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The Financial Job Marketplace
Welcome
Ian Brown
Editor-in-Chief, eFinancialCareers.com
Ask any graduate recruiter which candidates stand out at interview and
they will tell you it is those who have done their homework on the industry
and the firms they are interviewing with. Sounds obvious, but many talented
students applying for internships or graduate programmes often
fail to get out of the starting blocks.
2006-07
With best wishes for your future career,
Careers in Financial Markets
Your guide to finding a job in banking and finance
Careers in Financial Markets 2006-07
£19.99
The Financial Job Marketplace
Ian Brown
eFinancialCareers.com
Contents
Banking & Wealth management 59
Foreign exchange 42
Student Centre
Like this book? You’ll love the website. Graduate Programmes
Our Student Centre is the place to go Your complete guide to applications
for the inside track on getting your and choosing between employers.
first job in finance. Check regularly Learn about the industry
for new features and updates at Financial sectors explained: including
www.efinancialcareers.co.uk/students. even more sectors than Careers
Careers in Financial Markets is
published by eFinancialCareers Ltd What’s going on? in Financial Markets.
www.efinancialcareers.com
The latest news for graduates. Career paths: profiles of professionals
Editor-in-chief: Ian Brown
Project Editor: Hashi Syedain Internships in different roles and at different stages.
Writer: Sarah Butcher
Illustrations: Fran Orford The best way to get a job is by doing an Jargon buster: know your assets
Art Director: Valerio Italiano
internship. Find out all you need to know from your equities
Designer: Rudy Guerreiro
Additional copies: about applying and making the most Top tips
cifm@efinancialcareers.com
+44 (0)20 7309 7777 of internships. Individual nuggets of advice from
©2006 eFinancialCareers Ltd
No part of this publication may be
reproduced without permission
IT in Finance This guide is designed to be used together with our Student Centre,
Information technology 90 the new graduate site on eFinancialCareers.com. It will help you to navigate
IT careers 92 your way around the competitive world of financial services and provide
IT languages 94 an introduction to the careers on offer and different sectors concerned.
IT salaries 96 This year, we also have new sections on banking IT and opportunities
IT FAQs 97 for accountants in investment banks.
On the website you will find the latest graduate hiring news, top tips from
Employers senior industry figures, the opportunity to ask questions of our panel
Employer profiles 98 of experts and much more.
By using the guide and website together, you will be among the best
Sarah Butcher
at £150k. Bonuses for top performers found it increasingly hard to get jobs.
can add another £500k and more. The good news is that at the time of writing (mid 2006),
“Financial service firms have suppressed things are looking promising for graduates again. In late
eFinancialCareers.com
salaries in favour of performance-related 2005, five out of eight investment banks interviewed
bonuses for the past 20 years,” says Alan by eFinancialCareers told us they expected to increase
Johnson, a New York City-based expert their 2006 intake by around 30%. However, this doesn’t
on investment banking pay structures. mean this will hold true for their 2007 intake.
“If you’re a senior person, less than The other good news is that because banks cut graduate
20% of your pay is base salary. The rest recruitment so vigorously a few years’ ago, there are
is down to performance. At junior levels, now insufficient experienced juniors to go around.
6 it’s likely to be 50:50,” he says. Recruiters report soaring demand for analysts and
or working in the regulatory division of a large Recruitment in structured products is being driven
accounting firm. by a quest for better investment returns – derivatives
based on underlying debt and equity products have
eFinancialCareers.com
Mergers and acquisitions been one of the only ways for investors to achieve
Mergers and acquisitions is a more volatile sector in which high rates of return.
to work. When things are hot, they’re very hot, but when If, ultimately, you want to work with structured products,
M&A deals stop happening, it is these bankers that you should train in a sales, trading or capital markets role.
are the first to be shown the door. If you decide to move into operations, you could also
In 2006, however, M&A staff were sitting pretty. In the first end up clearing and settling derivatives transactions.
quarter of the year, the value of M&A deals announced Traders who work with structured products will typically
in the UK rose 43% to £58bn according to information need an MA, or even a PhD in a mathematical subject. 7
who joined after studying a Masters in Business Morgan Stanley, says: “It’s about individual performance,
Administration (MBA). Associates typically have a team revenue generated and client service. If you progress
of analysts in their charge, to whom they allocate work. smoothly, you can become an MD by the time you’re
eFinancialCareers.com
Expect to be an associate for another three years before in your early 30s.”
moving up to the next rung – vice-president (VP).
Exception to the rule
Vice-president Although this hierarchical structure exists across banks,
At this level, life starts to become exciting. The title it’s less noticeable in sales and trading divisions. Sales
sounds grand, but don’t be deceived: vice-presidents people and traders work on their own to make money,
are plentiful at any large investment bank. As a VP in so if you’re an exceptionally talented VP on the trading desk,
8 corporate finance, you’ll manage the day-to-day affairs there is every chance you could earn more than an MD.
recruitment scheme. Over 7,500 are eliminated Hurdle 3: The first interview
at the online application form stage. If you make it through the application form and the
Academic criteria are the main stumbling point. Banks numeracy test, you can expect to be invited to a first
such as Merrill Lynch, Bank of America and Deutsche interview. By this stage, only around 1,100 of the original
Bank specify that would-be candidates must be on track 9,000+ applicants will still be in the running.
for a 2:1 and have a minimum number of UCAS points First interviews typically take place in the familiar environs
(typically 320 or more). If you don’t meet the grade, of your university campus. There, you will face a less
you won’t get any further than this. familiar panel of several interviewers made up of junior
However, even if you’re on track for a first and you’ve people from the business area to which you have applied
got five A grades at A-level, the application form could and people from the human resources department.
still trip you up. SallyAnn Birchall, head of graduate The first round is all about ensuring you’re the right kind of
recruitment at Deutsche Bank, says most candidates person for the bank. All banks have a list of skills/personal
fall down on the grounds of poor spelling, poor characteristics, known as competencies, which they
punctuation and a lack of attention to detail. try to identify. These tend to be fairly generic and include:
Calum Forrest, head of recruitment at Goldman Sachs • Team building
cites a tendency for candidates to cut and paste • Communication skills
responses from one bank’s application form to another. • Pro-activeness
“People will apply to us saying they’ve always wanted • Assertiveness
to work at Merrill Lynch,” he says. • Leadership skills
To do well on the application form, it is a good idea to Questions asked at this stage are designed to elicit
prepare your answers offline and proofread them carefully examples of desired behaviours and might include:
before submitting. Make sure you are answering Give an example of a situation when you demonstrated
the questions and try to do it concisely. leadership.
Careers in Financial Markets 2006-07
It is also an idea to get your application in early. Vivienne Joanne Scott, the head of resourcing at Morgan Stanley,
Dykstra, a former investment banking graduate recruiter says questions are designed to be open-ended. She says
turned graduate recruitment consultant, says the best responses can cover any subject area, within reason,
eFinancialCareers.com
applicants are the first off the mark. Banks are quick as long as they are detailed and specific to the candidate.
to invite these early applicants in for interview as soon “It’s no use talking about leadership in terms of ‘we’,”
as possible, she says. she says.
At this stage, recruiters will also make some effort to
Hurdle 2: The numeracy test probe your knowledge of investment banking and your
Banks are increasingly using tests to check whether motivation for working for that bank in particular. Brian
candidates are more than vaguely numerate. Some, such Hood, the head of graduate recruitment at Citigroup,
10 as Merrill Lynch, also use verbal reasoning tests says plenty of candidates respond inadequately.
“People tend to be very good at talking about the projects they’ve interviewing you will want to ensure that you have the ability to function
been involved in, but they don’t always have the right depth under pressure and have at least a basic understanding of how
of knowledge about the industry or the company they’ve applied the business works.
to,” he says. To this end, applicants for fixed-income sales roles might be
As well as knowing about the banking industry in general, Birchall asked how bond prices respond to interest rate adjustments
at Deutsche Bank says candidates will need to demonstrate real and why. Applicants for foreign exchange (FX) trading roles
interest in, and understanding of, the area of the bank in which might be asked to explain how interest rates adjust to the price
they’d like to work. of FX options.
“You need to show knowledge of the type of deals that have been
going on in the past year and which industry groups are doing Hurdle 4.1: The assessment centre
well,” she says. At some banks, the series of second interviews is replaced
or preceded by something altogether more challenging:
Hurdle 4: The second interview an assessment centre.
If you create a credible impression of being a banker who is both Assessment centres involve a series of tests intended to allow
a team player and a leader, and who is knowledgeable about the banks to scrutinise how people would perform at work. They
profession and the bank, you should be invited back for more. typically include another interview, a numeracy test, a group
By this stage, around 320 of the original 9,000 applicants are left. discussion and a presentation. All this takes place during the
Between half and two-thirds will receive the coveted offer course of a single day and around 12 candidates participate.
of a full-time place. The most challenging part of the assessment centre is the group
The main thing distinguishing second-round interviews from the discussion. Around six candidates are given a set amount of time
first-round is a greater emphasis on technical aptitude. The bankers to solve a problem together. The aim is to assess team-building
Profile
James Coppin
Analyst, Bank of America
James works in the global industries team within the corporate me to include some intelligent comments on the application form.
and investment banking division at Bank of America. He joined
the London office in August 2004 after completing the bank’s What were you asked during the two interviews?
four-week training programme in New York. James read The first interview explored my background and whether I would
economics at the University of Cambridge. be a good personality fit with the organisation. I was asked a
lot about my team and interpersonal skills. The second interview
Can you describe the application process? was more technical; it also tested my drive and reasons for
My career at Bank of America started with an internship in wanting to work in banking. One of the toughest questions was
the summer of 2003, so my application process was very much being asked what my friends would say my weaknesses were.
in two stages. For the internship, I completed an online application
form, attaching a CV and covering letter. I then had to take
a numeracy test, followed by two interviews – one with a junior James’s tips
Careers in Financial Markets 2006-07
nt to work.
with MDs, which led to a full-time job offer.
Think hard abou
t whether you wa
What’s the trick to filling in application forms? investment bank nt to go into
ing, debt capital
Do as much as you can to find out about the bank to which or the trading fl markets
oor.
you’re applying. I used two main channels – people who were
in the years above me at university and careers fairs. Using these, Show enthusiasm,
a real desire to lea
I was able to get a good feel for the atmosphere at Bank of a broad range of rn and
interests and skills
America and the fact that it’s growing fast in Europe. This enabled . 11
skills, which can prove a problem for assertive would-be bankers. Hurdle 5: The exploding offer
“Some people are not inclusive and don’t encourage the quieter Finally, even if you do make it through the second interviews,
ones to join the discussion,” says Karen Mckinley, head of graduate or the assessment centres, you may have to deal with a final obstacle:
recruitment at RBS. “They talk over them and prevent them from the exploding offer. This refers to banks’ tendency to issue a deadline
participating.” by which candidates have to accept their offer before it “explodes”,
In the team-oriented world of investment banking, this is a no-no. meaning when the offer is withdrawn.
John Sponton and Stewart Wright, authors of Succeeding “All students will be given an exploding date by which to make
at Assessment Centres in a Week, offer some advice on how a decision,” says Hood at Citigroup.
to curb alpha male (or alpha female) instincts. This can be a problem if you have several offers – and particularly
They include don’t interrupt, don’t monopolise the conversation, if you have several offers from your second and third choice
address other people by their first names and invite them banks – and are waiting to see if you receive an offer from
to contribute. your first choice.
The presentation can also be a sticking point. McKinley says The best advice? Tell the top banks on your list and leave the rest
candidates are asked to analyse some data and use it to present in the dark. If a bank knows you have several offers and are in
a convincing argument around a particular point. The main failings a dilemma about which to choose, it may make allowances for you.
include not identifying the salient points, presenting a weak In reality, however, very few graduate banking candidates will be this
argument (in a feeble voice) and changing your views when spoilt for choice. A foot in the door is your first objective – and a good
challenged. spellchecker is the first step on your way.
Profile
Gintare Karciauskaite
Emerging markets sales executive, JP Morgan
Gintare joined JP Morgan in London in August 2004 after reading that I was keen to work in fixed income at JP Morgan rather than
business studies at Edinburgh University. any other institution, as I knew the firm is a leader in this field.
What are the main elements of the recruitment process? What was the most challenging part of the process?
I completed an application form and was then invited to take a The numeracy test was tough and more complicated than
numeracy test and attend an initial interview. The following week, I anticipated. When I went into the interview, I mentioned
I was invited back again for an assessment centre and then I hadn’t done as well as I could do and that the numeracy
I was invited back for interviews with another six members test wasn’t an accurate reflection of my abilities.
of what is now my current team.
What about the assessment centre?
How did the interviews differ? I was given a role play scenario in which I had to act like a sales
The first interview focused on why I was interested in working person trying to sell a commodity. I had half an hour to prepare
for JP Morgan, why I wanted to work in sales and why I wanted and then I had to sell it to an assessor. The emphasis there
to work in fixed income rather than, say, equities. The second seemed to be on how I handled the call, rather than the actual
interview, during the assessment day, was spent running through detail of the product offered.
Careers in Financial Markets 2006-07
Internships
A vital part of banks’ graduate selection
Investment banking internships come in various If you’re one of the fortunate few selected as an intern,
guises. Banks such as Goldman Sachs, JP Morgan, rest assured that you won’t spend the summer making
Morgan Stanley, Lehman Brothers, Royal Bank of tea. At most banks, internships begin with a classroom-
Scotland (RBS), Merrill Lynch and Credit Suisse based introduction to the industry, after which interns
all offer week-long internships to first-year students. are unleashed on their chosen division, where they
Many also offer six- to-12 month internships for IT do real (hard) work.
students. However, the most important internship At Deutsche Bank, every summer intern is given training,
occurs in the summer holiday before the final year real-life case studies and a project to work on.
of your university course. “It’s crucial that we literally try people out on the work
An intensive, 10- to 12-week period of work experience, that they would be doing full-time”, says SallyAnn
the typical investment banking summer internship might Birchall, head of graduate recruitment at Deutsche.
“Internships are designed to provide an experience
“People who have completed a summer as close as possible to that of a graduate trainee,”
says RBS’s Karen McKinley.
internship have concrete examples At the start of each RBS internship, the interns sit down
of why they want a career in banking. with their line managers and create a list of skills and
As a result, they often come across experiences they want to gain. The work they do ranges
from producing research reports to helping to improve
better at interview”
SallyAnn Birchall, Deutsche Bank
the efficiency of back-office processes.
sound like hard graft. But what’s in it for you? Even fewer are called back
First, the pay. Going rates for summer internships Recruiters agree that converting an internship into
in 2006 were between £450 and £650 a week. Second, a full-time job offer is about being proactive.
the training. Interns do many of the things graduate “Perform well, show initiative and get involved,” advises
trainees do on a daily basis. Most importantly, Brian Hood, head of graduate recruitment at Citigroup.
for those who are successful, there’s the potential “Securing an internship will not automatically result
of a full-time job offer. in a full-time offer. We’re looking for people who make
“Internships have become an increasingly significant the most of the opportunities with which they
part of our graduate hiring process,” explains Calum are presented,” he says.
Forrest, head of recruitment at Goldman Sachs. Most banks assess interns’ performance twice during
“Instead of relying purely on an interview, we have the 12-week period: once in the middle and once
a 10-week opportunity to observe someone doing at the end. If you do badly in the midway assessment,
the job. At the same time, that person can establish McKinley of RBS says you’ll have an opportunity
whether it’s really what they want to do and whether to redeem yourself.
they want to work for us,” he adds. “If someone isn’t being proactive enough, the midway
At most investment banks, at least 50% of full-time assessment gives them a chance to turn that around
graduate vacancies go to applicants who took on for the remainder of the programme,” she says.
an internship the previous summer. At some banks,
the figure is even higher: Bank of America, for example, And for the many who miss the
planned to fill 80% of its full-time positions in 2005 internship boat...
with former interns. If you don’t secure an investment banking internship,
Careers in Financial Markets 2006-07
or even thousands, of applicants per place and banks during the summer. However, you will be at
use online application forms, multiple interviews a disadvantage – and not just statistically.
and numeracy tests to make their selection. “People who have completed a summer internship
Karen McKinley, head of graduate recruitment at RBS, have concrete examples of why they want a career
says applicants for internships are expected to meet in banking,” says Deutsche’s SallyAnn Birchall,
the same entry criteria – an expected 2:1 or above – “As a result, they often come across better at interview.”
and to demonstrate the same level of interest So, guess who’ll be swapping the snorkel for
14 in a banking career as full-time graduate hires. the pinstripe suit next summer?
Profile
Sim Ee Cheah
Quant modeller, Morgan Stanley
Sim Ee Cheah joined Morgan Stanley’s equities division in July For example, I ran some back testing to see whether products
2005 after completing an internship in 2004. She has a BSc are viable. This means pulling up some historical stock prices
and MA in chemical engineering from Cambridge University. for the past decade and seeing how a derivative based
on that stock would have reacted to changes in the market.
What prompted you to apply for a banking internship?
When I came to Cambridge, I’d never even heard of investment What did you gain from your internship?
banking. But in my first year I went to a lot of campus The internship was the perfect opportunity to find out whether
presentations and informal drinks sessions at finance societies this was the career for me. It confirmed I’d made the right choice.
and came to the conclusion that I’d be well suited to the fast-
paced environment of a sales and trading role. I wasn’t sure
whether I wanted to work with fixed income or equities products Cheah’s tips:
and an internship seemed an ideal opportunity to find out more.
Notes
Do your homewo
rk – read the fina
If you’re interested ncial papers.
in derivatives an
Did you intern in the department you’re working in now? about them, buy d know nothing
a book on the su
During the internship, I spent a lot of the time on the structured bject.
sales desk learning about selling derivative products. I now Go to campus pr
esentations and
work as a quant modeller, which means I help to build models from the banks. meet people
No two banks ar
for exotic options pricing. they’re an importa e the same and
nt means of find
the culture of the ing out about
organisation.
How was the internship spent?
The first half of the 10-week programme was spent moving Work very hard
during the interns
already got one foo hip. You’ve
between different roles on the sales and trading floor. I spent t in the door, so it’s
to learn as much important
the second half on the structured sales desk and got to learn as you can.
about the kinds of products we offer clients and how they worked.
Profile
Ian King
Analyst, Deutsche Bank
Ian King joined Deutsche Bank in July 2004 after reading the office before 9pm becomes a bit strange, but it was a fairly
economics and history at Durham University. He works realistic introduction to the investment banking lifestyle.
in the natural resources team within Deutsche’s global banking
division and completed a summer internship in 2003. Was it fun?
I had a really good summer. It was a fairly rock-and-roll existence,
What prompted you to do an internship? working hard but partying hard too. I went out a lot with the other
When I applied back in September 2002, the investment interns. We were all fairly conscious that it was summer and,
banking job market was very tight. Friends told me it was almost unlike some of our friends, we weren’t slobbing on the beach
impossible to get in without an internship and it seemed an in Thailand, so we made the most of the fact that we were
ideal way of finding out what a job in banking was really like. living in London for 10 weeks.
Careers in Financial Markets 2006-07
o the internship
the deep end. It’s a bit daunting when you don’t even know some feel for what bank to get a real
ing is all about.
of the basics behind putting together a pitchbook. However,
you pick things up remarkably quickly and, by the end of Make an effort wi
th other people:
the internship, I even started working on a live oil and gas deal. develop a good ra you need to
pport with your
if you want a job team, especially
offer at the end of
your internship.
What did you learn during the internship?
It was all tip-of-the-iceberg stuff, but I got a real feeling for what And finally, perh
aps the ultimate
cliché – enjoy it! 17
a job in corporate finance is all about. It was hard work – leaving
Graduate training
Programmes vary considerably
If you want to be a graduate trainee in an investment classroom training in London, which is, in any case,
bank, the chances are you have not thought much where most European graduate trainees come back
beyond the daunting application process. It is also to after the initial theoretical training is over.
worth thinking about the training itself: some banks
do it differently to others. Duration
Superficially, programmes are very similar. Whether Including classroom and on-the-job training, most
you join CIBC World Markets or Goldman Sachs, you graduate programmes last two years. However, time
will have to work hard and learn very fast. First you will in the classroom varies from just six weeks to as much
be put through a course that teaches fresh graduates as four months – the latter mostly in complex areas like
investment banking know-how, including financial IT and private banking. Banks whose trainees spend
modelling, bond pricing and stock option theory. Then a long time in the classroom say it’s an advantage.
“You need to look at how much time is invested in training,”
says Louise Murray in graduate marketing at JP Morgan,
“Time in New York is a huge opportunity
“All our students spend eight weeks in the classroom
to build networks and learn how the bank and receive ongoing training in business-specific areas
works on a global level” over the next three to five years and beyond.”
Natalie Hildon, Merrill Lynch
Delivery
you will be unleashed onto a particular division – the start The big banks tend to be proud of the fact that they use
of a training programme that typically lasts two years. their own senior bankers to deliver at least some of their
Similar enough so far. But scratch the surface and banks’ training programmes to graduates. “It’s not unusual for
training programmes are not as similar as they may at our most senior leaders to deliver classes on how to
first seem. Differences are focused on four main areas: be a more effective manager or how to serve clients,
• Location: Where does training take place? for example,” says Calum Forrest, head of recruitment
• Duration: How long does it last? at Goldman Sachs. “When we teach you about how to
• Delivery: Who delivers the training? value equity derivatives, the head of equity derivatives will
• Breadth: How much opportunity is there to learn about present the models,” says Ellen Miller, head of European
different areas of banking? graduate recruitment and development at Lehman
Brothers. And if senior managers aren’t delivering the
Location training, expect professional training companies instead.
Where do you want to train? New York? London?
Amsterdam? Tobago? Unfortunately, Tobago is not on Breadth
the list of training destinations, but everywhere else is. You want to work in fixed-income sales? Is that selling
For example, Goldman Sachs, Merrill Lynch, Morgan high-yield bonds or government debt? You probably
Stanley, CSFB and JP Morgan send some or all of their don’t know at this stage, which is why it might be an idea
trainees to New York to learn theory. to join a bank that will let you work in different areas.
This is not just a chance to have fun Trying out different parts of a bank is known as rotating.
in the Big Apple while finding out the Merrill Lynch, for example, allows trainees entering
difference between a “put” and a its global markets division to do two three-month
“call” option; it’s also about meeting assignments in its debt and equity group. Morgan Stanley
your graduate counterparts. permits trainees in its fixed-income division to do four
Careers in Financial Markets 2006-07
“Time in New York is a huge opportunity six-month rotations over a two-year period. Lehman
to build networks and learn how the bank allows trainees in its fixed income and equities division
works on a global level,” says Natalie to undertake a few three-week rotations before settling.
eFinancialCareers.com
Helen Williams
Analyst, JP Morgan
Helen is a second year analyst on the operations, finance decide where they would like to do their other rotations. Available
and business management graduate programme at JP Morgan. roles are advertised on the graduate programme website and
She is currently working in the rates hybrids middle office. graduates must take the initiative to apply. Although mobility
is encouraged, there’s no obligation to rotate.
Can you outline your experiences as a JP Morgan trainee?
Directly after joining the bank I spent two weeks on an induction What’s been the most challenging part of the programme?
course, which provided an introduction to investment banking Learning about hybrid derivative products, how they work and
– and to JP Morgan. It also allowed me to meet and get to know how they are modelled has been very challenging.
the other graduates on my intake. I then began my first rotation,
which I’m still on today, in the rates hybrids middle office. Helen’s tips:
Notes
Get as much wo
What’s that? rk experience as
be of great bene you can. This wi
fit when applying ll
The rates hybrids middle office deals with structured interest to jobs both
in terms of expe
rate derivative products. My role is primarily a trader support role. rience and inter
JP Morgan offer view practice.
This involves booking and approving trades to ensure our trade s summer and six
internships, as we -month
loadings match the legal documentation, and producing ll as Spring Wee
is aimed at first- k, which
the profit and loss figures for daily new trade activity. year university
students.
Show initiative;
How does the rotation system at JP Morgan work? do things that ar
beyond what is e above and
expected of you
The operations, finance and business management graduate to get noticed.
programme lasts for approximately two and a half years. During Network – mak
e the most of yo
that time, you typically rotate between two or three roles across among the grad ur contacts
uate trainees, wh
the divisions. The first rotation lasts for nine months to a year in different roles o will be placed
throughout the ba
and is arranged by the graduate recruiters. However, trainees nk.
Profile
Peter Jones
Associate, Bank of America
Peter is a first-year associate in the structured securities group sent to New York for six weeks of classroom training. Since then,
at Bank of America. He joined the bank in June 2004 after it’s been a question of learning on the job. I had an advantage
reading economics at the University of Cambridge. because I spent 10 weeks interning here before I joined,
but it’s still challenging. I spent three years at university studying
What does your job entail? established economic theory, which isn’t necessarily a great
I work within the European collateralised debt obligation (CDO) preparation for the contemporary and innovative world of CDOs!
origination team. CDOs are a form of credit derivative that allows
investors to buy debt that suits their risk appetite. In the origination Have you had a chance to explore other areas of the bank?
team, we work with European asset managers to create The opportunity is certainly there, but I chose to stick to the
CDOs for sale to the bank’s global client base. area to which I was recruited.
Careers in Financial Markets 2006-07
How sell all or part of their business. Goldman Sachs $417.0bn 190
Mon hot Most large investment banks become involved only JP Morgan $340.5bn 210
Ku ey
Opp dos in the biggest deals – those worth at least $150m Merrill Lynch $303.9bn 145
ortu (€118.5m). Lower value transactions worth $20m to
Morgan Stanley $291.0bn 184
nitie
and selling companies. But “trade buyers” – companies It is usual for pitchbooks to come to nothing: clients decide
working in the same industry that buy a competitor not to go ahead with the suggestions or engage a rival bank.
or another company with a complementary business However, when a pitchbook elicits a positive response,
eFinancialCareers.com
– also came back to the market. the M&A team move into “execution” mode – seeing
the deal through to completion.
Key players Live M&A deals are seriously hard work. The people
The top players in European M&A are consistently the so- involved often work days, nights and weekends,
called US bulge-bracket banks – Goldman Sachs, Morgan and are at their clients’ beck and call. Once a deal
Stanley, JP Morgan and Merrill Lynch. Rival US banks is underway, junior bankers can expect to be kept
Citigroup and Lehman Brothers, German-based Deutsche very busy assembling the reams of financial information
24 Bank and Swiss-based UBS are also heavy hitters, while and legal documentation required for its completion.
Profile
Dan Abrahams
Associate, Deutsche Bank
2nd year associate 58 – 64 98 – 149 Because the hours in this industry are long, you’ll need stamina
3rd year associate 60 – 70 120 – 230 and enthusiasm – it’s a lot easier to work with someone
1st year vice-president 75 – 90 170 – 290
2nd year vice-president 85 – 94 220 – 340
if they can remain positive, even late at night. You’ll also need
to be able to maintain your attention to detail in a highly time
pressured environment. And you’ll need to be a good
Skills organiser and communicator in order to liaise with everyone
The M&A sector is very popular with graduate applicants. involved in a deal.
“Most of our applications go to corporate finance,” says
Anand David, global head of recruitment at UBS. “It’s seen
as the most glamorous part of the business. But we also hire Dan’s tips:
more people there – this year we’re looking for 70 analysts
Notes
Don’t be put off by the
in investment banking and only 30 to 50 in capital markets.” thought that your deg
discipline may not be ree
relevant. There are all
If you’re to be one of the lucky ones, you’ll need an of people working in M& sor ts
excellent academic record and a demonstrable appetite A with all types of deg
– a history degree is vie ree s
for hard work. Susan Kilsby, European head of M&A at Credit wed as just as useful
as one in economics.
Suisse, says candidates also need to be good negotiators
and that a second European language, while not essential, Look at career guides
to establish exactly wh
is an advantage. the role involves. There at
are hundreds of jobs
As Calum Forrest, head of recruitment at Goldman Sachs, in investment banks and
M&A is just one of the
points out: “M&A is strategic advisory work. There’s a slower Explore the alternatives m.
to make sure you pick
burning fuse than is typical on the trading floor. You need the right one for you.
Careers in Financial Markets 2006-07
be totally different to whoever bought the bond originally. Bank Bond issues ($bn)
Source: Dealogic
Until the redemption date, anyone who owns a bond Barclays Capital 158.0
receives interest payments from the company as Deutsche Bank 154.0
Credit Suisse 127.8
thanks for lending it their money. Because these interest
Citigroup 122.9
payments take the form of a fixed-cash sum, bonds are
known as fixed-income products. Similarly, the bond Deutsche Bank, JP Morgan and UBS, meanwhile, topped
markets can be known as the fixed-income (FI) markets. the equities league table, followed by US banks Goldman
As well as simple equities and bonds, capital markets Sachs and Morgan Stanley.
divisions also issue more complex products, such as
equity-linked products (bonds that can be converted Top ECM banks (Europe, Middle East, Africa) 2005
into equities at a pre-arranged price) and derivatives. Bank Equities issues ($bn)
Fixed-income capital markets are a lot larger than equity Deutsche Bank 19.5
JP Morgan 17.4
Source: Dealogic
ECM divisions and DCM divisions have traditionally If you work in a capital markets division, you could find
been separate. Over the past few years, however, yourself doing anything from originating (bringing in
a trend has emerged for banks to combine them into business), to structuring (assembling complex derivatives
one division. Morgan Stanley, Merrill Lynch, Lehman products) or syndicating (preparing for the sale
Brothers and Dresdner Kleinwort (formerly Dresdner of the finished products to investors).
Kleinwort Wasserstein) have all taken this approach. Origination specialists are usually senior capital markets
Both types of market grew in 2005: companies raised bankers. It’s a job that involves a lot of travel: originators
30 a total of €66.8bn listing their shares for the first time spend their time meeting clients in an effort to gain
Navindu Katugampola
Analyst in global capital markets, Morgan Stanley
Senior analyst 40 – 50 12 – 48
Junior associate 45 – 60 27 – 80 Notes
Senior associate 55 – 70 30 – 100 Try and get exposure
to the markets, ideally
Junior vice-president 70 – 90 45 – 160 through an internship.
Senior vice-president 80 – 100 65 – 275
analysts, exist for the benefit of sales people, producing Traders, sales people and researchers can be categorised
written reports on trends in the share prices of particular according to the products they sell or trade, by the types
companies or industry sectors. Sales people use the of clients they sell to or by the sector they research.
eFinancialCareers.com
information to advise clients on investing in that sector. There are also two fundamental types of trader:
Researchers spend their time scouring companies’ proprietary traders and flow traders. Most traders are flow
balance sheets and talking to company directors. traders – they buy and sell financial products on behalf
of the bank’s clients. Sales people tell flow traders what
Trends clients want to buy and sell; flow traders tell sales people
Researchers have suffered from bad press in recent whether a particular trade is possible at a particular price.
years. In 2002, 10 US banks were fined $1.4bn (€1.1bn) A handful of elite traders trade on behalf of the bank itself.
36 following accusations that they produced biased research These are the so-called proprietary traders. Their aim
Profile
Kene Ejikeme
Derivatives sales trader, Goldman Sachs
is to buy at low prices and sell at high prices, an achievement What does your role involve?
that requires both judgement and luck. Proprietary traders As a sales trader, my role is to manage client relationships
can make stupendous profits – and losses. and trade client orders. Executing a client’s orders efficiently
Progression in sales and trading is all about performance. requires a good knowledge of global markets and exchange
“We’re very meritocratic: if you come in as a junior trader and you rules. I also analyse macro/micro economic events and interpret
have a flair for it, you can move up the curve very quickly,” says their implications for the market place. However, the most
Andrew Pullman, head of human resources for capital markets important part of my job is servicing clients and cultivating
at Dresdner Kleinwort (formerly Dresdner Kleinwort Wasserstein). the relationship between them and the firm.
rkets.
Scott, head of graduate recruitment at Morgan Stanley. You’ll also
need excellent communication skills, a high degree of numeracy You can’t bluff it,
so properly rese
and the ability to understand complex products, she says. and try to get an arch the role
eFinancialCareers.com
internship or pla
Researchers can afford to be a little more introverted. David interviewing – ta cement before
lk to people who
everyday to get do this job
Mathers, co-head of European equity research and co-head a real day-to-da
of what it really y br ea kdown
of European equities at Credit Suisse, says equity researchers entails.
need to be original and decisive thinkers who can assimilate
lots of information and take an original view. Be confident – th
is is especially im
at the start when portant
“They also need excellent communication skills and the ability you won’t know
You need the confi ev erything.
to develop relationships with the companies they’re dence to say, “I ca
n’t do this.” 39
researching,” he says.
economics. But it’s a broad spread: some Executive director 730 710
of our people have a liberal arts background” Director 590 405
Associate director 440 325
Richard Davies, Morgan Stanley Associate 195 160
Euromoney magazine. Deutsche Bank and UBS alone in macro-economics,” he says, “But it’s a broad spread:
accounted for over 30% of the market, while Barclays some of our people have a liberal arts background.”
Capital and Royal Bank of Scotland improved their Renate Paxton, an FX trading specialist at Napier Scott,
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league positions in the previous 12 months. says FX traders need to be quick thinkers with a good
awareness of how the markets work. Most of the jobs
Top FX houses by % market share 2006 are now for FX derivatives traders, says Paxton,
Deutsche Bank 19.26 for which you will also need good maths skills.
Source: Euromoney
the sector has changed considerably, as participants looking at companies’ balance sheets and working
seek to become bigger and bigger. out whether it’s a wise idea to issue loans to them,
The latest manifestation of this trend was French just in case they can’t pay them back. It’s not the most
eFinancialCareers.com
bank BNP Paribas’ £3.0bn cash bid for Italy’s Banca exciting role (at first you may not meet many clients),
Nazionale del Lavoro in February 2006. Similarly, but it teaches you the tools of the trade and is a crucial
June 2005 saw the £10.3bn takeover of HVB Group, barrier to help prevent the bank from losing money.
an ailing German bank, by UniCredito Italiano, From being a credit analyst, you could progress to being
a more dynamic Italian bank. a relationship manager with responsibility for lending
Consolidation in the corporate banking sector looks set money to a handful of the bank’s customers. This is
to continue, particularly in Italy, where there are around where things start to get interesting: as you progress,
44 700 small banks, and in Germany, where the banking you’ll be making judgments on whether to lend millions
Profile
Hugh Biddell
Manager, charities and local government team, RBS
The fund management industry had a good year in Institution Assets under management ($bn)
2005. Research by US investment bank Morgan Stanley UBS 1,128
suggests fund management companies listed on stock Allianz Group 833
Barclays Global Investors 778
exchanges, which are obliged to reveal their results,
Axa Investment Managers 677
Source: Watson Wyatt
saw €365bn ($462bn) of new funds flowing into the Credit Suisse 616
industry. Operating profits rose a hefty 35% as a result.
Careers in Financial Markets 2006-07
Alison Hamilton
Director and global products manager, Martin Currie
0 – 2 years’ 2 – 4 years’ 4 – 8 years’ What’s the best investment you’ve ever made?
experience experience experience
Emerging markets: they are still the least efficient and
Fund manager £38k – £45k £42k – £75k £60k – £100k
so the markets of the greatest opportunity. I made some
Research analyst £30k – £45k £38k – £70k £60k – £100k
Marketing executive £25k – £34k £30k – £42k £40k – £65k
great investments in Mexico after the 1995 devaluation.
Hedge funds
High risks and high rewards for the lucky few
Hedge fund managers are the maverick outsiders in the During the past few years, the hedge fund industry
financial services world. Most are highly successful former has enjoyed a period of impressive growth. According
traders or fund managers who have decided to go it alone. to HedgeFund Intelligence, a research company,
The name “hedge fund” comes from the idea that money hedge funds had around $1.5 trillion in assets globally
managers can hedge their bets to ensure they make at the start of 2006. This was up from $400bn in 2000.
How money – whether the market goes up or down. Hedge finds have had a turbulent history.
Mon hot For example, a fund that invests in shares of company One of the most famous highs in the history of hedge
Ku ey
Opp dos X risks losing out if the share price falls. To offset this risk, funds came in 1992, when the Quantum Fund, run by
ortu it might buy an “option” giving it the right to purchase international financier George Soros, helped force sterling
nitie
s a particular quantity of company X shares for a particular out of the European Exchange Rate Mechanism.
price, at a particular point in the future. One of the most famous downs was in 1998, when hedge
If the option to buy is set at a low enough price, the fund fund Long-Term Capital Management, a fund with $120bn
will profit, even if the share price has fallen – it can buy the under management, nearly collapsed after making
shares at below the market price and sell them on again, bad bets during the Russian currency crisis.
thereby recovering the losses on its initial investment. Recently, hedge funds have hit a low point. Difficult market
In reality, hedge funds aren’t the only members of the conditions, as well as fears that they have been making
financial services community to indulge in hedging bad bets and are not about to deliver stellar returns
– banks do it every day. What distinguishes a hedge after all, are giving investors cold feet.
fund from a traditional fund manager is its willingness According to McKinsey & Company, a management
to push the boundaries of normal investment techniques consultancy, hedge fund growth is likely to reverse
to achieve unusually high returns. by 2010 as investors realise the returns they offer
Most hedge funds follow a particular investment strategy. aren’t quite so great after all.
the current market price for the shares. • Sales and marketing – liaising with investors and
Because hedge funds are considered risky, investors helping sell the merits of the fund;
can also put their money into “funds of hedge funds”. • Trading – executing the investment strategy, and buying
eFinancialCareers.com
These invest money across several different hedge and selling financial products according to analysts’
funds, with the intention of spreading the risk. recommendations;
• Risk management and back office – settling trades,
Trends working out a hedge fund’s risk exposure and making
Hedge funds are rarely out of the news. Whether it’s sure everything flows smoothly. In many small funds;
a question of the immense amounts of money made this is outsourced to “prime brokerage” divisions
by their founders or fears that they are liable to topple in investment banks.
50 the entire global financial system, they make good copy. Most roles are distinct: if you join as a risk manager,
Profile
David Mills
Equity analyst, Sisu Capital
Hedge fund salaries (Salaries only) many of the large companies... even if the company turns
2 – 4 years’ experience 4 – 8 years’ experience out to be uninteresting, the food is usually good.
Research analyst £38k – £70k £60k – £100k
Marketing executive £30k – £42k £40k – £65k And what’s the least exciting thing on the horizon?
Hedge fund trader £45k – £60k £60k – £80k
That would probably be number crunching company accounts
Operations £35k – £50k £45k – £65k
to create comparable company valuations.
a competitive en
a post-graduate vironment and
level. That could come as much from engineering as economics.” qualification or re
experience will he levant work
Andrew Morland says the skills needed to work in a hedge fund lp you stand out.
vary according to the strategy it’s using. If you join a global
Think about joini
macro hedge fund following a “black box” computer-driven ng an investmen
they have well-str t bank –
strategy, you will need to be an excellent (and probably PhD level) uctured graduate
and act as a feede programmes
mathematician. By comparison, if you join a fund that’s short r into the more sp
hedge fund secto ecialist
selling equities, he says a background in the equities division r.
of an investment bank is helpful. 53
from outside take over a company. Private equity group Total deal value (£m)
“You’ll need to be ranked in the top 10% Roles and career paths
People who work in private equity can make spectacular
to 15% of your peer group… anything less amounts of money. They also benefit from the kind of job
than a 2:1 is no good and some funds security most investment bankers can only dream of.
will only take a first” But don’t count on finding a job in the industry easily
Guy Townsend, Walker Hamill – private equity and venture funds hire very few juniors
and none straight from university.
There are two main entry points to a career in private
Trends equity or venture capital:
Times have been good for people working in private • Several years after graduation, after spending time
equity: the industry is booming. In 2005, European working in the “real world”;
transactions involving private equity companies rose • Immediately after a Masters in Business Administration
40% on 2004 to a record £86bn, according to Initiative (MBA) course.
Europe, a source of information on the industry. Private equity funds hire people straight from an MBA
Globally, strong conditions continued into 2006. Figures or with two to three years’ corporate finance or strategy
from Freeman & Co, a US-based consultancy, and consulting experience. Venture capital funds typically
Careers in Financial Markets 2006-07
Thomson Financial, an information provider, show hire people from high-tech industries, finance-related
worldwide buyouts in the first quarter of the year totalled or consulting jobs. Roxanne Matthews, a recruitment
$126bn (€99.5bn), up 39% on the first quarter of 2005. officer at 3i, says the company only hires people
eFinancialCareers.com
The UK market was less healthy, however. According with three to five years’ experience.
to the Centre for Management Buy-out Research, Junior staff at both private equity and venture capital
the value of UK private equity deals plummeted funds are typically number crunchers who scrutinise
38% to £3.1bn (€4.5bn) in the first quarter compared the accounts of companies in which the fund is thinking
to 2005. High-profile deals failed, such as Permira’s of investing.
£842m bid for the record store chain HMV. The next rung in the hierarchy is comprised of principals,
Trade buyers (ie. companies, rather than funds) who appraise whether an investment deal is worth
54 contributed to the slowdown. Trade buyers often bid pursuing and, if it is, doing anything from arranging
Simon Holden
Investment manager, Candover
build a relationship with the management team, develop a plan, To succeed in getting
a job in private equity
work through a sales process and get debt financing in place application needs to dem , your
onstrate that you’ve got
– and that’s just the early stages,” she says. the requisite skills and
eFinancialCareers.com
knowledge, as interview
Lori Sabet, senior vice-president at Carlyle, a large US private are inevitably technical s
.
equity group, said most junior hires come from investment
banking or strategy consulting. You can also improve
your chances by trying
Former bankers need experience in one of three areas, to learn where individ
ual funds are in their
Sabet says – either corporate finance and mergers and investment cycle, wh
at sector(s) they like
acquisitions, financial sponsors (dealing with private equity deals in, and hence wh doing
at their recruitment
firms) or leveraged finance (funding involving a higher requirements might loo
k like in the next few yea
proportion of debt than usual). rs. 57
generate the returns they require to pay pensions over and to communicate persuasively. “The strongest
the next 30 years or more. It is a complex role using skills you need are communication and pretty powerful
mathematical models to analyse economic factors, reasoning,” he says. “We don’t want someone
such as interest rate changes, as well as the timing who will sit in a corner, quiet as a mouse.”
of the pension fund’s liabilities and the likely risks Elizabeth McGine, a graduate recruiter at Mercer, says:
and returns associated with each type of asset; “We look for good time managers (who can cope with
2) Fund selection: Fund selection specialists spend much studying and working simultaneously) with a mathematical
58 of their time analysing individual fund managers and background – an A or a B at maths A-level is mandatory.”
With rich people getting richer, business is booming. they still do. But in most banks, investors and relationship
A study by the Scorpio Partnership, a consultancy managers are now separate, another symptom
working in the wealth management sector, found assets of the industry’s growing complexity.
eFinancialCareers.com
managed by private banks globally rose more than Banks such as Coutts (part of the Royal Bank of Scotland),
7% in 2005 to over $6 trillion worldwide. Goldman Sachs, HSBC and UBS run graduate training
The private client broking market has benefited from rising schemes for private bankers. If you don’t find a place
stock prices. Between March 2003 and March 2006, on a graduate training scheme, then it is often possible
the FTSE 100 index of the largest UK companies rose to move into private banking with a background in
more than 80%, encouraging individual investors to invest corporate finance or, more particularly, fund management.
money in the markets after many pulled out following If you work as a private client broker, you will have to
the bursting of the technology bubble in 2001. develop relationships with (usually) wealthy individuals, 59
Profile
Mark Evans
Family business and philanthropy, Coutts & Co
Private banking salaries 2006 giving strategy. This involves understanding peoples motivations
Years of experience Base pay (£k) for giving, helping them define their objectives, researching
2–5 45k – 60k causes and working with third-party professionals to identify
4–8 55k – 90k
8+ 80k +
the appropriate charities or projects to support.
I might also have discussions with family business owners on
While private bankers are typically paid a base salary and a issues such as business succession, raising liquidity or recruiting
bonus, private client brokers usually earn a fixed percentage non-family members to the board, so that I can bring in the
commission based on the revenues they bring in. Harry right bankers or external experts to help.
Pilkington, a headhunter at search firm Armstrong International, I usually also make several presentations to win new business,
says this is typically somewhere between 30% and 40%. meet with some of our long-term clients to explore new
Someone who brings in £500k of business will therefore opportunities for expanding existing relationships and organise
not do too badly. various marketing events, such as the Coutts Forum for
Philanthropy and the Coutts Prize for Family Business Owners.
Skills
It’s no good going into private banking if you have a taste for What’s the most interesting thing about your job?
gossip and celebrity intrigue. Private banking recruiters stress Meeting leading business people, social entrepreneurs and
that discretion is a key attribute of people in this sector. professionals, who all want to make the world a better place.
Marc Hoodless, head of HR at British private bank Hoares
Bank, says as well as being discreet, private bankers need And which part could you live without?
excellent customer service skills: “You’ll need demonstrable Anything to do with administration and paper work.
knowledge and understanding of the financial markets.
You’ll also need to be able to establish a relationship
Careers in Financial Markets 2006-07
Global custody
Keeping the paperwork for other people’s assets
Before computers existed, global custodians had large the returns clients’ investments have made over a
filing systems for their core work – storing certificates period of time); trade support (ensuring trades are
of share ownership for their clients. Fortunately today, settled properly); and proxy voting on behalf of clients
certificates related to asset ownership are stored at shareholder meetings. However, custodians typically
electronically, making the business of custody much specialise in a particular area, so what you do will depend
How less space intensive. on where you work. Custodians also offer more exciting
Mon hot Unfortunately, custodians merely look after this money
Ku ey
Opp dos – they don’t earn it in revenues. Instead, they levy a fee Top banks by global custody assets 2005 (£bn)
ortu (typically up to 0.08%) of the assets they’re managing. JP Morgan 5,699
nitie
s State Street 5,331
Citigroup 3,727
Trends Mellon 2,232
Source: GlobalCustody.Net
Global custody is a big business. In 2005, the total value BNP Paribas 2,026
HSBC Securities Services 1,679
of worldwide custody assets was more than £40 trillion, Northern Trust 1,572
according to globalcustody.net, a specialist website. RBC Dexia Investor Services 1,123
The bad news is that custody fees are under pressure CACEIS Investor Services 1,045
Investors Bank & Trust 973
as everyone competes for the same business. Custodians
are increasingly branching out into more lucrative client-focused and technical jobs.
businesses such as securities lending (lending out stocks Relationship managers, for example, work with clients
and shares owned by their clients) and risk measurement. to reassure them that their assets are safely maintained.
Small custodians lack the manpower and technological Kirsten Duffy, a custody specialist at recruitment firm
wizardry for these higher margin activities and are Morgan McKinley, says graduates typically move into
gradually being subsumed into bigger players as a result. these more interesting positions after a few years.
In 2005, for example, Royal Bank of Canada merged its Few global custodians offer graduate training programmes,
custody activities with those of Dexia, the Franco-German so it’s worth sending in your CV speculatively.
bank, to form the world’s ninth-largest global custodian
by assets under management. This followed numerous Pay
Global custody pays much less than investment banking
or asset management. But the pay is rising.
“People going into areas like settlements
Spencer George, a consultant at recruitment firm
and corporate actions need to be organised, Badenoch & Clark, says salaries for custodians have risen
process-driven and able to work under pressure” around 15% in the past year. “Custodians are now paying
Kirsten Duffy, Morgan McKinley entry-level staff around £30k,” he says. “A few years ago,
they were taking on graduates at only £23k.”
other instances of consolidation, such as Citigroup’s But you won’t get rich working in custody. George says it’s
2004 purchase of ABN Amro’s custody operations and very unusual to earn more than £100k. The best paid roles
Deutsche Bank’s sale of its large global custody business are apparently in derivatives trade support, relationship
to State Street in 2003. management and performance measurement. Morgan
McKinley says custodians can earn £70k or more within
Key players eight years.
It’s no coincidence that the global custody industry is
dominated by very large US banks. In the past decade, Skills
Careers in Financial Markets 2006-07
the industry has invested serious money in updating Scott Dickinson, a global relationship manager at
technology and large firms were the only ones with budgets BNP Paribas Securities Services, says people going into
big enough to do this. Today the industry is dominated relationship management need two to five years’ operations
eFinancialCareers.com
by JP Morgan, Bank of New York and Citigroup. or client services experience in the financial sector.
“Candidates should be able to demonstrate strong
Roles and career paths communication, planning and selling skills,” he says.
Let’s be honest – much of the work is administrative The bar is lower for junior jobs. Duffy at Morgan McKinley
and repetitive, but the role of the custodian has says: “People going into areas like settlements and
widened to a range of other services. These include corporate actions may not need a degree. They will,
income collection (eg. collecting dividends from clients’ however, need to be organised, process-driven
62 investments); performance measurement (calculating and able to work under pressure”.
Simon Lockren
Supervisor, global equity services, Lehman Brothers
Operations salary and bonus 0 – 2 years’ experience 2006 a lot of work in dealing with the change.
Role Salary Bonus %
Trade support 28k – 38k 20 – 30 Solving endless problems each day – isn’t that frustrating?
Settlements 26k – 36k 20 – 30
Not really. I enjoy that aspect of the job and anyway, if you’re
Business analyst/Projects 28k – 38k 20 – 30
doing your job well, then the same problems shouldn’t keep
recurring. What can be hard is being positioned between
Skills the requirements of a client and the requirements of the
Stefano Toffolo, head of European operations at Credit Suisse, firm. You need to be client savvy – it’s no good insisting
says people wanting to work in operations need to be able the firm is right and annoying a client.
to continually reinvent the model within which banks operate,
and deal with conflicts firmly and efficiently. He says a second
language is also beneficial.
Simon’s tips:
Notes
Jo Scott, the head of European graduate recruitment at Morgan Make sure you ar
e aware of the dif
Stanley, says the bank looks for operations people who have between working ferences
Careers in Financial Markets 2006-07
in operations an
strong analytical and problem-solving skills. of the bank – an d in other areas
operations career
different to sales is completely
“Prioritising work to meet deadlines is key. Operations is also and trading or co
and requires a dif rporate finance
a very team-based environment, so you’ll need to be able ferent skillset.
eFinancialCareers.com
such as banks’ involvement in the collapse of Enron, a particular transaction affects the company’s
the Texas energy trading giant; Worldcom, the bankrupt solvency.
telecommunications company; and Parmalat, Operational risk experts review the likelihood of
eFinancialCareers.com
the fraudulent Italian dairy manufacturer, banks particular risky events taking place and formulate
are increasingly sensitive to the risk of sullying their plans in case they do. If you work in operational risk,
good names by association with dodgy business deals. you could find yourself doing anything from ensuring
The adverse publicity generated from Citigroup’s that computer back-up systems work properly
run-in with the Australian financial services regulator to conducting post mortems on how well the
in April 2005, following accusations of insider trading, bank dealt with disastrous events in the past.
is a reminder of what can happen if things go wrong. Reputational risk specialists endeavour to manage
66 A 2004 study by accountancy firm PricewaterhouseCoopers the bank’s image. Few banks employ reputational
Ingrid Riac
Associate, Dresdner Kleinwort
0 – 2 years’ 2 – 4 years’ 4 – 8 years’ and underwriting to trading on financial markets. We have a role
experience experience experience
in providing proactive advice and counsel on the transaction
Credit risk £32k – £42k £40k – £55k £50k – £85k and ensuring that credit concerns are raised in time. As a result,
Market risk £32k – £45k £45k – £60k £50k – £95k
we have direct and close relationships with the front office – the
Operational risk £32k – £40k £45k – £55k £45k – £85k
investment bankers, the salesforce, traders and lending teams.
We also work closely with the legal and compliance teams.
Skills
Julian Shaw, the head of risk at Permal Investment What’s the most challenging aspect of your role?
Management, a fund of hedge funds, and a former global After complex negotiations, it may happen that the final risk
head of market risk at Barclays Capital, says: “Market risk involved in a particular trade remains above the bank’s risk
specialists need strong skills in mathematics (especially appetite for the counterparty. We, therefore, have to explain
applied mathematics and statistics) and finance (especially to the sales person, who often has put substantial effort into
option theory and portfolio theory), plus above average winning the business, that the transaction cannot be performed
common sense to figure out the key problems and under final terms. It’s important to remember that the bank
strong communication skills to explain them.” has a defined risk appetite for each counterparty.
Adrian Marples, a risk management recruiter at Sheffield
Haworth, says market risk specialists often have a first-class
Ingrid’s tips:
degree in physics or an MA in mathematics. By comparison, Notes
Careers in Financial Markets 2006-07
he says: “Credit risk people need to be inquisitive and able You need to be resilie
nt, persuasive and abl
to extract information from clients about their strategy to stand your own gro e
und when a deal can
and financial position.” go ahead. ’t
eFinancialCareers.com
tightened considerably in the aftermath is that Goldman Sachs and UBS now offer dedicated
of the terrorist attacks of September 11, compliance training, and more are likely to follow.
2001, creating plenty of work for banks’ If you don’t get onto an investment bank’s compliance
eFinancialCareers.com
money laundering departments. training course, there are a few other options. One is
to train with the FSA, which hires around 40 graduates
Roles and careers annually for a two-year training programme. Another
Jobs in compliance vary, depending on is to work for the compliance consulting arm of a Big
the area in which you work. If you opt for Four accountancy firm, such as PricewaterhouseCoopers.
money laundering, you’ll spend your time Alternatively, you could take a further degree: for example,
on the look out for suspicious transactions. London’s Metropolitan University offers an MSc course
68 For example, if someone pays cash for in financial regulation and compliance management.
Profile
Stephen Morse
Global head of compliance, Barclays Capital
At a glance
Ratings agencies rate companies
by how well they honour their debts
Data providers
Data providers offer live data
to traders and sales people
Graduate training schemes in both
Ca CC CC
to increase its market share.
C C C
According to Reuters’ own research, it currently accounts
by calculating the likelihood of a default, data providers, for around 27% of the market for providing trading
such as Reuters, Bloomberg and Thomson Financial, terminals to traders, which is on a par with Bloomberg.
provide live (real-time) information on the changing It estimates that Thomson accounts for a further 8%
prices of financial products. and that the remainder of the market is divided between
They also offer a wealth of other data, including news smaller competitors such as SunGard Market
70 analysis and information on company accounts, Data Services and Telekurs.
Maren Josefs
Associate director, Standard & Poor’s
a further £29bn to £39bn. Closer to home, the explosion resources, finance, and technology, insurance offers
at the Bunsfield oil terminal in December 2005 is expected a number of specialist careers. These include:
to cost around £200m. • Underwriting
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Profile
Thomas Needham
Account developer, Allianz Cornhill
Claims broker, 2 – 5 years’ experience £20k – £30k and variety. It also seemed to be an area that had been
Claims broker, 5 years’ experience £30k+ overlooked by many university students. The concept of
Commercial underwriter, 2 – 5 years’ experience £30k – £45k
Commercial underwriter, 5 years’ experience £45k+ taking risks for a living is an exciting prospect and that’s
what insurers do every day – take educated risks about
what to insure and at what price.
Skills
The skills required for working in the insurance industry vary.
If you want to work in an actuarial job, for example, you’ll typically Thomas’s tips:
Notes
need a mathematical degree. But if you want to work as an Don’t think you ne
ed a degree in ec
insurance broker, you’ll need to be personable, good at building The quality of th onomics.
e person matters
relationships and able to sell. the degree subje more than
ct. People in this
“It helps to have numeracy skills, and people skills,” says Wellard have degrees in industry
everything from
at the CII. “You’ll also benefit from an interest in legal issues, and geography to his tory
Careers in Financial Markets 2006-07
economics and ma
as there’s often a legal slant to the problems you’ll be addressing.” ths.
Laura Cullen, graduate scheme manager at Axa, says it looks for Do your research
about which comp
graduates with a 2:2 or above, who have excellent interpersonal want to join. Man any you
eFinancialCareers.com
y companies have
skills, leadership potential, high levels of energy, and who can graduate schem excellent
es, although the
brand name ma company
stand up for themselves in the face of potentially awkward clients. y not be as high
as its profile.
Debbie Crewe, graduate development manager at Allianz
Cornhill, says she looks for management trainees who are There is a variety
of roles in the ins
industry. Find a urance
passionate about insurance: “We’re looking for people who scheme that gives
the opportunity yo u
can demonstrate an interest in the industry. There’s plenty to experience an
them all. d co ns ider
of information in the national press and on our internet site,
and we would expect applicants to have absorbed this.” 75
Clare Miller, diversity recruiter at Goldman Sachs, says Nevertheless, some students complain of unfairness
the SEO programme is an opportunity for ethnic minority in banks’ selection procedures. A Masters in Business
students to gain a broad-based introduction to investment Administration (MBA) student at the London Business
eFinancialCareers.com
banking. “Unlike a standard internship, which takes place School, said: “I’m certain that women find it easier
in a single firm, SEO interns get to learn about the whole to get offers from investment banks. They’re asked
industry. They are offered mentoring from bankers at other in for informal interviews and chats all the time.
participating firms, and attend industry-wide seminars Men get none of that.”
throughout the summer,” she says. Banks, however, deny this is the case. “The investment
Ethnic minority and female students can also benefit from banking industry needs to attract and retain good talent
Chances Events, run by graduate publishing company GTI. from wherever possible,” says SallyAnn Birchall,
76 These take the form of one-day sessions held on head of graduate recruitment at Deutsche Bank.
Key banking terminology the top banks will expect you to know
Back office Derivatives
Refers to all the behind-the-scenes processes at an investment A derivative is a financial device that depends for its price on
bank, which don’t directly bring in revenues. Most of the work another financial product (eg a stock, bond or foreign currency),
is largely administrative. or on changes in a financial index or rate (eg the FTSE 100 index
of large UK companies, an interest rate, or an exchange rate).
Bear When you buy or sell a derivative you don’t actually buy or
A bear (or bearish) investor is a pessimist, who thinks prices sell an actual product, but a contract linked to that product.
will fall. A bear market is a market in which this is already For example, someone buying a simple stock option
happening. (a kind of derivative) acquires the right to purchase a stock
in the future at a pre-ordained price.
Basel II
An agreement between international central bankers aimed Equities
at producing a uniform global approach to the risks facing Another word for company stocks or shares. The name comes
banks. Under it, banks must identify all the risks they face from the notion that stock holders share equally in the ownership
and then allocate sufficient capital to cover potential losses. of the company (according to how many equities they own).
In most industrial countries, Basel II must be implemented
by the end of 2006. Execution
A catch-all word used by people working in banks to describe the
Bonds process of actually doing deals, as opposed to winning business.
Unlike equities, bonds are a kind of debt. Instead of getting For example, once a bank has won the right to advise a company
a bank loan, companies sell bonds and promise to pay the on an M&A deal, it moves into execution phase and the deal goes
money back to whoever buys them in X years’ time. Until then, ahead. Similarly, when a trader places a trade that goes through,
they pay the bond holder a small amount of money each year. it is executed.
Because the amount of money paid annually is fixed at the
start, bonds are also known as fixed-interest products. Exotic products
Complex derivatives. Exotic derivatives are typically linked into
Bulge-bracket bank several underlying assets or rates. For example, the price of an
A nebulous term referring to the biggest and best investment exotic derivative may depend on the average price of 20 different
banks. The US banks Goldman Sachs, Morgan Stanley and stocks, plus changes in the interest rate, and will only pay out
Merrill Lynch traditionally possessed bulge-bracket status. if the value of these underlying variants reaches a certain level.
More recently, the term has been extended to gigantic rivals Exotic products are cutting edge. They are to be contrasted
such as Citigroup, JP Morgan, Deutsche Bank and UBS. with vanilla products, which are a lot simpler.
(securities) in an attempt to make money out of their The Financial Services Authority, namely the UK financial services
changing value. Fund managers are buyside firms, regulator. The FSA is an independent body which came into being
as are hedge funds. following a government act in 2000. It aims to promote confidence
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during an IPO are sold on the primary market, for example, (which gives purchasers an option to buy a stock or bond some
as are newly released bonds, or subsequent issues of new time in the future at a pre-ordained price).
shares by companies already floating on the stock exchange.
Sarbanes-Oxley
The Sarbanes-Oxley Act came into force in the US in 2002.
It followed a series of corporate scandals, and aimed to protect
79
Career FAQs
Graduate recruiters answer your most burning questions
I’m on track for a 2:2. Do I still have a chance with eager to start as soon as possible, pandering to people interested
an investment bank? in gap years is unnecessary. Equally important, recruiters said the
Different banks approach the academic question with differing unpredictability of financial markets made it impossible to forecast
measures of flexibility. Some, such as Merrill Lynch and Deutsche how many graduates they’d need that far ahead.
Bank, apply minimum standards rigorously, as SallyAnn Birchall, “Taking a gap year is an individual choice and you will need
European head of graduate recruitment at Deutsche Bank, to apply in the year you are intending to join the firm,” says Jane
explains: “We have an exceptionally high bar at Deutsche Clark, co-head of campus recruiting for Europe, the Middle
and you need to achieve a 2:1 or above.” East and Africa at Merrill Lynch.
For others, however, academic standards are a movable feast. “We’d ask people to apply when it’s relevant for them to do so,”
Calum Forrest, head of European graduate recruitment at says Mike Clark, head of resourcing for Europe, the Middle
Goldman Sachs, says academic results are only one of the East and Africa at Bank of America.
factors influencing the bank’s hiring decisions. “We don’t hire “We can’t say whether the specific job for which they interview
one year will exist in the same capacity in a year’s time,” he says.
“We would hire someone with a 2:2
I’d like to keep my options open. Can I apply to more
if they were outstanding in other ways. than one division?
However, we would be interested in You can, but it’s not always advisable. According to recruiters,
the circumstances behind the grade” people who apply to multiple divisions are seen as lacking focus.
Calum Forrest, Goldman Sachs SallyAnn Birchall at Deutsche Bank says, “80% of people who
apply to us know where they want to work. The 20% who don’t
people who are truly weak academically,” he says, “but we would may not have done enough research into the industry or have
hire someone with a 2:2 if they were outstanding in other ways. the appetite to really succeed.” Vivienne Bradley at Merrill Lynch
However, we would be interested in the circumstances behind says jobs vary in different divisions: “It wouldn’t make a great
the grade.” deal of sense, and would suggest a lack of focus to say,
‘I really want to be an investment banker, but I also really
I studied a degree in English literature. Am I still want to work in global markets,’” she says.
able to apply?
‘Yes’ is definitely the answer: for most jobs and business areas, I don’t have any relevant experience. Is this an issue?
banks welcome applications from students no matter what their It need not be, as long as you’ve done all you can to find out
degree discipline. Anand David, global head of recruitment at about investment banking by attending university careers fairs
UBS Investment Bank, says: “As long as you’re numerate and and scrutinising their websites. Bear in mind that banks are
show a capacity to learn the skills required for the job, we’re looking for a strong interest in the industry. This could be
very interested in hearing from you.” Students of liberal arts hard to demonstrate if you’ve spent the past three summers
degrees potentially offer advantages, says David: “They often flipping burgers.
have strong written and communication skills, and tend SallyAnn Birchall at Deutsche Bank says applicants with no
to be well-rounded candidates.” previous banking experience need to draw parallels between
The exceptions are investment banking jobs like derivatives their existing (unrelated) work histories and the kinds of jobs
structuring and derivatives trading, where knowledge of advanced they’d be doing in investment banks. “If you worked the Saturday
mathematics is mandatory. Equally, investment consultants lunchtime shift at McDonalds, you’ve probably developed
typically specify a mathematical background. a great ability to multi-task and deal with awkward customers.
Careers in Financial Markets 2006-07
The answer here is probably not. Unlike accounting firms, some but it will make success more of a challenge. To compensate
of which will subsidise students who want to take a gap year, for this, he says you’ll need good university grades and evidence
banks are not big on people taking time out. We asked several of participation in extra-curricular activities.
whether they operated a gap year policy and the answer
from them all was ‘No’. Is there such a thing as being at the “wrong” university?
Various reasons were given for this lack of flexibility, including No, say the recruiters. Instead of looking at the institution,
the fact that banks receive so many applications from students most banks say they’re more interested in the candidate
80
are there alternative routes into banking? to put your question to our panel of industry experts.
The chance of getting into banking via an alternative route is Our experts include real graduate recruiters and banking
down to the banking cycle: when times are good, banks often specialists who know everything there is to know about
find themselves understaffed and hire juniors in from outside getting a job in the industry.
the industry. But when they’re bad, banks are more likely
to focus on axing the staff they already have than bringing
in new ones from elsewhere.
81
that specify the amount of capital banks should hold (For more information on these roles, see page 86.)
to offset operational problems or the risk of customers In the back and middle offices, accountants occupy
defaulting on loans. a number of roles, including:
eFinancialCareers.com
The upshot of this is a shortage of accountants. Product control: Product controllers work alongside
“A good calibre accountant with a few years’ financial traders to monitor and restrict the risks the bank is
services experience could easily get five or six job exposed to through trades. Like traders, they typically
offers without even blinking,” says Simon Lindrea specialise in a particular class of financial product.
from recruitment firm Michael Page City. Management reporting: Management accountants provide
As a result, banks are prepared to compromise on information on the state of the bank itself. This enables
the kinds of accountants they’ll employ. ACA-qualified managers to formulate strategy based on knowledge
82 accountants used to be favourite. Today, recruiters of risks and budgetary constraints.
Profile
Paul Barry
Financial control, Royal Bank of Scotland
Accountancy salaries in financial services 2006 What kind of skills do you need to stand out?
Job title Basic pay (1 – 3 years’ Bonus as a % You need to be quite analytical. Banks are always interested
(post-qual experience) of base pay
in good qualifications and a mathematical bias somewhere
Product controller £45k – £60k 10% – 25%
(simple equities)
in your degree or A-levels will probably be to your advantage.
Source: Morgan McKinley
likely to invite them to interview than someone with ACA still a notch above
a Chartered Institute of Management Accountants Certainly the best paid jobs are accessible only to
(CIMA) pass. Today this is no longer the case. ACA-qualified accountants. They can go on to become
corporate financiers, M&A bankers, equity researchers
CIMA in the City or private equity specialists.
Michael Buckley, a consultant in the newly-qualifieds “The ACA qualification is seen as an exceptional
division of Joslin Rowe, says banks’ interest in CIMA- background for young professionals looking to move
qualified candidates has risen due to a shortage of into high-profile roles in investment banking,” says
newly-qualified ACA accountants. “Firms have realised James Heath, managing director of Greenwich Partners,
they can utilise CIMA’s enormous industry knowledge a recruitment firm that specialises in moving recently
and strong business acumen,” he says. qualified accountants into front-office (client-facing)
The salary gap between ACA- and CIMA-qualified jobs in banks. “CIMA and ACCA qualifications are
accountants has narrowed in the process. According seen as less relevant. In 11 years, I have never
to Joslin Rowe, in 2000 a newly-qualified CIMA entering recruited an ACCA-qualified accountant,” he adds.
a financial services role would take home £35k, compared
with £40k for an ACA. This year, it says the difference Why the ACA appeal?
has narrowed to between £1k and £2k. According to Heath, the principle appeal of the ACA lies
Banks’ partiality to CIMA holders is unsurprising. in the fact that it’s usually taken by candidates with strong
If you join an investment bank as an accountacy trainee, academic backgrounds who train with big firms. He says
you will likely go the CIMA route; Goldman Sachs, the ideal candidate for a front-office banking position
Lehman Brothers and Dresdner Kleinwort (formerly will have a first-time ACA pass, a good set of A-levels
Dresdner Kleinwort Wasserstein) all put candidates (three A grades or an A and two Bs should be sufficient)
through CIMA. Deutsche Bank allows its accountancy and a degree from a top university. The work undertaken
Careers in Financial Markets 2006-07
trainees to choose between the CIMA, ACA or by ACA-qualified auditors is also part of their appeal.
Chartered Financial Analyst (CFA) qualification. “If you’ve worked in audit for a Big Four firm, you will
“We’re trying to be flexible,” says Carole Talbot, head typically have spent a lot of time scrutinising the accounts
eFinancialCareers.com
of Deutsche’s accountancy programme. “We want of major companies like Cadbury Schweppes,”
students to be able to take a relevant qualification he says. “That’s fantastic preparation for a job that involves
that best suits them and the business.” advising those large firms to raise money or analysing their
accounts to predict future movements in the share price.”
Acceptance of ACCA? By comparison, Heath says CIMA- and ACCA-qualified
CIMA-qualified accountants are not the only ones accountants have less exposure to large companies
benefiting from the drought of suitable ACA candidates. and both qualifications place less emphasis on pure
84 Andrew Chancellor, head of the accountancy practice audit than ACA exams.
Front-office careers
High flyers with an ACA have plenty of choices
If you’re planning to gain an ACA qualification after ACA pass holders make good equity researchers
leaving university but can’t face a lifetime of jokes about because they’re able to look at the long-term profitability
boring accountants, then think banking. Investment of businesses, build models and make stock price
banks employ ACA-qualified staff in plenty of non- projections, says Ahmed, all of which is the nub
accountancy guises. of what an equity researcher does.
“The beauty of the ACA is that it’s seen as a wonderful Guy Ashton, head of European company research
grounding for a career in financial services,” says Guy at Deutsche Bank, is ACA qualified. “Lots of people
Townsend, a managing director at City recruitment study an ACA and move into equity research,” he says,
firm Walker Hamill. “As well as accounting and risk “It gives you good modelling and analysis skills,
management jobs, some ACA-qualified accountants an understanding of financial structuring and
the ability to assess business direction.”
contemplate their strategic direction before pronouncing with the Big Four but you’ve got a 2:2 and ABC grades
whether its shares are likely to rise or fall. Zaki Ahmed, at A-level, you won’t work in M&A or private equity,”
a consultant at recruitment firm The Oxbridge Group, says Townsend. As well as good academics, he says,
says the ACA qualification is a popular route into “Client-facing roles are about personality.”
equity research. “If you have an ACA from the Big Four, Finally, it’s also worth asking yourself whether you’re
it may allow you to join a bank as an associate – prepared to make the commitment required to work long
rather than as an analyst, like most graduate trainees – hours. It may not pay as well or be as exciting, but a life
86 on a salary between £45k and £60k,” he says. in auditing will at least mean your weekends are your own.
Paul Canty
Derivatives trader, UBS
Paul has successfully made the move to a front-office role. How did you make the leap into the front office?
He currently trades inflation derivatives – financial instruments Two jobs came up internally – one for a desk assistant on
whose prices are linked to retail price indices in different countries the structured credit desk and one for an interest rate options
– in the Euro, UK and US markets. Paul has a first degree in trader. My boss encouraged me to apply for the trading
mathematics from the University of Nottingham and an MSc role and I got the job. It helped that I already had a fairly
in financial mathematics from King’s College, London. close relationship with the desk and that my boss vouched
He is also a qualified chartered accountant. for my ability to make the move.
Profile
Alex Hay
Corporate financier, Close Brothers
Alex joined Close Brothers, the merchant bank, two years ago Is accounting a good base for a corporate finance career?
from PricewaterhouseCoopers (PwC), where he was an auditor. It provides an excellent theoretical and technical foundation
Alex studied French and German at Oxford and is ACA-qualified. for corporate finance. The ACA course includes modules
on corporate finance and leaves you well equipped to analyse
What prompted you to move out of accounting? company performance and balance sheets, as well
I wanted to apply the financial skills I’d learnt at PwC in a as build financial models.
broader and more dynamic context. Audit is a statutory
requirement – it happens annually without much variation.
I thought the breadth and variety of work would be greater
Alex’s tips:
in corporate finance and I was right! I now spend my time Notes
analysing companies and markets for transaction opportunities, Try to get some experi
ence in the transactio
services division of a Big n
meeting with senior directors and other advisors to advise Four accounting firm
It will give you a flavo .
on transactions, or meeting with private equity firms ur of what a corporate
Careers in Financial Markets 2006-07
Consider opportunities
Why didn’t you go straight into corporate finance after uni? in the middle market
eFinancialCareers.com
Accounting FAQs
Answers to your most pressing questions
What are my chances of moving into investment banking How certain is it that banks will still want ACAs when
if I don’t have a first-time ACA pass? I earn the qualification in three years’ time?
It depends on the banking climate: if banks are struggling to Don’t worry – banks will still be hiring ACAs in 10 years’ time.
fill accounting roles (as they have been in 2006), they’ll take you The increasing complexity of derivative products and the
even if you don’t pass first time. But if banks are facing a rough rigorousness of the ACA course mean the qualification is
time, aren’t hiring accountants in big quantities and there are set to become increasingly popular among banking recruiters.
plenty of ACAs to go around, it will be a different matter. They may, however, get a little more choosy about who they take.
Michael Buckley, head of the newly-qualified division at At the moment, there simply aren’t enough ACAs to fill all the
recruitment firm Joslin Rowe, spells it out: “It’s down to supply positions available. But with accountancy firms now upping
and demand. In the current market, banks will accept ACAs their graduate intakes, things could be different when
without first-time passes, but a few years ago they were the current batch of trainees qualify in three years’ time.
a lot more choosy.” Noel Marshall, managing director of the banking and financial
markets team at recruitment firm Finance Professionals,
has done the sums. “In 2001 there were 3,747 ACAs qualifying,”
“As a rule the closer you are to the trading
he says. “That’s been falling consistently and in 2006, we are
and sales systems, the less likely it is that expecting only 2,948 to qualify. But by 2009, there should
your job will be outsourced.” be 3,700 qualifying again,” he adds.
Kevin O’Reilly, Deloitte If you want to be certain of using your ACA as a route into
investment banking in 2009, Marshall says you’ll need
Whatever the market’s like, Buckley says, second-time passers a 2:1 degree from a good university, exemplary A-level grades
won’t be able to move into front office investment banking roles and first-time passes (see above). You’d also be well advised
like corporate finance and equity research. “For the front office, to try to get relevant experience while you are training.
banks are still pretty adamant that they want all-singing,
all-dancing CVs,” he says. I’m training as an accountant, but want to move into
investment banking. What should I be doing to position
How soon after I’ve done my ACA should I move myself well?
into the sector? In the current market, you need to do absolutely nothing at all.
The sooner the better, says Richie Holliday, a director at Simeon Hall, head of the finance division at recruitment firm the
recruitment firm Morgan McKinley. “Newly-qualified ACAs PSD Group, says: “Demand for newly-qualified ACAs is currently
are at a good stage in their career, as they haven’t specialised strong and supply is comparatively limited, so banks will take
in a particular area,” he says. people regardless of what they worked on during training.”
If you stay in public practice too long, Holliday says, banks In a less buoyant market, however, Hall says banks will prefer
will question your motivation for hanging around. to hire accountants who have experience of auditing capital
“If you stay for another two years or so, banks will starting asking markets firms (trading houses and investment banks).
questions about whether you like working in public practice, “If you know from the outset that you want a career as an
and would therefore not be suited to banking, and whether accountant in an investment bank, it makes sense to try
you were hoping to progress to partner, but have realised and get some financial services experience, as this will
it wasn’t going to happen,” he says. always prove advantageous,” he says.
ACAs who move straight after qualifying are seen as ambitious If you have an inkling that you want to go into corporate finance,
and focused, says Holliday, both of which go down well it may also help if you spend time in “transaction services”,
Careers in Financial Markets 2006-07
with banks. which is where accountancy firms do all the due diligence for
companies and investment banks engaged in mergers and
Do I need to come from a Big Four firm to find a job acquisitions (M&A) deals. The work involves some analysis and
eFinancialCareers.com
in an investment bank? appraisal, as well as lots of fact checking, and isn’t wildly exciting.
No. In the current climate, Andrew Chancellor, head of the But it will give you an insight into how M&A deals work.
financial services division at recruitment firm Robert Walters,
says banks are willing to accept people with an ACA from I’ve got more questions, where can I go for advice?
the top 20 accounting firms. However, he adds: “You’ll also Go to Ask the Expert at efinancialcareers.co.uk/students to put
need a 2:1 from a reasonable university and at least three your question to our panel of industry experts. Our experts include
Bs at A-level.” real graduate recruiters and banking specialists.
88
agreement with Wipro Technologies, an Indian IT vendor. only the technology problems, but the temper tantrums
JP Morgan, Deutsche Bank, Credit Suisse and ABN of irate traders. It’s a role that carries a lot of responsibility
Amro are all committed to increasing the amount – a computer problem on a trading floor lasting
eFinancialCareers.com
of IT work they do in India. a few minutes could cost millions of dollars. It’s up
Deloitte Research, a division of the accountancy firm, to technical support staff to identify and resolve
forecasts that by the end of 2010, 180,000 UK financial the glitch as soon as possible.
services jobs will have been outsourced to India, IT staff in investment banks also usually specialise
many of them in IT. So, does this mean fewer IT jobs in in the IT requirements of a particular business area.
investment banks in Europe and the US? The unfortunate While many IT staff work on the trading floor, others
answer is yes. The good news, however, is that banks are based in private banking, fund management and
90 will need people in western financial centres to liaise operations, or deal with core infrastructure requirements.
Profile
Christopher Peake
IT developer, Lehman Brothers
Mid-level project manager 3-6 £50k – £75k stuck doing the same job for a long time. By comparison,
Senior Java developer 5 £65k – £95k Lehman values diverse experience and encourages staff
Mid-level Java developer 3-5 £45k – £70k
to gain experience across a broad range of areas.
Business analyst 5+ £60k – £80k
Junior business analyst 3-5 £40k – £60k
What’s your biggest achievement in the last three
months?
Skills We’ve worked closely with our New York colleagues to deliver
Adrian Pearce, senior vice-president of global markets a couple of successful global project releases which have been
and investment banking debt technology at Merrill Lynch, well received by the investment banking division. In addition,
says graduates who join the bank’s IT programme need we’ve successfully integrated a fourth developer into the
raw skills, rather than an intimate knowledge of specific team and he’s quickly delivered an application upgrade
programming languages. “We look for people who to six of our offices worldwide.
are strong communicators, who are good at innovating
and learning, and who show client focus, problem-solving Where do you see yourself in 10 years’ time?
and decision-making abilities.” Hopefully I’ll have reached project manager level – maybe even
Nicola Cliff, a senior technology recruiter at Citigroup, says heading towards a department manager role with responsibility
IT business analysts need to be skilled communicators for at least one or more development teams.
who are self-motivated and able to see products through
to completion, despite encountering obstacles.
“As part of their job, business analysts talk to people at every Chris’s tips:
Notes
level of the firm – from the chief executive to individual traders – Brush up your commu
nication skills – of the
to understand the business needs and identify resources needed people who studied IT
with me at university
to meet their requirements,” she says. few were good commu ,
nicators; those who
Project managers, by comparison, need to be able to work were have gone a lon
Careers in Financial Markets 2006-07
g way.
on several things at once, according to Cliff.
“Project managers tend to work on up to six projects at a time, Keep up to date with
the latest technologies
so one needs to multitask without losing sight of anything.” – banks are always usi
eFinancialCareers.com
in financial services and gain a solid understanding of Roles and career paths
financial products. Not everyone who aspires to working Once you’ve got your foot in the door at an investment
in banking technology will achieve a position as a bank, the possibilities for technologists are big.
graduate trainee, however. Banking is a notoriously You could work on technology for the trading floor
competitive industry, with around 60 applications for or build the technology that underpins mathematical
every position. Although IT is less competitive than models used to price financial derivative products,
other areas, it remains heavily oversubscribed. for example. Or simply manage a project to update
The good news is that if you do not immediately land payroll systems.
a technology position, there are several other routes On the whole, however, there are two routes available
into the industry for technologists. to technologists who work in investment banks:
These include: technical and managerial.
• Blue-chip companies – particularly multinationals With the managerial route, you’ll start out as
in the telecoms sector a programmer or business analyst, working on
• Software houses a particular system. From there, you’ll move
• Consultants on to managing a small team of similar analysts
or programmers, becoming a programme team leader
Getting in with responsibility for a particular area of a technology
“A lot of banks will take good technologists from outside programme and, ultimately, a project manager
the industry,” says Mike Sherwin, head of banking with responsibility for an entire project.
technology at recruitment firm Huxley Associates. Sarah Wilkinson, former chief operating officer of the
“You’ll need very strong knowledge of key languages technology division at Lehman Brothers who recently
Careers in Financial Markets 2006-07
like C++, C# and Java, and the intellectual ability became director of its Basel II programme, typifies
to learn quickly about the business.” this type of progression.
Recruiters say banks are particularly keen on picking “I joined the bank from a small software house as a
eFinancialCareers.com
up defectors from telecoms companies like Vodafone C++ programmer and went from team leader to project
or British Telecom. leader to project manager,” she says. With Lehman’s
“There are parallels between working for a mobile help, Wilkinson went on to study an MBA, which she
telephone company that processes thousands of mobile says helped her assume additional business-related,
text messages every day and working on the trading rather than technological, responsibilities.
floor of an investment bank that processes thousands However, if your passion is writing code rather than
of instant messages,” says Darren Ball, a senior client cajoling herds of recalcitrant techies, banks won’t
92 manager at recruitment firm JM Selection. shoehorn you into a managerial role. It’s also possible
Heidi Tyrvainen
Business analyst, UBS
“We wouldn’t recruit someone into technology if they really Attend as many career
s fairs and recruitment
wanted to work in the front office,” says Sarah Barker, head events as possible. Aft
er attending a careers
evening and talking to
of technology graduate recruitment at Morgan Stanley. UBS representatives,
I received an email fro
Every now and then, however, people working on the technology m the HR department
inviting me to apply for
underpinning derivatives pricing models cross over to become a place on the gradua
programme. te
quants, who build the models themselves (and are infinitely
better paid). The bad news, however, is that this happens
very rarely. 93
trading systems, does most of its programming If you think Java is a cup of strong coffee and a relational
in Java, says marketing associate Jennifer White. database is something to do with your family tree,
“Java is modern, flexible and adaptable, plus don’t worry! Most banks offer training to new graduates.
it’s the internet language, so it makes sense “We provide training in any languages you will need
for us to use it,” she says. to do your job,” says Nicola Cliff, head of technology
Lisa Jobson, a corporate account manager graduate recruitment at Citigroup.
in the banking technology team at recruitment “We look for aptitude and the ability to pick things
94 firm Harvey Nash, says when it comes to sheer up quickly, rather than existing expertise,” she adds.
IT salaries
How to make a mint in technology
A career in financial services IT will not make you a technology used to calculate the appropriate price
multi-millionaire, but with a little prior consideration, for complex derivatives. A good quant developer
it could work wonders for your bank balance. Here’s can command as much as £180k, says Keene.
our advice on how to make a mint in technology. To make it as a quant developer, you will need to be
good at maths and will benefit from a further qualification.
Sales and trading technology “The best quant developers are academically very strong,”
You won’t get rich in investment banking IT if you decide Keene says. “An MSc or a PhD in a mathematical subject
to specialise in the intricacies of the staff payroll system. is normal in this area.”
The big money to be made in investment banking
IT is in financial services technology – working on Avoid software houses
systems that support banks’ front-office sales and Head for big US investment banks and hedge funds,
avoid software houses. You’re unlikely to afford a
second home with a plasma screen TV in every room
“If you work on a system used to trade
if you decide to work for a software house – unless,
derivatives products, you could earn a basic of course, you own the software house, in which
salary of up to £80k” case it’s a rather different matter.
Louise Clarke, Roberts Walters Lucy Heise, senior consultant at Project Partners,
says software houses generally pay lower salaries than
trading activities. These systems are used by the banks and relatively paltry bonuses of no more than
traders and sales people who have direct contact 10%. By comparison, banks can pay bonuses as high
with clients and are making money for the bank as 60% to front-office IT staff and successful hedge
(working on systems that deal with administrative funds pay bonuses that are even higher still.
aspects of trading, such as collecting the money James Baker, a consultant at recruitment firm Huxley
after the event, are not as lucrative). The more Finance, says developers who move into hedge funds
intimately you are involved with these systems, can earn bonuses equivalent to 100% of banking
the easier it is for banks to link your efforts with salaries, or more.
the profitable activities of sales people and traders However, if you plan to move into hedge fund IT, it is
– and the more you’ll get paid. It’s as simple as that. a good idea that you choose your destination carefully
Louise Clarke, head of banking technology at the – hedge funds are smaller and less established
recruitment firm Robert Walters, illustrates the point. companies than investment banks and they frequently
“If you work on a system used to trade derivative go out of business.
products, you could earn a basic salary of anything “There’s a danger that you’ll get no bonus at all
from £60k to £80k after five years, plus a bonus and the hedge fund will go under,” says Heise.
of 10% to 50%,” she says.
“If you work in a less visible area like payroll technology, Selling your skills
your salary may be up to £30k less and you’re unlikely Switch banks a year or so after training. There’s no better
to receive a bonus of more than 10%,” she adds. way to ensure you’re paid market rates than selling
your skills to the highest bidder!
Profit generation Lisa Jobson, manager of corporate accounts at recruitment
Learn as much as you can about derivative products. firm Harvey Nash, advises graduates who have trained
As a rule, you will earn more if the technology that in the IT departments of investment banks to change
Careers in Financial Markets 2006-07
you work on has something to do with derivatives. their jobs two to three years after joining.
Complex derivative instruments, which repackage “By moving on to another bank, you can usually
simple financial securities to offer higher returns and increase your pay by between 5% and 10%,” she says.
eFinancialCareers.com
protection from specific risks, are a significant profit “But you will need both proven experience as well
generator for investment banks. If you know about as market knowledge.”
technology and you know about derivatives, However, employees who move jobs too frequently
you will be on to a winner. will jeopardise their career prospects, warns Jobson.
Andrew Keene, the director of banking technology “Banks often get cold feet about candidates who look
recruiter Thomson Keene Associates, says some as if they’ve job-hopped just for the money,” she says.
of the best paid people in banking IT are quantitative The answer: after an initial move, don’t move on more
96 developers, who are the people that construct the frequently than every four years.
directly. “If you ask a banking recruiter what they want, their first in small software houses such as eSpeed or technology-focused
answer will always be someone with experience at another companies like TradeWeb, a fixed-income trading website.
bank,” says Baker. “Rather than doing it in-house, banks will often look to specialist
eFinancialCareers.com
Contact name: Lucy Evans Contact name: Richard Barry Contact name: Graduate recruitment
Company address: 250 Bishopsgate, Company address: Calton Square, Company address: 5 Canada Square,
London EC2M 4AA 1 Greenside Row, Edinburgh EH1 4AN London E14 5AQ
Telephone: 0870 351 3704 Telephone: 0131 275 2000 Telephone: 020 7174 4000
Graduate website: Graduate website: www.bailliegifford.com Graduate website: www.bofa.com/careers
www.graduate.abnamro.com
Company snapshot: ABN AMRO is a Company snapshot: Baillie Gifford is one Company snapshot: Bank of America
leading international bank and one of the of the leading privately owned investment is one of the world’s largest financial
world’s largest financial institutions. ABN management firms in the UK and currently institutions, serving individual consumers,
AMRO operates through a matrix of client has over £40bn under management. small and middle market businesses and
and product business units that develop It is also one of the fastest growing firms large corporations with a full range of
and deliver products for all our clients in the sector, helped by an impressive banking, investing, asset management
globally. Our relationship-based approach investment performance record, an exclusive and other financial products and services.
and client-led strategy creates value for focus on investment management and The company’s Global Corporate and
a comprehensive spectrum of clients, an effective partnership scheme. Baillie Investment Banking group (GCIB) focuses
ranging from mass retail to high net worth Gifford is a meritocracy that encourages on companies with annual revenues of
individuals, corporate and institutional early responsibility. The culture is one where more than $2.5m, middle-market and large
clients. Our strong corporate culture is individuals can flourish while benefiting corporations, institutional investors, financial
based on integrity, teamwork, respect and from the support of a strong team-based institutions and government entities.
professionalism, which enable us to make structure. We are looking for applicants with GCIB provides innovative services in M&A,
more possible for our clients and our people consistently high academic achievement equity and debt capital raising, lending,
alike. We believe it’s a unique culture within and, or expecting, a 1:1 or 2:1 degree in any trading, risk management, treasury
the financial sector. It’s a culture where discipline. We also welcome applications management and research.
people who are open to new ideas, from those seeking an early change in their Headcount:
who aren’t afraid to voice their opinions professional career and from PhD students. Approximately 205,000 worldwide
and who are prepared to listen to other Financial report: N/A Graduates hires per annum: Our
people’s views will thrive. Headcount: 490 recruitment has been growing year on year.
Financial report: Total assets at the end Graduates hires per annum: 6 Approximate graduate hires 2007: 90
of 2005 were €881bn. Approximate graduate hires 2007: 6 Graduates recruited into: Investment
Headcount: We have over 100,000 Graduates recruited into: Investment banking, capital markets, sales, trading and
employees worldwide, working on the management departments. research, risk management, global markets
ground in more than 60 countries Training offered: Baillie Gifford has been technology, operations, middle office,
Graduates hires per annum: successfully recruiting trainee investment treasury services and network computing.
Approximately 200 globally managers for over 25 years. We have Training offered: Initial training takes
Approximate graduate hires 2007: a structured, tried-and-tested training place in New York and combines classroom
100 in the UK programme that comprises on-the-job training with group and individual projects
Graduates recruited into: Mergers and training, internal tailored training courses led by industry experts. You will learn
acquisitions, equity or fixed income, capital and study for the IMC and CFA. Working technical, personal and professional
markets, structured lending, trading, sales alongside fund managers and partners, skills and more about Bank of America’s
and research, derivatives, risk management, trainees learn how to analyse company capabilities and culture. Once you begin
asset management, technology, and finance accounts and assess the investment work in your group, you will have access
and accounting. characteristics and prospects of companies to ongoing education, which will help you
Training offered: The chance to study from a wide variety of sectors. Trainees to progress in your specific business areas.
for professional qualifications where meet company management and contribute Internship info: Bank of America offers
appropriate, eg FSA, ACCA, CIMA to departmental investment strategy. The a 10-week summer internship programme,
Internship info: In London, our summer institutional clients department, a specialist which is an integral part of our recruiting
internship programme lasts for 10 to 12 area, is responsible for managing our client process. Our goal is to provide the
weeks and will commence in early July 2007. relationships and developing our client base. outstanding performers on the programme
Skills required: We’re looking for Trainees will spend a secondment in this the opportunity to be hired to the bank
ambitious, enthusiastic graduates of the department in their first three years. as full-time employees.
highest academic calibre, thought leaders Internship info: We offer approximately Skills required: All degree disciplines
who have the practical skills to get things seven internships, for an eight-week period, with strong numerical ability and a
Careers in Financial Markets 2006-07
done and people with the confidence, from July to August each year. predicted or actual grade of 2:1. We seek
initiative and team spirit to build strong Skills required: Consistently high candidates who demonstrate a combination
relationships with clients and colleagues. academic achievers with strong of academic aptitude, quantitative skills,
eFinancialCareers.com
interpersonal skills and a keen interest strategic and creative thinking with team
in financial markets. focus and the dedication to building a career
in the financial services industry.
Graduate Website: Contact name: Graduate development team Contact name: Steve Gardner
www.barclayscapital.com/campusrecruitment Company address: Murray House, Company address: CIBC World Markets,
1 Royal Mint Court, London EC3N 4HH Cottons Centre, Cottons Lane, London SE1 2QL
Graduate website: Telephone: 020 7234 6000
www.bgigraduatecareers.com Graduate website:
www.apply-cibcwm.co.uk
Company snapshot: Barclays Capital is Company snapshot: Barclays Global Company snapshot: CIBC World Markets
the investment banking division of Barclays Investors is the world’s number one index is a full-service corporate and investment
Bank PLC which has an AA long-term fund manager and one of the top 10 active bank with operations throughout North
credit rating and a balance sheet of over fund managers. From inventing the world’s America, Asia, Europe and Australia,
£924 billion. With a distinctive business first index fund in 1971 and the first serving more than 8,000 corporate,
model, Barclays Capital provides large quantitative active strategy in 1978, we’ve government and institutional clients.
corporate, government and institutional pioneered change and led investment Our parent company, the Canadian Imperial
clients with solutions to their financing and innovation. BGI has more than $1.6 trillion Bank of Commerce (CIBC), is one of North
risk management needs. Barclays Capital in assets under management and over America’s largest financial institutions with
has offices in 26 countries, employs over 2,800 clients worldwide. BGI offers funds offices in 18 countries.
9,000 people and has the global reach focusing on active, index and asset allocation CIBC World Markets works hard to be an
and distribution power to meet the needs strategies, is the global leader in exchange employer of choice, providing challenging
of issuers and investors worldwide. traded funds via iShares and is one of careers in a supportive culture. We extend
Financial report: N/A the world’s largest securities lenders. every opportunity to maximise your career
Headcount: 9,000 Financial report: Visit our website for growth and future possibilities, and our
Graduates hires per annum: more information. aim is to invest in those people who
Approximately 400 Headcount: Over 2,800 employees in want to reach their full potential.
Approximate graduate hires 2007: 400 11 offices worldwide. The group also has a strong culture in
Graduates recruited into: Finance, Graduates hires per annum: corporate giving. The Children’s Miracle
Global Financial Risk Management, Human Approximately 60 full-time (global); Foundation, one of the world’s largest
Resources, Investment Banking and Debt Approximately 50 internships (global) one-day corporate fundraising campaigns,
Capital Markets, Operations, Quantitative Approximate Graduate hires 2006: raises millions for children’s charities
Analytics, Research, Sales, Strategy and 45 full time (global), 35 internships (global) worldwide. In Europe, we work closely with
Planning, Technology and Trading. Graduates recruited into: Research, a number of charities each year assisting in
Training offered: Our graduate programme portfolio management, trading, business/ projects that improve the life of children with
is key to success and is supported by senior product development, sales/marketing, special needs in the communities in which
management throughout the organisation. strategy, securities lending, operations, we, and our clients, work. We encourage
On the programme graduates are provided IT development. Locations: San Francisco, our staff and clients to get involved in these
with an excellent understanding of financial London, Hong Kong, Singapore and Tokyo. and many other charitable projects.
markets, as well as the firm’s products, Training offered: All employees, including Financial report: N/A
instruments and services. This creates interns, have access to seminars, e-learning Headcount: 400 in Europe; 37,000 worldwide
a strong platform on which to build more and classes to suit requirements. Those Graduates hires per annum: 10 to 15
specialist expertise. The programme takes joining the full-time programme start with Approximate graduate hires 2007:
learning one step further, incorporating a three-week induction at our head office 10 to 15
practical applications through a variety of in San Francisco, which combines technical, Graduates recruited into: Corporate
case studies, workshops and presentations. business and interpersonal skills development. finance, leveraged finance, equities and debt
Depending on the area joined, each You will develop in-depth specialist expertise capital markets.
graduate receives comprehensive, role- relevant to your area through formal and Training offered: On arrival, you will
specific training as well as training in soft informal education and be supported through undergo an eight-week training programme
skills. Barclays Capital also encourages professional qualifications. Your education covering market economics, derivatives,
people to obtain appropriate professional programme is tailored to provide you with credit derivatives, accounting and corporate
qualifications. And that’s just the beginning. the knowledge, skills and tools to succeed finance, credit analysis and financial
Internship info: There is a 10-week in your chosen area. modelling, as well as technical training
internship over the summer period. We also Internship info: Our 10- to 12-week summer in advanced Excel, PowerPoint and Visual
offer a number of off-cycle internships and internship positions are open to penultimate Basic applications.
work placements. year students. Internship info: N/A
Careers in Financial Markets 2006-07
Skills required: You’ll need to be highly Skills required: An excellent academic Skills required: Any degree discipline
numerate and analytical, with strong English background, strong interpersonal and team- considered, 2:1 and above, and a strong
skills (verbal and written). Ideally you’ll speak working skills and high quality communication interest in financial markets is imperative.
eFinancialCareers.com
more than one European language. skills. A high level of self-motivation is also Also important is your willingness to make
important. Additional requirements vary a difference. We welcome imaginative,
depending on the role applied for. Please see confident, hard working individuals who thrive
the website for details. on team situations and enjoy a challenge.
Company snapshot: Citigroup’s goal is Company snapshot: Deutsche Bank has Company snapshot: Dresdner Kleinwort
to be the most respected global financial been a global player for more than 135 years is the investment bank of Dresdner Bank
services company. No financial institution – from financing the building of the Baghdad AG and a member of the Allianz Group,
is more committed to understanding and Railway in the 19th century to being the first one of the world’s leading financial services
advancing the financial objectives of its German bank to list on the New York Stock providers. With headquarters in London
clients. Citigroup Corporate and Investment Exchange in 2001. Today it is a financial and Frankfurt and an international network
Banking has become a market leader, services provider, top executor of M&A of offices, Dresdner Kleinwort provides a
expertly serving the needs of corporations, deals, Europe’s number one fund manager wide range of investment bank products
governments and institutions with a broad and the global leader in securities trading. and services to European and international
range of financial products and services. At Deutsche Bank, a passion to perform clients through its global banking and
From stock brokerage to research analysis, is more than just a claim – it’s the way it capital markets divisions.
investment banking to global transaction does business, attracting the brightest Dresdner Kleinwort has a distinct,
services, Citigroup provides more industry- talent to deliver an unmatched franchise. entrepreneurial culture with dedicated
leading solutions to more clients in more It is committed to being the best financial professionals who have a reputation for
countries than any of its competitors. services provider in the world. Its breadth smart thinking and a strong commercial
Headcount: 300,000 globally of experience, leading-edge capabilities approach built on an in-depth understanding
Approximate graduate hires 2007: and financial strength create value for all its of clients’ needs.
Approximately 200 full-time and 220 summer stakeholders: clients, investors, employees, Financial report: N/A
internships and society as a whole. Headcount: Approximately 6,000
Graduates recruited into: We offer full Headcount: Over 65,000 employees Graduates hires per annum:
time and summer internship positions in: globally Approximately 150
Investment Banking, Corporate Banking, Graduates hires per annum: 1,000 Approximate graduate hires 2007: 150
Capital Markets Origination (Equity and Approximate graduate hires 2007: Graduates recruited into: Global
Fixed Income), Equity Sales and Trading, Over 300 positions in the City of London banking , including advisory and mergers
Fixed Income Sales and Trading, Graduates recruited into: controlling and acquisitions; capital markets,– including
Global Transaction Services, Technology, and finance; global banking; global markets; sales, trading, research and derivatives;
Operations, Human Resourses global technology and operations; human risk management; and information
and Investment Research. resources; private wealth management; technology.
Training offered: People who join us benefit risk and capital management; treasury. For details of our intern deadlines, please
from a rigorous and structured programme, Training offered: N/A visit www.dresdnerkleinwort.com/graduates.
which is reinforced through on-the- Internship info: Deutsche Bank summer Training offered: On-the-job training will
job training and further development internship programmes for penultimate be supplemented with a series of seminars
opportunities. Training is not something that year students are designed to give you and educational programmes to provide
happens at just at the analyst level, ongoing a first-hand experience of what a career a comprehensive overview of the industry
development is something that is encouraged in an investment bank is really like. and current developments. During your
and supported throughout the firm. The programme starts in London in the time with us as an intern, you will be set
Internship info: Our 10 week Summer summer of 2007 and over a 9- to 10-week measurable objectives. Prove yourself
Internship Programme, open to penultimate period, you will have the opportunity to during this time and you could find yourself
year students, is also available in the above work alongside experienced professionals, on the fast track to the graduate programme
business areas. complete real projects and work in August 2008.
Skills required: Working at Citigroup on live deals. For further information, please visit www.
means embracing stimulating and Skills required: N/A dresdnerkleinwort.com/graduates.
challenging work, being at the centre Internship info: Summer internship
of the financial industry and having deadline is 8 February 2007.
the chance to have a truly global career. Skills required: N/A
It demands candidates who will thrive
Careers in Financial Markets 2006-07
Company address: Kingswood Fields, Contact name: Graduate Recruitment, Company address: Fortis Investments-
Millfield Lane, Lower Kingswood, Tadworth, HR Department Avenue de l’Astronomie 14,1210
Surrey KT20 6RB Company address: Fitch Ratings, Brussels-Belgium
101 Finsbury Pavement, London, EC2A 1RS Telephone: +33 1 53 67 28 03
Telephone: 020 7417 4222 Graduate website:
Graduate website: www.fitchratings.com www.fortisinvestments.com/careers
Company snapshot: Fidelity* now manages Company snapshot: Fitch Ratings is Company snapshot: Fortis Investments
more than $270bn for millions of private a leading global rating agency committed is a leading global asset manager serving
and institutional investors around the world. to providing the world’s credit markets institutional and retail investors. We currently
Through combining a global reach with with independent, timely and prospective actively manage more than EUR 112 bn
a local focus, we have become the UK’s credit opinions. Built on a foundation of globally for our clients across a wide range
largest mutual fund manager and the organic growth and strategic acquisitions, of asset classes: equity and fixed income,
European leader in pan-European equities. Fitch has grown rapidly during the past structured credit and a range of specialist
The independence we enjoy as a decade, reinforcing its reputation for absolute-return products. These products
privately owned company enables us to integrity, objectivity and transparency, are managed across 17 investment
concentrate on developing innovative products and gaining market presence throughout centres worldwide.
and providing the highest levels of customer the world, across all fixed income markets. Financial report: Fortis Investments
service. The agency is dual-headquartered in is one of the fastest growing and most
*Fidelity is Fidelity International Limited (FIL), New York and London, operating offices financially secure asset managers in
established in Bermuda, and its subsidiary and joint ventures in 50 locations and Europe. Strong revenue-generating
companies. Assets and resources as of 31 covering entities in more than 90 countries. capabilities, together with a highly cost-
March 2006 are those of FIL. Fidelity is the It is a majority-owned subsidiary of Fimalac effective and efficient global operating
UK’s largest mutual fund manager (source SA, an international business support services platform have resulted in 18% CAGR
IMA, April 2006). group headquartered in Paris, France. in Net Profits since 2001.
Headcount: 4,500 Financial report: Refer to the Fimalac Headcount: Approximately 820 with 221
Graduates recruited into: Equity website, www.fimalac.com investment professionals in 17 countries.
Research; Investment Strategies Group Headcount: 1,800 worldwide Graduates hires per annum:
(Multi-Manager); Sales and Marketing Graduates hires per annum: 2005 hiring: 6. 2006 hiring: 6
(European Rotation Programme); Average 15 Approximate graduate hires 2007: 10
Sales and Marketing (Institutional Rotation Approximate graduate hires 2007: Graduates recruited into: Our Global
Programme); Operations; Global Oversight; 20 in EMEA Associate Programme is designed to
Systems. Graduates recruited into: develop our future investment professionals.
Training offered: Students will benefit from Financial Institutions, Structured Finance, Our three-year programme enables
both on-the-job and formal training to meet Corporates, Covered Bonds, Quantative the associate to develop the all-round
individual requirements and enable them to Financial Research, Sovereigns capabilities of a portfolio manager.
own and manage their career progression. Training offered: Fitch’s blended Training offered: Fundamental to
Internship info: We offer both Summer approach to training - covering technical, the programme is a series of placements
Internship and 12-month Work Placements. product and soft skills - ensures candidates’ in a variety of roles and locations across
Please check our website for further rapid development. Trainees enjoy our business, providing an essential
information. www.fidelityrecruitment.com substantial exposure to direct on-the-job understanding of investment management
Skills required: You’ll need good learning from a range of our experienced “from settlements to sales”. On completion
communication skills and solid analytical analysts, direct involvement in business of the programme, each associate will
capabilities, together with a strong work projects, formal credit training and CFA be ready to fill a key role in an investment
ethic and an appreciation of effective study support. The wide-ranging programme centre.
teamwork. We value people who can work also includes exposure to data manipulation, Internship info: Our ten-week Summer
in a constantly changing environment, market research, web based research Internship is opened to undergraduate
who are keen to learn and keep on learning. and attendance and participation students in their penultimate year of
Language skills required – in addition in external meetings. study. Working with seasoned investment
to English, fluency in at least one further Internship info: No formal programme. professionals, the Internship will provide
European language is essential for Skills required: We are looking for you with an insight into the Asset
our European Rotation Programme. ambitious graduates who have achieved Management industry.
a high level of academic achievment, Skills required: Candidates should have
Careers in Financial Markets 2006-07
obtaining a 2:1 or above. Strong quantative an exceptional academic record, the ‘drive’
and analytical problem-solving skills to achieve, strong team orientation, high
are important, coupled with excellent quality communication and influencing skills,
eFinancialCareers.com
Company snapshot: Goldman Sachs Company snapshot: v is a specialist Company snapshot: The HSBC group
is a global investment banking, securities provider of commercial foreign exchange is one of the largest banking and financial
and investment management firm. and cash management services for private services organisations in the world. Our
Financial report: 2005 was a successful and corporate clients. Since its inception Corporate, Investment Banking and Markets
year for Goldman Sachs, reflecting in 1998, HIFX has expanded operations (CIBM) business provides tailored financial
both a robust market environment and globally with offices in Windsor, San solutions to major government, corporate
strong performance across all our major Francisco, Auckland, Malaga and Sydney. and institutional clients worldwide.
businesses in virtually every product class The company has featured as a top 100 UK Financial Report: In 2005, CIBM
and geography. Net revenues increased employer for 2005/06 and is also ranked contributed about a quarter of HSBC
21% and net earnings rose 24% to $5.6bn. amongst the UK’s fastest growing unquoted group’s $20bn profit.
We continued to maintain our leadership companies in The Sunday Times Fast-Track Headcount: the HSBC group employs
position in global advisory and equity 100 Listing. around 284,000 employees worldwide.
underwriting, ranking first in both worldwide HIFX is a premier provider of foreign We have 9,500 offices in 76 countries
announced and completed mergers and exchange brokerage and risk management and territories worldwide.
acquisitions, as well as worldwide equity services responsible for over £20bn of Graduates hires per annum: We recruit
and equity-related offerings. foreign exchange transactions on behalf around 200 individuals to our range of
Headcount: Approximately 22,000 globally of its clients. HIFX assists more than CIBM development programmes at analyst
Graduate hires per annum: 250 new 2,500 corporate clients and 25,000 private (graduate/undergraduate) and associate
analysts into our European offices clients each year. (MBA) level.
Approximate graduate hires 2007: 250 Financial report: N/A Approximate graduate hires 2007: 200
Graduates recruited into: Equities; fixed Headcount: More than 240 Graduates recruited into: A range of
income, currency and commodities; global Graduates hires per annum: 20 programmes is available: (global) investment
investment research; human capital Approximate graduate hires 2007: 15 banking advisory, corporate and institutional
management; investment banking; investment Graduates recruited into: Typically banking, global markets, business support
management; merchant banking; operations, we recruit graduates into our corporate services (operations, finance, credit risk
technology, finance services; legal and sales divisions, which provides our risk management, compliance), group private
management controls; global compliance. management, corporate brokerage and banking, HSBC investments marketing,
Training offered: We offer initial orientation, money market brokerage services. HIFX HSBC amanah finance.
divisional training and development also hires into the private client brokerage Training offered: We offer an extensive
opportunities throughout your career. sales and marketing departments, where and structured induction programme
Internship info: We recruit interns into graduates can train in account management, providing comprehensive business and
all of our divisions. We offer a range of B2B and in-bound sales functions. technical training, as well as the opportunity
internships, including summer, spring and Training offered: HIFX is committed to to learn about our global culture and gain
work placements. providing ongoing learning and development a range of transferable soft skills. Ongoing
Skills required: Academic discipline and for its staff. Upon joining HIFX, graduates support and development is also given,
an understanding of finance are less important complete an intensive two to three-week as well as the opportunity to study for
than the personal qualities an individual induction training programme covering professional qualifications where relevant.
brings with them. It is intellect, personality product/services, sales and operations Internship info: We hold 10-week
and zest for life that the firm values most. before moving on to ongoing training summer internships across the range
Our ability to meet challenges and ensure workshops and development sessions of our programmes. Please see our
the firm’s success in the future depends delivered via in-house and external website for further details.
on attracting and retaining the highest training partners. Skills required: Please see our website
quality people and we make an unusual effort Internship info: Although no formal for in-depth information about the skills
to identify the best person for every job. internship programme exists, HIFX regularly and qualities required for each of our
We evaluate candidates on six core attracts undergraduates seeking one-year programmes. Across all, however, we
measures – achievement, leadership, placements and work placements during look for candidates with an outstanding
Careers in Financial Markets 2006-07
commercial focus, analytical thinking, the summer period. academic background, superior relationship
teamwork and the ability to make an impact. Skills required: A degree in finance, and communication skills, the ability to
We expect commitment, enthusiasm and banking, economics or business, with a work independently and in a team, strong
eFinancialCareers.com
drive from our employees, and in return offer 2:1 preferred. We are looking for energetic planning and organisational skills, high
unparalleled exposure, early responsibility, and motivated individuals seeking a career levels of self-motivation and initiative and
significant rewards and unlimited career in corporate and private client foreign the ability to think creatively and solve
opportunities. exchange services. problems innovatively.
Application deadline: Application deadline: 30 Nov 06 Application deadline: Analyst: 30 Nov 06;
New analyst: 10 Nov 06 analyst interns: 23 Feb 07; MBA: 6 Nov 06;
Summer analyst: 30 Dec 06 MBA interns: 15 Jan 07
103
Contact Name: ICAP Contact name: Alison Devey Contact name: Graduate recruitment team
Company Address: 2 Broadgate, Company address: 25 Bank Street, Company address: Level 35, CityPoint,
London EC2M 7UR London E14 5LE 1 Ropemaker Street, London EC2Y 9HD
Telephone: 020 7000 5000 Telephone: +44 (0)20 7102 1000 Telephone: 020 7065 2000
Graduate website: www.icap.com/careers Employment website: www.lehman.com Graduate website:
www.macquarie.com/europe
Company snapshot: ICAP is the world’s Company snapshot: Lehman Brothers, Company snapshot: The v
largest voice and electronic interdealer an innovator in global finance, serves Group is a diversified, international provider
broker with a daily average transaction the financial needs of corporations, of investment banking and financial services,
volume in excess of $1 trillion, 50% of governments and municipalities, institutional employing more than 8,200 people in
which is electronic. The group is active in clients and high-net-worth individuals 23 countries. Our approach is driven by a
the wholesale market for over-the-counter worldwide. Founded in 1850, Lehman deliberate focus on areas of business where
derivatives, fixed income securities, money Brothers maintains leadership positions our specialist skills and expertise deliver a real
market products, foreign exchange, energy, in equity and fixed-income sales, trading advantage for clients. As a result, we have
credit and equity derivatives. and research, investment banking, established leading positions in a diverse
Financial report: Please go to private investment management, asset range of market segments and regions
www.icap.com for details. management and private equity. The firm internationally. The group is headquartered
Graduates hires per annum: 30 globally is headquartered in New York with regional in Australia, where Macquarie Bank is a top
Approximate graduate hires 2007: headquarters in London and Tokyo, 20-listed company. Macquarie’s European
15 full-time and 15 summer graduates and operates in a network of offices activities include corporate finance and
in New York and London. around the world. advisory services, specialist funds management,
Graduates recruited into: All product Financial report: Net revenue for 2005 institutional stockbroking and research, treasury
areas. was $14.6bn and commodities activities, property investment,
Training offered: ICAP is committed Headcount: 23,000 risk management and financial services.
to offering a wealth of developmental Analyst hires per annum: 200+ Macquarie offers graduates real
opportunities. We provide you with Analysts recruited into: We offer full-time responsibility from day one. We provide
an orientation and teambuilding event, positions, summer and industrial placements a uniquely entrepreneurial environment,
comprehensive induction training, in the following divisions: Investment that encourages and rewards creativity
a mentoring program and continuous Banking, Fixed Income, Equities, Finance, and individual effort. Graduates work on
development. Our strategy will ensure Operations and Information Technology. large transactions with senior, highly skilled
your abilities are realised, your skills are Training offered: Investment Banking specialists in a true team environment.
developed and your potential is encouraged. Division: This is a two-to-three year Financial report: Visit our website for
Internship info: Our summer programme, programme commencing with five weeks up-to-date information.
for those in their penultimate year of study, is of training in London. Analysts receive Headcount: Over 8,200 employees globally,
designed to give you a first-hand experience instruction in accounting, financial modelling with 650 employees based in London
of what a career at ICAP is really like. and methodologies for broad-based analysis Graduates hires per annum: 40
Over a 10-week period, you could have the of companies and industries. Approximate graduate hires 2007: 40
opportunity to work alongside experienced Fixed Income and Equities divisions: This is Graduates recruited into: Investment
professionals, work on live deals and be a two-to-three year programme commencing banking group (corporate finance and
paid competitively. We arrange a series with five weeks of training investment banking funds); treasury and
of networking and social events together in London. The training covers accounting, commodities; finance and operations;
with training. The programme will give bond maths and capital markets products. property investments; risk management;
you the opportunity to secure a full-time Analysts gain exposure to sales, trading information services.
job offer when you graduate. and research and origination areas within the Training offered: Training programmes
Skills required: We are looking for high Equities and Fixed Income divisions through vary, but usually combine on-the-job training
calibre, entrepreneurial, team-spirited business presentations and the analyst along with a four-week comprehensive
graduates with drive to succeed in a placement process. induction and training programme
challenging, pressurised and dynamic Internship info: To apply for an internship at our head office in Sydney.
environment. You will possess exceptional position within the Investment Banking, Fixed Internship info: A 10-week summer
numeracy, social and interpersonal skills Income and Equities divisions, candidates internship programme for students in their
and have a strong interest in financial should be available for full-time employment penultimate year of study is available within
markets. We welcome any degree discipline in July 2008 our investment banking group.
Careers in Financial Markets 2006-07
with a 2:1 or above. European languages Skills required: We recruit individuals with Skills required: We are looking for
are a definite advantage. a high level of academic and extra curricular graduates from all degree disciplines with
achievement, who will be able to withstand superior numeracy skills, analytical abilities,
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the rigours of a rapidly changing, demanding problem solving and strong communication
but ultimately rewarding environment. skills. You will be expecting a final grade
Fluency in English is essential and other of at least a 2:1 or equivalent from your
languages are advantageous. undergraduate or masters degree.
Company snapshot: Merrill Lynch is one Company snapshot: Morgan Stanley is Company snapshot: Morley Fund
of the world’s leading wealth management, one of the world’s largest diversified financial Management is a London-based asset
capital markets and advisory companies, services companies with a reputation for management firm with more than £154bn
with offices on six continents. With our wealth excellence in advice and execution on a in funds under management. We are the
of diverse locations, products and services, global scale. The firm serves institutional and largest active asset manager in the UK.
we can offer you unparalleled opportunities individual investors and investment banking Financial report: £154.96bn assets
to explore a variety of career options. clients, including corporations, governments under management as at 31 May 2006.
Financial report: Total assets – and other entities around the world. Headcount: Morley employs in excess of
approximately $1.7 trillion We offer new ideas and effective execution, 600 staff, including more than 200 dedicated
Headcount: 54,600 worldwide creating opportunities and insightful investment managers, investment analysts
Approximate graduate hires 2007: solutions to complex financial problems. and strategists.
120 full-time analysts and 110 summer interns. Our 59,000 employees in 600 offices across Graduate Hires per annum: six to eight
Graduates recruited into: Global 30 countries provide underwriting, sales, Approximate fraduate hires 2007:
markets; investment banking; research trading and research for almost every five joined in September 2006
and technology in various locations across financial instrument, as well as merger Graduates recruited into: Our graduate
Europe. and acquisition advice, privatisation and opportunities are in investment, sales
Training offered: You’ll begin your financial restructuring, foreign exchange, and marketing, and property.
Merrill Lynch career in New York as part commodities and real estate finance. Training offered: We offer a 12-month
of our intensive induction programme. Financial report: Please visit our website structured training programme that will
This introduction to the firm will allow for up-to-date information. develop strong professional, technical
you the opportunity to meet, work and Headcount: Approximately 59,000 globally and interpersonal skills through formal
socialise with other new analysts from in over 30 countries classroom-based training, combined with
around the world. Graduates hires per annum: Over 200 on-the-job experience. Work experience
On return to your local office, you’ll quickly Approximate graduate hires 2007: 200 will be gained through a series of rotational
get to grips with vital professional skills, Graduates recruited into: Consolidated placements. You will be expected to obtain
while we provide you with a thorough equities; fixed income; investment banking; the Investment Management Certificate
grounding in all of the fundamental tools operations and finance; information technology. during this time and start studying for the
and work practices you’ll need. Training offered: Analyst training Chartered Financial Analyst qualification.
Internship info: As a penultimate year at Morgan Stanley quickly makes you You will also be allocated a mentor to
student, you’ll gain an invaluable insight an effective professional. Training is provide added support and career guidance
into Merrill Lynch with our 10-week summer a continuous process that includes as you move through the organisation.
programme. Through training from industry classroom, small group and one-on-one Internship info: Four to five summer
experts and on-the-job experience, your training sessions. Each division runs its own placement positions into the Investment
ability to prove yourself could lead to structured training programme and though teams each year. Placements are for
a full-time job offer following graduation. training varies among divisions, all take a a minimum of two months at any time
Skills required: Ambitious, confident detailed and comprehensive approach. between June and September.
and highly motivated, you’ll be a natural Most training is on the job and in some Skills required: A strong academic
team player with a desire for a future in areas includes rotations within your division. background with a minimum UCAS
financial services. Whatever your academic Internship info: Morgan Stanley offers eight point score of 300 and a 2:1 degree
background, you’ll have an inquiring mind to 10-week summer internships designed in any discipline is important, but we are
with the ability to communicate complex to attract, develop and assess the kind of looking for much more. To succeed in this
messages. What will make you stand out people we feel are likely to succeed at our business, you also need drive and passion,
from the crowd is your potential for strong firm. These programmes include training, to be innovative and demonstrate an
commercial acumen, along with your ability seminars and social events designed to give entrepreneurial spirit, strong communication
to demonstrate our core values. Relevant interns a unique experience in the financial skills with the power to influence others,
work experience and foreign languages services industry and provide a summer that and show you are a well-rounded individual
Careers in Financial Markets 2006-07
are an advantage. is enjoyable and intellectually rewarding. who could fit into our culture.
Skills required: Morgan Stanley accepts
applications from all degree types.
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Contact name: Christine Bangor-Jones Contact name: Graduate recruitment Company address: 280 Bishopsgate,
Company address: 71 Queen Victoria Company address: New Court, London, EC2M 4RB
Street, London EC4V 4DE St Swithin’s Lane, London EC4P 4DU Graduate website: www.rbsmarkets.com
Graduate website: Telephone: 020 7280 5000
www.rbccm.com/careers Graduate website: www.rothschild.com
Company snapshot: Every investment Company snapshot: Rothschild is a Company snapshot: The Royal
bank can promise challenge and top-tier international investment bank with Bank of Scotland is one of the leading
responsibility to its graduates. The question offices in over 30 cities worldwide, including global financial service providers. With
is: How long might you have to wait for those London, Paris, Frankfurt, Milan, Madrid, over 136,000 employees, by market
doors of opportunity to open? New York, Toronto, Hong Kong, Sydney capitalisation, we are the third largest bank
With RBC Capital Markets, they’ll open very and Beijing. We provide objective in Europe and the eighth largest globally.
quickly. That’s precisely because we’re not relationship-based advice and services RBS serves more than 30 million customers
the world’s biggest investment bank. We’re to our clients and work with them to achieve worldwide and global banking and markets,
ranked in the global top 15, which means their strategic objectives and financial goals. and UK corporate banking together
we’re big enough to be a serious player Financial report: N/A. currently have relationships with 95% of the
in the financial markets, yet small enough Headcount: FTSE 100 and 85% of the top continental
to offer our people early responsibility. Over 2,000 employees worldwide European companies. Already regarded
There are no waiting rooms, no hiding Graduates hires per annum: as one of Europe’s leading corporate banks,
places. If you’re good enough, we’ll trust 30 for the UK we are continuing to expand rapidly
your ability to dig deep and deliver the Approximate graduate hires 2007: and aggressively.
goods. It’s not unknown to have vice- 30 for the UK Financial report: Profit before tax 2005,
president on your CV in the early stages Graduates recruited into: Graduates £8.25bn (16%); total income 2005,
of your career. are recruited into Investment Banking £25.6bn (14%)
Financial report: Please refer to our website. (M&A, DCM Advisory, Private Placements Headcount: 136,000 worldwide
Headcount: In London, approximately 600; and Equity Capital Markets, the latter Graduate hires per annum: 115+
Royal Bank of Canada: over 60,000 globally of which is conducted through our joint Approximate graduate hires 2007: 150+
Graduates hires per annum: 12 venture with ABN AMRO) and Banking. Graduates recruited into: Global banking
Approximate graduate hires 2007: Training offered: On joining, graduates and markets, corporate and commercial,
Up to 16 complete a comprehensive four-month business support.
Graduates recruited into: Sales, induction and training programme, which Training offered: We believe in recognising
trading, origination, structuring, project includes formal classroom training as well and rewarding talent, aggressively seeking
and infrastructure finance. as rotations through our principal divisions. out opportunities to fulfill your potential
Training offered: Over a 17-week period, Internship info: In the UK, we offer a and meet your ambitions. You can expect
our graduate training programme will 10-week internship programme during the exceptional product and on-the-job training
give you a broad overview of the capital summer in our investment banking and to prepare you for immediate exposure,
markets business and experience in sales, banking divisions. We also take long-term early responsibility and continuous
trading, origination and structuring through interns into our investment banking division. development.
the following: foreign exchange; treasury These posts are available all year round Internship Info: Unsure about whether
management; derivatives and commodities; and run for periods of between three a career in banking is for you? Our 10-week
liquid product sales and trading; structured and six months. summer programme could provide
products; origination and syndication; debt For further details on the programmes the answer. After one week of intensive
finance. The rotational concept has been available, please refer to our website classroom- based training, you’ll join
proven as one of our strengths and is rated at www.rothschild.com. one of our business areas, where you’ll
very highly by our graduates year after year. Skills required: Teamwork and excellence gain exposure to exciting live projects
In addition, we offer on-the-job, e-learning are at the heart of our culture and graduates and hands-on work experience. Overall,
and formal classroom-based training will be expected to make a contribution from you’ll gain a unique insight into our working
courses. You will also be required to the start. Graduates are recruited from all world and the skills, knowledge and
complete your FSA regulatory exams degree disciplines. A high level of academic understanding required to succeed in it.
within your first three months of joining. achievement is required, together with Skills required: You will possess a good
Internship info: For summer internships, strong numeracy and excellent social academic record and be expecting a degree
the deadline is 28 February 2007. and interpersonal skills. in any discipline.
Careers in Financial Markets 2006-07
Application deadline: Online: 19 Nov 06 Application deadline: Online application Application deadline:
form via the website at www.rothschild.com. Please check the website for deadlines
Please see website for closing dates. – www.rbsmarkets.com.
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Company snapshot: RWE Trading is a Company snapshot: Schroders is a global Company snapshot: Founded in 1985,
leading international energy trading company asset management company with £128.4bn Tradition Financial Services (TFS) is a market
actively shaping the world’s energy markets. ($223.2bn/€184.2bn) under management leader in the brokering of financial and non-
Established in 2000, we are the RWE as at 31 March 2006. Our clients include financial products. With offices worldwide,
Group’s central hub for all physical corporations, insurance companies, the company covers currency options, equity
and derivative energy wholesale market local and public authorities, charities, derivatives, freight, precious metals, energy,
transactions. We trade the range of global pension funds, high net worth individuals property derivatives, and pulp and paper
energy commodities – electricity, gas, and retail investors. markets. TFS Energy brokers a full spectrum
coal, oil and environmental products. Our aim is to apply our specialist asset of OTC energy and energy-related physical
Using our expertise from across the energy management skills in serving the needs of and derivative products, including electricity,
chain, we contribute to the optimisation our clients worldwide and in delivering value natural gas, crude oil and
of the asset-owning companies as well to our shareholders. We have one of the refined coal, environmental products and
as manage the group’s risk. largest networks of offices of any dedicated weather derivatives, and exchange-traded
Financial report: Net revenue 2005: €9.64bn asset management company and offer futures and options. TFS is a subsidiary
Performance ebitda 2005: €477.4m a comprehensive range of products of Compagnie Financière Tradition (CFT),
RORAC 2005: 86.6% and services to our clients. one of the world’s top three interdealer brokers
Headcount: 500 employees with trading Financial report: See http://ir.schroders. in financial and commodity-related products.
floors in Essen, Swindon and London com/schrodersplc/irhome/reports/ Financial report: Tradition Group’s
Graduates hires per annum: 20 Headcount: Approximately 2,500 turnover in 2005 grew 10.9% to Chf 942.4m
Approximate graduate hires 2007: Graduate hires per annum: 12 net profit.
20 direct entry and 6 onto our talent pool Approximate graduate hires 2007: Headcount: Approximately 200 employees
programme. 15 to 20 in London, 400 globally
Graduates recruited into: Every part Graduates recruited into: Investment, Graduates hires per annum: No fixed
of our value chain – from the proprietary distribution, finance and IT. amount, average is four per year in London
trading of energy commodities, origination Training offered: As part of your induction Approximate graduate hires 2007:
and asset management to the analytical to Schroders, you will attend a nine-week As above
functions of trading analysis, structuring training programme. This is one of the most Graduates recruited into: Could be
and valuation, risk management comprehensive training programmes in any of our London departments – equities,
and professional service functions. in the City of London. Once completed, energy or currencies, depending
Training offered: Direct entry recruits get you will have obtained both your IMC and on positions available.
real responsibility from day one in this dynamic the full range of investment skills you will Training offered: TFS runs broker training
environment. Training is on the job via the need to make an immediate contribution programmes in our New York and London
support of your manager and colleagues to the business. Ongoing training will then offices, typically once a year. These
and you will agree personal career be provided to further hone your skills programmes are aimed at applicants
development targets on a regular basis. Talent in your chosen specialism. with little or no prior experience of broking,
pool entrants receive mentoring from a Board The programme will give you an overview who are looking for an entry-level position.
member and have external coaching. HR will of the key asset classes available to investors The programmes provide students with
also help you determine which areas of the including hedge funds, real estate, private an insight into the day-to-day reality
business will give you the best exposure equity and structured products. You will learn of broking, through both multi-product
to develop your skills and personal profile how to take a set of financial statements on-the-desk observation and formal tutorials,
Internship Info: We offer between eight and use them to understand a company’s over a period of one or two months. Places
and 15 internships or placements each performance, forecast a company’s cashflow are limited and there is no guarantee
year – dependent on business need. and thereby value either their equities or of employment on completion. However,
Upon completion of your internship/ bonds. You will also experience, through at the end of the programme, permanent
placement, you have the opportunity a series of simulations, how investment employment may be offered to a small
to participate in an assessment centre, markets work and how derivatives can number of the original entrants.
Careers in Financial Markets 2006-07
which could lead to an offer of employment. be used to manage market uncertainty. Skills required: Strong sales, numeracy,
Skills required: Typically you will have The learning experience will be placed social, interpersonal and communication
at least a 2:1 in a quantitative or commercial in a real world context as you manage skills, with an ability to close deals. You
eFinancialCareers.com
discipline. A powerful, creative thinker and a notional investment portfolio throughout would need to be a team player with a drive
flexible pragmatist, you will be cool under the period of the programme. to succeed, as well as demonstrate
pressure and have exceptional commercial Internship info: Seven interns employed 2006. an interest in financial markets and have
acumen. Skills required: 2:1 degree in any discipline. an understanding of financial instruments.
Application deadline: None – applications Application deadline: Oct 06 Application deadline: Please refer to our
are always welcome. website (www.tfsbrokers.com) and/or look
out for our adverts on www.efinancialcareers.
com (graduate section).
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