a good problem solver. Youll also need a strong quantitative
background, possibly in engineering, physics or applied mathematics.
However, a legal background may also prove valuable because
derivatives have to be structured around regulations and laws.
Private equity and venture capital
Private equity companies or funds help raise money for unlisted
companies to help them further their growth. They dont do this by selling
companies shares or bonds, but by taking a stake in the company.
They also hope to use their expertise to improve the performance of the
company, before selling out at a prot some years later.
The terms venture capital and private equity are often used
interchangeably but, strictly speaking, venture capital refers to
funding new and developing companies, while private equity is more
usually associated with management buy-outs or management buy-
ins of more mature companies.
If you work in private equity or venture capital, you are likely to work
for a small company or fund. You may, however, also nd a role in an
investment bank or large accounting rm as an advisor.
Most private equity and venture capital rms in Australia dont
hire graduates directly and tend to take on people who have had
some years experience elsewhere such as in investment banking,
accountancy or strategy consulting.
However, if you do join a private equity fund in a junior position, you
are likely to spend a lot of time number crunching, examining the
accounts of the companies and building nancial models. To do this,
you will need a strong nancial background.
As you get more experience and take on more senior roles, you will get
more involved in appraising whether the company is worth investing
in at the asking price, and whether the fund is likely to be able to sell
its stake in the company at a prot in the future. You might also help
execute the deal that is, doing everything needed to ensure it takes
place. Once you become really senior in the fund, you could become an
originator. Here, you would oversee the deal while it is being done as
well as originate new deals by nding new companies for the fund to
invest in. For more senior roles, it also helps if you can build a strong
rapport with company executives and if you have some experience of
strategy and the day-to-day requirements of running a business.
glossary
MBO means:
where a company, or a
division of a company, is
bought by its managers.
MBI means:
where managers from
outside take over a
company.
IB - 191205.indd Sec1:13 20/12/05 6:50:08 AM
14
Investment Banking
Women in investment banking
Investment banking is not generally regarded as a traditional
employer for women and its widely considered a male-
dominated industry.
There are still relatively few females in the industry. Ninety-nine
per cent of the people I work with are male, says Isabella Ebbitt, an
executive in KPMGs real estate advisory area of corporate nance.
Similarly, a senior female analyst at BDO Chartered Accountants
and Advisers, says: Female partners are still in the absolute
minority in corporate nance but the number is increasing.
One problem for women, especially those with families, is that
many of the jobs involve working long hours.
Its really hard for women. The time when they peak at their career
in this industry runs into the time when they should be having
children. Its not easy. Making it work depends on the environment
you are in, notes one high-ying corporate nancier.
But times are changing!
Firstly, many female investment bankers dont believe they are
discriminated against and most dont believe they earn lower salaries.
IB - 191205.indd Sec1:14 20/12/05 6:50:09 AM
15
The bi g pi cture
Also, diversity is becoming a competitive necessity rather than
just a competitive advantage for many employers in the industry.
Women are increasingly playing a bigger role with greater
representation at the senior levels and more female graduates
are joining the industry in areas such as funds management
and retail broking, there is good representation of females at all
levels and many examples of successful senior women.
But in other areas of the industry women remain under-
represented for example, in mergers and acquisitions,
structured nance and within the trading areas. Overall, however,
female representation at senior levels is generally lower when
compared with other industries.
Investment banks have attempted to address the gender
imbalance by focusing their energies on initiatives that provide
women with the training, development and support they need to
advance in this industry.
ABN AMRO, for example, offers female staff development
programs and exible part-time and work-from-home options.
Paid leave of 12 weeks is offered to employees who are primary
care givers.
How much can I earn?
Salaries in investment banking tend to be
better than in many other sectors of the
economy, but what actually counts is the
bonuses that one earns over and above
the salary. According to Allan Ritchie, the
investment banking consultant at Hudson, top performers can earn a
bonus of 100 per cent plus of their salary. New graduates get smaller
portions of the bonus and bonuses rise with seniority. The higher up
you are the more of the bonus pool that accrues to you.
On top of this, say in private equity, theres a remuneration known
as carry. Although not common, the carry is a long-term incentive
which gives you a share in the business youve built up.
According to Allan Ritchie, a recent graduate entering the investment
banking world as an associate or analyst can expect to start off
earning between $40 000 and $60 000 a year. A senior associate with
f
a
c
t
MYTH
the banking and
nance industry is a
boys club
It has changed a
great deal, especially
in the dealing room
environment. Fifteen
years ago, three people
out of 80 were females.
Now its almost 50/50.
Top performers
can earn a bonus
of 100 per cent of
their salary.
IB - 191205.indd Sec1:15 20/12/05 1:28:45 PM
16
Investment Banking
two to three years experience can start looking at $80 000 a year
and at $130 000 when he or she has three to ve years experience
in the game. An associate director with ve years or more experience
will take home over $150 000 while a director may pocket $180 000
to $275 000. An executive director or head of division will earn $250
000 plus a year. But of course, this is before the bonuses which will
depend on how good a year that area in the investment bank had.
Salaries at a domestic investment bank are often on a par with those
at international investment banks, but bonuses are not always as high.
Entry-level salaries are around $40K to $50K for a new
graduate with no experience. You will progress on merit and
usually earn a bonus on top of a base salary. After 10 years, you
should be earning well into the six gures.
Ben Reeves, National recruiting manager, KPMG
Performance-based bonuses
Bonuses are a standard element of the investment banking
sectors remuneration structure, and job seekers chase good
bonus payers. The aim of bonuses is to recognise and reward
employees for exceeding their individual targets and those of the
company or bank. They also provide recognition for outstanding
contributions that exceed expectations at both team and
individual levels. But just how these bonus are allocated will vary
greatly between different organisations.
Essentially, however, the bank or major business unit must rst
turn in a good performance. Then, depending on level of its level
of success, a team will get its share of the bonus pool. What
slice an individual gets of this share is based on his or her own
performance and varies depending on the seniority of their role.
The more senior you are, the bigger slice you are likely to get.
Corporate nance and investment bankers are chasing
the 100 per cent of salary plus type of bonus but the
performance/protability has to be strong.
IB - 191205.indd Sec1:16 20/12/05 6:50:13 AM
17
The bi g pi cture
A survey by the International Banks and Securities Association of
Australia (IBSA) found that its members paid a total of $2.4 billion
in salaries in 2003. More than two-thirds of IBSA employees earned
above the average wage of $48 000 per year according to the
Australian Bureau of Statistics. This reects the high standards of
performance expected in the investment banking industry. The salary
spread by range was as follows.
Salary Range / % of respondents employees
Over 200K: 14%
151K200K: 7%
101K150K: 13%
51K100K: 34%
50K or less: 32%
Source: IBSA Member Survey 2003
The salaries paid to investment bankers are more than commensurate
with those of university graduates entering other professions.
See Comparative
starting salaries of various
professions in Appendix 1
f i nd out
more
IB - 191205.indd Sec1:17 20/12/05 6:50:13 AM
18
Investment Banking
The following table shows the ages, jobs and salaries of investment
banking professionals interviewed for this book. Many have listed
their salaries without the healthy bonuses and other nancial
incentives that are so much a part of this industry.
Age
group
Position title
Approximate salary
as at 30 June 2005
($)
No. of years
in job
No. of
years in
profession
30s Associate director 250 000
plus bonuses
18 months 7
Late 20s Senior analyst,
corporate nance
70 000 3 months 1.3
30s Executive, real
estate advisory
60 00080 000 2
Late 20s Manager, boutique
investment house
130 000160 000
plus bonuses
1 5
30s Senior executive,
boutique corporate
advisory
Performance-based 2 4
30s Chief investment
ofcer, listed
property trust
300 0001 million
performance-based
1
Late 20s Finance analyst Performance-based 1.5
Early 30s Manager, structured
investments
150 000 approx 4 7
30s Healthcare analyst,
equities
Late 20s Manager, equity
capital markets
Early 20s Credit trader, global
markets
Performance-based 13 months 2
Mid 20s Director, short-term
interest rate trading
150 000250 000
plus bonuses
1.5 6.5
40s Vice president, sales 100 000150 000
plus 3060%
bonuses
1 over 10
30s Senior analyst,
nancial risk
management
90 000100 000 plus
super and study
assistance
3 5
Late 20s Senior analyst,
management
60 00080 000 1 3
30s Senior analyst,
management
60 000100 000 2 6
Career FAQs survey, 2005
You may notice that the interviewees are mostly in their 20s and 30s.
This conrms that, at least to some degree, investment banking is
IB - 191205.indd Sec1:18 20/12/05 6:50:14 AM
19
The bi g pi cture
a high-paying young persons game and, the gures dont include
performance bonuses.
The next table from Michael Page International also shows salaries
before bonuses are added. As you can see, there is considerable
variation in the range of salaries. This survey indicates that salaries
are negotiable with some directors starting on $160 000, while others
can earn $220 000 plus.
Corporate Finance Salary*
Analyst/executive 65K100K
Associate 100K120K
Manager 120K150K
Associate director 150K220K
Director 220K+
Equities research Salary*
Assistant analyst 80K120K
Analyst 120K200K
Senior analyst /lead analyst 200K+
Equity capital markets Salary*
Analyst 65K90K
Manager 90K130K
Associate director 130K160K
Director 160K+
Source: Michael Page International Finance Salary Survey
* These gures are generally the total remuneration (i.e. cash, statutory superannuation
component and benets), excluding bonus/incentive schemes.
However, no matter how your earnings are structured, what you
actually take home each year is what really matters. And, its bonuses
that count in investment banking. Indeed, bonuses are a key reason
why high performers want jobs in this industry.
The Hudson Recruitment salary guide shows how much bonuses
can boost your earnings and how performance can be important in
determining your income in the investment banking game.
glossary
Performance bonuses
means:
bonuses awarded for
achieving objectives.
IB - 191205.indd Sec1:19 20/12/05 6:50:15 AM
20
Investment Banking
The salary listed is an approximate indication of what someone in that
position would earn. The bonus % of base shows how much more
you can earn if you meet your targets. The lowest end of the range
is the percentage of your salary you get (in addition to your salary)
if you and your team just meet your targets. The highest end of the
range indicates what is possible to earn if you exceed your targets.
However, if you dont meet your targets, you wont get a bonus and
may possibly lose your job because you arent performing.
Corporate nance/M&A Salary Bonus % of base
Head of division/MD 400K 75250
Director/senior vice president 275K 75150
Associate director 150K220K 90
Manager 80K130K
Equity capital markets Salary Bonus % of base
Manager 80K100K 50100
Debt capital markets/
securitisation
Salary Bonus % of base
Manager 80K120K 50100
Structured nance Salary Bonus % of base
Funds management Sydney Salary*
Performance analysts (3 years experience) 50K75K
Quantitative analysts (5 years experience) 80K120K
Equity analysts (5 years experience) 90K130K
Client relationship manager 130K150K
Portfolio manager 130K180K
Business development manager 130K200K
Source: Hudson salary guide
Note that a head of division or managing director (MD) can earn
$400 000 and receive bonuses of up to 250 per cent of the base
salary, totalling a massive $1 400 000.
IB - 191205.indd Sec1:20 20/12/05 6:50:16 AM
21
The bi g pi cture
Who are the main employers?
People with investment banking skills can be employed by many
different types of organisations. In fact, their skills are needed
whenever large deals or projects are being structured, money needs
to be raised or nancial assets need to be bought or sold. The main
employers of people with investment banking skills are:
banks
boutiques and smaller companies
private equity rms and funds
venture capital rms
accounting rms
government
corporate Australia.
Banks
Most of the traditional investment banks operating in Australia are
global multinationals with a head ofce based in another country.
Some of the best known ones include:
ABN AMRO (The Netherlands)
BNP Paribas (France)
Citigroup (USA)
Credit Suisse First Boston (Switzerland)
Deutsche Bank (Germany)
HSBC Bank (UK)
ING Bank (The Netherlands)
JPMorgan Chase Bank (USA)
Merrill Lynch (USA)
Morgan Stanley (USA)
Nomura (Japan)
Royal Bank of Canada (Canada)
UBS AG (Switzerland).
IB - 191205.indd Sec1:21 20/12/05 6:50:16 AM
22
Investment Banking
The big four commercial banks Commonwealth Bank, National
Australia Bank, Westpac and ANZ and some smaller banks like St
George also engage in investment banking activities.
Australia also has its own homegrown investment banking
operations, the biggest and perhaps the most successful of which
is Macquarie Bank. It is the only large, majority Australian-owned
investment bank. It is listed on the Australian Stock Exchange (ASX)
and operates in 23 countries.
Boutiques and smaller companies
Numerous smaller investment banking companies exist. Some are also
listed on the ASX, including Babcock & Brown and Mariner Financial.
Babcock & Brown, for example, has its headquarters in Sydney but
operates from 18 ofces worldwide. Not only does it advise on and
arrange transactions, it sometimes takes a stake in them.
There is also a wide range of other boutique or smaller investment
banks. They include Investec, Caliburn, InterFinancial ECM and,
possibly Australias newest investment bank, State Equity Group,
which was launched in August 2005.
Private equity rms and funds
There are 13 private equity funds listed on the ASX and plenty more
that arent. Heres a selection of Australian private equity companies:
Archer Capital
CHAMP Private Equity
Crescent Capital Partners
DB Capital Partners
Hastings Private Equity
Ironbridge Capital
Wolseley Partners.
Its worth browsing through their websites to get a feel for what they do.
Archer Capital
www.archercapital.com.au
CHAMP Private Equity
www.champequity.com.au
Crescent Capital Partners
www.crescentcap.com.au
DB Capital Partners
www.dbcapitalpartners.
australia.db.com
Hastings Private Equity
www.hfm.com.au
Ironbridge Capital
www.ironbridge.com.au
Wolseley Partners
www.wolseleypartners.com.au
f i nd out
more
IB - 191205.indd Sec1:22 20/12/05 6:50:17 AM
23
The bi g pi cture
Venture capital rms
There are over 100 venture capital rms in Australia, managing $10
billion and employing more than 600 professionals. Heres a small
selection of these companies:
Allen & Buckeridge
Continental Venture Capital
Equity Partners
First Corporate Group
Momentum Venture Capital
Nanyang Management
Pacic Capital Corporation
RMB Ventures
Starsh Ventures
Technology Venture Partners
Venture Capital Partners.
A visit to their websites should give you a better idea of what they
actually do.
Accounting rms
Also employing people with investment banking skills are business
advisory rms like KPMG, PricewaterhouseCoopers, Deloitte and Ernst
& Young. They are typically involved in activities like mergers and
acquisitions, capital raisings, IPOs, nancing, real estate, business
valuations and preparing independent expert reports. As they do not lend
money to fund transactions, the investment banking areas of accounting
rms are valued for their ability to provide independent advice.
Working for KPMG is an excellent career choice for those
wanting to work in investment banking because of our strong
learning culture, opportunities for travel, well structured
training programs, involvement of graduates in all aspects of
our assignments, and our approach to allowing graduates to work
across all parts of our business and with other divisions of KPMG.
Julian Vella, Head of Corporate Finance, KPMG
www.a-b.com.au
www.cvcltd.com.au
www.equitypartners.com.au
www.rstgroup.com.au
www.momentumvc.com.au
www.nanyang.com.au
www.capstart.com.au
www.rmb.com.au
www.starshventures.com.au
www.tvp.com.au
www.ventures.com.au
f i nd out
more
glossary
IPO means:
Initial Public Offering. This
is the rst sale or issue
of privately owned equity
(securities or shares) in
a company via issue to
the public and investing
institutions. An IPO
can also be known as
going public or taking a
company public.
An Independent expert
report:
informs shareholders
whether the share price
paid for any transaction is
fair and reasonable.
IB - 191205.indd Sec1:23 20/12/05 6:50:18 AM
24
Investment Banking
Government
Numerous government departments employ graduates with nance
and investment banking skills. Governments do, after all, have to fund
large projects and look after tax payers money. The government is
also a major issuer of bonds.
Here are some government departments that hire people with
corporate nance and investment banking skills.
The Treasury
Treasury employs approximately 800 people in Canberra and runs a
12-month Treasury Graduate Development Program. There are also
employment opportunities in Treasuries in other states.
Reserve Bank of Australia
The Reserve Bank of Australia (RBA) hires graduates for a number of
its divisions. You could, for example, become involved in the banks:
foreign exchange market operations
holdings of domestic and foreign securities
monitoring and analysing domestic and overseas nancial markets.
Australian Prudential Regulation Authority
The Australian Prudential Regulation Authority (APRA) is the prudential
regulator of banks, insurance companies, larger superannuation
funds, credit unions, and building and friendly societies. A job with the
regulator could involve a wide range of analytical nancial skills.
Corporate Australia
Many of Australias largest companies, and multinational companies
with branches in Australia, hire people with investment banking skills
to help them raise money on the capital markets, restructure their
balance sheets or invest in other companies or projects.
For example, Lend Lease employs a number of people with investment
banking skills in its corporate nance, project nance and treasury
departments to help it fund, construct and manage its real estate
assets around the world. The group has been behind the development
of many ofce towers, hospitals, airports, shopping centres,
pharmaceutical facilities and residential communities.
The Treasury
http://graduates.treasury.
gov.au
RBA
http://rba.recruitasp.com.au
APRA
www.apra.gov.au/careers
fyi
IB - 191205.indd Sec1:24 20/12/05 6:50:18 AM
25
The bi g pi cture
What are employers looking for?
When hiring new graduates, investment banks look for excellent
academic performance regardless of academic eld, although,
typically, successful candidates have completed commerce, law,
economics or nance and related degrees.
Investment banks want employees with a combination of strong
analytical and interpersonal skills although some jobs lean more
towards one skill set than another.
Investment banks are looking for people with:
a high degree of condence and well-developed interpersonal skills
strong problem-solving, analytical and quantitative skills
the ability to work well under pressure and to tight deadlines.
They also want people who:
thrive in a collaborative environment and are team players
are highly motivated, exible and have initiative.
To t the bill, youre likely to be a team player, a fast learner,
innovative, committed and creative. Youll also need to possess
leadership potential and integrity. Youll probably have to demonstrate
that youre highly numerate, quick thinking, personable and articulate.
Early positions in investment banking are likely to require good
spreadsheet skills and analytical skills. However, in mid-career,
your success may depend more on your ability to communicate with
clients and get deals done. By this time, it will also be crucial to have
a good understanding of market trends, the larger macroeconomic
environment and deal mechanics.
Although qualications are clearly important, when it comes
to securing a job and establishing your career, there are a
range of skills that are critical. The skills that top this list
are communication skills. Finance workers, no matter what role
or company theyre in, need to be able to communicate and
relate well with their customers, managers and co-workers.
Customer service, sales and relationship management skills are
also extremely important. The nance industry is primarily a
service industry. In recent years, there has been a shift from
the industry being fairly average in terms of the customer
service it provides to now having a strong focus on high net
IB - 191205.indd Sec1:25 20/12/05 6:50:19 AM
26
Investment Banking
worth customers and needing employees with strong relationship
management skills who can retain these customers and grow
their business.
Angela Jolic, Finance Sector Union
Meet some employers
Lets have a closer look at what nancial and HR managers look for
when recruiting. What types of people do they think best suit the
nancial profession? And what are the things you should consider
before embarking on an investment banking career?
We spoke to:
Jan Swinhoe Global head of property, industrials & consumer
Mark Thexton Associate director
Chania Higgins Graduate recruitment executive
IB - 191205.indd Sec1:26 20/12/05 6:50:20 AM
27
The bi g pi cture
Jan Swinhoe Global head of property,
industrials & consumer
Jan currently works at Westpac Institutional Bank, having perviously
worked in corporate superannuation and capital markets. She has
seen signicant chnages take place in the industry.
q&a
What are the best aspects of your industry?
Its very intellectually stimulating, there is a high level of people
contact, its a very practical environment and there is a high degree of
change which keeps it very dynamic and interesting.
What are the disadvantages?
The long hours and constant pressure.
What type of person best suits investment banking?
Someone who is bright, numerate, quick to adapt to change and who
likes to challenge the status quo.
Can you describe a particularly interesting project you have
been involved in?
Being involved in industries as they evolve and in Merger and Acquisition
activity. As different products develop its good to be the first bank to do
a deal of that kind and be at the frontier of product development.
How did you get to this position? What was your career
path like?
I did a Bachelor of Science Honours (Pure Mathematics) at UNE. I
then studied through the Institute of Actuaries in London. Initially,
I worked for two large life insurance companies in the area of
corporate superannuation in Australia, before moving into banking as
a derivatives trader. I also spent time in New York where I broadened
out into capital markets and derivatives. Then I was looking for a more
people-related, management role and I joined Westpac Institutional
Bank over ten years ago, where I have held numerous positions.
What do you feel young people contemplating a career in
investment banking should know?
The need to be patient and flexible, as this industry changes all the time.
Has the industry changed in the time youve been in it?
Absolutely! Its completely different from what it looked like when
I started. The technology has changed and there is much more
regulation of the industry, with the introduction of things like Bazel lI,
International Financial Reporting Standards and Sarbanes-Oxley. Its
also far more technologically reliant and this has speeded up the pace
IB - 191205.indd Sec1:27 20/12/05 6:50:22 AM
28
Investment Banking
of an already busy environment. We also have to deal with greater
expectations from customers, who have become more demanding and
have increasingly complicated requirements. Weve had to develop a
better understanding oft heir needs and the range of products now on
offer is enormous. On the recruitment side its become more difficult
to identify the skills that would prepare someone for the role and
theres a lot more flexibility and variance on what core skills are required.
The recruitment processes are also far more formal these days.
What did you want to be when you were at school? Could you
have imagined your career turning out this way?
I wanted to become either a psychiatrist or a mathematician. I
couldnt have imagined my job now, but it has led to the right
outcome as Ive always been able to use the quantitative skills and
have the people contact.
Mark Thexton Associate director
Mark believes that corporate nance and investment banking offer
enormous opportunities as a career option. Previously to his current
position at PriceWaterhouse Coopers Securities, Mark has worked in
many corporate nance positions including business analyst.
IB - 191205.indd Sec1:28 20/12/05 6:50:23 AM
29
The bi g pi cture
q&a
The corporate finance and investment banking industry offers
enormous opportunities for professional and personal development.
It is relatively unique in that it offers exposure to a wide range
of industries, diverse types of organisations (listed and private
companies, trusts) and a myriad different and complex transactions
(divestments, acquisitions, mergers, initial public offers, management
buy-outs etc.). As a result, there is always an immense amount to
learn and it is constantly challenging and therefore very rewarding.
It is a relatively high-pressure environment, especially when there is a
lot to do and too little time. The hours are long so dont expect to work
nine until five. Planning often goes out the door when critical issues
arise or a major project lands so then its all hands on deck to get the
job done quickly and to the highest standards.
Some characteristics of the people who are very successful in
corporate finance/investment banking include: quick to learn
and to absorb new concepts, lateral thinker, persistent, effective
communicator and analytical. Also, given the nature of projects and
level of negotiations, people in corporate finance/investment banking
tend to be quite thick skinned.
been involved in?
Probably the most memorable and enjoyable of recent projects was
the initial public offering of Tattersalls Limited. It was a very large
project which involved Tattersalls transitioning from an estate (akin to
a private trust structure) to a listed public company. This was the first
time in Australia an estate had been restructured to a public company,
which added significant complexities and time to the project.
How did you get to this position? What was your career
path like?
Before moving into corporate finance, I worked in industry for about
eight years. I started as a business analyst (after completing a
commerce degree), then progressed to strategy and the development
of new businesses in the banking industry. I have also completed
postgraduate studies in finance and investment management. These
were all excellent areas to gain relevant experience which has been
invaluable for the development of my career in corporate finance.
Like most industries, there is a lot more to corporate finance or
IB - 191205.indd Sec1:29 20/12/05 6:50:25 AM
30
Investment Banking
investment banking than the general external perceptions. It is not all
glamour and high flying, but rather a lot of hard work and dedication
in order to be very successful. Saying that, it is very challenging and
can be an incredibly rewarding career.
The corporate finance and investment banking industry is relatively
dependent on equity and capital market conditions. In the last few
years weve seen very strong markets (1999/2000 and current) as well
as soft markets in 2003.
What did you want to be when you were at school? Could you
have imagined your career turning out this way?
After finishing studies, I had intended to move into consulting/
strategic advisory. To some extent, corporate finance/investment
banking is a similar field to this (advising clients on strategic matters
etc.), but is also quite different in certain respects. I think that my
skills naturally evolved somewhat and I therefore found myself more
suited to corporate finance than other areas of advisory/consulting.
What is an industry myth? What is the fact?
That investment banking is about just doing high-flying deals. In
reality, there is a great deal of work that goes on behind the scenes,
including planning and project management, managing client
expectations, industry and market research, company analysis,
financial modelling and project administration. That being said, it is a
very fulfilling and rewarding career!
IB - 191205.indd Sec1:30 20/12/05 6:50:26 AM
31
The bi g pi cture
Chania Higgins Graduate recruitment executive
In her role as graduate recruitment executive at Macquarie Bank,
Chania is fully conversant with the desired attributes of the graduates
that Macquarie Bank recruits each year to t the culture of a diversied
international provider of nancial and investment banking services.
q&a
How many people work for your company in Australia? How
many people in the world?
Having grown substantially since our establishment, we currently
employ over 6800 people in 24 countries around the world.
How many investment banking personnel work at your bank?
As of 31 March 2005, the Investment Banking Group employed
1838 staff.
What are the different types of investment banking jobs
(different areas) in your bank?
Within our investment banking group, graduate opportunities are
primarily offered in corporate finance and equities research. Across
Macquarie, a diverse range of graduate opportunities is available
including accounting, banking and finance, equities sales, structuring
and trading, funds management, human resources, information
technology, property and risk management.
What are you looking for in investment banking
professionals?
When recruiting, we seek the following attributes:
a keen interest in an investment banking career
high levels of motivation and energy
above average analytical ability
excellent communication
interpersonal skills
the ability to work as part of a team
creativity and entrepreneurialism
and a strong sense of discipline and ethics.
How does your graduate recruitment program work?
Each year we recruit graduates from a variety of tertiary disciplines for
a broad spectrum of roles throughout the bank. Graduates are typically
hired in their final year of study, to commence the following February.
f
a
c
t
MYTH
it is an aggressive
male-dominated
environment
it is a team-driven
environment with
equal opportunities for
males and females.
IB - 191205.indd Sec1:31 20/12/05 6:50:28 AM
32
Investment Banking
How many graduates apply each year? Which faculties do
you recruit from?
On average, we receive approximately 4500 applications. We recruit
from a variety of disciplines including accounting, actuarial studies,
combined law, commerce/business, computer science, economics,
engineering, finance, human resources, information technology,
mathematics, property and science for positions across the bank.
How do you select graduates?
Graduates apply via an online application form. Applications are then
assessed and the successful applicants are invited in for a first-round
interview with a member of the graduate recruitment team. Subsequent
interviews are held with business managers and psychometric testing
and reference checking are also part of the process.
What are the career opportunities of someone who goes into
investment banking?
At Macquarie, we are meritocracy and as such career advancement is
based on job performance. We have a strong internal labour market
which allows staff to diversify their career paths should they have an
interest to do so.
How do you suggest people go about getting into investment
banking?
The undergraduate and graduate program is a good place to start.
What do you feel young people should know about
the profession?
It is a dynamic, entrepreneurial, client-based, transaction-driven,
challenging and at times high-pressured environment.
How has the profession changed?
The profile of investment banking in Australia has increased as a
result of growth and the globalisation of worldwide markets.
What personal attributes suit a job in investment banking?
Commercial acumen, innovative, tenacious, driven, strong sense
of ethics.
Whats the best thing about working in the industry?
It is a challenging, dynamic and rewarding industry that is continually
changing.
Are there any negatives?
Long hours can occur when working on transactions.
glossary
Meritocracy means:
a system in which
advancement is based
on individual ability or
achievement.
Macquarie runs a summer
vacation program which
recruits around 150 graduates
and over 80 undergraduates
a year from a wide range
of degrees, most in its
Sydney, Melbourne and New
Zealand ofces.See How are
people recruited? for more
information on graduate and
vacation programs in general.
fyi
IB - 191205.indd Sec1:32 20/12/05 6:50:29 AM
33
The bi g pi cture
What support organisations exist?
The investment banking industry does not have one institute or
organisation that specialises in providing guidance and support for
industry members. This is because of the diversity of roles that exist
within the industry it would be difcult to create a one size ts all
type organisation. However there are many organisations which focus
on specic aspects or roles within the profession.
Main industry bodies
There is a range of organisations which provide support services to the
industry in general, as well as training opportunities ranging from
postgraduate studies to one-day workshops and career guidance.
Australian Financial Markets Association
The Australian Financial Markets Association (AFMA) is the peak
representative body of the Australian over-the-counter (OTC) wholesale
nancial markets industry. OTC markets cover transactions in nancial
securities facilitated outside an exchange. These transactions
include trading in foreign exchange, interest rate products, nancial
derivatives, repurchase agreements, commodities, equity, and
electricity derivatives. The AFMA offers a range of training programs
and runs over 30 workshops presented by market practitioners. It also
offers the Diploma of Financial Services (Financial Markets).
International Banks and Securities Association
of Australia
The International Banks and Securities Association of Australia (IBSA)
represents investment banks operating in Australia. Its primary role is
to press for government policies that will encourage the strong growth
of investment banking in Australia. It does not provide information or
recruitment support for students seeking to enter the industry.
Finance Sector Union
The Finance Sector Union (FSU) represents employees working
in nance positions right across the Australian nance industry,
including those working in banks, insurance companies, nance
companies, broking rms, nancial planning companies, funds
managers, credit unions, money market dealers and investment
AFMA
www.afma.com.au
IBSA
www.ibsa.asn.au
Financial Sector Union
www.fsunion.org.au
f i nd out
more
IB - 191205.indd Sec1:33 20/12/05 6:50:29 AM
34
Investment Banking
advisory companies, amongst others. The union is active in improving
the working conditions of its members and is intimately aware of the
pressures on an individual trying to manage a nance career.
Australian Venture Capital Association
The association is a source of industry statistics and news. It
promotes opportunities for education and networking and runs an
annual Australian venture capital conference.
Australian Bankers Association
The Australian Bankers Association (ABA) provides analysis, advice
and advocacy and contributes to the development of public policy on
banking and other nancial services. With the active participation of
the member banks, the ABA works to foster an environment in which
nancial services are valued and can prosper.
Accounting and Finance Association of Australia
and New Zealand
The Accounting and Finance Association of Australia and New
Zealand (AFAANZ) represents the interests of accounting and nance
academics and other people interested in accounting and nance
education and research in Australia and New Zealand. Members
include academics and professionals from major corporations,
business houses, banking, nance and investment bodies. It runs
education programs, continuing professional development programs
and holds an annual conference. It also publishes a journal,
Accounting and Finance.
Securities and Derivatives Industry Association
Securities and Derivatives Industry Association (SDIA) is the peak
industry body serving 65 stockbroking rms and over 1300 practitioners
across Australia. It represents the stockbroking industry on policy
and issues with government and regulatory agencies and deals with
customer-supplier relationship issues with exchanges, clearing houses
and other suppliers. It also provides professional recognition for
industry practitioners and professional education and training.
www.avcal.com.au
ABA
www.bankers.asn.au
AFAANZ
www.afaanz.org
SDIA
www.sdia.org.au
f i nd out
more
IB - 191205.indd Sec1:34 20/12/05 6:50:30 AM
35
The bi g pi cture
Women in Finance
Women in Finance (WIF) is a non-prot organisation which provides
networking opportunities for women in the nance industry, with
branches in New South Wales, Queensland, Victoria and Perth. WIF
provides personal and professional development opportunities
through a series of monthly breakfast functions, workshops,
mentoring programs and other networking events. Speakers present
advice on a range of topical issues including career development,
leadership and current industry trends.
Support organisations for new recruits
There are a number of support organisations or networks for new
recruits into the industry. Support initiatives within investment banks
may include mentoring programs and internal networking groups.
Many investment banks also liaise with universities to organise joint
ventures, such as career days, to keep students informed.
Financial Management Association of Australia
The Financial Management Association of Australia (FMAA) is a
student organisation encompassing students from the universities of
Queensland, Sydney and Melbourne. Some members are sponsors of
the FMAA, which provides career advice and information on a range of
industries (including the investment banking industry). The FMAA also
organises events where students have direct access to member banks.
Securities Institute of Australia
The Securities Institute of Australia (SIA) represents the securities
and nancial services industry. It has more than 11 000 members and
14 000 students in 59 countries. Its aim is to raise standards in the
securities and nancial services industry by:
providing practical, contemporary and innovative education
fostering ethical and effective markets
advocating high levels of professional conduct.
SIA can help you identify and pursue your chosen eld in the securities
and nance services industry and offers career path seminars.
WIF
www.womeninnance.com.au
FMAA
www.fmaa.com.au
SIA
www.securities.edu.au
SIA Student Services
NSW and ACT
sia.nsw@securities.edu.au
Queensland
sia.qld@securities.edu.au
VIC and TAS
sia.vic@securities.edu.au
Western Australia
sia.wa@securities.edu.au
SA and NT
sia.sa@securities.edu.au
f i nd out
more
IB - 191205.indd Sec1:35 20/12/05 6:50:30 AM
IB - 191205.indd Sec1:36 20/12/05 6:50:31 AM
YOU HAVE THE AMBITIONS,
WE HAVE THE CHALLENGES
As Australias leading investment bank, Macquarie
has built a reputation for innovation. So it should come
as no surprise that the opportunities we can offer you
stretch well beyond the ordinary.
A career at Macquarie can lead you anywhere from
corporate finance, accounting and wealth creation to
trading, sales and risk management.
Better still, youll be learning from professionals
recognised as leaders in their elds and working on
deals that are the envy of the industry.
To read more about the graduate and undergraduate
programs and other opportunities available with us, visit
our website. At Macquarie, we can guarantee that you
will be challenged, but never bored.
t
www.macquarie.com.au/careers
MAC0187 Inv Banking Ad.indd 1 14/9/05 3:41:17 PM
UBS 2005. All rights reserved.
Your exceptional talent drives our success.
It starts with you.
UBS is a global financial powerhouse because of the ideas, skills, and commitment
to excellence of our employees. We offer talented individuals a world of oppor-
tunities. A diverse culture of mutual respect and support gives all our employees
the opportunity to excel. Our world-class training prepares you to be successful.
Your skills and ambition are recognized from day one.
To learn more about life at UBS and apply for a position, go to:
www.ubs.com/graduates
9787TS Career FAQ Ad 20/12/05 12:44 PM Page 2
41
Insider info
What jobs could I do?
Investment bankers work in large and boutique banks, in nancial
service rms such as PricewaterhouseCoopers (PwC), KPMG, and
Ernst & Young, to name just three, and in government.
The investment banking professionals we talked to worked in the
following jobs:
Business analyst
Private equity analyst
Associate or associate director, corporate nance
Senior analyst, investment banking rm
Real estate advisory
Head of transactions
Manager, structured investments
Healthcare analyst, equities
Credit trader, global markets
IB - 191205.indd Sec1:41 20/12/05 6:50:32 AM
42
Investment Banking
Manager, equity capital markets
Director, short-term interest rate trading
Vice president, sales
Manager, development of nancial products
Senior analyst, nancial risk
Senior analyst, APRA.
This is by no means the full range of investment banking jobs,
however, it does give a broad overview of the job market.
What do real people say about
their jobs?
What do people working in these jobs have to say about their career/
work? Some of the people interviewed asked to remain anonymous so
they could talk more freely about their jobs. An * next to the persons
name indicates the name has been changed.
Damian Motika* Business analyst
Damian is in his early 20s and has been a business analyst at
Macquarie Bank for the past 15 months.
q&a
What do you like best about your career?
The opportunity to learn about commercial dealings and to play an
active part in transactions. In addition, the responsibility given to all
analysts is great.
Can you briefly describe a particularly interesting project you
have been involved in?
I was involved in the restructure of a large privately owned corporation
where I worked closely with top management.
What do you wish someone had told you about investment
banking before you started on this career path?
Definitely do it!
cv vacation
accountancy jobs >>
graduate recruit, Macquarie
Bank >> business analyst
IB - 191205.indd Sec1:42 20/12/05 6:50:32 AM
43
I nsi der i nf o
Does this job allow you to achieve the worklife balance that
suits you now?
Not always. It is difficult to make commitments outside of work during
the week. There is however a certain amount of flexibility to plan your
own timetable throughout a typical day.
What type of person do you think best suits investment
banking?
Someone who is driven and entrepreneurial.
What do you feel young people would like to know about
investment banking?
Although it is a demanding profession at times, the benefits, both
monetary and in terms of personal development, make it extremely
worthwhile.
What is the best thing you think you can do for your career?
Work hard, because in the banking industry, your career progression is
solely performance-based.
What is the best industry secret youve ever heard?
A secret so big that I certainly cant mention it! Actually every day I
deal with secrets.
brief
Business analyst
quals dual degree
Commerce and
Law, UQ
hrs/wk lots
lifework not the best
exibility only to plan your
daily timetable
in
IB - 191205.indd Sec1:43 20/12/05 6:50:33 AM
44
Investment Banking
David Schultz* Private equity analyst,
mergers and acquisitions
When he was young, David, a private equity analyst at the big four
accounting rm KPMG, said he wanted to work in the city, carry a
briefcase and eat McDonalds for lunch every day. What happened
hasnt been too far off the mark. Through high school I always
gravitated towards business subjects accounting, economics
and so on and had no intention of doing a trade, medicine, law or
engineering, he says.
Today, his role involves corporate nance with a mergers and
acquisitions focus. M&A positions in a large rm involve advising
on the acquisition and divestment of companies, capital raisings,
industry proling analysis, some valuation work, takeover defences,
industry roll-ups, spin-offs and so on.
q&a
The best aspects of my job are that it is rarely boring every job
is slightly different, with one-off tasks, the work is mentally (and
physically) challenging. Theres also the opportunity to work on some
high-profile deals in an ultra-competitive work environment. The
moneys great. Theres also the opportunity to cross into management
positions after a short (intense) period in the industry.
Funnily enough the disadvantages are often the same as the
advantages. It depends on the individual as to which one they are! The
hours and expectations are demanding. The ultra-competitive work
environment can be wearing.
Bread-and-butter financial skills are essential. An active interest
in financial markets, share trading and so on is also very helpful. A
reliance on active life in sports and hobbies may be a disadvantage as
graduates may have to give up a lot of this.
Charisma and contacts count for a lot. Deals are won by knowing
potential clients in advance, having friends in high places and so
on. Being comfortable networking and being social is very important.
Being comfortable dealing with old people, senior managers and so
on is also important.
cv accounting/tax roles,
large company >> strategy
and nance positions >>
private equity analyst
glossary
Divestment means:
when a company chooses
to sell one of its assets or
business units.
Takeover defences means:
strategies implemented by
the target company in order to
prevent its takeover.
Roll-ups means:
when a company acquires a
number of business or assets
and consolidates these within
a single entity.
Spin-offs means:
when a company chooses
to separate a business unit
from their core-business.
IB - 191205.indd Sec1:44 20/12/05 6:50:35 AM
45
I nsi der i nf o
been involved in?
Theres a wide variety here. Working on deals that are monitored
daily in the press can be a highlight. Selling family businesses and
achieving the right outcome for the client is also enjoyable. Every deal
is slightly different.
The worklife balance is difficult, and its not for everybody. Also, the
old adage of working hard guarantees success doesnt always apply.
Its a case of not only working hard, but being able to work smart,
using delegation and people skills.
Has investment banking changed in the time youve been
in it?
Investment banking has a strong boom/bust cycle. Since I have been
working in the industry, it has grown strongly but this will not always
be the case. It is often a matter of luck for graduates as to what the
market will be like when they graduate. I was lucky enough to have a
position signed before September 11, 2001. After that date it was very
difficult for some graduates to get a job.
There has been an increased focus on outsourcing non-value-added
activities. For example, running a data room during a divestment
process is now the domain of specialised providers.
The attacks on the US
on September 11, 2001
caused a dramatic fall in
world nancial markets.
fyi
detour
Like the idea of working in
IT? Check out Career FAQs
Information Technology.
brief
Private equity analyst, big
four accounting rm
$$$ performance
based so varies
quals Bachelor degree,
Accounting and
Finance; majors;
CA; working
towards CFA
hrs/wk heaps
lifework difcult many
people have to
give up sporting
commitments
and hobbies
in
IB - 191205.indd Sec1:45 20/12/05 6:50:36 AM
46
Investment Banking
Brett Ryman Associate, investment
banking
Brett is in his late 20s and is an associate at Citigroup. He has been in
his job since early 2001.
I applied to work for Citigroup as part of the companys graduate
recruitment program early in my nal year of study and, after an
extensive process of interviews and testing, was offered a position,
he says.
During his university degree, he completed a two-year traineeship
with PricewaterhouseCoopers, where he worked full-time and studied
part-time in the evenings.
He says that while previous work experience is not a prerequisite for
getting a job in investment banking, there is no doubt that candidates
who have relevant experience have a denite advantage.
q&a
What does your job involve?
An investment banking associate is responsible for coordinating the
day-to-day execution of transactions, preparing client pitch materials
and working with more senior bankers on the development of new
transaction ideas. Associates also spend a considerable amount of
time in the professional development of junior staff.
The constant work variety and the opportunity to work on high-profile
corporate transactions.
What do you like least?
The hours I work around 60 hours a week.
I was heavily involved in the team that advised WMC Resources in
relation to takeover offers by Xstrata and, subsequently, BHP Billiton.
The transaction was one of the most significant deals in Australian
corporate history with a value of around A$10 billion.
What do you wish someone had told you about working in
investment banking before you started on your career path?
Its important to know that the job involves a significant personal
commitment. If you are not driven to succeed in your career, then
investment banking is probably not for you.
cv trainee accountant
PwC >> graduate recruit
Citigroup >> associate,
investment banking
IB - 191205.indd Sec1:46 20/12/05 6:50:39 AM
47
I nsi der i nf o
suits you?
Investment banking places great demands on your time and
maintaining a good worklife balance is definitely a challenge. As
anyone in the industry will tell you, the commitment involved is
incredibly demanding. For me, given the stage of my life, devoting
the time and effort into developing my career is something that I
personally find worthwhile.
banking?
The investment banking industry suits people who are highly
ambitious, intellectual, energetic, commercially minded and calm
under pressure. To work in investment banking, I believe you need to
be motivated, analytical, driven to succeed, commercially minded, and
interested in finance.
What do you feel young people would like to know about the
industry?
While working in investment banking can often involve working on
high-profile, interesting transactions, the career can also be incredibly
demanding and not as glamorous as it may appear.
Has your job/career turned out the way you expected?
I did a lot of research before entering the industry, so broadly my
career in investment banking has turned out the way I expected.
What did you have to learn the hard way?
A career in investment banking is always demanding, no matter what
level of seniority you are.
How important are qualifications to working in this industry?
Common qualifications for investment bankers include undergraduate
degrees in business/commerce, law, accounting, economics and finance
exceptional candidates with other degrees are also considered.
The key point I would make is that while the type of qualification is
important, demonstration of superior academic performance is far
more critical. Candidates with average or below average marks will
rarely make it through the initial review of applications.
Never compromise your personal integrity.
brief
Associate, investment banking
$$$ performance-based
quals Bachelor of
Business
(accounting and
nance), UTS
hrs/wk 60+ average
lifework challenging
you have to be
very committed
to your job
in
IB - 191205.indd Sec1:47 20/12/05 6:50:40 AM
48
Investment Banking
myweek
monday tuesday
9.009.30 Check emails received from
overseas ofces over weekend
9.3010.30 Internal meeting to discuss
projects for the week ahead
10.3011.30 Conference call with client
to discuss bid letter for a potential
cross-border acquisition bid
letter due to be lodged at 5.00
11.305.00 Finalisation of bid letter
5.0011.00 Preparation of case study
for an M&A transaction for an
upcoming client presentation
9.0010.00 Call with colleague in New
York regarding preparing some
proles on a number of Australian
acquisition opportunities
10.004.00 Preparation of company
proles
4.005.00 Follow-up conference call with
client regarding bid letter lodged
the previous day
5.0010.00 Prepared additional valuation
analysis for the client based
on requests arising from the
conference call
wednesday thursday
9.0010.00 Further conference call with
client to discuss updated valuation
analysis
10.0012.00 Internal meeting to discuss
industry opportunities in the
Australian nancial sector for an
overseas client
1.009.00 Preparation of internal
compliance documentation for an
upcoming equity deal for a locally
based client.
All day Preparation of a strategy paper
for a client seeking to merge
with a major competitor; paper
includes information on valuation,
communications strategy,
regulatory approvals and bid
tactics; email sent to colleagues
in New York and London to obtain
background industry information
11.00 Internal conference call with New
York and London ofces to get
formal approval to underwrite the
equity offering
friday weekend
All day Continued work on strategy
paper; called colleagues in
Hong Kong and Singapore to
obtain industry information; built
a nancial model showing the
impact on the acquiring company
from the proposed transaction
5.00 Work drinks
Saturday
10.004.00 Completed strategy paper:
making nal changes to the
presentation provided by my boss
Sunday
Day off (but not always)
IB - 191205.indd Sec1:48 20/12/05 6:50:40 AM
49
I nsi der i nf o
David Smith Associate director, corporate
nance
David has held his position as an associate director in corporate nance
at ABN AMRO for four years and is involved in mergers and acquisitions.
After doing a Chemical Engineering degree, David initially worked
at Dow Chemical for ve years, 18 months of which were spent
as a business analyst. This prompted him to complete a Masters
of Business Administration. He joined a boutique mergers and
acquisitions advisory house after the company did a presentation on
campus. Two years later he moved to ABN AMRO.
He loves his job, especially dealing with the client issues, working on
meeting client needs and coming up with solutions.
q&a
The variation. Ive experienced a wide range of industries: chemical
engineering, marketing/sales and now corporate finance mergers
and acquisitions.
I also enjoyed a career break for two years while I completed an MBA.
Having very little spare time. The balance between work and life can
be pretty tricky in this industry.
Something about the time spent sacrificed to the job. It is hard
because as tough as it is to find spare time to do the things I enjoy,
I love the work that I do because it is challenging and stimulating. I
think your priorities change. When youre a graduate you dont mind
the long hours because it is exciting and youre learning a lot but I
think as you move on in your career your priorities change and you
want more out of life.
What type of person do you think best suits working in
investment banking?
Smart, confident, analytical, quick-thinking and able to get along
with all kinds of people. Some of this you learn from experience but a
good graduate should have all these qualities and certainly be able to
reason and be analytical.
cv engineer, Dow
chemicals >> business
analyst at Dow >> boutique
m&a advisory house >>
associate director
IB - 191205.indd Sec1:49 20/12/05 6:50:41 AM
50
Investment Banking
investment banking?
Probably about the money you can earn.
Most graduates have a pretty poor understanding of corporate finance
and M&A. I certainly did! It is interesting to see graduates come into
the business and see first-hand what it is all about.
Negotiating with people. This is not something that came naturally to
me, and I find it is important to be able to negotiate for the client and
sometimes with team colleagues.
Become involved in more origination. By this I mean I need to find
more time to think ahead and be actively involved in bringing in the
clients and the deals. Delegate the deal work processes so that I can
allow more time to really think ahead and target clients.
brief
Associate director,
corporate nance
quals Chemical
Engineering
degree, USYD,
MBA from AGSM
hrs/wk standard, as
required
lifework pretty tricky
in
IB - 191205.indd Sec1:50 20/12/05 6:50:42 AM
51
I nsi der i nf o
Tamal Saad* Associate director, corporate
nance
Tamal has worked at Rabobank, which specialises in food and
agribusiness banking, for seven and a half years. Now an associate
director in corporate nance, he originally planned a career in law
and worked as a solicitor and in-house legal counsel before making a
move into corporate nance.
q&a
Solving complex problems taking into account a range of issues.
The deadlines and hours.
Arranging structuring finance for an acquisition.
suits you now?
Its up to the individual to make sure that they achieve that balance.
Sometimes I am successful and sometimes I am not successful in
achieving the balance. Its important to leave work at work.
investment banking?
Its not as glamorous as perceived sometimes its just hard slog!
How to navigate different personalities with different priorities.
Know when to push and know when to back off.
Is there anything else about your job or working in this career
that you think young people would like to know?
Never be afraid to admit you do not understand something. Never be
afraid to admit you are wrong.
cv in-house legal
counsel >> associate
director, corporate nance
f
a
c
t
MYTH
everyone is paid
heaps and heaps
of money!
People are paid
reasonably well
and rewarded
for exceptional
performance.
brief
Associate director,
corporate nance
$$$ good money
with bonuses
quals BA, LLM
hrs/wk standard
lifework up to the individual
to achieve this
balance
in
IB - 191205.indd Sec1:51 20/12/05 6:50:44 AM
52
Investment Banking
myweek
monday friday
A typical week is never really typical. My job involves:
evaluating, researching and investigating new prospective deals and structures
structuring deals
discussing deals internally with relevant departments and support staff including tax
accounting, credit and legal
preparing internal notes and applications for new deals
liaising and negotiating deals with clients and external advisers.
IB - 191205.indd Sec1:52 20/12/05 6:50:45 AM
53
I nsi der i nf o
Teresa Ericchello* Senior analyst,
corporate nance
Teresa is a senior analyst in the corporate nance division of BDO.
Unlike her counterparts who work at one of the big four accounting
rms, she doesnt really specialise. Rather, her job involves a more
generalist approach as she works on independent accountant reports
(IAR), independent expert reports, valuations, due diligence and a bit
on corporate advisory.
q&a
What is a standard salary package for the job?
$70 000 a year.
Client contact, valuation services, independent expert reports, our team.
Working overtime regularly, time pressure.
I already knew that the job requires frequent overtime, but I thought
that work would be more cyclical (i.e. sometimes quiet then very busy
again). Over the past year it was practically busy the whole time.
suits you now?
Not really, I would prefer to go to the gym daily over lunchtime
(1.5 hours) and leave work at eight pm at the latest.
What type of person do you think best suits this industry?
Very analytical, logical thinker, well organised, stress resistant.
investment banking?
Lots of overtime required. But sometimes no work as well. Be
prepared to adjust life to these cyclical work conditions although, as
I said, the last year has been full on.
I started my career in audit in Austria. I swapped to corporate finance
relatively late and had to deal with the barriers of a different language
and different laws at the beginning.
Go overseas and get new experience on different methodologies and
so on.
cv audit manager
>> analyst >> audit
and corporate nance
(Austria) >> senior analyst,
corporate nance
glossary
Due diligence means:
investigation and evaluation
of the soundness of an
organisation.
detour
Like the idea of working
overseas? Find out about
other jobs that travel in
Career FAQs Global.
IB - 191205.indd Sec1:53 20/12/05 6:51:00 AM
54
Investment Banking
myweek
monday tuesday
Client A due diligence (6 hours)
Client B independent expert report
(4 hours)
Administration (1 hour)
(4 hours)
Finalisation Client C independent
accountant report (2 hours)
Internal planning (1 hour)
wednesday thursday
(3 hours)
internal meetings (2 hours)
Client D valuation (1 hour)
Client D valuation (5 hours)
(2 hours)
Internal planning (1 hour)
friday weekend
Client D valuation (6 hours)
(2 hours)
Workow meeting (0.5 hour)
Social event/client function (1 hour)
Try to avoid working on weekend which
usually works out
brief
Senior analyst,
corporate nance
$$$ 70K
quals MBA and
Economics degree,
Vienna University
hrs/wk 45+
lifework not as I would like it
in
IB - 191205.indd Sec1:54 20/12/05 6:51:00 AM
55
I nsi der i nf o
Duyen Nguyen* Senior manager
Duyen is in her late 20s and has been a senior manager at Macquarie
Bank for seven years. She got her start by receiving a university
scholarship from an accounting rm.
q&a
The excitement and always working on something different and
new. Working on large transactions which have a high profile in the
financial world. Working with very smart people.
The hours can be long.
Briefly describe a particularly interesting project you have
been involved in?
Largest IPO in 2003 of Promina. It was an IPO in a very challenging
market, but was ultimately very successful.
Even when working on very large transactions, dont forget to pay
extreme attention to the details.
suits you now?
It means that you cannot generally make commitments during the
week and that there is frequent weekend work when working on a
transaction.
banking?
Intelligent, driven, focused, team player, individual thinker.
investment banking?
Its exciting, but hard work. You work on transactions that make a
difference and are highly prominent, but you need to be prepared to
make sacrifices.
Keep learning. The industry is constantly evolving and there is an
incredible amount of knowledge out there. If you can harness it
effectively, you can achieve a lot.
cv vacation jobs,
Macquarie Bank and
accounting rms >> maths
tutoring >> netball coach
>> housekeeper >>
chartered accountant >>
afliate, Securities Institute
of Australia >> senior
manager
glossary
IPO means:
Initial Public Offer, when a
company goes public, i.e.
is listed on the Australian
Stock Exchange.
brief
Senior manager,
Macquarie Bank
$$$ rewards are big
for exceptional
performance
quals B Comm (Finance)
UNSW, CA
hrs/wk long
lifework cant make
commitments
during the week
in
IB - 191205.indd Sec1:55 20/12/05 6:51:01 AM
56
Investment Banking
Isabella Ebbitt Executive, real estate
advisory, corporate nance
Isabella has been an executive in the real estate advisory area of
corporate nance at KPMG for two years. She came to this job with
experience on the nancial aspects of large property transactions
having worked for the Department of Treasury and Finance and in
other investment banking roles.
My rst job involved analysis of proposals for TAFE Institutes to
determine which should be given funding by the state government,
she says. I then moved into a role at Treasury and Finance involved
with developing the commercial frameworks for negotiating
agreements for public-private partnerships and have remained
involved in transactions since then.
q&a
What does your current job involve?
My job is to work on projects for clients, predominantly I am involved
in creating financial models for developments and writing reports
on property issues for clients. I am also involved in researching and
preparing presentations to obtain new clients.
cv project manager
>> assistant manager,
structured nance
>> project ofcer >>
development ofcer >>
executive, real estate
advisory
IB - 191205.indd Sec1:56 20/12/05 6:51:02 AM
57
I nsi der i nf o
$60 000 to $80 000.
Being a link in the chain that leads to a building being built and which
the general public knows and uses.
Day-to-day administration.
I am currently working on three major projects which will result in a
new student accommodation facility being built in Melbourne, a mixed
use commercial development on the same site and a new teaching
facility on Swanston Street.
That this career is demanding on your time.
suits you now?
My worklife balance is heavily oriented towards work. Typical day
goes from nine in the morning to about seven at night and at pressure
times you can end up working around the clock.
banking?
Someone who likes mathematics, is objective, focused, and has
attention to detail.
Everything takes longer than you think it will.
Get a university degree. It is essential for a career in finance.
A career in finance has no dead ends. There is always the opportunity,
no matter what level you are on, to progress further. It also provides
opportunities to travel. Major financial institutions and consultancy
firms operate globally and generally provide for secondments and
transfers overseas.
What do you wish youd learnt much earlier on?
That relationships are as important as having the knowledge and
capability to do your job.
Its a secret.
IB - 191205.indd Sec1:57 20/12/05 6:51:04 AM
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Investment Banking
What qualifications would you recommend for people
considering working in the industry?
If someone was in Year 12 contemplating a career in investment
banking I would recommend that they undertake a Bachelor of
Commerce. This would enable them to obtain a graduate position,
however, further progression would require a postgraduate
qualification. Alternatively, many people, myself included, move into
finance from other professions by completing a postgraduate course
in finance. I completed the Macquarie University Master of Applied
Finance, which is a commonly held qualification. There is also a
Certified Financial Analyst course run by the CFA Institute, which is
gaining momentum.
How has the industry changed in the time youve been in it?
The industry has become more sophisticated in the way development
projects are financed. Previously mainly straightforward bank loans,
now capital market raisings, syndications, public-private partnerships
are much more common.
myweek
monday tuesday
Prepare nal reports for presentation
to client 1
Attend board sub-committee meeting
with partner to present ndings of the
report
Prepare and send out invoice to client 1
Organise meeting with project team for
development project for client 2
Attend meeting with client 2 to discuss
changes to nancial model I am
preparing for them
Prepare project plan to coordinate
tender stage of client 3s development
project and discuss with Partner
Commence making changes to the
nancial model for client 2
wednesday thursday
Attend project team meeting for client 3
to discuss development of request for
tender (RFT) documentation
Review tender documents for current
projects to assist in development of
client 3s RFT
Complete changes to nancial model
for client 2
Attend team bonding session night
bowling followed by dinner in Chinatown
friday weekend
Attend meeting with client to discuss
requirements for meeting with equity
provider for their development
Attend internal meeting to discuss key
commercial terms for client 3s tender
document
Meet with project manager who was
pitching to try to get work on upcoming
project
Finalise engagement letter for new client
No work at least try my best to not
work on weekends
brief
Executive, real estate
advisory, corporate nance
$$$ 60K80K
quals Masters in
Building, University
of Melbourne;
Masters in Finance,
Macquarie University
hrs/wk too many
lifework heavily oriented
towards work
in
IB - 191205.indd Sec1:58 20/12/05 6:51:05 AM
59
I nsi der i nf o
Anthony Farrace* Manager, boutique
investment house
Anthony was promoted to his current position one year ago. He has
worked in the industry for ve years.
q&a
I am responsible for supervising and presenting a range of financial
analyses with a particular focus on valuation. I am often involved
in drafting presentations, board papers and various shareholder
documents. I also project-manage transactions and act as a key
contact for corporate clients.
At my level, standard salaries are above 100K plus a bonus which can
be significant. Bonuses are assessed annually based on both personal
and firm-wide performance. Bonuses typically range from about 50
per cent of base salary to over 100 per cent of base salary (i.e. if base
salary was 100K, bonus might be 50K to 100K+).
cv summer job, fund
management company
>> analyst, investment
bank (NZ) >> associate,
investment bank (Aus)
>> manager, boutique
investment house
IB - 191205.indd Sec1:59 20/12/05 6:51:05 AM
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Investment Banking
The exposure to a wide variety of industries and clients.
The diversity of day-to-day tasks.
The exposure to large companies and their senior executives at a
young age.
The high-performance culture with commensurate remuneration.
The hours can be quite demanding (late nights and weekend work at
times) and can be stressful at times. There can also be lack of control
over ones time.
Advising a client on an acquisityion worth over $1 billion, involving
significant equity and debt raisings, all of which was completed in six
weeks.
What capacity it has to encroach into personal time.
suits you now?
The job generally allows me to achieve the balance I want. The
balance I seek is to work hard when things are happening, but to have
flexibility to do my own thing when it is not busy. The only downside
is the threat of having to cancel personal commitments, such as
holidays, at short notice.
banking?
Hardworking, driven to succeed, prepared to sacrifice personal time,
attentive to detail, good time management, strong numerical skills,
strong written/oral communication skills.
I didnt really know what to expect when I started out but my career
progression has been satisfying.
Missing long weekend holidays churning out analysis.
Give it 100 per cent and always strive to exceed your colleagues
expectations.
brief
Manager, boutique
investment house
$$$ Over 100K
plus signicant bonuses
quals B Comm
(Accounting &
Finance and
Economics),
Auckland University
hrs/wk 55+++
lifework I have the
balance I want
in
IB - 191205.indd Sec1:60 20/12/05 6:51:08 AM
61
I nsi der i nf o
myweek
monday tuesday
8.3011.00 Finalise nancial analysis for
client meeting
11.002.30 Attend off-site client meeting
to present and discuss nancial
analysis and modelling for
transaction
2.305.00 Update analysis for client
comments
5.008.00 Review shareholder
documents for a transaction
8.3010.30 Develop nancial model for
transaction
10.301.30 Attend meeting with underwriter
1.303.00 Continue work on
nancial model
3.006.30 Visit design house to
supervise nalisation of design and
edits of shareholder document
6.307.00 Liaise with client to enable
document lodgement with ASX
7.008.30 Continue work on nancial
model
wednesday thursday
model
12.301.30 Meeting with client to agree
nancial modelling assumptions
model
7.308.30 Liaise with client to nalise
model to be sent to funding
providers
9.0010.00 Attend design house to
check proofs of nal document to
be sent to client shareholders
model
12.002.00 Meeting with client and
underwriter to discuss transaction
structure and funding
lawyers to brief lawyers on
transaction structure and discuss
potential ACCC issues
model
friday weekend
underwriter to discuss transaction
structure and funding
model
model
4.005.00 Finalise pricing analysis to
complete Bidders Statement
to be sent to shareholders of
takeover target
underwriter to discuss funding terms
Saturday
1.004.00 Complete nancial modelling
updates required
Sunday
Free time!
glossary
ACCC means:
Australian Competition and
Consumer Commission.
IB - 191205.indd Sec1:61 20/12/05 6:51:09 AM
62
Investment Banking
Kevin Gabaldon* Senior executive,
boutique corporate advisory
Before joining his present company, Kevin worked as an auditor with
one of the top four accounting rms for a number of years.
q&a
Im involved in all aspects of raising debt and equity capital and I
also sell and buy businesses. This involves developing a detailed
understanding of our clients business. We then build financial
models, write information memorandums, approach and negotiate
with interested parties and oversee project management to ensure our
clients objectives are obtained.
Investment banking can be a high-paying profession if you get the job
done. Salaries vary its broad. Graduates start on lower pay but can
go up really high into six digits. Income includes a combination of
salary and bonuses.
Working with a large number of different businesses, I get exposure
to a different range of people looking to get different things out of
business and working with them to achieve those objectives. The
rewards that come from completing a transaction are pretty good too!
The time taken to complete the transaction.
Working on acquisition of a business by the management team.
That it can take a long time to complete transactions and that it can be
frustrating before things come together.
suits you now?
It can vary. At different times, the balance is probably skewed to work
and then other times, one can maintain good balance between a busy
working environment and a comfortable private life.
banking?
They need to be resilient, aggressive, thick-skinned, driven.
cv p/t sales assistant
>> p/t waiter >> UK jobs
on working holiday >>
auditor >> senior executive,
boutique corporate advisory
IB - 191205.indd Sec1:62 20/12/05 6:51:10 AM
63
I nsi der i nf o
investment banking?
Probably that its hard work but can be very rewarding.
Persistence pays off.
Ask questions.
Every transaction is different and that they all have their own rewards.
Negotiating skills.
People are more focused on businesses with proven history versus
ideas. The other change is the emergence of the private equity sector.
What is a myth/fact?
The myth is investment banking is easy. The fact is its not!
Can you describe your typical week?
Theres no typical week. Usually my work includes:
preparing pitches for new jobs
preparing information memorandums and financial models
negotiating agreements
contacting potential purchasers or investors.
brief
Senior exective boutique
corporate advisory
$$$ high paying if
you perform
quals B Comm, CA,
GradDip Applied
nance & investment
from Securities
Institute
hrs/wk as long as it takes
lifework varies
in
IB - 191205.indd Sec1:63 20/12/05 6:51:10 AM
64
Investment Banking
Kara MacCauley* Chief investment ofcer
Kara is in her 30s and has been Chief investment ofcer at a listed
property trust for the past year.
q&a
What have you done that led you to get this job?
Its all about contacts in this industry. Before I took this job, I spent
10 years in corporate transactions at a large financial services group.
Before that, I was a property trust lawyer at a large corporate law firm.
This firm sent me on secondment to its major client and the client
asked me to stay at the end of this period, which I did. In the job
that I am in now, I was hired by my former boss at the large financial
services group, who had left to start his own company.
Very hard to know in my role it ranges from $300 000 to $600 000
depending on bonuses. Its never below $300 000, but one can earn a
million in a great year. In a standard year, one could earn about
$600 000.
Its a very challenging work environment. I like the people I work with.
I have worked with them a long time and I trust them.
International travel.
I acquired a large portfolio of offshore property worth around $350
million. I enjoyed that!
Beware of specialising too early. Its hard to change later on.
suits you now?
Its a hard job to do when you have a family but in an investment bank,
I would see my family even less. You have to travel a lot. When I have
a big deal, I work long hours. I also work on Saturdays because its
still business hours in the US. Because I work for a small boutique
company, it gives me more flexibility. I work a lot from home.
Confident, organised, quite outgoing, a quick thinker because things
change quickly in negotiations.
cv p/t research
assistant >> lawyer >>
manager multinational
company >> senior
position >> major nancial
services group >> c hief
investment offic er
IB - 191205.indd Sec1:64 20/12/05 6:51:13 AM
65
I nsi der i nf o
investment banking?
There are lots of misconceptions. Many people think its glamorous,
but its actually very hard work. A lot of people dont have much of
a life. They have no worklife balance and burn out at a young age.
After about the age of 40, there are not a lot of people still around at
investment banks.
That no-one is going to promote you. You have to promote yourself.
You can be overlooked even if you are a very hard worker.
Get really good qualifications at the start. People treat you differently if
they know you have a tertiary degree and have excelled academically.
Its become a lot more competitive. Its always been male-dominated.
Worklife balance just got worse. 24/7 really lives!
myweek
monday tuesday friday weekend
Work from home AM
Get into ofce early because work
with US
Calls with US until lunchtime
PM
Respond to offers and emails
Respond to transactions
Leave ofce about 7.00 pm
Back again on my home PC at
9.00pm for a few hours
Saturday
On conference calls
early to US until midday
(still Friday there)
Sunday
Day off!
brief
Chief investment ofcer
$$$ 300K600K+
including bonuses
quals BA, LLB degree
hrs/wk whatever it takes
lifework difcult, especially
with overseas travel
exibility I get to work from
home on Mondays!
in
IB - 191205.indd Sec1:65 20/12/05 6:51:13 AM
66
Investment Banking
Phuong Tan* Finance analyst
Phuong is a specialised nance analyst in his late 20s. He works in the
specialised nance division (structured/project nance) at Investec,
a smaller sized investment bank. He believes that previous jobs and
summer internships in the nancial sector, related university courses,
and interest in the niches in which the company is active (energy,
infrastructure and resources), helped him get his present job.
q&a
Work with team members to:
develop robust deal structure
analyse key risks in deal
develop financial model
review legal documents.
The opportunity to think entrepreneurially and creatively and the
willingness of the team to implement an entrepreneurial solution for
our clients.
The continual challenge and stimulation of having to identify and
analyse the key features of new projects no two projects are the same.
My involvement is:
in a variety of sectors (from mining to renewable energy to rail)
in a variety of activities (such as financial structuring, project
economic and technical analysis
with a variety of clients (blue chip corporates to smaller developers).
This breadth of exposure is easier to achieve in a medium-sized
investment bank like Investec than in some larger competitors.
Its also great working with other team members.
Frustration at working long and hard on a deal only for it to collapse
due to factors out of your control.
We are the financial adviser on a rail project in the Philippines. Our
contribution is essential to the success of the project, and each stage
of our work has been quite different.
cv summer internships,
nancial services rm
>> economic analyst,
economics/political risk
consultancy >> analyst,
private equity rm >>
nance analyst
IB - 191205.indd Sec1:66 20/12/05 6:51:14 AM
67
I nsi der i nf o
The first stage is developing the projects financial structure. We
consider a wide range of factors the political environment in the
Philippines, the cost of the equipment, consumers demand for the rail
service and integrate them into one coherent structure, which takes
account of the risks the project may face.
The second stage involves working with our consortium partners to
fine-tune this structure, and the third stage involves persuading other
banks and investors to come into the consortium.
The skills required for each stage are different: stage one is analysis,
structuring and financial modelling; stage two and three also involve
negotiation and really understanding what each partys concerns are.
We have been quite creative throughout in finding solutions to these
concerns.
The project has been truly global. Im working with colleagues from
our London and Sydney offices. Our client is based in the Philippines,
and the consortium partners are based in North America and Europe.
suits you now?
Work can be demanding, with some long hours, but I certainly have a
life out of work. I feel that my time at work is well spent there is little
face time, waiting behind at the office without any real work to do
because you feel pressure to stay late so I dont mind putting in the
extra hours.
banking?
In no particular order:
creative thinker, willing to evaluate new ideas and see which
are worth pursuing and to think broadly about project risks and
opportunities
determination to follow through on a deal
good communicator verbal communication and the ability to write
cogently and concisely
entrepreneurial
integrity able to earn the confidence of clients
logical and focused approach to work
able to keep calm when work stacks up or when changes need to
be made.
What do you feel young people would like to know about the
industry?
Project finance is less well-known than some other areas of
investment banking like mergers and acquisitions or trading. I like
it because it can cover a broad range of industries and skills. It is
glossary
Face time means:
waiting behind at the
ofce without any real work
to do.
brief
Specialised nance
analyst, Investec
$$$ high
quals BA in History,
Cambridge
University, UK;
MA, International
Economics, School
of Advanced
International
Studies (SAIS),
Johns Hopkins
University, USA
hrs/wk 60+
lifework hard work but still
time to get out
exibility some ability to move
within the bank into
different divisions or
different locations
in
IB - 191205.indd Sec1:67 20/12/05 6:51:15 AM
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Investment Banking
genuinely intellectually stimulating, and allows scope for creative
thinking. Most deals require extensive analysis being a good
salesman is not enough. The deals can take longer to close than some
M&A deals, however, and can be pretty expensive for everyone involved.
How many twists and turns a deal can go through you need the
determination to keep pushing.
Its hard to say. If youre looking for a job, one obvious thing to do in
the run-up to an interview, for example, is to focus on a sector which
interests you and find out about a couple of recent deals or trends in
that sector. It will give you something substantive to talk about, and is
one way of showing your knowledge of, and enthusiasm for the industry.
IB - 191205.indd Sec1:68 20/12/05 6:51:16 AM
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I nsi der i nf o
Nadia Gosper* Manager, structured
investments
Nadia is a manager in the structured investments division at St George
Bank. She has worked in this position for four years.
q&a
What qualifications do you have and were they necessary for
investment banking?
I completed a Bachelor of Economics with Honours at Sydney
University. A university degree is probably the minimum requirement
and a graduate with an Economics or Commerce degree would
probably be preferable. I was a full-time university student and
entered the profession as a fresh graduate.
I also completed a Graduate Diploma with the Securities Institute of
Australia (SIA) once I started my job to obtain relevant qualifications
and knowledge in finance.
Approximately 150K (ball park figure).
The work is very interesting, and I feel continually challenged and
stimulated in my job.
The disappointment of working on a transaction that is well advanced
and having to stop work due to external unforeseen changes that
result in the current transaction being no longer viable.
The bank considered a cross-border transaction involving its own
assets. The transaction was great as it allowed me to meet a lot of
people across the organisation, most of whom I would not otherwise
get the opportunity to work with. The interaction with foreign advisers
and counterparties and gaining an understanding of their financial,
tax and legal systems were also highlights of the deal.
Legislative changes are frequent and sometimes unexpected. As a
consequence most businesses need to be nimble and adaptable to
stay profitable. In such an environment, you need to be flexible and
mentally tough to handle these sudden changes and setbacks.
cv credit analyst,
commercial banking dept
(overseas) >> account
executive, property nance
>> manager, structured
investments
IB - 191205.indd Sec1:69 20/12/05 6:51:18 AM
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Investment Banking
suits you now? Can you describe that balance?
I am lucky that my current job allows a good worklife balance and
is not too demanding in requiring me to work long hours or needing
me to be available after non-office hours and on weekends. I think
working in a company like St George that has a family-friendly culture
and values the importance of worklife balance helps to achieve a
good balance.
banking?
Intelligent, innovative, ability to think outside the square, outspoken,
sociable, resilient, able to withstand pressure and stress.
Yes, I have always wanted to work in structured finance but took an
indirect route through commercial and property finance. The stepping
stone turned out to be invaluable in opening the door to my current job.
Everything. The best way to learn is the hard way so that you will
remember never to make the same mistakes again.
Network effectively.
Better Excel and modelling skills.
Get a mentor.
There are now more women in the industry.
What is an industry myth? What is the fact?
Excessive hours is a myth. Hard work is a fact.
myweek
monday friday weekend
8.309.30 Admin tasks
9.302.00 Conduct analysis on current transaction; this
involves background reading, going through research
material, going through legal documentation and tax
opinions
2.003.00 Meet with potential clients
3.004.00 Team meeting
4.005.00 Meet with internal departments to keep various
parties up to date on transaction
6.00 Progress report on current transaction
Do not work
weekends!
Movies, meet with
friends, dinner, golf!
brief
Manager, structured
investments
$$$ approx 150K
quals Bachelor of
Economics with
Honours
lifework good my
workplace has a
family-friendly culture
in
IB - 191205.indd Sec1:70 20/12/05 6:51:19 AM
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I nsi der i nf o
David Stanton Healthcare analyst,
equities
David is in his 30s and has been a healthcare analyst in equities at
ABN AMRO for six months. A former surgeon, he uses his knowledge
of medicine and the medical industry to research healthcare
companies listed on the Australian Stock Exchange.
q&a
I like spending time with clever people all day long. I like the
challenge of my work. I like the fact that my job is a mix of being at my
desk and out there meeting with the clients a mixture of introvert
and extrovert activities.
If I had to say anything it would be the uncertainty of the market
against what I think or predict something will be.
You can never have too much finance knowledge. To be able to speak
the language of finance is vital concentrating on accounting studies
will help you succeed in that. Industry skills are also valuable, as is a
CFA qualification.
Yes it is a great improvement to my last job. I used to work a lot
harder as a surgeon up to 110 hours per week. I like the fact that
when I come home I can stay home and I can spend more time with my
family. I only have to work the odd weekend so I find that I have much
more spare time I am definitely more fit than I used to be.
Someone who is focused and committed to excellence. Someone who
enjoys introverted activities like financial modelling, but who also has
sales skills and the confidence to present to clients. You really need a
whole brain type of person in equity research.
What do you feel young people would like to know about this
industry?
What is an investment bank? What are all the different divisions of
the bank and what do they do? I think young people would also like
to know about how they are rewarded (compensated) and how to get
ahead in this industry more specifically, what recruiters want!
cv intern >> trainee
surgical doctor >>
orthopaedic surgeon
>> worked in a start up
business in 2003 >> joined
ABN AMRO in 2004 >>
healthcare analyst, equities
IB - 191205.indd Sec1:71 20/12/05 6:51:20 AM
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Investment Banking
Picking up the phone and speaking to clients and not knowing
everything. Having to say: Ill find out and call you back. Also, getting
used to the fact that you can rely on other people to get things done
for you. Before, as a surgeon, if I wanted something done, I did it
myself. Now I can rely on all parts of the bank to achieve something,
which was hard for me to get used to.
Build up my technical skills and knowledge, and to continue to
out-perform.
Are there any other ways of getting into the profession that
you know of, apart from getting the above qualifications?
Yes industry knowledge and background. The client will want to hear
what you have to say if you know the industry inside out you need to
be credible.
Can you describe three core jobs you might do in a
standard day?
Scan the news overnight.
Speak to the equities sales desk staff about research Ive written and
speak to clients (fund managers) about my views.
Develop further research for clients.
brief
Healthcare analyste, equities
$$$ enough
quals BSC Med, MBBS
(Medicine and
Surgery), UNSW;
FRACS (part one)
completed
at the College
of Surgeons,;
Completed an MBA
AGSM; currently
studying for a CFA
hrs/wk too many
lifework a lot better than
being a surgeon!
in
IB - 191205.indd Sec1:72 20/12/05 6:51:20 AM
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I nsi der i nf o
Madeleine Newland* Manager, equity
capital markets
Madeleine has been a Manager in Equity Capital Markets at Macquarie
Bank for ve years. She is in her late 20s.
q&a
The constant challenges and exposure to different clients.
No lifework balance.
I was involved in Prominas initial public offering. It was the biggest
IPO in Australia since Telstra 2, involving cross-border dealings, tax
structuring, extensive marketing, detailed offer structuring and many
interested parties.
Im not sure theres anything anyone can tell you to prepare you for
this job!
suits you now?
No the worklife balance is the least favourable aspect of this
job. Most days spent in the office are a minimum of 12 hours and
sometimes weekend work is typical when you are working on a deal.
banking?
A person who is dynamic, has a certain level of drive/aggression and
has thick skin. It also needs to be someone who enjoys working in
a competitive environment and being surrounded by intelligent and
motivated peers.
investment banking?
The level of experience gained very early in ones career is
exceptional, and the people you meet and clients you associate with
are pretty much unprecedented.
Not for a moment. I didnt know what I wanted to do when I left uni.
cv worked at futures
brokers through uni >>
graduate, Macquarie Bank
>> manager, equity capital
markets
IB - 191205.indd Sec1:73 20/12/05 6:51:21 AM
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Investment Banking
That most criticism is intended to be constructive, not personal.
Put in the hard work and dedication early on.
Are there any other ways of getting into the profession, that
you know of, apart from getting the above qualifications?
Unless you have a qualification, only industry experience will assist
you in getting a job.
brief
Manager, Equity capital markets
$$$ it is not called
the millionaires
factory for nothing
quals BComm, UNSW;
Masters of
Applied Finance,
Macuarie Uni
hrs/wk lots
lifework the least favourite
part of this job
exibility ditto
in
IB - 191205.indd Sec1:74 20/12/05 6:51:22 AM
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I nsi der i nf o
Angela Capone Credit trader, global
markets
Angela, who is in her mid 20s, began her job as a credit trader in Global
Markets at ABN AMRO two years ago. She started off as a graduate
working for 12 months with the Queensland Treasury, on a rotation
program. One of her rotations was in the Financial Markets division of
Queensland Treasury Corporation (QTC) which she particularly enjoyed.
She then worked for Queensland Investment Corporation (QIC) in the
xed income team before moving to the Bank of Queensland where she
spent the next three years building her knowledge of nancial markets
with a small, close team.
q&a
Great career progression, working in a challenging and the fast paced
environment. Also, the great friends you make along the way..
The finance industry can be quite fickle and not as stable as some
others.
How tough it would be to initially get a job. Getting a foot in the
door is a very difficult task. I spent my entire final year at university
concentrating on securing a graduate position. I had concerns that
I would miss out because I knew how competitive it is and I really
wanted a graduate position I didnt want to be left in limbo after
completing university studies.
suits you now?
Very much so and this is specific to ABN AMRO. Management are
considerate about any extracurricular activities their staff undertake
and are very flexible with leave arrangements, encouraging staff to
take holidays when they can. I feel I have a good worklife balance
and that managers understand the need to have a life outside of work.
banking?
You have to be the type of person who can let things roll off your
back. You also need to know how to work with different personalities
some people can be more aggressive or competitive than you, and
you need to know how to interact with all of them. You also need to
be able to create and maintain positive working relationships with
cv Queensland
Treasury >> nancial
markets trainee, ABN
AMRO >> credit trader,
global markets
IB - 191205.indd Sec1:75 20/12/05 6:51:24 AM
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Investment Banking
different types of people. I feel I have worked hard to have good
relationships with the people in my team and with clients of the bank.
investment banking?
The possibility to travel through work. Being a global bank, it is likely
that I will travel in the future and this is attractive to me. It is also
important I think to plan how your career can advance.
I have been fortunate to have worked with very good managers,
and have not had a lot of difficulty gaining fantastic experience and
deciding what I really want to do.
Enjoy what you do and through this enjoyment you will find success.
Can you describe three core jobs you might do in a
standard day?
I buy and sell corporate bonds so three key activities for me
would include:
provide corporate bond prices to the sales team and their clients
prepare comments and reports for offices in the UK and Asia as well
as clients about the days activities
attend team meetings, where we discuss what has been happening
and what the day ahead holds. A representative from each area will
speak for a couple of minutes so that everyone is well informed.
Interested in jobs that
involve travel? See Career
FAQs Global.
detour
brief
Credit trader, global markets
$$$ great
quals BComm, Bond
Uni; AFMA
Dealers Licence
lifework good thanks to
my workplace
exibility great too
in
IB - 191205.indd Sec1:76 20/12/05 6:51:26 AM
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I nsi der i nf o
Itay Tuchman Director, short-term interest
rate trading
Itay is a director and head of short-term interest rate trading for the
Asia-Pacic region at Citigroup. He is in his mid-20s and has held his
current position for 18 months. Before he took this job, he worked
in Tokyo for three years as a senior trader and desk head. He also
worked in New York for two years and has a lot of global contacts as
well as a mathematics background. He has an undergraduate degree
from the Massachusetts Institute of Technology and has worked as a
summer intern, also in trading, and in a lighting shop while studying
at university.
q&a
Its new every day, challenging and dynamic.
Bureaucracy.
What is a standard salary package for your job?
I would say between 150K and 250K with bonuses highly variable from
zero to multiples of base salary depending on performance.
I run grad recruitment for fixed interest, and very much enjoy training
new people to the business, starting from zero and teaching them to
become successful traders/salespeople.
Learn to take everything in your stride. This is a very dynamic business
with lots of ups and downs and you cant get too emotionally caught
up in it. Sometimes being smart isnt enough. You have to have a
wider skill set than just academics.
suits you now?
Yes and no. On the positive, hours are not as bad as investment
banking and you generally can do a fair bit of the personally enriching
things you want with your spare time. On the negative, you are always
beholden to the market, and when it is moving or there are important
events, you are not free to use those days as you wish.
cv telephonist, school
ofce >> building and
installing lights (and getting
electrocuted frequently!)
>> tutor/adviser, nance
uni students >> research
assistant >> summer intern
at Citigroup in sales and
trading >> senior trader
(overseas) >> director
IB - 191205.indd Sec1:77 20/12/05 1:28:47 PM
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Investment Banking
banking?
Intelligent, driven, ambitious, humble, takes initiative.
investment banking?
How to get a job be a leader, be interested, motivated, and really
try to know what part of finance you are interested in. Focusing on
getting a job in one area you are really passionate about is so much
easier than trying just to get a foot in the door somewhere.
Nope, definitely wouldnt have expected to work overseas (outside
USA) for five years and would not have expected to be doing the same
thing for so long.
That losing is part of winning. There are as many down days as up,
and you have to eliminate emotions as much as possible.
Always behave with integrity. Stand up for whats right and people will
respect you and push you forward. Be a leader.
Avoid trying to do things you dont like. Pursue careers in what you
are passionate about, and you will excel.
That nothing is easy genius is one per cent inspiration and 99 per
cent perspiration.
Most people got their jobs via recommendations of friends/
colleagues. Ask around and network.
Much more electronic, you must be 100 per cent computer savvy
these days.
myweek
monday friday
Morning briengs, update salespeople on any developments over the weekend/night
Trade variety of domestic and overseas markets and products
Quote deals to salespeople and to other banks direct
Read economic research reports
Build and work on pricing models and new technology
Watch and trade markets during the night also. Stay up for most of the signicant
data releases/events
Enjoy working with
computers? Check out
Career FAQs IT
detour
f
a
c
t
MYTH
this is a very
quantitative/math-
focused business,
and you need to be a
whiz to succeed
Most of Wall Street isnt
that complicated, its still
based a lot on personal/
business relationships
and using a lot of the
work/ideas/strategies
of others that are used
over and over again.
Learn the shortcuts.
brief
Director, short term
interest rate trading
$$$ 150K250K plus
bonuses which
vary from zero to
mulitples of base
salary, depending
on performance
quals Economics and
Managment/Finance
at MIT, USA
hrs/wk 50+
lifework not as bad as
investment
banking, but youre
always subject
to the market
in
IB - 191205.indd Sec1:78 20/12/05 6:51:30 AM
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I nsi der i nf o
Tim Waggett Vice president, sales
Tim is in his 40s and has been vice president in sales at Citigroup for
18 months. He previously worked at Citigroup in London for nine and
a half years in business project management, delivery and solutions
consulting roles, before emigrating to Australia. After an 18-month
stint with a leading domestic bank, where he was involved in strategic
relationship management, he rejoined Citigroup in Australia.
q&a
Customer calling, solutioning, pre-sales consultancy, preparation and
presentation of proposals for banking services, driving sales revenue
targets, leading specific sales initiatives, representing business
externally and conference speaking.
Approx 100K to 200K depending on experience, plus discretionary
bonus which could vary between 30 and 60 per cent of base.
Challenge, variety, organisation fit, people, results-based meritocracy.
Indecision, time-wasters.
Briefly describe a particularly interesting project you have
been involved in?
Providing a global payments solution to a well-known domestic
corporate which involved the first commercial implementation of a
next generation technology platform. Amongst the features were a
single encrypted file of payments, delivered by corporates shared
service centre to Citigroup, validated, split and delivered to 12
countries globally for settlement using 13 dedicated accounts set up
specifically for the process. The project enjoyed senior management
visibility and demonstrated excellent teamwork across the global
implementation team.
Just do it! The sheer variety and possibility of many roles provides a
rich career path for someone considering a career in banking.
Yes, most of the time. Inevitably, though, the demands of working for
a global organisation requires working to tight deadlines regardless
cv management
trainee (UK) >> product
manager (UK) >> VP
payment infrastructure
(UK) >> director, stragetic
relationships (Aus) >> vice
president, sales
IB - 191205.indd Sec1:79 20/12/05 6:51:30 AM
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Investment Banking
of whether customer or internally driven often at unsocial hours. I
try to balance these demands by getting away early when possible
knowing there will be other times when the hard yards must be done.
banking?
Competitive, self-starters with energy and drive are key attributes I
look for when considering potential hires. You need to present well,
network and have the self-confidence to back yourself and your ideas.
investment banking?
More about typical career progression, opportunities to carve out a
career, ways to get ahead, and remuneration.
Yes, in terms of the opportunities, career progression and more
recently being able to leverage reputation across my the network and
rejoin this global organisation in another country after a period with a
domestic bank.
Study hard and get your qualifications. Theres no substitute, as
increasingly institutions are very selective and the best jobs are
always in demand.
Whilst executing your current role, dont lose sight of your next role
and position yourself accordingly, whether thats through networking,
training or pitching in.
Be proactive. Work on the basics building up relevant experience,
listening and learning from the voices of experience around you.
Seek out opportunities to grow and develop. Seize the initiative
persistence usually pays.
The benefit of doing my Masters much sooner in my career. Also being
even more proactive in managing my career development.
Not so much a secret as a truism namely, its not what you know, but
who you know.
Absolutely. Use of technology as an enabler in delivering innovative,
value-added solutions is of paramount importance as global and
regionally-aligned organisations look to drive cost from their
supply chains and generate efficiency improvements and driving up
customer expectations.
glossary
Leverage means:
ratio of debt to assets.
brief
Vice president, sales
$$$ approx 100K200K
depending on
experience plus
discretionary bonus
which can add 30
60% of base salary
quals MSc (Dist) Intelligent
Managment
Systems and
Banking Diploma
from South Bank
Uni, London
lifework good most of
the time
in
IB - 191205.indd Sec1:80 20/12/05 6:51:31 AM
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I nsi der i nf o
myweek
monday tuesday
8.009.00 Planning, priorities for week
9.0010.00 Staff meeting priorities for
week
10.0010.30 Weekly meeting with
line manager
11.0012.00 Regional sales conference call
1.005.30 Customer calling, preparation,
proposals and follow-ups
5.30 Squash
8.0012.00 Customer calling, preparation,
12.00 Gym workout
2.006.00 Customer proposals,
presentations
wednesday thursday
9.0010.00 Weekly sales meeting
10.0012.00 Customer calling,
preparation, proposals & follow-ups
1.002.00 Regional FI sales
conference call
4.005.00 Regional CRM training
conference call
6.00 Squash
8.009.00 Weekly sales call with US
11.0012.00 Weekly client implementation
planning
1.002.00 Gym workout
3.005.00 General administration (update
CRM pipeline, call reports)
friday weekend
9.0012.00 Customer calling preparation,
12.002.00 Client lunch
3.005.00 General administration incl.
planning for next week
Saturday
Periodically 1hr conference call for global
deal team with US colleagues usually
starts 8.00 or 9.00 when required: two in
past month
Also weekend working when complex
global deals demand
IB - 191205.indd Sec1:81 20/12/05 6:51:31 AM
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Investment Banking
Langer Sieben* Manager, development of
nancial products
Langer is in his late 20s and has been a manager at Macquarie Bank for
the past four years. The primary focus of his work is the development of
new nancial products for distribution to retail investors.
These transactions require you to gain a comprehensive
understanding of the asset class and its competitors in order for
you to evaluate the attractiveness and suitability of the asset class
for an investment product, he says. The asset classes can be
from aeroplanes to forestry plantations to loans to corporations.
Understanding and analysing such a broad universe of investments is
a challenging and very interesting job.
IB - 191205.indd Sec1:82 20/12/05 6:51:32 AM
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I nsi der i nf o
q&a
Working with exceptionally smart and driven people.
One can work excessively long hours when busy on deals.
You can find out pretty much everything you need to by doing a bit of
your own research and asking questions in interviews.
suits you now?
No. Typically, young people will not have a particularly good worklife
balance in investment banking. There is a definite focus on work with
12 to 15 hour days reasonably normal. This sacrifice is why you get
paid a lot of money.
What type of person do you think best suits investment banking?
Competitive people with a strong work ethic. A-type personalities.
investment banking?
They should understand the commitment that they need to make to
the job in order to succeed in the industry.
No. I had thought I would be involved in modelling cash flows from
infrastructure projects. I have done this only once in my career with
most of my time being spent assisting in the development of new
financial products, cross-border bond transactions and evaluating
acquisitions for the bank or funds.
Shortcuts and the best ways to set out spreadsheets. Once you get
a simple format, it is much easier to amend and tailor models as
transactions change.
Ask questions of those around you. Working with such smart people,
its worth taking advantage of their insights.
Is there anything else about your job or working in investment
banking that you think young people would like to know?
Because of the competitive nature of the industry you will always be
on a steep learning curve.
If you dont ask the question, the answer is always no.
Not in essence the changes are more an evolution of old products.
cv auditor, p/t study >>
work experience (APRA) >>
manager
f
a
c
t
MYTH
investment banking
is glamorous
Its long, hard work.
brief
Manager, development
of nancial products
$$$ woo hoo!
quals B Comm,
Newscastle Uni
(graduated with rst
class Hons and
the uni medal)
hrs/wk 6070+
lifework not favourable
in
IB - 191205.indd Sec1:83 20/12/05 6:51:35 AM
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Investment Banking
Mark Murray Senior analyst, nancial risk
Mark is in his 30s and is a senior analyst in nancial risk at the
Australian Ofce of Financial Management (AOFM), part of the
Department of Treasury. He is responsible for looking at the risk policy
that governs the management of a portfolio consisting of Treasury
bonds, a small amount of Treasury index bonds and term deposits.
The equivalent position in an investment bank would be senior
analyst, risk portfolio.
q&a
Salary ranges between $90 000 and $100 000 but there is also
superannuation and study assistance.
I like the varied work. The AOFM allows you to work around a wide
range of issues. It encourages you to specialise. My impression is
that the scope is wider than at a bank, so you get wider and more
diversified skills. We also have a fairly team-based approach here and
people are not trying to get their own credit.
cv dept of treasury
(US) >> debt managment
adviser, Papua New Guinea
government for 8 months
>> senior analyst
IB - 191205.indd Sec1:84 20/12/05 6:51:35 AM
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I nsi der i nf o
It can be bureaucratic at times because this is the public service. We
have a heightened sense of how things could be perceived [outside] and
a heightened level of accountability, so we are particularly risk-averse.
I worked in Papua New Guinea for eight months on leave pay as a debt
management adviser to the Government there between 2000 and 2001.
I also worked on an AOFM review of the benchmark for managing
debt portfolio in 20022003 with senior and very experienced people.
I learnt a lot from that. Ive also worked in the area responsible for
issuing bonds where we had to assess market conditions.
I had an economics degree but in the area where I am, it took me time
to figure out that I needed to do a postgraduate financial course.
suits you now?
I am happy with things. I work 9.00 am to 6.00 pm. The hours suit
me. Leave and everything else is negotiable. I was allowed to take
extended leave of one and a half months to travel. A clear advantage
of working in the public service is that it is generally flexible.
banking?
Someone who is very motivated and is a team player. Someone who
has a strong set of technical skills and who has very good written
ability and has spreadsheet skills. Someone who is inquisitive and has
a strong desire to develop skills on the job.
People who have not worked out here in the long-term are those who
perceive the public service to be what it was years ago. We are very
professional.
Not really. I am not sure what I expected. Working at AOFM wasnt
expected, but fortunately that turned out well. I also never expected
to do further studies. I have become more interested in finance,
but I started more with an interest in economics. Ive gone off on a
different path.
Treasury is full of bright sparks, and theres a lot more competition.
I have not been successful in all job applications. One has to be
prepared to keep trying and things will work out. Dont be put off and
dont rule out possibilities.
The Chartered Financial
Analyst (CFA) Institute has
70 000 members in 131
countries. So to nd out more
about the CFA program visit
www.cfainstitute.org
fyi
IB - 191205.indd Sec1:85 20/12/05 6:51:37 AM
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Investment Banking
To be prepared to continue to develop your skills further and to try
different things. I am currently completing the chartered financial
analyst program through the Chartered Financial Analyst Institute in
the United States.
There are potentially so many things that one can do in finance. I would
recommend finance because the set of skills you develop are very
adaptable to all sets of things and can lead you to an interesting career.
myweek
monday tuesday
AM Review, plan work for the week
PM Meet with supervisor to agree
timeline for work production
Schedule meeting for Thursday with
relevant areas of ofce to discuss issues
arising from liquidity policy drafting process
Continue drafting liquidity policy
AM Continue drafting liquidity policy
PM Prepare and distribute notes to
attendees to facilitate discussion at
Thursdays meeting
wednesday thursday
AM Prepare presentation on risk
management for foreign delegation
visiting next week
PM Continue drafting liquidity policy
Informally discuss an issue arising
with supervisor
AM Prepare regular contribution to liability
management committee meeting
papers for tomorrow
As scheduled, meet with relevant
areas of ofce to discuss issues
arising from liquidity policy drafting
process
PM Discuss with supervisor how to
progress on liquidity policy following
meeting discussion
Attend an EEO training session for
whole ofce
friday weekend
AM Informally follow up with a colleague
about how to handle an issue raised
in Thursdays meeting
Review a point raised by our internal
auditors and begin developing a plan
to propose to supervisor to address it
PM Attend liability management
committee meeting
Attend regular ofce Friday afternoon
tea
Make some to-do notes for next week
Time off
glossary
EEO means:
Equal Employment
Opportunity
brief
Senior analyst, nancial risk
$$$ 90K 100K
quals B Econ (rst-class
hons), Latrobe Uni;
currently completing
the Chartered
Financial Analyst
program, Chartered
Financial Analyst
Institute in the US
hrs/wk 40+
lifework good
exibility public service is
quite exible
in
IB - 191205.indd Sec1:86 20/12/05 6:51:38 AM
87
I nsi der i nf o
Larya Meyrick* Senior analyst
Larya is a senior analyst in her late 20s who works at the Australian
Prudential Regulation Authority (APRA), a government body that
regulates the Australian nancial services industry. She has been in
her role for 12 months.
Her job involves the approval of bank capital which she nds rather
challenging as it not only involves a high level of technical analysis
but also intense liaison and dialogue with senior members of the
organisation, as well as with the bank executives concerned.
q&a
Salary can range between $60 000 and $80 000.
It is intellectually challenging and I am always learning.
It is not a creative type of career, and can sometimes be monotonous
in the type of work that you do.
It is not terribly creative and hence the type of work can be very
methodical and structured. The content of the work is also very
specifically focused, and does not allow more broad-mindedness to
be applied.
suits you now?
Yes. The job is very accommodating when it comes to worklife
balance. My employer is very cooperative when I need to take
personal leave, and in terms of hours, I am usually at work around
8.30 am and can leave from 5.00 pm onwards.
banking?
For the government/finance industry, someone who likes structure,
who likes to analyse things methodically, and who wants to contribute
to the greater good rather than their own self-gain. Interest in
numerical issues also helps.
the industry?
The finance industry generally is highly competitive, very
individualistic and often there is no worklife balance. The work
cv p/t local
newsagency >> p/t retail
shop assistant in clothing
stores >> language
tutor >> credit analyst/
senior credit ris analyst,
investment bank >> policy
analyst, regulatory agency
>> senior analyst
IB - 191205.indd Sec1:87 20/12/05 6:51:40 AM
88
Investment Banking
itself is also highly numerical, rather than analytical. Young people
should be aware that deciding on a career in the finance sector
may mean that they reap financial rewards but their social lives
and other aspects of their lives (such as family etc) may suffer as a
consequence. It is not unusual for young people to burn out, so to
speak, by the time they reach their late 20s/early 30s as work hours in
the finance industry are (on average) around 12 a day (and sometimes
more if working on transactions/deals).
However, pursuing a career in the government sector which involves
finance allows a much healthier worklife balance and the content of
the work is much more analytical rather than numerical. Young people
who are interested in working in a broader policy-based environment
should consider government sector opportunities.
Yes in a broad sense. I wanted to work in the private sector before
heading into a government agency and this is what has happened.
Working in a corporate environment and how to manage and learn
office politics. Learning to deal with difficult people especially
people at managerial levels.
What is the single best thing you think you can do for
your career?
Be an expert in your role. Your technical knowledge/specialisation
is pivotal for career enhancement. Be willing also to gain as much
experience in different roles/positions within the organisation or in other
organisations and then become an expert in those roles. Experience and
specialist knowledge are considered pivotal to career enhancement.
brief
Senior analyst, APRA
$$$ 60K 80K
quals BA (Honours Class
1) in Government,
USYD
hrs/wk 40+
lifework good my job is
very accommodating
exibility very good in the
public service
in
IB - 191205.indd Sec1:88 20/12/05 6:51:40 AM
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I nsi der i nf o
Suzannah Faulkes* Senior analyst
Suzannah is in her 30s and has been in her role at the Australian
Prudential Regulation Authority for two years.
q&a
The range is quite wide $62 000 to $100 000 depending on
capabilities and experience.
I work in the Diversified Institutions Division of APRA which regulates
conglomerates. It is very satisfying to work for a regulator of financial
institutions as you play a role in safeguarding the interests of
depositors, policy holders and superannuation fund members. Within
APRA, there are diverse opportunities to work in a variety of roles. You
can gain expertise in a particular industry such as banks or insurance.
Also APRA provides flexible work arrangements enabling you to
maintain a lifework balance.
Lack of recognition of the work done by APRA as the public is not
aware of the amount of work that goes into preventing crisis and
preventing the failure of financial institutions.
Most interesting project you have been involved in?
I worked on the review of a global insurance company. This involved
a review of regulatory requirements, the history of the company and
its current operations and assessing whether a change in regulation
was warranted.
The intensity of work involved in being an analyst for a major
public institution.
suits you now?
APRA provides opportunities to maintain worklife balance such as
flexible working hours, remote access (facility to work from home) and
excellent personal leave options.
Analytical, flexible, good communicator and team player.
the industry?
Australia has a mature, sophisticated and competitive financial
services industry offering innovative products and services. APRA
cv tutor, USYD >>
senior analyst
IB - 191205.indd Sec1:89 20/12/05 6:51:43 AM
90
Investment Banking
is the prudential regulator of the industry, which includes banks,
credit unions, building societies, general insurance and re-insurance
companies, life insurance, friendly societies and most members of the
superannuation industry.
Yes. Performance and capabilities are recognised and rewarded.
There are diverse opportunities available to broaden your knowledge
and skills.
If you are not sure of something, ask for help and there is no such
thing as a silly question. There is lot of technical expertise and support
available within APRA and people are only too happy to help you.
Be dedicated, take ownership and pride in your work.
There are lot of challenges and learning opportunities available. Be
flexible and open to these opportunities.
brief
$$$ 62K100K
quals BComm: M Comm
with Merit (Finance
& Banking), USYD
hrs/wk 40+
lifework good at APRA
exibility excellent exible
working hours,
facility to work
from home
in
IB - 191205.indd Sec1:90 20/12/05 6:51:43 AM
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I nsi der i nf o
myweek
monday tuesday
8.309.00 Check emails and read
media summaries
9.0011.00 Undertake analysis of
quarterly returns
11.0011.15 Make any necessary phone
calls to allocated institutions
queries, responses etc.
11.1512.30 Run standard reports for
analysis of returns
12.301.00 Lunch
1.001.30 Organise meetings and
prudential reviews
1.302.30 Discussion with team
manager on work priorities and
outstandings
2.302.45 Complete administrative work
2.454.00 Analyse returns
4.005.00 Attend frontline liaison group
meeting to discuss supervision
framework
9.005.00 On-site prudential review:
board papers review; meeting with
management of systems
and operations
wednesday thursday
media summaries
9.0010.00 Post review meeting
10.0012.00 Work on review notes
12.0012.45 Lunch
12.452.00 Review notes
2.003.00 Meeting with specialist risk
team to discuss scope for a
forthcoming risk review
3.005.00 Complete review notes
8.309.00 Check emails and read media
summaries
9.0011.00 Prepare draft review report
(ndings) to be sent to the institution
11.0011.30 Make any necessary phone
calls to allocated institutions
queries, responses
11.3012.30 Work on draft review report
12.301.00 Lunch
1.003.00 Assess approved actuary
application
3.005.00 Work on draft review report
friday weekend
media summaries
9.0011.00 Complete draft review
report and send to management
for review
11.0012.30 Finalise report writing
12.301.00 Lunch
1.001.30 Filing and administration work
1.301.45 Organise a meeting with the
actuary for the assessment of
approved actuary application
1.454.30 Draft response to a query from
one of the allocated institutions
4.305.00 Check activities and issues
outstanding in the system and
prioritise for the next week
4.005.00 Read brieng material for next
weeks prudential review
IB - 191205.indd Sec1:91 20/12/05 6:51:46 AM
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Investment Banking
In any profession, there are people who use their
qualifications and experience to do something different,
exceptional or unconventional. Others may combine
their passion for a cause, a sport or a special interest
with their chosen career.
Mark Williams Associate director,
So Paulo, Brazil
Mark has been working for Macquarie Bank in So Paulo, Brazil for
18 months. First working with the bank in Sydney as a credit analyst,
when an opportunity arose to continue working with credit in the
London ofce, Mark jumped at it. As the majority of his work was
with Macqauries agricultural commodity operations - including those
in South America - after just over three years working in London, he
accepted a position in the So Paulo ofce of the bank working in an
associated area.
cv p/t waiting tables/
kitchen work >> summer
clerkship, law ofce >>
graduate recruit, Bankers
Trust >> credit analyst,
Sydney >> credit analyst,
London >> nancial analyst,
Brazil >> associate director
IB - 191205.indd Sec1:92 20/12/05 6:51:47 AM
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I nsi der i nf o
q&a
Can you briefly describe what you do in your current job?
Current job working in structured finance in South America,
predominantly in the Brazilian market. In brief this entails organising
offshore financing for companies that export commodities outside of
their countries.
Whats a standard salary package for a job like yours?
In London a credit analyst working with five to seven years experience,
depending upon the bank, can look at 60 000 90 000 sterling.
Working in commodity financing out of London, packages vary between
70 000 110 000 sterling. Bonuses are not included in salary.
If you work offshore and are paid in A$ figure, cost of living
adjustments and currency conversions are affected.
Can you tell us something about your working environment?
I work in a small off-shore office. Currently there are 10 staff in the
area I work, all of whom are Brazilian or Argentinean - creating a
unique working environment for an Australian analyst! We tend to
work in small teams depending upon the transaction, usually two to
three people, with one person leading the group. We generally work
with both industry experts and financial analysts in the same team
and it is incumbent upon each person to understand sufficiently the
work of each other person. The work wouldnt be industry standard
because Macquarie adopts a slightly different approach, but certainly
overlaid with living and working in Brazil, it is very different to jobs
available in Australia.
Do you get to travel in your job? Why and where do you go?
Travel is part of the job, though it is not extensive. Travel may include
other Macquarie offices (predominantly London, New York or Sydney)
though generally it is within Brazil visiting clients in the interior.
Whats it like living and working in another culture?
The experience of working overseas in any capacity is an excellent
one, and comes highly recommended.
Working in a non-English speaking country is particularly challenging
and involves a long adjustment process, principally to overcome
frustrations associated with language differences. You certainly learn
how to be patient.
What about So Paulo itself?
So Paulo is an amazing city the sheer size of it is difficult to
comprehend. As the commercial centre of Brazil, the majority of
business is carried out here (traffic permitting you can usually get to
meetings within 30 minutes of the arranged time). During the week
So Paulo is a fantastic city to work in especially because of the after
So Paulo is one of the
largest cities in the world
with 18 million people
living in a city that never
rests its a 24/7 non-stop
town. Situated south of
Rio de Janeiro, So Paulo
is considered to be the
commercial, nancial and
industrial engine of Brazil.
fyi
100 000 = A$237 900
(November 2005 conversion
rate)
fyi
IB - 191205.indd Sec1:93 20/12/05 6:51:49 AM
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Investment Banking
work distractions offered by numerous bars and restaurants. The
weekend is best spent outside of So Paulo at the beaches within two
hours drive from the city.
Have you learnt to speak the language or is English
predominantly used for business?
I am competent at Portuguese and meetings are usually conducted in
the local language unless there is a particular reason to speak English.
Whats something that you have found interesting about
So Paulo?
I understand So Paulo has the second largest volume of city-based
helicopter traffic in the world (may not be factual, but they are
obvious). This is driven by the size of the city and the traffic, which is
notoriously bad. Although I am a little removed from building hopping
in my chopper, I do like the idea of that as a way to go to work in the
morning ...
Can you tell us a bit about that and what you like most about
living in So Paulo and the South American experience?
So Paulo combines at the same time the commercial centre of
Brazil, and therefore wealth, with enormous poverty. I live in what
is regarded as a nice part of the city and still pass homeless people
living in the streets daily. This can be confronting especially if you
are nervous about assaults and violence. Although I (touch wood)
have remained out of harms way, So Paulo is famous for its violence
and it is rare to live in So Paulo without experiencing some kind of
assault. The statistic often quoted is that there are 20 murders a day
in the city ranking up with Johannesburg as the murder capital of the
world! Strangely though, this doesnt affect daily life and despite the
problems of poverty and violence, your lifestyle in So Paulo can be
excellent; second to none as I am sure a large number of expats who
have made this city their home would claim.
It is a very multicultural city. There are very large European influences,
especially Portuguese and Italian as well as a large Japanese and
African population. Combining these countries culinary flair and
traditions for music with Brazils natural wealth of fresh ingredients
and love of a party and you have a very rich culture on your hands.
Is it expensive to live there?
So Paulo is not a particularly cheap city, though relative to Sydney
restaurants and accommodation appear reasonable.
What do you like most about your job?
Mixture of interaction with commodity markets, an excellent group of
talented people and being in an emerging market.
The work is endless.
Interested in working
overseas? Check out
Career FAQs Global.
detour
IB - 191205.indd Sec1:94 20/12/05 6:51:50 AM
95
I nsi der i nf o
What interesting project have you been involved in?
We work with a number of participants in the sugar and alcohol
sector in Brazil. The sugar mills are currently looking for off-shore
investment to fund expansion in the sector. Macquarie looks to
provide this type of investment overlaid with a number of commodity
price risk management products, which, depending upon the deal may
be structured as an equity, mezzanine debt or senior debt package.
Having this scope of work available, and working in conjunction with
other banks and private equity firms provides a unique work scope.
What aspects of the industry interest you in particular, and
where do you see the growth opportunities?
Investment banking is generally always a stimulating environment to
work in. There are growth opportunities everywhere.
You only need to look at the scope of investment banking to get a
sense of this. For example, I know people who work in banking related
to agriculture, metals and mining, energy, infrastructure, foreign
exchange trading, debt market trading, interbank lending, corporate
finance, advisory the list is endless. Within this scope there are
always opportunities to either invent new products or offer old
products in a new way. Also, because often there is a heavy impact on
market forces, it is never a static environment.
How does your job allow you to achieve the work-life balance
that suits you?
This is a genuine challenge in this industry. As a rule of thumb, hours
are long and people often struggle to get the work/life balance right.
What qualifications do you have? What university? Do you
feel they are necessary for your job, are they beneficial or not
necessary? What about on-going education?
I completed a BComm/LLB (Hons) at ANU. This is a fairly standard
entry-level degree into investment banking. Since starting work I have
worked with people who have completed degrees in virtually every
field, and as such do not feel a commercial bent on a degree need
be a prerequisite. I especially do not believe that a dual degree is
necessary, though it is more common and probably does help entry-
level applications.
Ongoing education is driven more by the individual. There are a
number of standard postgrad courses, though completion is not
mandatory. For example, there is the CFA (Chartered Financial Analyst)
course aimed at improving the technical skills of a financial analyst/
portfolio manager. In the end though on-the-job performance will
judge success after starting.
glossary
Mezzanine debt means:
a particular form of debt
where certain rights of
the debt provider are
subordinated to senior
debt providers
Senior debt package
means:
a form of debt affording
debt providers the
maximum security and
rights the company is
willing to offer
IB - 191205.indd Sec1:95 20/12/05 6:51:50 AM
96
Investment Banking
Are there any particular recruitment processes for this
industry/profession that candidates should know about?
Graduate programs are the largest recruiting process, though they are
very competitive.
myweek
monday friday weekend
9.00-9:30am Start
Check emails/catch up on whats happened overnight
Mixture of meetings, conference calls and internal
administration
Financial analysis and report presentation
Lunch at desk
Afternoon similar to morning, no particular change
7.00-10.00pm Finish depending on the day
Evenings
Generally meet
friends and eat out
three nights a week.
Dinner is late here,
about 10ish
Weekends
Try to travel at
least every second
weekend to get to
beaches or national
parks close by
brief
Associate director
$$$ variable but around
A$125 000 plus
bonus
quals BComm/LLB
Hons (ANU)
hrs/wk around 60
lifework heavily weighted
towards work
especially in
early years
exibility work is priority ...
in
IB - 191205.indd Sec1:96 20/12/05 6:51:51 AM
84310_SEK0092E_250x176 16/12/05 12:40 PM Page 1
Got an interesting story to tell?
Want to see your name in print?
Know someone who does
something unusual for a living?
This book was only made possible because of the many
people who volunteered their time and shared their
career experiences.
With over 50 titles (national and state-specic) on our list,
there is a Career FAQs book waiting for your story.
Contact us: info@careerfaqs.com.au or 02 9282 9383
Private Investment Banking
A very different
outfit
Investec is a private investment bank with offices
in Sydney, Melbourne, Brisbane and Perth. We are
part of the Investec Group, an international specialist
banking group operating in more than 10 countries and
dual-listed in London and Johannesburg. In Australia our
core areas of specialisation are:
Corporate advisory
Private equity
Property investment banking
Growth and acquisition finance for small and medium
sized enterprises
Project and resource finance
Investment advisory services for high net worth
individuals
Call Nicole Fegent on +61 2 9236 0000 or email Nicole
at cv@investec.com.au in the strictest confidence about a
career at Investec.
www. i nvestec. com. au
1300 MY FAQS
Dont end up in someone elses life.
CareerFAQs Ad.indd 1 20/12/05 10:12:09 AM
101
Ready, set,
go for it!
What qualications do I need?
There are no set qualication requirements for a career in investment
banking. However, you will need an undergraduate degree as the
absolute minimum.
University courses
Investment bankers come from a wide range of academic
backgrounds. These often include nance, commerce, business,
accounting, economics, engineering, law, mathematics or physics. Any
degree program that specialises in these subjects will stand you in
good stead as a starting point.
Graduates with studies in mathematics and statistics are also popular
because numerical skills are essential in many investment banking
jobs. Those with arts degrees are less in demand.
You might also nd doctors or geologists who have postgraduate
nancial studies working in this eld.
The following tble shows the broad range of qualications held by
investment bankers interviewed for this book.
Some employers consider a
high degree of prociency in
Microsoft Excel as crucial.
fyi
www.mbaguide.com.au
f i nd out
more
IB - 191205.indd Sec1:101 20/12/05 6:51:52 AM
102
Investment Banking
Job Qualications
Business analyst Double degree: Bachelor of Commerce and Law
Private equity analyst, mergers
and acquisitions
Double degree: Bachelor of Accounting and nance
Chartered Accountant
Studying Chartered Financial Analyst
Associate, investment banking Bachelor of Business (Accounting and Finance)
Associate director, corporate
nance
Chemical engineering degree
Master of Business Administration
Associate director, corporate
nance
Bachelor of Arts
Master of Law
Senior analyst, corporate nance Economics degree
Senior manager Bachelor of Commerce (Finance)
Executive, real estate advisory,
corporate nance
Master of Building
Master of Finance
Manager, boutique investment
house
Bachelor of Commerce (Accounting, nance and
economics)
Senior executive, boutique
corporate advisory
Bachelor of Commerce
Graduate Diploma (Applied nance and investment)
Head of transactions Bachelor of Arts
Bachelor of Law
Finance analyst Bachelor of Arts in History
Masters in International Economics
Manager, structured investments Bachelor of Economics (honours)
Healthcare analyst, equities Bachelor of Science (Medicine)
Bachelor of Medicine/ Bachelor of Surgery
FRACS (neurosurgery)
Studying for a Certied Financial Analyst
Manager, equity capital markets Bachelor of Commerce
Masters of Applied Finance
Credit trader, global markets Bachelor of Commerce
AFMA Dealers Licence
Director, short-term interest rate
trading
Bachelor of Economics/ Bachelor of Management/
Finance
Vice president, sales Masters in Science (Intelligent Management
Systems)
Banking Diploma
Manager, development of
nancial products
Bachelor of Commerce (rst class honours)
Senior analyst, nancial risk Bachelor of Economics (rst class honours)
Senior analyst Bachelor of Arts (government) (rst class honours)
Senior analyst Bachelor of Commerce
Master of Commerce (nance and banking)
Associate director Bachelor of Commerce
Bachelor of Law (Honours)
IB - 191205.indd Sec1:102 20/12/05 6:51:53 AM
103
Ready, set,
go f or i t!
Graduates will generally have a minimum Bachelor Degree in
Accounting/Finance, often with Honours or a Double Degree
in Law and Engineering. There is an expectation that further
postgraduate studies will be commenced, most commonly a
chartered accountant, CFA or Securities Institute course.
University averages will be high, and candidates will be expected
to have a swag of outside interests and achievements.
David van der Horst, Analyst, corporate nance, KPMG
The trainee market is so competitive. One trainee has just come
into the program with a Masters Degree it is perhaps a bit
unrealistic to get a trainee position with two to three years
experience and no qualications at all.
Angela Capone, Credit trader, global markets, ABN AMRO
One of the most signicant recruitment trends in the nance
industry at the moment is the trend toward recruiting people
with tertiary qualications. According to ABS statistics, the
proportion of the nance industry workforce with qualications
has increased from 44 per cent in 2001 to 60 per cent in 2004.
In 2004, 32.8 per cent of nance industry employees had a
qualication at Bachelor degree level or higher. In 2001, only
26.3 per cent had qualications at these levels.
Angela Jolic, Finance Sector Union
But while theres exibility in what degree you do, theres no exibility
when it comes to results. You really do need to have good grades.
Unfortunately, good university academic results are important.
Employers normally like to see credit averages, but if you have a
stronger record than this for example, distinction and average
you will be a more attractive candidate. I graduated with a
rst class honours (score 90) and had a distinction average.
Other attributes such as languages may also be useful.
International banks are increasingly nding it more attractive
to recruit people who are uent in other languages and cultures.
I have a Korean background and the bank that recruited me as a
graduate thought this to be quite useful.
Sometimes graduates with experience in another eld such as law or
accounting rms, or who have worked as consultants, might also nd
investment banking open to them.
For example, David Stanton, a Healthcare analyst, Equities, at ABN
AMRO, started out as a surgeon. After completing an MBA, he now
IB - 191205.indd Sec1:103 20/12/05 6:51:53 AM
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Investment Banking
uses his knowledge of medicine and the medical industry to research
the prospects of healthcare companies listed on the Australian
Stock Exchange.
Likewise, David Smith did a Chemical Engineering degree rst.
However, a stint as a business analyst at Dow Chemicals encouraged
him to do an MBA and to later move into investment banking.
If you dont know what degree to do, but know that you want a
career in investment banking, consider going for a professional
accounting qualication such as a chartered accountant or
certied practising accountant (CPA). These will always stand
you in good stead.
If dont know what you want to do, you can go into an accounting
rm where you will get a fantastic training, until you do know
what you want to do.
Edmund Gill, Director, Hays recruitment
Do I need postgraduate qualications?
An undergraduate degree is the absolute minimum youd need to get
into investment banking. A postgraduate qualication will certainly
boost your chances, especially if its in one of the elds considered
advantageous by investment banks. These elds include nance,
commerce, business, accounting, economics, engineering and
mathematics or physics.
Postgraduate qualications favoured by investment banks are a
Masters of Business Administration (available at many universities)
and the courses offered by the Securities Institute of Australia, such as a
Master of Applied Finance and Investment.
Masters of Business Administration
A Masters of Business Administration (MBA) is often used by people
working in other elds to break into investment banking. Indeed,
about half of the Australian Graduate School of Managements 2005
MBA class are using their MBA as a means to change careers and
some may be hoping to break into investment banking.
MBAs are course-based and include subjects such as accounting,
corporate administration, public relations, business systems, nancial
management, human resources management, Information systems,
and business law.
IB - 191205.indd Sec1:104 20/12/05 6:51:54 AM
105
Ready, set,
go f or i t!
In Australia today, there are more than 40 universities offering over
80 types of MBA degrees. An MBA is considered excellent broad
degree that helps you to understand all aspects of business from
organisational behaviour to nancial management. The best programs
also teach you to think strategically and to make decisions with
imperfect information.
Some MBAs are more general in content, others are tailored to people
with limited work experience and yet others to senior executives
with lots of experience. Some universities, like UTS, offer an MBA in
Mandarin. Some also offer specialised Masters programs that include
traditional MBA subjects along with specic professional content.
Some also offer unique courses. Macquarie University, for example, offers
a course in Foundations of Management Thought, which examines the
history of philosophy underpinning Western styles of thinking. Meanwhile,
Curtin University offers courses in environmental management
strategies, introduction to future studies, and scenarios and strategies.
However, while the course content of traditional MBAs is often quite
similar, the number of units you are required to do to get your degree
may vary.
The prerequisites for admission into an MBA change according to the
university. A prior degree is generally required, as well as a minimum
of two to three years of relevant work experience. For universities that
have a management focus in their course, management experience is
essential. At some universities there are alternative entry paths at
Murdoch University in Western Australia, MBA candidates dont need
any work experience if they have a Bachelor Degree and a graduate/
postgraduate diploma. Alternatively they only need one year of
relevant work experience if they graduated with second-class Honours,
or two years of work experience if they have a bachelor degree.
Some universities require candidates to have taken the Graduate
Management Admission Test (GMAT) which measures basic verbal,
mathematical and analytical writing skills. The test can be done in
Sydney and Melbourne, and cost $US250. To apply for entry into
an MBA you may also have to provide academic records, written
statements, referees, your rsum, and attend interviews.
International students should note that all courses require English
prociency, a minimum TOEFL score from 550 to 577 and a minimum
IELTS score from 6 to 6.5.
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University/institution that offers MBA Duration
Price (Aust.
student)
Adelaide University 1 year $27 000
APESMA distance education* 1.5 years $13 560
Australian Catholic University NSW, QLD 3 years $14 400
Australian College of Applied Psychology (online)* 1 year $8500
Australian Graduate School of Management NSW 1.3 years $49 140
Australian National University ACT 1 year $36 000
Bond University QLD 1 year $32 100
Central Queensland University* QLD, NSW, VIC, 2 years $14 208
Charles Darwin University NT 2 years $20 576
Charles Sturt University NSW 1.5 years $16 000
Curtain University of Technology WA 1 year $25 000
Deakin University* VIC 1.5 years $21 600
Edith Cowan University* WA 1.5 years $18 840
Gibaran Management Institute Australia SA 1.5 years $24 000
Grifth University QLD 1 year $25 200
James Cook University QLD, VIC, NSW 1 year $20 840
La Trobe University VIC 1.25 years $24 000
Macquarie University NSW 1 year $42 400
Monash University VIC 2 years $38 400
Murdoch University WA 1 year $18 500
Queensland University of Technology 1 year $27 360
RMIT University VIC 1.5 years $25 290
Southern Cross University* QLD 1 year $15 000
Swinburne University of Technology VIC 1 year $30 450
Universitas 21 Global (online) 1.5 years $13 850
University of Ballarat 1.5 years $14 400
University of Canberra 1.5 years $18 000
University of Melbourne 2 years $48 000
University of New England* 1year $15 600
University of Newcastle* 1 year $15 600
University of Notre Dame, WA 2 years $16 800
University of Queensland 1.5 years $34 400
University of South Australia* 1.5 year $22 200
University of Southern Queensland* NSW 1 year $14 400
University of Tasmania 3 years $15 600
University of Technology, Sydney 2 years $35 200
University of the Sunshine Coast 1 year $18 000
University of Western Australia 1 year $23 160
University of Western Sydney 1 year $25 140
University of Wollongong 1 year $22 500
Victoria University 1.5 years $18 996
*Course available by distance education
Websites of some of the unis
offering MBAs
www.agsm.edu.au
www.cbs.curtin.edu.au
www.deakin.edu.au/
buslaw/dbs
www.gsm.mq.edu.au
www.mbs.edu/home.cfm
www.bgsb.qut.edu.au
www.agsb.adelaide.edu.au
www.uq.edu.au
www.business.uts.
edu.au/gsb
www.utas.edu.au
www.gsm.uwa.edu.au
General information on MBAs
www.mbaprograms.org
f i nd out
more
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Securities Institute
The Securities Institute of Australia (SIA) is a well-known organisation
that provides training/educational opportunities for industry
professionals. It offers a range of highly regarded courses at the
postgraduate and undergraduate levels:
Diploma of Financial Services
Diploma of Financial Markets
Graduate Certicate in Applied Finance and Investment
Graduate Diploma of Applied Finance and Investment
Master of Applied Finance and Investment.
The Master of Applied Finance and Investment is recognized as the
premier qualication in the nance and investment industry. The
topics it covers includes: corporate nance, investment analysis,
investment management, treasury, marketing and research.
The course helps students:
develop advanced nance skills in core sectors of the nance and
investment industry
enhance their ability to collect and analyse data and to apply
practical, analytical problem-solving techniques
Securities Institute
www.securities.edu.au
f i nd out
more
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operate effectively in changing global markets
understand and embrace the highest ethical standards in nance
and investment markets in Australia and internationally.
Source: Securities Institute website
What are the entry requirements?
You must have completed a degree or postgraduate level course
at an Australian University, college of higher education or institute.
Admission into this course is based on academic achievement in the
prior course, currency of knowledge and a demonstrated motivation to
undertake the Masters course.
Can I study by distance?
Seminars are held in Sydney, Melbourne, Adelaide, Perth, and Brisbane.
If you live outside of these cities there is a distance education option
all Masters subjects are available by online delivery. The seminars
are webcasted so students can see and hear the seminar leader,
guest presenter and fellow students. They can view presentations and
communicate with other students and presenters via a chat facility.
How much does it cost?
After an initial registration fee of $250, a Master of Applied Finance
and Investment is charged by subject units, totalling around $27 000
for members and $30 000 for non-members (2006 Fees). Check the
Securities Institute website for exact pricing of each subject.
Will employers pay course expenses?
Gaining and maintaining qualications can be expensive. You can see
the costs of completing an MBA above. Most larger employers will
pay for some or all relevant study expenses while you are working for
them. Some smaller ones may also provide some assistance. When
applying for jobs, it is worth asking the employer or recruitment
agency what level of assistance is available. Assistance may include
both payment of direct costs and other benets such as paid or
unpaid study leave. The assistance may be provided up-front or after
you provide evidence that you successfully completed the course.
Some employers may place a condition on the assistance that you
must remain employed by them for at least a certain period after you
complete the study, otherwise you will be required to refund part or all
of the costs paid by the employer.
www.nsia.edu.au
f i nd out
more
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If such a condition applies, the employer must advise you of it up-
front, eg specied in your employment contract or notied when
you rst apply for assistance. Its a question worth asking at your
interview if you are intending to study
Industry-based courses
The Australian Financial Markets Association (AFMA) is an industry
association that provides accreditation and training for industry
professionals. The AFMA runs the Financial Services Accreditation Program
as well as market-oriented seminars, workshops and conferences.
Most investment banks run fairly comprehensive in-house training
for graduates for staff. Most employees in the industry must undergo
mandatory training for a minimum amount of hours per year typically
ranging from 5 to 30 hours. Some training programs are compulsory
for all employees, such as discrimination and anti-money laundering.
Other programs are offered on the basis of choice, including:
technical training programs for example, internal products,
modelling, accounting, pricing
personal effectiveness programs for example, leadership skills,
presentation skills, teamwork skills
graduate training programs most large investment banks have a
graduate training program ranging from 1 to 3 years. Many graduate
programs are global in scope, where students are sent to train with
graduates from other countries within the bank in a range of locations.
Investment bankers can be bit wary of taking on candidates
with PhDs. Some employers comment that they are too
analytical and perhaps not action-orientated. Some can be more
focused on presenting papers at symposiums around the world
than making money for the bank.
Allan Ritchie, Investment banking recruitment consultant, Hudson Recruitment
Broad commerce or accounting skills are highly valued in the Investment
Banking industry. Hence the qualications Certied Practising
Accountant (CPA) and Chartered Accountant (CA) are highly regarded.
www.afma.com.au
f i nd out
more
detour
Find out more about these
qualications in Career FAQs
Accounting.
IB - 191205.indd Sec1:109 20/12/05 6:51:59 AM
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How do I get that job?
The rst thing that you should know about a career in investment
banking is that its very difcult to get into, with many people applying
for each position advertised. The second is that you will need
extremely good academic results to get your foot into the door.
As Ben Reeves, the national recruiting manager at KPMG, notes: We
could receive 50 to 100 applications per place quite easily. Youd really
have to stand out to get an interview.
Given this type of competition, you would not only have to be very
strong academically to get onto the short lists for interviews, but
you would also have to have other interests that show you as a more
rounded person.
How are people recruited?
There are various ways that people are recruited into investment
banking. These include:
graduate programs
vacation programs
advertised positions
recruitment agencies
government recruitment
headhunting
networking.
Graduate programs
Most investment banks run high-calibre graduate employment
programs to recruit the top-performing graduates from universities
around Australia. At the end of these programs, graduates will be
placed in specic areas of the banks business. There are, however,
other graduate programs which are more vocational in focus and where
graduates can choose to be trained in a specic area of interest from the
start. According to the International Banks and Securities Association of
Australia, areas where there is generally the highest intake of graduates
include equity research and equity or funds management.
Typically, smaller investment
banking boutiques and
private equity or venture
capital rms are not big hirers
of new graduates.
fyi
Generally, the rst interview
for a job at a major bank
is with a member of its
professional recruitment
team. Subsequent interviews
take place with appropriate
executives. Psychological
tests, including aptitude tests
and personality proles are
also standard, to assess
whether your abilities and
personality match the specic
role in question.
fyi
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While graduate recruitment programs differ from company to
company, the process usually starts with you submitting an
application, including a rsum, online. This is followed by an initial
short interview, usually with a recruitment manager, and later by half-
or full-day interviews with senior investment banking professionals.
Interviews can be formal or informal and even panel style. Group
interviews and role plays are also common for some positions. Usually
there is also a series of tests to be taken. These are a mix of written,
mathematical, psychometric and personality tests.
Some banks who run graduate programs include ABN AMRO,
Citigroup, Deutsche Bank, Goldman Sachs JBWere, JPMorgan Chase,
Macquarie Bank and UBS. In addition, large accounting groups,
such as KPMG, Ernst & Young, Deloitte Touche Tohmatsu and
PricewaterhouseCoopers, also run programs.
Many of these employers will participate in student events and
campus career fairs to recruit graduates. Along with some of the big
commercial banks, they run graduate hiring programs where they
advertise for graduates, visit campuses and participate at career
expos and job fairs. These fairs can provide you with an opportunity
to apply for positions, so be prepared for an impromptu interview and
always have copies of your rsum ready.
If you havent encountered the banks and accounting rms on campus,
you can nd out more about their graduate programs by visiting the
careers section on their websites. Here, you will generally nd details
on what kind of graduates they are looking for and, importantly, the
closing date for applications. Take note! The closing dates are usually
in March or April for programs that will start early the following year,
although closing dates can differ from state to state.
The competition for graduate placements is tough.
Only four out of an expected 1000 applicants will reportedly get
a place on Citibank Australias program.
Australian Financial Review (21 July 2005)
The interviewing process for graduate placements can be rigorous.
Citigroup, for example, invites candidates who meet its initial
selection criteria to participate in an online assessment, which takes
about 60 minutes to complete. Citigroups rst-round interview
stage involves document conrmation, a verication of your online
application and a meeting with Citigroup representatives in either
IB - 191205.indd Sec1:111 20/12/05 6:52:02 AM
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Sydney or Melbourne or a phone interview with candidates from
other states. Second-round interviews are conducted over a half-day
and are held in Sydney.
According to its website, PricewaterhouseCoopers selection process
starts with an online application, followed by an information evening
in some states. First-round interviews could include either a one-
on-one interview or a group interview together with 20 to 30 other
applicants. During group interviews, you will be given a range of
tasks to complete which allow the recruiters to assess you in areas
like presentation, problem solving, decision making, analytical skills
and leadership abilities. The next stage of the interview process
involves attendance at what PwC calls conquest. This can take up a
full day and involves participation in group activities and discussions,
business case studies, role plays, simulations and one-on-one
interviews. After this, successful candidates will have an interview
with a partner or director in their chosen area in the rm.
Each year, the Treasury department also sends representatives to
various university career fairs to recruit graduates. It also makes
presentations around the country. Applications have to be submitted
online. After the closing date, applications are assessed and a
shortlist drawn up. Those who make the short list have to go through
a panel interview.
Once accepted, you might nd the graduate training program
intensive. The program is likely to involve formal training programs as
well as the opportunity to be mentored by colleagues who are experts
in their elds.
For example, Deutsche Banks trainee global market analysts will
participate in an intensive eight-week, London-based classroom training
program. The program includes an introduction to the bank and its
culture and a product bootcamp. As part of the training, analysts are
required to present their solutions to current business scenarios to a
senior business panel. Training then continues in the local Deutsche
Bank ofce and may include workshops and trading simulations.
In addition to on-the-job experience with skilled and knowledgeable
colleagues, Ernst & Youngs undergraduate and graduate programs
include up to one week corporate and technical induction training
with your peers, one week residential graduate training seminar
(affectionately known as grad camp), career guidance via its buddy
and mentor programs and leadership and business skills training.
IB - 191205.indd Sec1:112 20/12/05 6:52:03 AM
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Vacation programs
One way to break into investment banking is to do a vacation program
a summer or winter internship while studying for your degree.
Edmund Gill, a director at Hays, says this strategy will help you get
work experience and build up contacts in the industry. Contacts can
be extremely helpful, he says. As the saying goes, its not what you
know, but who you know that can really help you land the right job.
If you are looking to get into this industry, dont try when you
graduate. Try before. We run summer vocational programs and
so do some of the banks. There are sometimes fewer applications
for summer programs so theres more chance of getting in. Its
a good way to get your foot in the door. If you impress your
employers, you are likely to get a permanent job offer.
Summer internships are a win-win scenario for both you and the
investment banks or accounting rms. You get to know if the
job is for you on a day-to-day basis. The employer gets to see
how you operate on a day-to-day basis. At the end, both parties
got to know each other better and are better placed to make
a decision. If you do a placement and dont like it, you still have
time to change your degree and it still looks good on your rsum
that you spent a summer in this job at an investment bank.
Ben Reeves, National Recruiting Manager, KPMG
But be warned! Closing dates for vacation job applications are usually
well in advance, often as early as March or April for a program that
could start in late November or early December. The programs are
typically open to students in their penultimate year at university.
If, for example, you did a summer internship at Citigroup, youd
be assigned to a group within the rm for the full 10 weeks of the
program, giving you exposure to a range of interesting projects and
the chance to learn from others. High achievers in this program are
then considered for graduate positions at a later stage.
JPMorgan Investment Banking divisions summer program also runs for
10 weeks in either Sydney or Melbourne. On its website, the bank says
ideal candidates would be pursuing an honours or a double degree in
commerce, law, economics or a nance-related discipline, and would
be achieving excellent academic results. During your internship, you
would get involved in transactions and projects and get to know your
team and the companys culture better. There will also be many social
events, both internally and with other rms in the industry.
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Macquaries summer program runs from December to February. During
this time, you will work on real projects and transactions in addition
to attending various networking and social events, such as welcome
drinks, sport competitions, presentations and end-of-summer parties.
Macquaries recruitment procedure is similar to that for full-time
employment, and includes interviews with the recruitment team as
well as skills testing.
PwC also offers various vacation opportunities across Australia for
students completing appropriate degrees. These typically involve
working full-time for up to two months, usually between December
and February, and are designed to give you exposure to real
client work, training programs, social and sporting activities and,
importantly, PwCs people.
St George Bank offers cadetships to university students in their nal
year. Cadets work a few days a week while completing their studies,
giving them the chance to ease their way into full-time work and gain
an insight into the industry. Cadetships also allow rotation, which is an
excellent way for new recruits to discover where their interest lies.
Advertised positions
The second way of recruiting in the investment banking eld is
through traditional hiring processes, usually for set positions that
need to be lled. This route opens the employment door to people
already working in the industry or to those who have gained work
experience in related industries like accounting or at retail banks and
want to break into investment banking.
When trying to attract experienced candidates to vacant positions,
most banks and accounting rms do advertise online as well as
in print. You can also visit their websites to search for available
positions. Some allow you to register your details online so that you
can receive email alerts notifying you of new positions that match
your criteria.
Recruitment agencies
Many banks also use recruitment agencies in much the same way as
other employers do, and there are numerous recruitment agencies
that specialise in investment banking.
Macquarie Bank uses a
number of channels to
recruit people. These include
encouraging staff to refer their
friends, advertising vacancies
in selected publications
and online, making use
of accredited recruitment
agencies, and building
relationships with universities
and specialist business
colleagues.
fyi
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Most potential investment banking employers are likely to make you
go through several interviews before you get an offer.
Its good to talk to recruitment consultants to get career advice
and nd out whats happening in the industry. You should also
visit their websites for tips on how to do well in interviews.
I had three or four interviews and these were mostly with two
ABN AMRO people. I already had a connection here as I knew
the person who was recruiting for this role.
David Smith, Associate director, corporate nance, ABN AMRO
Headhunting
Most investment banks will use various sources to headhunt good
candidates. Employees who refer successful candidates for positions
are sometimes paid a spotters fee depending on certain criteria. In
addition, investment banks will examine the rsums that are sent
directly to them by potential applicants or the recruitment agencies
that they deal with regularly.
Investment banks will also hire recruitment agents or headhunters to
search for more senior candidates or for candidates for roles that are
difcult to ll or which are in niche markets. Often the best candidates
or very senior executives will not be actively looking for a new position
and thus, will not normally respond to any job adverts. Headhunters
will do extensive research to identify possible candidates. They may
do this by speaking to their network of sources and industry contacts
or by searching the press and Internet. They may also see whether
theres someone suitable working at a competitor. The headhunter will
then call or tap the person on the shoulder and have a discreet chat
with them to ascertain whether they might consider a move.
Government recruitment
When it comes to jobs in the Australian Government, the
Commonwealth and state/territory governments regularly advertise
for staff in newspapers and on special sites. They also occasionally
recruit for entry-level (graduate) positions.
Every Thursday permanent Commonwealth Government vacancies
are advertised in the Public Service Gazette, which is available on the
Internet and in a print format. Most public libraries keep a copy of the
Some of the rms that
recruit in the investment
banking arena
www.boomerangexecutive.
com.au
www.chandlermacleod.com
www.carmichaelsher.com.au
www.derwentexec.com.au
www.hays.com
www.hudsonresourcing.
com.au
www.jmes.com.au
www.linkrecruitment.com.au
www.michaelpage.com.au
f i nd out
more
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Gazette. If a job is not in the Gazette, it is not available. Government
departments and agencies tend not to use HR rms. They have their
own recruitment processes which vary slightly from department to
department. Its important to contact the HR department to nd
out exactly whats required and to ensure that what you put in your
application is what they want.
Networking
Many investment bankers say that networking helped land them
their rst job in the industry. Maintaining contact with people in the
industry can be very benecial indeed, about two-thirds of jobs in
general are found through networking.
Networking involves making connections with people who can either
give you information about potential job openings or introduce you
to others who have this information. And, it isnt just limited to casual
conversations with people you meet. You can actively network by
identifying useful people to contact for ideas and information. You
could ask friends and family if they know someone in the industry you
could contact or you could cold call people in the relevant positions.
You could also attend industry conferences and events.
People are often happy to help others, if they can. You have nothing
to lose by phoning or trying to meet contacts. As they say, nothing
ventured, nothing gained. Often, the easiest way to approach the
contact is to ask for some advice, rather than a job, to get the ball
rolling. Keep in mind that your network might not really pay off for
some time.
ABN AMRO
www.abnamro.com.au
Citigroup
www.citigroup.com.au
Deutsche Bank
www.deutschebank.com.au
Goldman Sachs JBWere
www.gsjbwere.com
JPMorgan Chase
www.jpmorgan.com.au
Macquarie Bank
www.macquarie.com.au
UBS
www.ubs.com
KPMG
www.kpmg.com.au
Ernst & Young
www.ey.com.au
Deloitte Touche Tohmatsu
www.deloitte.com.au
PricewaterhouseCoopers
www.pwc.com/au
Public Service Gazette
www.psgazetteonline.gov.au
f i nd out
more
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Stand out from the crowd
To get a look in at a job in investment banking, you will have to
have top grades. But thats just the start. To stand out, you will need
to demonstrate an interest in nance, leadership qualities or an
involvement in extramural activities.
What could set you apart is a show of strong commitment and
condence and your ability to demonstrate that you have the skills
and personality to hit the ground running if you do get the job. You will
also need to have a good knowledge of the nancial world and of
the company.
There are three key factors that most employers look for:
academic record, work experience and extracurricular activities.
Youll also need to create an outstanding application and to present
yourself well during the highly competitive interview process.
glossary
Extramural activities
means:
activities carried on outside
the bounds of an institution
or community.
IB - 191205.indd Sec1:117 20/12/05 6:52:06 AM
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Create an outstanding application
The rst step in preparing an outstanding application is to do as much
research as possible on both the industry and the company you are
looking to join. This may include talking to friends or family who work
in the industry, attending company presentations, researching on the
Internet or reading the nancial press. Most investment banks will
also answer your questions, so phone their Human Resources and
careers departments if you need to.
Check the application requirements for each job carefully. Very often
this will be on the investment banks website. And, try and get some
tips from someone who may have already gone through the process.
Always manage your career as if you are MD of your own
business (which of course you are). That means networking
furiously and ensuring you control who receives your rsum.
Do not leave it to others to forward to people they know. Ask
for their details and send directly with a short courteous note
stating why you should get the job.
Tim Waggett, Vice president, sales, Citigroup
glossary
MD means:
Managing director
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The rsum
A rsum summarises your work history, skills and experience in
a way that highlights your strengths. Its the rst step in telling a
potential employer about yourself and its purpose is to get you past
the initial screening process and into an interview.
Senior Trader, Goldsteins Global, Sydney
March 1994 March 1999
Responsibilities:
Advising Salespeople, Traders and clients on current market activity and arbitrage
opportunities.
Placing and executing orders to trade shares on behalf of Institutional Clients on the
Australian Stock Exchange.
Executing Program Trades as Principal.
Placing orders for execution on the Sydney Futures exchange.
Placement of orders for international exchanges on behalf of clients.
Advising Private Banking services on transactions.
Trade reporting of completed transactions to the relevant exchanges and clients.
Management of positions in markets for clients and also for rm accounts
PROFESSIONAL QUALIFICATIONS:
NASD registration (US licence) for Series 7 and Series 3 ability to give advice and
trade on behalf of Arnold and Sons in Equity and Derivative instruments on
exchanges worldwide. SFA licence (UK licence) to deal in Equity and Derivative instruments.
COMPUTER SKILLS:
Windows applications Microsoft Word, Excel
General market applications ie Reuters, Bloomberg
Solaris Program Trading Applications INTERESTS:
Active member of University Cricket Club.
Active member of St. XXX Old Boys Rugby Club.
Travel have spent extended periods of time travelling throughout the United Kingdom
and Ireland, Western Europe, Eastern Europe and North America.
Live music and theatre. Actively pursuing sport interest, particularly Cricket, Tennis, Squash, Soccer, Australian
Rules Football and Rugby.
REFEREES:
Available on request.
PERSONAL DETAILS:
Name:
Amanda Shannon Bolger
Date of Birth:
22nd January 1972
Address:
16 Redtree Street

Stanhelm VIC 3000
EDUCATION:
Post Grad:
University of Melbourne


Completed 1997
Tertiary:
Royal Melbourne Institute of Technology (RMIT)

Bachelor of Business (Economics and Finance)

Completed June 1994
Secondary: Greenville Girls High

Completed VCE Nov 1990
EMPLOYMENT HISTORY:
Program Sales Trader, Arnold and Sons, Melbourne
July 2000 January 2005
Responsibilities:
Management of two funds, tracking and adjusting the benchmark and re-optimising
when necessary.
Sales & Trading for large ticket Portfolio Trades and Transition Management Trades.
Salesperson of Principal & Agent Programs for customers, and trading these on the
worldwide exchanges.
Presentations to market the business, develop client relationships and expand the
client base.
Market making in Derivative instruments such as Program Trades, Transition

Management Trades, ETFs, EFPs, Warrants and OTCs.
Optimisation of Portfolios benchmarks and reducing tracking using Barra.
Calculation of baskets to identify arbitrage openings.
Manipulation of spreadsheets to detect index change opportunities.
Adaptation technology to meet internal and external clients needs.
Identi cation and utilization of cross-selling opportunities.
Intensive co-ordination of risk management and open positions across regions.
Development and utilisation of Pre-Trade, Post-Trade and Transaction Cost Analysis.
If you are applying for an investment banking job, it needs to be
of a very high standard. You can bet that your rsum will be one
of many received by your potential employer, so you need to make
sure that yours stands out from the crowd and shows you in the best
possible light.
You have only one crack at the whip, so make sure its a good crack.
Written communication is very important, and if done well, can
really make a rsum stand out from the pile.
A rsum, however, is not about what youd like to say. Its about what
potential employers need to hear. Its about telling them what you can
do for them.
f
a
c
t
MYTH
the hard work begins
only once youve
started the job
Most investment banks
have an intensive
selection process which
involve several rounds of
interviews and perhaps,
psychometric testing.
Preparing for these and
getting through each
round is hard work
glossary
Psychometric means:
measurement of the
psychological aspects
of a person, such as
knowledge, skills, abilities,
or personality.
IB - 191205.indd Sec1:119 20/12/05 6:52:11 AM
Click here for more FREE industry-specific
sample resumes and cover letters from Career FAQs
120
Investment Banking
Remember that recruiters are very busy people and dont get to read
every rsum they receive in detail. They may scan through what you say
quickly to see if your application is worth taking further, so you need to
make a good rst impression and to attract their attention quickly. You
need to get the relevant information across to the reader rapidly.
In addition, you cant just send the same rsum to all potential
employers. Your rsum also needs to be adapted and relevant to
the particular company and job you are applying for, stressing the
specic skills and experience that could be of use to that employer.
Demonstrating a strong understanding of the investment banking
industry will also help.
You should highlight any relevant experience you have in nance and
any courses youve completed with an investment banking bias. Any
relevant personal interests, such as following the stock market, and all
awards and achievements should be emphasised.
A demonstration of dedication, enthusiasm, exibility and an
attitude to learn and develop capabilities. These are the things
I put in my rsum which, I think, made a difference between
me and the other candidates.
I quantied what I delivered whether in revenues, cost saves
or process improvements. Too often rsums are verbose and
give the reader no sense of the difference the individual made.
Make your rsum stand out!
Tim Waggett, Vice president, sales, Citigroup
Make sure what you say is clear and concise. Use descriptions about
yourself that reinforce those the company has used in its advert to
describe what it is looking for.
You should also attach a copy of your academic transcript so that
the recruiter is aware of your academic ability. This could be a crucial
separating factor between you and someone else.
Doing something very different or off-beat to stand out is a high risk
strategy and is more likely to appeal to recruiters in marketing and
advertising than in investment banking.
The industry is relatively conservative and your rsum needs to
reect the target audience. The edge should come in the content.
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Most recruiters welcome emailed rsums these days. But just
because its an email correspondence doesnt mean it should be
informal with little regard to spelling, grammar and formatting. Do not
make this mistake! Be aware of your return email address, particularly
if it is through a web-based carrier like Yahoo! or Hotmail. What may
be considered a funny address using nicknames, jokes or swear words
would be very inappropriate and unprofessional if you use it to send a
rsum and job application.
It is not necessary to include a photo of yourself. Your rsum
should also be 23 pages long not much more and not much less
for a graduate.
Tips: Rsum writing
Most companies prefer rsums submitted electronically,
so create your rsum in a common program such as MS
Word so it can be open and read by recipients easily.
Organise your rsum carefully and use good page
design to create a rsum that can be skimmed and
read critically.
Use headers so that skim readers can nd what they
are looking for. Ensure it follows a logical sequence.
Give enough details to convince careful readers that
you really have the skills you say you have.
Try to make information easy to nd at a glance. Keep
it concise.
Dont include copies of every certicate and diploma
you have ever obtained you can always present these
on request.
Dont lie!
Your rsum should answer the employers question,
What can you do for me?.
An effective rsum is targeted to a specic position.
You will need a different rsum for each type of job
you are seeking.
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Investment Banking
Tips: Rsum writing continued
Try to highlight specic nance-related interests/jobs.
Tie the activities and work youve done to the specic
skills gained. For example, working as a sales
assistant at David Jones has helped me improve my
communication and people skills.
Dont forget to spellcheck your rsum! Remember,
it is the rst impression your potential employer will
have of you, so take the time to get it right. If possible,
even get someone to proofread your rsum to check
for any spelling, layout or typing errors.
After youve sent your rsum off, you can follow up with a call to
inquire whether youve addressed all the issues you needed to in your
application and whether the recruiter needs anything else from you.
Be polite!
The followup call does make a difference. Its your chance to
shine through. Most successful people build relationships in
whatever they do. If you dont call, it might be seen as a sign of
non-interest. Tip: give it 35 days after your application!
There are many handbooks
and websites which will give
you useful tips on how to
compile a winning rsum.
Here are some websites that
provide useful resources
and advice.
www.myfuture.edu.au
mycareer.com.au
www.careerone.com.au
www.hays.com.au
www.barberbunton.com.au
www.jobs.au.hudson.com
www.fmaa.com.au
f i nd out
more
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The cover letter
The cover letter is usually your rst shot at getting the recruiters
attention. It needs to list your best selling points but only those
relevant to the job quickly and concisely to the recruiter. It should be
easy to read and to the point.
Your name
Address
City State Postcode
Telephone: XX XXXX XXXX
Mobile: XXXX XXX XXX
Email: xxxxx@xxxxxxxxxxxxxx
Name of person
Position at rm
Name of rm
Address
City State Postcode
Date
Dear (name)
Re: Investment analyst position, Ref. No. xx/9999
I am interested in applying for the investment analyst position advertised on the
SEEK website. (Always refer to the speci c position)
I have recently completed a Graduate Diploma of Applied Finance and Investment
from the Securities Institute of Australia and am looking to further my career as an
analyst in the investment sector. With my passion for property, I see this position
as a great opportunity for my professional development and believe I would be
a valuable asset to the company. (A little information about yourself and your
objective not lengthy)
I have highly developed spreadsheeting and analytical skills. I have produced a
number of budgeting and forecasting programs, and repayment spreadsheets
for my current employer. I have also collated and analysed market data with
information received from the Australian Bureau of Statistics to provide market-
based growth information, and recently received an award for my analytical
strengths. In addition, I have provided Access-based programs for tracking new
product development. (Answer all the requirements as per the advertisement and
give tangible evidence, where possible that you have ful lled these requirements)
I would welcome the opportunity for an interview to further discuss my suitability for
this position. (A polite close)
Yours sincerely,
Your Name
The cover letter should not be a rehash of your rsum. Instead, this
letter and the rsum should complement and reinforce each other.
These days, most cover letters in response to an advert on the
Internet or newspaper tend to be via an email. An email cover letter is
briefer than one that goes by snail mail. You should list the title of the
position you are applying for in the subject line and unlike a postal
letter, it should not include the full mailing address of the person you
are sending it to.
If you are writing a cover letter in response to a job ad, you should
read the ad carefully to asses what qualications, skills and
experience the employer is looking for before you write the letter. Your
letter should then tell that employer, in a quick and easy-to-grasp way,
how and why you have these requirements.
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Investment Banking
The employer will not be expecting your letter if its a cold call letter,
so it is important to make it as clear and appealing as possible. It
should attract the readers attention very quickly, explaining what you
can do for the company. Its important that the letter is addressed to
the right person and tailored to the company concerned. It shouldnt
appear as if you are sending the same letter to many companies.
Include a few sentences that show that youve bothered to research
the company. You could, for example, mention some of the key deals
the investment bank has been involved in. Or, you could detail why
the banks core values appeal to you.
Tips: The cover letter
Make sure to nd out the name of the person you are
addressing the letter to with correct spelling.
Limit the cover letter to one page.
If you are posting your cover letter, make sure its
neatly typed in a basic font on clean white paper
dont send cover letters that are photocopied.
Each cover letter needs to be tailored for the particular
situation a cover letter for a specic job application
will be different to a cold call cover letter.
Keep a copy of the cover letter for yourself something
thats mentioned may come up in the interview.
Your cover letter is your one opportunity to have a minute with
recruiters. It must grab their attention quickly and be relevant.
Dont send the same cover letter to everyone. The letter
should address the specic requirements outlined in the job
advertisement for which you are applying.
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Selection criteria
When applying for government jobs in Australia, providing just your
rsum and a cover letter will usually not be enough to get the job.
You will also have to examine and respond to the jobs selection
criteria. These typically describe the skills, knowledge and experience
needed to do the job. Examples could include:
ability to work under pressure, prioritise tasks, meet deadlines and
remain tolerant
demonstrated written and oral communication skills
well-developed administrative/clerical skills
demonstrated ability to use a range of computer-based programs
knowledge of equal employment opportunity, occupational health
and safety (OHS) and industrial democracy (ID) principles.
The selection criteria set out the standards by which each candidate
will be assessed. This makes sure theres an even playing ground
for all applicants. Be aware that if you dont specically address the
criteria, you may not get an interview.
If applying for a New South Wales government job, for example, youll
be expected to include a separate claim for the position with your
application. Other government departments also generally require you
to address each criterion as an attached, but separate document. They
usually also want you to address each criterion under a separate heading.
Responding to selection criteria may take some time to get
accustomed to, but to demonstrate how you meet the criteria you can
use examples from work experience, university and extracurricular
activities and any other life experiences. A good idea is to brainstorm
as many examples as you can. Your answers should focus on the
specic examples that show you have the abilities or experience
required and should not be vague and generalised.
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Investment Banking
Here is an good example of how the selection criteria demonstrated
ability to problem solve can be addressed.
Demonstrated ability to problem solve
Problem solving has been a critical part of my roles over the past
ve years. While working as customer complaints ofcer at Acme
Department Stores, I dealt with a variety of problems. While many
could be resolved easily, two to three per week were more complex
and required a detailed process to resolve.
I had to investigate a customer complaint that related to our
delivery processes. I investigated the processes, discussed the
situation with staff responsible for delivery and the customer to
work out what had gone wrong and why. I then proposed suitable
changes to the delivery process and negotiated a mutually-
satisfactory outcome. The new processes have been effective as
there have been no additional complaints about delivery.
I have been commended by my manager for my sensitive handling
and speedy resolution of these problems. Less than one per cent of
complaints had to be escalated.
Notice that the person has identied the situation and followed the
SAO approach.
Situation Where and when did you do it?
Action What did you do and how did you do it?
Outcome What was the result of your actions?
Using the SAO approach can help you prepare a very good response to
selection criteria.
This next example shows of how not to write a response to the same
selection criteria as it does not provide an example of problem
solving, nor does it clearly identify the selection criterion.
Problem solving seeks all relevant facts, liaises with stakeholders,
analyses issues from different perspectives and draws sound
inferences from available data and identies and proposes
workable solutions..
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Of course, the most important thing is to be honest in your responses.
Make sure you are direct and succinct with your explanations cull
unnecessary information and duplication of information. You should
never send your response without a spell check and a proofread. Why?
Because spell checks do not pick up the correct usage of words such
as their, there and theyre.
Tips: Selection criteria
Here is a list of key words and what is expected in
your response.
Ability to you do not need to have done this kind of
work before, but you need to describe how your skills,
knowledge and experience show that you are capable
of doing this part of the job.
Demonstrated knowledge you need to give examples
that prove you have experience.
Experience in you have to show you have done this
work before, so give relevant examples.
Effective, proven, highly developed, superior you
need to show your level of skill, so use examples
of your achievements to show your level of skills,
knowledge and experience.
Good communication skills you need to show you
have the communication skills needed to do the
job, and this could include experience in dealing
with people, details of things you have written and
examples of problems you have solved using your
communication skills.
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Investment Banking
How can I stand out at the interview?
When applying for an investment banking position, you can bet that
you will face stiff competition and that youll be one of a number of
candidates being interviewed. Thats why you need to make sure that
you put your best foot forward and stand out. To do this, you need to
be properly prepared for the interview, make a good rst impression
and make an impact at the interview. You only have one shot at
getting through the rst round of interviews, so make the best of the
opportunity. Some things you should consider include:
preparing for the interview
making a good rst impression
making an impact at the interview.
I think your rsum is important to get you in the door, but if
you get to the interview stage then making a connection with
the interviewers is really the key.
Preparing for the interview
The best way to succeed in an interview is to be properly prepared.
There are two different ways to prepare for an interview for a job in
investment banking and both will require time and effort.
The rst is to brush up on your interview skills, and there are many
ways to do this. A good starting point is to read up on how to do
well in interviews. There are many books and websites dedicated
to the subject. It may also be helpful to talk to others who been on
interviews to get some tips.
There are questions that are typically asked by many interviewers
and you may be able to anticipate these and work out your answers
carefully. Ensure your responses sound natural and unrehearsed.
Likely questions can be found on many recruitment websites. They
might include:
Why do you want a job in investment banking?
Why do you think you are suitable for this position?
What are your strengths and weaknesses turn negatives into
positives. Remember, not being able to identify a weakness may be
viewed as arrogance or a lack of self-awareness.
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What job would you like if you had a completely free choice?
Why are you seeking a position with our company?
Which subjects have you enjoyed/disliked the most in your degree
and why?
How do you cope with pressure situations?
Have you come across a situation like this? How did you handle
it? What was the outcome this is the style of questioning used in
competency-based interviewing, asking for examples of previous
situations is fairly commonplace so have some relevant examples
at the ready.
What are your greatest achievements so far?
What objectives did you set yourself at the beginning of your career
or study?
Have you achieved those objectives?
Why do you think youre the best candidate for the job?
What interests you most/least about this job?
Do you work well with others as part of a team?
Describe your own personality.
What do you see yourself doing in ve years time?
What salary are you looking for do your homework beforehand!
Think of examples and reasons to back up your answers to these
questions and have a copy of the advert in front of you. Your answers
should suit the requirements of the job you are applying for. Keep
your answers simple and honest. You could be asked anything try to
anticipate possible questions and think of answers to those questions.
You can also prepare a list of questions you want to ask the
interviewer. Asking a couple of well-thought-out questions can really
add to the interviewers overall impression of you. For example, you
could ask:
What are the companys plans for the future?
Why is this company better to work for than other companies?
Why is the position available?
What training and induction will be given?
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Investment Banking
What prospects are there for personal and professional development?
What attributes would you hope that I would bring to the job?
What would be a successful outcome for this project/role?
What development and growth does the company have planned?
What opportunities exist for achievers within the company?
Is there anything unique about the culture of the rm that
distinguishes it from the rest?
Can you tell me a little more about your job? Which aspects of it do
you enjoy the most?
The best way to improve your interview skills is through experience
and by going to many interviews.
The second way to prepare for an interview is to learn as much as
possible about the industry and particular job position youre applying
for. You need to demonstrate an interest in the industry and that you
know whats happening in it. Research is vital.
To build up your knowledge of the industry you will need to read
the nancial press. You could add to this by reading the trade press,
annual reports, and company brochures as well as researching
nance-related websites. Information on the investment bank can
be found on its website, media releases and annual reports. Other
sources of information could include industry associations and
recruitment consultants.
Each bank has a website do the research. I cant stress that
enough! When you go for the interview, you must know about
whats happening to the company. That always works wonders.
A person will stand out in an interview if they have researched
whats happening in the industry. They should know what deals
and transactions have been taking place. They may even have
worked in the industry, so know what the industry is like.
My clients get put off by those who see the industry as just
glamorous. Its a lot of hard work and successful candidates
usually have a balanced view about this. They show that they are
pragmatic and realistic, have their eyes open, and have a mature
worldly approach.
There are many handbooks
and websites which will give
you useful tips to help you
improve your interview skills.
Here are some websites that
provide useful resources
and advice.
www.myfuture.edu.au
mycareer.com.au
www.careerone.com.au
www.hays.com.au
www.barberbunton.com.au
www.jobs.au.hudson.com
www.fmaa.com.au
f i nd out
more
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You also need to carefully assess the set of skills or attributes that the
prospective employer is looking for, and then brainstorm and list how
your achievements and experience match these.
Finally, before you set out for your interview, make sure you know the
time and place of the interview, as well as the name of the person/s
interviewing you. Get a good nights sleep before your interview so
that you can think clearly. Always arrive early so that you can catch
your breath and focus your thoughts. And turn your mobile phone off
before you go into the interview!
Making a good rst impression
First impressions do count.
A lot of people make a decision in the rst 30 seconds, often
before the interviewee even has a chance to say something. So
presentation is very important.
Indeed, research has shown that an interviewer has made an
impression within the rst few seconds of meeting the person. The
remainder of the interview is spent conrming this opinion, or turning
this opinion around.
Look professional, act professionally and dress professionally. Polish
your shoes, trim your hair and clean those nails. Appearances count.
Dress as though you are representing a rm to one of its clients. You
will never have a second chance at making a good rst impression.
Remember that its not always what you say, but how you present
yourself that makes an impression. The advice from Hays is to dress
conservatively rather than casually or radically. Wear, for example, a
dark suit and tie, or a skirt and jacket. Pierced eyebrows and lots of
hair gel arent suitable. A more conservative look may be required
because the banks customers might expect it.
Remember you will be assessed from the time you arrive at the
reception desk and until you get into the lift to leave.
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Making an impact at the interview
There are different types of interviews for different purposes or
situations. These include behavioural and panel interviews.
Your interview may be one-on-one, or with more than one executive
or even with a panel, but the purpose of the interview is to establish
a rapport and to exchange information. The recruiter/s will be looking
to assess whether you can do the job, whether you will do the job
well and whether you will t into the organisation. Your mission is to
demonstrate that you can do the job and will t in, and become an
asset to the company. But you also need to assess whether this job
ts your needs and personality as well.
There are many books and newspaper articles that will give you
advice on how to prepare a rsum and how to handle an interview,
but I think it is important to remember that when you get a
job you will be spending more time at work and with your work
colleagues than on anything else you do, so at the interview when
you meet your prospective boss you should think about whether
you get along with this person and would enjoy working with them.
Isabella Ebbitt, Executive, real estate advisory area of corporate nance, KPMG
There are several ways to establish a rapport with the interviewer or
interviewers. You can do this by smiling, shaking hands rmly and
maintaining eye contact. You should follow their lead. If they start a
casual conversation join in, but keep your answers short and positive.
For information on different
types of interviews, such as
behavioural, panel, group
and psychometric testing,
see Appendix 5.
f i nd out
more
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During the interview, sit up and stay focused.
If you have a panel interview, be sure to address the different levels of
panel. Try to be aware of the panels composition beforehand so can
that you can anticipate what questions you might get.
In general, interview panels here tend to ask open-ended
questions about issues. They are not looking for a right answer
but are looking for the person to show a framework of how
they work through a problem. They are looking to see if you
are able to think through something logically and come to what
they consider is logical reasoning. Theres probably no right or
wrong answer to the question.
Mark Murray, Senior analyst, nancial risk, Australian Ofce of Financial Management
Tips: The interview
Be prepared. Research the industry and company
thoroughly.
First impressions count, so be well groomed.
Be yourself. Be truthful and direct, but try to put a
positive spin to your answers.
Be condent. Composure in the business world is crucial.
Focus on the person interviewing you.
Present yourself as being condent.
Make sure you can substantiate your information.
Ask questions. This shows youre interested and that
youve done your homework.
If you dont know something, say so. Nobody expects
you to be perfect.
If you dont understand a question, ask the interviewer
to repeat it.
Be a good listener.
Never make negative or derogatory comments about
your previous employers.
Follow up. Send a letter to the interviewer/s as soon as
possible after the interview to let them know you liked
what you heard and want to be kept in mind
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If you dont get the job, ask for feedback so that you can improve
your interview skills. Dont take rejections too personally and keep
applying. A lot of companies cull applicants based on standard criteria
that may not bear on the personality of the candidate.
Some recruiters reveal what they believe makes a person stand out
at interview.
Condence, intelligence, knowledge of the business world.
If they can demonstrate passion and knowledge about what
they do, this helps the recruiter identify the suitability of the
candidate to the role, to the team, and the organisation as a whole.
You must be prepared to put in extra hours. And you must really
want this career. Its a two-way investment. The bank will have
to invest in training you. For the rst six months, you will cost
the bank money. If you think about this, you will understand why
you should be well prepared for the interview.
Edmond Gill, Director, Hays Recruitment
Be yourself, professionally! Dont just give the answers that you
think the recruiter wants as this could make you seem a little
shallow and contrived.
Heres what some investment bankers believe they said or did in their
interviews to stand out from other candidates.
Being open-minded and honest, and showing that I am used to
working overtime.
28-year-old senior analyst, mid-sized accounting group, corporate nance division, BDO
Having subsequently been involved in interviewing many potential
candidates, looking back I think it was the strong commercial
interest and knowledge that helped me secure the job. If you
can display a keen interest and understanding of the position
and industry you are applying for, then you place yourself in a
much stronger position to get the position.
Brett Ryman, Associate, investment banking, Citigroup
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I think it was my attitude; I presented myself as enthusiastic
and outgoing and I think it sometimes helps to choose moments
in interviews for a bit of humour the most important thing to
do is create a connection with your interviewers.
I knew a lot about the business before I joined. I had done
my homework, not only historical but current. I knew the
background of some of the key principals and had formed a view
about how I could add value to the organisation.
Senior executive, boutique corporate advisory
I have always been extremely honest about my impressions. I
asked them why they are better than the next rm. That makes
the interviewer know that you are condent.
Female head of transactions, listed property trust
I think I conveyed a level of passion about what I do that stood
out. I think also demonstrating an industry understanding and a
willingness to learn is important... If you want to get into Equity
Research consider writing a research piece yourself to show
your interviewers because you are marketing yourself to them
and highlighting your skills. This could be the differentiating
factor between you and someone else! On what not to do never
turn up late for an interview!
David Stanton, Healthcare analyst, equities, ABN AMRO
I think I made a good impression. Treasurys focus was on
academic results. They looked at people interested in economic
debate and asked questions about this for example, what do
think you about interest rates? I also had good references and
used one of my uni lecturers as a reference. And, I was willing
to move from Melbourne to Canberra.
Mark Murray, Senior analyst, nancial risk, Australian Ofce of Financial Management
(AOFM)
What I said at the interview that I believe made me stand out
from other candidates was that I followed nancial markets
closely and current events. Its amazing how often people cant
back up whats on their rsum.
Head of short-term interest rate trading, ASIA-PAC, global investment bank
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Being able to express yourself both verbally and on paper is
vital you really have to be excellent in both these areas.
Knowing what you want and being decisive about how you are
going to achieve what you want is also going to help you. You
need to be able to communicate how much you want the job and
highlight your achievements as the reason why you deserve it.
Angela Capone, ABN AMRO
Top ten DOs
1 Show a condent, happy and positive attitude.
2 Be well presented in your dress, have a rm handshake
and speak clearly.
3 Provide real-life examples to demonstrate your answers.
4 Show how you stand out as a candidate.
5 Have a clear career plan or aspiration.
6 Be enthusiastic and passionate about the role.
7 Communicate the benets you can bring the business.
8 Prepare your questions in advance to ask the
interviewer.
9 Display a good understanding of the role.
10 Be an active listener and maintain eye contact.
Top ten DONTs
1 Avoid having poor verbal communication skills.
2 Not answering the question asked.
3 Not researching the company or role before the interview.
4 Leaving a mobile phone on.
5 Being unable to provide solid examples of previous
experience.
6 Exaggerating experience or skills.
7 Focusing on the negative rather than the positive in
situations or experiences.
8 Being unable to answer technical questions.
9 Arriving late.
10 Displaying little interest in the role.
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Dealing with disappointment
If you cant get the job you want, dont be discouraged.
Job searching can be an emotional experience, as virtually everyone
faces rejections. If youve been short-listed, interviewed and believe
you have a good chance of getting the job, having your application
rejected can be overwhelming. This disappointment can make you
feel quite depressed and start to doubt your abilities.
A valuable skill is the ability to allow the natural reaction of anxiety
to happen without being too overwhelmed by it or identifying with
it too much. It will pass. There will always be other opportunities.
Keep your head up and your goal in mind, and keep looking.
Dont be afraid to take up a job that isnt exactly what you want
once you have one foot in the door, the range of possibilities will
open up. Banks and government departments are big places. You
may nd that a job that wasnt open to you before is now open
because people get to know you.
If you have gured out the job that you do want, perhaps
you should gure out a plan to get you there for example,
looking at other jobs where you can the leverage skills
needed to get you into the job you want. People move around
in the nancial industry and openings do come up.
Developing good contacts is very important and may give you
the boost you need over the competition.
Mark Murray, Senior analyst, nancial risk, Australian Ofce of Financial
Management
If you are looking at a career change and dont possess the
required skills, it is important to get a foot in the door. This
means that at times, you might have to accept a lower level
position and work your way up from there.
Jennifer Bennett* , Senior analyst, APRA
A couple of years in a corporate advisory area can set you
off in a good range of career options if you want to change
for example, private equity, research, or in a business
development or strategy role. Its also not a bad grounding if
you later want to set up your own business.
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Investment Banking
What can I do right now?
To start preparing for a role in investment banking here are some
things you can start doing now:
read the nancial papers to develop a knowledge of whats
happening in the nancial world
study hard to ensure your grades are good
develop some extracurricular activities that rstly, you enjoy and
secondly, will help you stand out in the selection process this
could involve sports, clubs and societies or volunteer work
develop good contacts in the industry
join professional associations (become a student member) and
attend professional gatherings such as seminars, conferences,
conventions, discussions and talks
develop some experience in the industry through part-time work
if you can spare the cash
develop good referees these can include uni professors and even
your managers at vacation jobs; remember that uni staff members
are important as referees, however they must know you to be able
to be a referee
start your own share portfolio this will not only signal your
knowledge of the market to the interviewer, it can also highlight
your genuine passion for the position.
The Finance Sector Unions tips for those looking for a career in the
nance industry:
get educated gaining a qualication and keeping your skills and
knowledge up to date will give your career a strong foundation
plan for your future, but be prepared to be exible the industry
is extremely dynamic and major changes happen very quickly,
therefore knowing what you want, but also being exible, will help
you cope with change and get what you want from your working life
dont just consider working for a large nance company a lot of
employment growth is occurring in the smaller industry players and
careers tend to advance faster in smaller companies, but beware of
working for companies that dont have good employment practices
Even if you dont like your
current job, the best way
to get a better one is to
work hard and impress your
present manager, so that they
will give you a good reference.
fyi
IB - 191205.indd Sec1:138 20/12/05 6:52:26 AM
139
Ready, set,
go f or i t!
develop networks most nance vacancies arent advertised in
newspapers
be aware of whats going on in your profession and industry
knowing industry and professional trends and thinking about
what these mean for your career are fundamental to maintaining
your employability. Joining unions, professional and industry
associations will give you an advantage
develop your communication skills and think about what you can
do now that will later help convince a potential employer that you
have good communication skills
know how to play the job search game by developing and
maintaining your career management skills you might be the best
person for the job, but if you dont interview well, you probably
wont get the job.
Where to nd more information:
speak to the career counselor at your school or university
speak to the graduate recruitment ofcers at the major employers
attend career expos and fairs
check university and recruitment websites for information on
careers and job hunting
search the careers section on the websites of major employers
search the Internet sites of industry associations
monitor the job adverts in the press and on recruiters websites to
get a feel for whats happening
speak to people in the industry to nd out whats happening
speak to employment agencies and recruitment consultants.
The Finance Sector
Union exists to promote,
improve and protect the
working conditions and
entitlements of its members.
Its members work in banks
and other nancial services
organisations. For more
information see:
www.fsunion.org.au
fyi
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141
Buzz words
Buzz words
ABN AMRO international bank with ofces in Australia that
provides investment banking products and services
ACCC Australian Competition and Consumer Commission
AFMA Australian Financial Markets Association
AGSM Australian Graduate School of Management
angel wealthy individual who invests in entrepreneurial
rms although angels perform many of the same
functions as venture capitalists, they invest their
own capital rather than that of institutional or other
individual investors
AO Ofcer in the Order of Australia awarded for
distinguished service of a high degree to Australia
or to humanity and at large
APRA Australian Prudential Regulation Authority
arbitrage simultaneous buying and selling of one security at
two different prices in two different markets, which
results in prots without risk
ASX Australian Stock Exchange
A-type someone who is hard-working, ambitious, and is
preoccupied with schedules and the speed of their
performance
BASEL II round of deliberations by central bankers from around
the world, under the auspices of the Basel Committee
on Banking Supervision in Basel, Switzerland
bear market market that is not looking positive
beauty parade process run by a company seeking to appoint an
investment bank to undertake a transaction
BIMBO combination of a management buy-out and a
buy-in this is when outside managers join forces
with existing managers to take over a company,
subsidiary or unit
bookbuild auction used to determine demand for a particular
share and different price levels
bull market market that is positive
burn rate rate at which a company requires additional cash to
keep going
CA Chartered Accountant
capitalisation rate the same as yield of a rental property but from the
perspective of if you know the annual rental and the
capitalisation rate you can determine the value of
a property
CBO Collateralised Bond Obligations
CFA Chartered Financial Analyst
COB Continuity Of Business
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Investment Banking
common stock equity typically held by management and founders
typically, at the time of an initial public offering, all
equity is converted into common stock
COMPAC Comparable Acquisitions Analysis
COMPCO Comparable Companies Analysis
consolidation private equity investment strategy that involves
merging several small rms together and exploiting
economies of scale or scope
CPA Certied Practising Accountant
DCF Discounted Cash Flow analysis
derivatives generic term for futures, options and swaps
which are nancial instruments used normally to
manage risks
discounting technique of producing the NPV
distressed debt involves purchasing discounted bonds of a nancially
distressed rm distressed debt investors frequently
convert their holdings into equity and become actively
involved with the management of the distressed rm
divestment when a company chooses to sell one of its assets or
business units
DMF Discretionary Mutual Funds
DOFI Direct Owned Foreign Insurer
DR Disaster Recovery
due diligence investigation and evaluation of the soundness of
an organisation
EBIT Earnings Before Interest and Tax (earn out) part of
the price of a transaction which is conditional on the
performance of the company following the deal
EEO Equal Employment Opportunity
EV Economic Value
extramural activities activities carried on outside the bounds of an
institution or community
face time waiting behind at the ofce without any real work
to do
FSU Finance Sector Union
funds management when an organisation manages investors money
for a fee
fund of funds fund that invests primarily in other funds rather than
in direct investments
FX Foreign Exchange
gearing total borrowings of a company expressed as a
percentage of shareholders funds also known as
debt/equity ratio
HIH HIH Insurance Group in 2001 the company went
into liquidation and it is currently the subject of a
Royal Commission
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143
Buzz words
IAR Independent Accountant Reports informs
shareholders in the course of an IPO
IBNR Incurred But Not Reported
IBSA International Banks and Securities Association
of Australia
ID Industrial Democracy
IFRS International Financial Reporting Standards
independent expert
report
informs shareholders whether the share price paid
for any transaction is fair and reasonable
IPO Initial Public Offering the rst sale or issue of
privately owned equity (securities or shares) in
a company via issue to the public and investing
institutions. An IPO can also be known as going
public or taking a company public
IRR Internal Rate of Return the return which can be
earned on the capital invested in the project, i.e.
the discount rate which gives a NPV of zero. This is
equivalent to the yield on the investment (a project
is a good investment proposition if its IRR is greater
than the rate of interest, including an appropriate
risk premium)
IRS Interest Rate Swaps type of transaction done to
manage a portfolio
KPIs Key Performance Indicators
LBO Leveraged Buy-Out acquisition of a company,
subsidiary or unit by another, nanced mainly
by borrowings
league tables measure by which investment banks compare their
performance in the key areas of M&A, equity and
debt underwriting
leverage ratio of debt to assets
M&A Mergers & Acquisitions
MBA Masters of Business Administration
MBI Management Buy-In when a new team of
managers makes an offer to a company to buy
the whole company, a subsidiary or a section
of the company, with the intention of taking over
the running of it themselves (venture capital often
provides the major part of the nance)
MBO Management Buy-Out any public or private
company buyout in which long-term, experienced,
inside management is involved investments are
compared on NPV and risk. A risk is anything that
will cause the NPV to change
MD Managing Director
meritocracy system in which advancement is based on
individual ability or achievement
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Investment Banking
mezzanine debt a particular form of debt where certain rights of the
debt provider are subordinated to senior
debt providers
NPV Net Present Value measure of protability of an
investment
OHS Occupational Health and Safety
P/E Price/Earnings ratio calculated as the market
capitalisation divided by the net prot after tax and
is an important indicator as to how the investing
market views the health, performance, prospects
and investment risk of a public listed company. They
are best viewed over time so that they can be seen
as a trend and used as a guide alongside other
indicators, not an absolute measure to rely on itself
performance bonuses awarded for achieving objectives
pitch book presentation made to a client on a transaction idea
psychometric measurement of the psychological aspects of a
person, such as knowledge, skills, abilities,
or personality
PwC PricewaterhouseCoopers
QIC Queensland Investment Corporation
QTC Queensland Treasury Corporation
RBA Reserve Bank of Australia
RFP Request For Proposal
risk management being able to manage different risks and anticipate
a wide range of circumstances that have to be
managed and having procedures and systems in
place to manage circumstances as they arise
road show marketing of an investment or offering to potential
investors
ROE Return On Equity
roll-ups when a company acquires a number of business or
assets and consolidates these within a single entity
SARS Severe Acute Respiratory Syndrome
securitisation pooling and re-packaging of non-tradable securities
into marketable securities
senior debt package a form of debt affording debt providers the
maximum security and rights the company is willing
to offer
SIA Securities Institute of Australia
skills shortage shrinking labour market due to an ageing population,
slowing birth rates and skilled immigration rates
spin-offs when a company chooses to separate a business
unit from their core business
structured notes includes foreign exchange loan, forward or futures
contract with built-in options structured to a
clients need
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Buzz words
syndicate group of brokers formed to sell a stock
synergies cost savings and revenue benets that ow from a
transaction
takeover defences strategies implemented by the target company in
order to prevent its takeover
topey when a stock looks expensive
VaR Value at Risk a portfolios maximum likely loss over
a predened holding period and condence interval
variable comp discretionary bonus
WIF Women in Finance
yield cash return from an asset calculated by dividing
the gross dividend by the share price and
expressed as percentage. It shows the annual
return on an investment from interest and dividends,
excluding any capital gain element
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147
Appendi xes
Appendix 1
Comparative starting salaries of various
professions
Bachelor degree
In full-time
employment
Seeking full-time
employment, not
working
Seeking full-time
employment,
working part-time
or casual
Further
full-time study
Median starting
salary ($000)
Agriculture 75.3 9.2 15.5 21.2 35.0
Architecture** 90.9 4.1 5.0 26.9 31.3
Building 89.3 3.9 6.8 22.6 35.0
Urb & reg planning 92.3 4.5 3.2 14.6 40.0
Humanities 67.0 12.3 20.8 34.1 33.0
Languages 71.7 9.8 18.5 42.7 36.0
Vis/perf arts 56.0 15.1 28.9 34.9 32.0
Social sciences 68.5 13.2 18.3 34.7 35.3
Psychology 70.3 9.3 20.4 45.1 37.0
Social work 77.9 7.0 15.0 9.4 37.7
Business studies 80.1 7.3 12.6 16.4 35.0
Accounting 87.1 7.5 5.4 9.4 35.0
Economics 85.1 6.1 8.8 25.0 38.7
Education 79.6 3.1 17.3 7.4 40.0
Education post/other 91.1 1.3 7.6 15.6 40.0
Aeronautical eng 76.3 13.6 10.2 16.0 42.0
Chemical eng 84.2 10.8 5.0 28.0 44.5
Civil engineering 96.5 2.5 1.0 10.0 40.0
Electrical eng 80.7 11.3 8.0 19.8 42.0
Elect/Comp eng 77.7 13.4 8.9 25.9 41.0
Mechanical eng 85.4 8.1 6.5 11.7 42.5
Mining engineering 96.6 3.4 0.0 10.1 57.0
Other engineering 85.8 8.2 6.1 18.0 40.1
Surveying 93.0 3.5 3.5 9.8 37.5
Dentistry 97.0 1.5 1.5 2.7 60.0
Health, other 79.3 6.3 14.4 29.1 38.7
Nursing, initial 95.9 0.6 3.5 6.2 37.0
Nursing, post-initial 95.9 0.7 3.3 7.4 37.2
Pharmacy** 99.1 0.0 0.9 15.3 29.0
Medicine 98.3 0.3 1.5 11.4 45.3
Rehabilitation 91.0 2.1 6.8 15.5 40.0
Law 87.4 5.8 6.8 21.6 40.0
Law, other 85.6 6.2 8.1 20.3 33.5
Computer science 70.5 14.9 14.6 22.6 38.0
Life sciences 69.0 10.8 20.2 47.3 36.0
Mathematics 64.4 18.2 17.3 45.3 40.0
Chemistry 78.7 10.1 11.1 50.6 37.0
Physics 69.0 10.1 20.9 54.7 38.0
Geology 79.3 12.9 7.9 43.7 40.0
Veterinary science 98.0 0.0 2.0 8.1 36.0
Bachelor degree graduates: employment, further study and starting
salaries (%), 2004
Source: Graduate Careers Council of Australia, www.graduatecareers.edu.au
* Base gure is group in full-time employment. ** Pre-registration
IB - 191205.indd Sec1:147 20/12/05 6:52:30 AM
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Appendix 2
Sample job advertisements
Product Control Manager, Singapore
Global Investment Bank Exceptional Offshore Opportunities
About Our Client
As a leading global investment bank, our client has the vision, product range and
international network to stand amongst the elite operators within global banking.
Job Description
If you are someone who likes to keep up with the latest in nancial markets and relishes
the challenge of understanding nancial products, then this is an exciting opportunity for
you to join a dynamic and expanding team.
You will provide daily P&L reporting and support to domestic and overseas Financial
trading desks, and understand and control the business from Front to Back, ensuring
the accuracy and integrity of corporate data. Involvement in month end procedures
will be key and as part of a dedicated team you will contribute to the continuous
improvement of business processes.
The Successful Candidate
You will have an accounting or nance qualication and proven Investment Banking
experience preferably within a comparable control environment or from a top tier
Chartered rm.
Senior Analyst Funds
Management
Work with an exceptionally talented team
Be part of a growing organisation
This nancial services rm specialises in providing value-added information
and nancial investment tools in a timely and easily-accessible manner
to the Australian investment community. Services include equities and
managed funds research, general market and economic summaries,
specialised reports, model portfolios and portfolio management.
They seek a senior analyst to perform qualitative and quantitative research
on fund managers and managed investment products. The role also
requires statistical analysis of fund and portfolio returns and participation in
the continuing development of investment tools.
To be successful in this role you will possess strong analytical skills,
including the ability to critically analyse an investment team and process
across a range of asset classes.
Excellent remuneration will be negotiated with the right candidate.
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Appendi xes
Director
Investment Banking
Equity Capital Markets, M&A, Advisory & Transactional focus
Investment Banking
A global investment banking group, specialising in Equity Capital Markets, M&A,
advisory and transactional related activities wishes to recruit a rst-class investment
banking professional at Associate Director level to their team in Hong Kong.
We seek an Investment Banker with 3 to 4 years experience who is immediately
capable of transacting business and project leading transactions. The sucessful
candidate will be an energetic, positive and enthusiastic person who has a strong
mix of deal origination, client relationship management, deal execution, and valuation
and nancial modeling skills. This position offers a broad spectrum of transactions
across a number of industry sectors as well as exposure to high-prole transactions.
This is a unique opportunity for a highly motivated and committed investment
banker ideally with exposure in the Asian, UK or USA markets who can
demonstrate transactional, originating and analytical skills who wishes to progress
to director level. For further details please email investment.bank@yourjob.com.
Corporate Finance
Leading Boutique Advisory
Excellent work/life balance Sydney & Melbourne
This leading corporate advisory group provides a range of specialised
accounting, corporate nance, real estate and management advisory services.
Corporate Finance mandates include Strategy, Equity Raisings, M&A, Divestments,
Succession Planning, Financial Restructuring and Valuations & Expert Opinions.
This is a newly-created position due to the recent appointment of a new director
and an increase in the mandates this boutique advisory rm is working on.
Working closely with directors and key stakeholders, you will be exposed to
transactional activities ranging from $10M up to and over $500M.
Ideally, the successful candidate will have worked with either a top- or second-
tier consulting rm within investment banking or at a law rm. You will be highly
numerate and have had signicant nancial modelling experience. You will have
nancial acumen and an understanding of a P&L and balance sheet will be
paramount to your success.
This boutique advisory is employee aware and recognises the value of work/life
balance while working with some of Australias leading players in corporate nance.
Attractive salary package + excellent bonuses are offered to the successful
candidate.
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Investment Banking
PERSONAL DETAILS:
Name: Amanda Shannon Bolger
Date of Birth: 22nd January 1972
Address: 16 Redtree Street
Stanhelm VIC 3000
EDUCATION:
Post Grad: University of Melbourne
Completed 1997
Tertiary: Royal Melbourne Institute of Technology (RMIT)
Bachelor of Business (Economics and Finance)
Completed June 1994
Secondary: Greenville Girls High
Completed VCE Nov 1990
EMPLOYMENT HISTORY:
Program Sales Trader, Arnold and Sons, Melbourne
July 2000 January 2005
Responsibilities:
Management of two funds, tracking and adjusting the benchmark and re-optimising
when necessary.
Sales & Trading for large ticket Portfolio Trades and Transition Management Trades.
Salesperson of Principal & Agent Programs for customers, and trading these on the
worldwide exchanges.
Presentations to market the business, develop client relationships and expand the
client base.
Market making in Derivative instruments such as Program Trades, Transition
Management Trades, ETFs, EFPs, Warrants and OTCs.
Optimisation of Portfolios benchmarks and reducing tracking using Barra.
Calculation of baskets to identify arbitrage openings.
Manipulation of spreadsheets to detect index change opportunities.
Adaptation technology to meet internal and external clients needs.
Identication and utilization of cross-selling opportunities.
Intensive co-ordination of risk management and open positions across regions.
Development and utilisation of Pre-Trade, Post-Trade and Transaction Cost Analysis.
Appendix 3
Sample rsum
1
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Appendi xes
Senior Trader, Goldsteins Global, Sydney
March 1994 March 1999
Responsibilities:
Advising Salespeople, Traders and clients on current market activity and arbitrage
opportunities.
Placing and executing orders to trade shares on behalf of Institutional Clients on the
Australian Stock Exchange.
Executing Program Trades as Principal.
Placing orders for execution on the Sydney Futures exchange.
Placement of orders for international exchanges on behalf of clients.
Advising Private Banking services on transactions.
Trade reporting of completed transactions to the relevant exchanges and clients.
Management of positions in markets for clients and also for rm accounts
PROFESSIONAL QUALIFICATIONS:
NASD registration (US licence) for Series 7 and Series 3 ability to give advice and
trade on behalf of Arnold and Sons in Equity and Derivative instruments on
exchanges worldwide.
SFA licence (UK licence) to deal in Equity and Derivative instruments.
COMPUTER SKILLS:
Windows applications Microsoft Word, Excel
General market applications ie Reuters, Bloomberg
Solaris Program Trading Applications
INTERESTS:
Travel have spent extended periods of time travelling throughout the United Kingdom
and Ireland, Western Europe, Eastern Europe and North America.
Live music and theatre.
Actively pursuing sport interest, particularly skiing, Tennis, Squash.
REFEREES:
Available on request.
2
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Investment Banking
Your name
Address
City State Postcode
Telephone: XX XXXX XXXX
Mobile: XXXX XXX XXX
Email: xxxxx@xxxxxxxxxxxxxx
Name of person
Position at rm
Name of rm
Address
City State Postcode
Date
Dear (name)
Re: Investment analyst position, Ref. No. xx/9999
I am interested in applying for the investment analyst position advertised on the
SEEK website. (Always refer to the specic position)
I have recently completed a Graduate Diploma of Applied Finance and Investment
from the Securities Institute of Australia and am looking to further my career as an
analyst in the investment sector. With my passion for property, I see this position
as a great opportunity for my professional development and believe I would be
a valuable asset to the company. (A little information about yourself and your
objective not lengthy)
I have highly developed spreadsheeting and analytical skills. I have produced a
number of budgeting and forecasting programs, and repayment spreadsheets
for my current employer. I have also collated and analysed market data with
information received from the Australian Bureau of Statistics to provide market-
based growth information, and recently received an award for my analytical
strengths. In addition, I have provided Access-based programs for tracking new
product development. (Answer all the requirements as per the advertisement and
give tangible evidence, where possible that you have fullled these requirements)
I would welcome the opportunity for an interview to further discuss my suitability for
this position. (A polite close)
Yours sincerely,
Your Name
Appendix 4
Sample cover letter
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Appendi xes
Appendix 5
Different types of interviews
Behavioural interviews
Behavioural interviewing is becoming an increasingly popular
interview technique. Its based on the assumption that past behaviour
is the best predictor of future behaviour. The employer has identied
what skills and qualities it is looking for in an employee, and by asking
you very detailed questions about how you reacted in past situations,
can assess whether you possess these qualities. The process also
allows the recruiter to assess how you act under pressure and your
oral communication skills.
Because of the level of detail required, it is very hard to lie
convincingly when answering behaviour-based questions. So
preparing for this is a good idea. However, even if this technique isnt
used in your interview, preparing for it will help you perform well in
any interview situation.
Find out as much as you can about the skills and qualities the
employer seems to be seeking look at the job advertisement, the
position description and on the website. Tap your memory for stories
that illustrate your skills and successes. Think back over your time
at uni, work experiences, extracurricular activities and personal life
experiences to identify times that you have demonstrated the skill and
qualities the employer is looking for.
The types of questions you could face could focus on how you met
a certain goal or how you handled a difcult situation. They usually
begin with: Tell me about a time when... or Can you a describe a
situation where... In your answer you must discuss a situation in
which you demonstrated the skills the interviewers are referring to.
Some examples include:
describe a situation in which you were able to use persuasion to
successfully convince someone to see things your way
give me an example of a time when you set a goal and were able to
meet or achieve it
tell me about a time when you had too many things to do and you
were required to prioritise your tasks
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Investment Banking
give me an example of when you showed initiative and took
the lead
tell me about a time where you have exceeded someones
expectations
think of a time when you have needed to motivate someone in a
team what did you do?
think of a time when you were placed in a difcult situation
what steps did you take to overcome your problem?
give me an example of a stressful situation you dealt with that
demonstrates your coping skills
describe a time when you had to deal with a difcult co-worker or
customer
tell me a time when you failed and the lesson you learnt from
the experience.
Always listen to the question carefully. Then describe:
what the situation entailed
what you did
the outcome.
Panel interviews
Some investment banks and government departments conduct panel
interviews to speed up the selection process. Panel interviews enable
various people to meet the candidate at once. They also promote
balanced and objective assessments because they dont rely on the
judgment of an individual interviewer.
A panel interview may consist of anything from two to six interviewers,
and can be an intimidating experience because it can appear to be
rather formal. Interviewers may take turns to ask you questions, or
one may do most of the talking. The questions asked are usually
prepared questions, and the same questions are asked of the other
candidates, ensuring all applicants have an equal opportunity to
present themselves. At the end of the interview you will be given a
chance to ask your own questions.
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Appendi xes
Some tips for panel interviews:
be condent
greet each interviewer with a rm handshake
start and nish your eye contact with the person who asked
the question
try to look at everybody present at some point during your
interview
take time to answer the questions if unsure of the question
always ask for clarication
prepare for a panel interview in the same way you would for
any interview.
Group Interviews
Group interviews enable an organisation to see a large number of
candidates in a relatively short period of time. They also help to
assess qualities that may not be so apparent in traditional interviews.
Candidates are brought together to discuss a particular topic, and
work together on a task to provide a solution in a business-like
environment. From this, recruiters hope to assess certain qualities
of the applicants such as communication skills, problem solving,
leadership, management skills and ability to work as part of a team.
Some tips for group interviews:
be active and always contribute to the task at hand
be seen to be participating
contribute to the discussion
concentrate on nding the best ways to achieve the set tasks
consider your position before contributing
listen to and support others
show courtesy and tact
remain composed
keep a focus on the goal and on time limits.
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Investment Banking
Psychometric tests
Most investment banks will put potential candidates through
psychometric testing. These tests are used in conjunction with other
hiring tools, including interview performance and feedback and
reference checks. This means that these tests will not be the sole tool
used to make a decision about whether or not to hire you.
Put simply, psychometric tests are one objective measure used by
potential employers to assess the job role potential of individuals. The
two main ways which employers generally choose to use psychometrics
are for ability/aptitude testing and personality questionnaires.
Some investment banks will test you in-house. Others will send you to a
specialist rm to take the test. On-line testing is also an emerging trend.
There is no way to study for these tests. However, to succeed, you
need to read the questions very carefully and to answer them as
quickly and accurately as you can. Make sure that you are relaxed and
before you begin the test, ensure that you have all the resources you
need and will not be disturbed.
IB - 191205.indd Sec1:156 20/12/05 6:52:35 AM
84310_SEK0092D_250x176 16/12/05 2:40 PM Page 1

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Market making in Derivative instruments such as Program Trades, Transition

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