E-LEARNING 2020 SEM 2

CAREERS IN FINANCE
By Angie Low
Modified by Chanika Charoenwong
 CFA Institute Asia-Pacific Career Guide
 The CFA (Chartered Financial Analyst®) Institute Asia-Pacific Career Guide 2014 is very useful for
students looking to enter the finance industry. It provides a list of the various roles and fields in
the finance industry as well as profiles and the career paths of more than 30 successful finance
professionals.
 Note that the guide is targeted at not only students and new entrants but also mid-career
professionals and so some of the jobs may not be so applicable for new entrants
 The guide is published by the CFA Institute and so there is a heavy emphasis on the CFA
program
 The guide is not meant to be exhaustive. There are other jobs and fields in finance not
covered
 The guide also provides insights into:
 The opportunities that are available in the finance industry, which areas are growing (see
“Opportunities in a fast-changing industry” and “Market snapshots”),
 Various career advices and tips (see “Kickstart your career development while still in
university,” “How to use social media to advance your career,” “Top 10 interview questions,”
and “How to get your CV on top of the pile”).
 In this set of slides, based on the classification provided in the CFA career guide, brief
summaries of each finance role/ field is provided.
 For the full guide, please go to https://www.cfainstitute.org/about/press-
releases/2013/cfa-institute-launches-guide-to-successful-careers-in-asia-pacifics-finance-
industry
Fund/Asset Management
 Fund managers are professionals who specialize in investing in equity, fixed
income (i.e., bonds), commodities, or a combination of asset classes. Fund
managers manage portfolios of securities on behalf of investors who put
their money in the fund (such as unit trusts, mutual funds, and pension funds).
 Positions in investment management are often organized into the front office,
middle office, and back office. The front office includes salespersons, traders,
and fund managers. The middle office includes risk managers, reporting
analysts, and compliance analysts. The back office includes technical and
administrative support staff for the front and middle office.
 More information at https://www.wallstreetmojo.com/fund-management/
and https://en.wikipedia.org/wiki/Asset_management_in_Singapore
 Profiles of graduates that Assets Management Firms look for, please go to
CFA Institute Career Guide 2015-16 (page 6-11)
https://www.cfainstitute.org/-/media/documents/book/career/car-v2015-n3-1.ashx
Alternative Investments – Hedge Fund
 Hedge funds are similar to mutual funds, i.e., investors pool together
their capital and a professional managers manage the money on
behalf of the investors.
 However, hedge funds are primarily targeted at high networth
individuals and institutions and they are not regulated (yet!).
 Other than the hedge fund manager, finance professionals may
work in roles relating to analysis, risk management, compliance,
sales and marketing.
 Reference sites
https://www.investopedia.com/articles/financialcareers/08/hedge-
fund-career.asp
 https://www.brightnetwork.co.uk/career-path-guides/investment-
banking/understanding-banking/hedge-fund/roles-in-hedge-fund-
management/
Wealth Management
 The wealth management industry caters to high
networth individuals.
 Wealth managers help their clients construct investment
portfolios and advices and plans for their clients current
and future financial needs.
 Roles in wealth management includes product specialists,
portfolio managers, relationship managers, private
bankers, and others.
 More information at
https://www.wallstreetmojo.com/careers-in-wealth-
management/
Investment Banking
 Investment bankers help clients raise capital through issuance of
equity, debt, etc. and provide advice on deals such as mergers and
acquisitions.
 Full-service investment banks are involved in a range of activities
including sales and trading, asset management, etc.
 There are many full-service investment banks. Check out Goldman
Sachs (http://www.goldmansachs.com/what-we-
do/overview/index.html) and Morgan Stanley
(https://www.morganstanley.com/what-we-do/investment-banking)
 The difference between wealth management and investment banking
(https://www.investopedia.com/articles/professionals/092515/car
eer-advice-investment-banking-vswealth-management.asp)
Risk Management
 Risk management involves the management of
unpredictable events that may have adverse effects on
the company (both financial and non-financial
corporations). Risk management professionals identify
potential problems, assess/ quantify their potential
impact, and find ways to mitigate them.
 Hedging and derivative instruments play very important
roles in risk management
 Risk management professionals are highly sought after
especially after the global financial crisis in 2008.
Compliance
 Compliance teams work to ensure that the company
meets regulatory requirements.
 Compliance officers may also need to manage risk
across the business.
 See for example,
 https://home.barclays/careers/find-a-
job/organisational-governance/
Private Equity
 Private equity firms raise capital and buy entire
firms to manage them in the hope of turning the
firm round and selling it afterwards.
 Venture capitalists invest in mostly start-up firms.
 Junior professionals such as analysts and associates
perform financial modeling and analysis and help
with due diligence and documentation. Senior
executives make investment decisions, find potential
investments, and raise money.
Research and Analysis
 Research analysts analyze companies, industries,
and the overall economy. They predict trends,
company stock prices and profitability. They make
recommendations to the clients.
 Think Lectures 5 and 6 on CAPM and stock valuation
 Examples of analyst reports:
 http://www.waverealtyllc.com/wp-
content/uploads/2016/08/sample.pdf
 http://www.thestreet.com/r/ratings/index.html
Corporate Finance
 A career in corporate finance involves analyzing,
selecting, and funding investments for both financial
and non-financial corporations.
 Think capital budgeting, financing policies, such as
capital structure policies and dividend policies in
AB1201
 Positions include chief financial officer (CFO), treasurer,
financial controller, financial analyst, budget analysts,
planners, among others.
Financial Advisory
 Financial transactions advisors assist clients to assess the
potential value and risks of a transaction. They perform
a wide variety of tasks such as due diligence, financial
modelling, valuation, design appropriate accounting,
finance and tax structures, etc.
 See example,
 https://www.ey.com/en_sg/consulting/finance-consulting-
services
 https://www.pwc.com/sg/en/deals.html
 https://www.ey.com/en_sg/financial-accounting-advisory-
services
Treasury
 The treasury department manages a firm’s
(financial or non-financial) liquidity, ensuring that
the firm has enough cash flows to meet emergencies,
invests the excess cash of a company, among other
duties.
 Banks and accounting firms may also provide
treasury services to corporations. See for example,
 https://home.kpmg/uk/en/home/services/audit/accou
nting-advisory/corporate-treasury-services.html
Development Finance
 Professionals in development finance work on
financing projects that are aimed at alleviating
poverty.
 See example,
 https://www.worldbank.org/en/about/unit/dfi#1

 https://www.adb.org/projects/45288-002/main

 https://www.oecd.org/development/development-
finance-institutions-private-sector-development.htm
Performance Measurement
 Performance measurement professionals analyze
data and measure fund performance. They also
compare fund performance to benchmarks and
understand why a fund may underperform or
overperform.
Structured Finance
 Structured finance is a service offered to clients with
specific financing needs that a single bank may not
fund fully on its own.
 Structured finance involves complex financial
transactions and may involve several lenders.
 See for example,
 https://www.business.hsbc.uk/corporate/structured-
finance
 https://www.citi.com/icg/bcma/issuer-
services/agency/structured-finance/index.html
Commercial Banking
 This is not explicitly included in the CFA guide.
Commercial banks take deposits from individuals and
institutional customers and use these money to provide
loans to customers.
 There are many types of commercial banking such as
retail/ consumer banking which caters to individuals or
corporate banking which caters to businesses.
 Positions available include credit analyst, relationship
managers, loan officers, trust officers, branch managers,
etc.
 See for example,
 https://online.citi.com/US/ag/career/careerhome
References
 CFA Institute Asia-Pacific Career Guide 2014
 http://ugstudents.smeal.psu.edu/academics-
advising/information-on-smeal-majors/finance-careers
 http://www.careers-in-finance.com
 https://www.cfainstitute.org/-
/media/documents/book/career/car-v2015-n3-1.ashx
 Brigham, Eugene F., Joel F. Houston, Jun-ming Hsu, Yoon
Kee Kong, and A.N. Bany Ariffin, Essentials of Financial
Management, 3rd edition, Cengage Learning Asia.
ISBN-13: 9789814441377.
 Including web links provided in the slides