Careers in Finance

Careers in Careers in FinanceFinance

By: Ron MandelBy: Ron Mandel

IntroductionIntroduction

Canadian Securities Course Canadian Securities Course Overview of well known designationsOverview of well known designations A look at careers in financeA look at careers in finance How much money? How much money?

Canadian Securities Course Canadian Securities Course (CSC)(CSC)

A self-study program offered by the A self-study program offered by the Canadian Securities InstituteCanadian Securities Institute

Covers:Covers: Financial service industry Financial service industry Fixed income securities, equities, mutual fundsFixed income securities, equities, mutual funds DerivativesDerivatives Factors influencing market process of Factors influencing market process of

securities, and the economysecurities, and the economy CSC is typically taken by:CSC is typically taken by:

Bank and trust company advisors, mutual fund Bank and trust company advisors, mutual fund advisors, professional accountants, insurance advisors, professional accountants, insurance agents, business students, and individual agents, business students, and individual investors investors

Canadian Securities Course Canadian Securities Course (CSC)(CSC)

Benefits:Benefits: Demonstrate to prospective employers you are Demonstrate to prospective employers you are

serious in your career serious in your career Launch a financial services career by fulfilling Launch a financial services career by fulfilling

one of the required steps for registration to sell one of the required steps for registration to sell mutual funds or securitiesmutual funds or securities

The course is a requirement to become The course is a requirement to become registered as a full-service Investment Advisor registered as a full-service Investment Advisor or brokeror broker

Enhance financial planning expertise with a Enhance financial planning expertise with a deeper understanding of investment products deeper understanding of investment products and financial marketsand financial markets

Chartered Financial Analyst Chartered Financial Analyst (CFA)(CFA)

Offered by the CFA Institute Offered by the CFA Institute Entrance Requirements:Entrance Requirements:

U.S. Bachelor’s (or equivalent) degree or U.S. Bachelor’s (or equivalent) degree or four years of qualified, professional work four years of qualified, professional work experienceexperience

The curriculum develops a fundamental The curriculum develops a fundamental knowledge of investment principlesknowledge of investment principles

Three levels of examination Three levels of examination One of the harder designations to attainOne of the harder designations to attain

Canadian Investment Canadian Investment Manager (CIM)Manager (CIM)

Exciting time to become a discretionary money Exciting time to become a discretionary money manager manager

Benefits:Benefits: Build expertise to provide money management Build expertise to provide money management

services to high-net-worth and institutional clientsservices to high-net-worth and institutional clients Understand the application of portfolio Understand the application of portfolio

management in the context of Canadian markets management in the context of Canadian markets and regulatory requirementsand regulatory requirements

Identify clients' objectives and constraintsIdentify clients' objectives and constraints Develop appropriate investment policies and Develop appropriate investment policies and

strategies, taking into consideration market and strategies, taking into consideration market and economic conditionseconomic conditions

Canadian Investment Canadian Investment Manager (CIM)Manager (CIM)

To earn the CIM designation, you must To earn the CIM designation, you must complete:complete: Canadian Securities CourseCanadian Securities Course Investment Management TechniquesInvestment Management Techniques Portfolio Management TechniquesPortfolio Management Techniques

Who should enroll:Who should enroll: Senior investment advisors, investment Senior investment advisors, investment

counselorscounselors Portfolio managers, research analystsPortfolio managers, research analysts Investment Strategists, senior equity Investment Strategists, senior equity

traderstraders

A Few More DesignationsA Few More Designations

Chartered Chartered Accountant (CA)Accountant (CA)

Certified General Certified General Accountant (CGA)Accountant (CGA)

Certified Certified Management Management Accountant (CMA)Accountant (CMA)

Certified Financial Certified Financial Planner (CFP)Planner (CFP)

Careers in FinanceCareers in Finance

Investment BankingInvestment Banking Transactions include mergers, Transactions include mergers,

acquisitions, divestitures, the issuance acquisitions, divestitures, the issuance of equity or debt capital, or a of equity or debt capital, or a combination of these. combination of these.

Sales & TradingSales & Trading TradingTrading SalesSales ResearchResearch


Venture CapitalVenture Capital Evaluate companies and business plans Create strategies based on market trendsCreate strategies based on market trends Make deals Make deals Recruit the executives to head the Recruit the executives to head the

businesses they fund businesses they fund Sit on boards and advise the companies Sit on boards and advise the companies

they fundthey fund A lot of networkingA lot of networking


Hedge Fund ManagementHedge Fund Management Goal: Manage return versus risk (Sharpe Goal: Manage return versus risk (Sharpe

Ratio)Ratio) AdvantagesAdvantages

Work on a variety of tasksWork on a variety of tasks Relaxed, academic-like atmosphereRelaxed, academic-like atmosphere

DisadvantagesDisadvantages Relatively narrow window of expertiseRelatively narrow window of expertise View of world is very different from non-View of world is very different from non-

hedge fund entitieshedge fund entities A lot of new hedge funds out thereA lot of new hedge funds out there


Mutual Funds and Money ManagersMutual Funds and Money Managers Mutual funds: manage assets for retail investorsMutual funds: manage assets for retail investors Money managers: Manage assets for Money managers: Manage assets for

institutional investors such as pension funds, institutional investors such as pension funds, insurance companies, universitiesinsurance companies, universities

Major funds and money managers include: Major funds and money managers include: Equity: Fidelity, Alliance Capital, Vanguard, Equity: Fidelity, Alliance Capital, Vanguard,

PutnamPutnam Bonds: Federated, Nuveen, PIMCO, BlackRockBonds: Federated, Nuveen, PIMCO, BlackRock


Corporate FinanceCorporate Finance Two key functions: accounting and finance:Two key functions: accounting and finance: Accounting concerns itself with day-to-day Accounting concerns itself with day-to-day

operations - balancing the books, tracking operations - balancing the books, tracking expenses and revenue, executing payroll, and expenses and revenue, executing payroll, and paying the bills, compiling financial data for paying the bills, compiling financial data for financial statementsfinancial statements

Finance concerns itself with analysing revenue Finance concerns itself with analysing revenue and expenses to ensure effective use of capital, and expenses to ensure effective use of capital, looking at project costs, making capital looking at project costs, making capital investments, structuring deals to help the investments, structuring deals to help the company growcompany grow

SalariesSalariesSalaries in Investment Banking (with bonus)

Job Level Bulge Bracket Regional PlayerPrerequisite

(degree/yrs experience)

First Year Analyst $60K - 110K $30K - 70K Bachelor's

Third Year Analyst $80K - 200K $70K - 150K Bachelor's

First Year Associate $125K - 235K $70K - 150K MBA

Third Year Associate $150 - 450K $120 - 250K MBA

Assistant Vice President $200K - 600K $75K - 120K 2-4 years

Vice President $250K - 800K $100K - 400K 3-6 years

Associate Director $250K - 1MM $150K - 500K 3-8 years

Director / Principal $300K - 1.2MM $200K - 600K 5-10 years

Managing Director / Partner $400K - 20MM $200K and up 7-10 years

Department head $750K - 70MM $300K and up 10+ years

ConclusionConclusion

There are many more finance related jobsThere are many more finance related jobs Some require only a bit of formal Some require only a bit of formal

education while others demand education while others demand significant amountssignificant amounts

Salaries range from alright to admirable Salaries range from alright to admirable to amazingto amazing

If you want to learn more, check outIf you want to learn more, check out Vault.comVault.com Wetfeet.comWetfeet.com

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Careers in Finance