Asset management on Wall Street The structure Asset classes and vehicles Investment styles and client needs Asset management positions Intern

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1 Mike Mitchell, Program Manager usa.org)

2 Asset management on Wall Street The structure Asset classes and vehicles Investment styles and client needs Asset management positions Intern responsibilities Skills and qualities for success The benefits Resources 1

3 Sellside Buyside Investment Banking Asset Management The sell side Provide additional market color and advice on stock entry and exit price levels to the buy side The ebuysde side Purchases securities from the sell side to invest in their portfolios Asset managers have a fiduciary duty by always investing/acting in the best interest of their clients rather than for the firms own profit or benefit. 2

securities from the sell side to invest in their portfolios Asset managers have a fiduciary duty by

4 Asset Management is the business of managing assets for either institutions or wealthy individuals Asset Management Services Investment Management Private Bank/Private Wealth Management (High net worth Individuals) CLIENTS CLIENTS Institutions Individuals Pension plans Wealthy families Endowments and foundations Entrepreneurs Central banks Family business owners Sovereign wealth funds Corporate executives Supranationals Celebrities/Entertainers Insurance companies Corporate cash Athletes Beneficiaries 3

Individuals Pension plans Wealthy families Endowments and foundations Entrepreneurs Central banks Family business owners

5 Asset managers aim to achieve their target returns by investing in any of these major asset classes and vehicles Asset classes Vehicles Equity Fixed income Alternative investments Hedge funds Private equity Real estate Commodities Emerging markets Mutual funds Pools money from many investors Separate accounts Tailored portfolios Other pooled funds 4

investments Hedge funds Private equity Real estate Commodities Emerging markets Mutual

6 Asset managers have 2 investment styles and must always know their clients needs Passive management Buy and hold strategy Active management Outperform a benchmark return Client needs History and experience of client Return objectives Appetite for risk Liquidity needs Investment horizon Tax and legal considerations Unique needs 5

return Client needs History and experience of client Return objectives Appetite

7 Investment Management Marketing Client advisory/sales Client portfolio management/account t management Portfolio management Quantitative/Risk research Equity and fixed income research Private Bank/PWM Client advisory Securities, advice, and execution Private client investment management Product development Credit and risk 6

Equity and fixed income research Private Bank/PWM Client advisory Securities,

8 As an analyst, you have the opportunity to perform many different functions Research and synthesize information on financial markets Assist with the portfolio management of funds and separate accounts Perform financial and portfolio analysis Present and prepare optimal solutions for clients needs Research and evaluate potential clients Prepare marketing materials for sales presentations 7

separate accounts Perform financial and portfolio analysis Present and prepare optimal solutions

9 8:00 a.m. Log onto computer, check and voice mail 8:30 Morning markets meeting 9:00 Finish replying to urgent s and voic s 10:00 Meet with manager to discuss a potential client and appropriate investment products based on their current objectives and needs 11:00 Finish working on portfolio review presentation for a current client meeting next week 12:30 p.m. Lunch while working 2:00 Investment strategy meeting with portfolio managers to discuss current portfolio positioning i and upcoming trade ideas 3:00 Begin working on pitchbook for the potential client discussed this morning 4:00 Asked by a colleague to join in a conference call with an existing client to discuss their new investment guidelines and impact on portfolio 5:00 Meet with legal and compliance to discuss the conference call and what needs to be done as a result 6:00 Resume working on pitchbook 7:30 Reply to s and late phone calls and put together to-do list for tomorrow 8:00 p.m. Prepare to go home 8

10 Strategic, analytical and innovative thinker Well-organized and detail-oriented Communication and interpersonal skills Good business writing skills 9

11 The benefits Diversity of responsibilities and work Potential for high levels of exposure and responsibility Client focus Stable, long-term career Good work-life balance Geographical flexibility 10

responsibility Client focus Stable, long-term

12 Online Community Zoologic VAULT Investment Principles Career Guide to Investment Asset Allocation Management Portfolio Diversification Guide to the Top 50 Banking Managing Client Expectations Employers Introduction to Portfolio Management Vault Guide to Finance Interviews Recommended reading list Webinars Wall Street Journal Guide to Quick math and case study Understanding Money and Investing How to read the Wall Street Journal The Warren Buffet Way: Investment Strategies of the World s Greatest Investor SEO Alums in asset management provided through SEO-U

Recommended reading list Webinars Wall Street Journal Guide to Quick math and case study Understanding Money and Investing How to read the

13 Periodicals Wallll Street Journall Financial Times BusinessWeek Fortune o u e Money Internet htt // SEO Partner Firm websites Television CNBC

yahoo.com http://money.cnn.com htt // http://bloomberg.

14 Questions? usa.org

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