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welcome to financial services 101 or the out for undergraduate business conference I'm Leo Vergara I have a political science degree from the University of Florida and I've been working in financial services for about 11 years so let's go through the agenda what does a financial service firm look like then we're going to walk through some overview of typical roles first sales trading and research second investment management and third Investment Banking and finally we're going to discuss what some of our colleagues in financial services typically do after career and financial services so let's address the first question what does a typical firm look like in this chart you'll see all the main areas that financial services operate in the one circled in red are the ones we're going to be focusing on for the purposes of this presentation so please take a look so let's talk about sales trading and research sales and trading makes up too familiar functions revolving around the exchange of securities essentially the sales department is the one that deals directly with clients talks to clients about trading ideas and develops the investment themes with the clients the trading department is really a more an internal function that works together with the sales team to manage the risk on the balance sheet of the firm the research department on the other hand creates and publishes reports that creates the fundamental ideas behind what the sales and trading department does with the client so they might produce reports on companies on sectors or any trade ideas that supports web sales and trading is executed for clients so you might ask yourself who considers sales trading and research or who should consider it and you should consider it if you have a real interest in markets if you already follow them if investing appeals to you if you really like client relationships if quantitative analysis is your your forte and if you enjoy statistical analysis I would say those are the key factors to considering a sales and trading and research position what is a typical day for sales and trading analyst I won't really go through every minute but I do want you to pay attention to one very important fact and the fact is from 9 30 until four which is when us equity markets are open you are pretty much spending all of your time in the desk including lunch I also note the time at which you start with market updates anytime you leave your office which there's some leeway and flexibility but that's more or less the schedule of a typical analyst day let's compare that with a typical day for a research analyst please note that between market hours 9 30 and 40 p.m. the research analyst is not necessarily spending that amount of hours at the trading desk instead they're communicating with the sales and traders who are working together with them to use their research to talk to clients so it's quite different also note the time they leave their office and the last thing they do before leaving let's go to the second area of focus investment management this is divided into two sections private wealth management and institutional asset management what is private wealth management private wealth management provides comprehensive wealth management solutions to ultra high net worth individual clients these are people and their families typically minimum assets for these types of services require 10 million dollars of investable assets this will vary by firm but I just want you to be aware of more or less what we're discussing so what types of services do private wealth management firms provide to their clients in general we do everything from very basic banking services such as having bank accounts and credit cards all the way to management large investment portfolios also assisting clients in investing the liquidity from the sale of a business so maybe a family would sell a business for a large amount and they need a private wealth manager to take over the portfolio that they will invest for their family and for future generations this is a typical day for private wealth management analyst essentially you come into work you respond to your emails you'll prepare client presentations for client advisors who will then meet with clients or have a conference clients in which many times analysts participate and can oftentimes here how the advice is delivered to clients the second subset under investment management is institutional asset management which essentially provides investment management risk management and advisory services to clients looking to invest and grow their capital so you might ask what types of clients are these typically corporations pensions foundations endowments and other institutions and they typically look for very specific services so you might be developing a strategy for a client that's only an equity strategy so only to invest in stocks and in a particular style so perhaps passive or active so it's very very specific the other thing is typically an analyst will specialize in one asset class so they will not cover multi asset classes it will cover one it will specialize another equity or fixed income for example and cover their clients that are interested in that types of that type of service it might include portfolio analytics or market valuations or perhaps they will provide some portfolio management services to that particular client so what does a typical day in institutional asset management look like basically it consists of portfolio reviews and strategy discussion of markets with clients so what you will be doing is working with the portfolio managers to prepare all the materials that are necessary to have these discussions with clients both to repair for new pitches and to review portfolios the third and final area of focus is investment banking so let's talk about that what is investment banking investment banks typically are financial intermediaries that provide corporations governments and other institutional clients with a full spectrum of solutions for their strategic advisory financing and risk management needs what does this mean to you what do they do for them they really facilitate on mergers and acquisitions meaning when a company wants to merge with another company or maybe acquire another company the investment bank might facilitate that or be on the side of both the seller or the buyer they might also issue debt for a for example a government a government is looking to finance themselves in u.s. dollars they come to an investor bank they you should that for them or a company that's looking for capital markets to finance a new operation or an acquisition through a public offering issuing stock essentially in the market is another function investment banks provide what does a typical day for an investment banking analyst look like and rather than focusing on the hours which we all know can vary significantly let's focus on what we really do as analyst in investment banking and typically it's all about deal flow and it's all about business so you'll be providing analytics so perhaps valuating a company and doing all the presentations that the senior people are going to use to present to the client and essentially making your deal the most attractive is what's going to make the business happen for the bank or not and finally what's next what do people with experience in large financial institutions often pursue after their careers there's a number of answers but typically its private equity or hedge funds and that can be both in sales or the analytic side that depends on which area of focus you probably spent a few years and other potential fields include entrepreneurship product development and even working in nonprofits well that concludes financial services 101 thank you for tuning in and we look forward to seeing you at the out for undergraduate business conference 2013 thanks