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FOUNDATION DAYCAREER PATH & STUDY GUIDE

WHY YOU SHOULD STUDY CFA?

Strong finance foundation

How to work under pressure

Clear career path

Global recognition

Interesting elite network

CAREER INTRODUCTION

Fund managementAlternative Investments

Wealth Management

Investment Banking

Risk Management

Compliance

Private Equity

Research and Analysis

Corporate Finance

Financial Advisory

Treasury

Development Finance

Performance Measurement

Structured Finance

Finance and Investment

Industry

Finance and Investment

Industry

INVESTMENT AND ASSETS MANAGEMENT

Fund managementAlternative InvestmentsWealth ManagementPrivate Equity

INTERNAL CONTROL AND ASSESSEMENT

FINANCE AND INVESTMENT SERVICES OTHER

Research and AnalysisFinancial AdvisoryInvestment Banking

TreasuryRisk ManagementCompliancePerformance Measurement

Corporate FinanceDevelopment FinanceStructured Finance

CAREER INTRODUCTION

FUND MANAGEMENT

What to expect

o Picking stocks, finding the right portfolio mix, and executing

trades

o Could be active or passive fund managers.

o Work closely with a team of research/investment analysts

o Start as a research analyst and climb up the ladder to

become a fund manager, chief investment officer, or higher.

Hiring trend: Demand for talent in the fund management industry is expected to grow in

tandem with wealth creation in Asia Pacific.

Skill needed: Strong analytical, quantitative, leadership, and communication skills are

important.

CFA module focus: Ethics | Portfolio Management | Quantitative | Corporate Finance

| Financial Reporting Analysis | Economics | Equity | Fixed income

WEALTH MANAGEMENT

What to expect

o Caters to high- and ultra high-net-worth individuals

o Deliver more than a stock recommendation

Hiring trend: As wealth in Asia grows, professionals in

this industry will remain in demand.

Skill needed: Strong analytical and quantitative skills, excellent sales, interpersonal, and

communication skills are equally important.

CFA module focus: Ethics | Wealth Management (Level 3) | Behavioural Finance (Level 3)

| Quantitative | Equity | Fixed income | Alternative | Derivative

ALTERNATIVE INVESTMENT (Hedge Fund)

What to expect

o The hedge fund industry is one of the toughest areas in

the investment industry to break into.

o Deliver higher risk-adjusted returns to investors than

traditional managers.

o May work in this industry in areas such as analysis, risk

management, compliance, and sales and marketing.

Hiring trend: China has a growing hedge fund industry, but headcounts are still relatively few.

Skill needed: Hedge fund managers must have strong quantitative and analytical skills, as well

as excellent sales skills to market the fund and raise capital.

CFA module focus: Ethics | Portfolio Management | Financial Reporting Analysis | Alternative Investment | Corporate Finance

PRIVATE EQUITY

What to expect

o Involved in identifying, evaluating and executing potential investments

o Maximizes gains for investors.

o Professionals with investment banking experience or with strong local knowledge in a specific industry or market

Hiring trend: PE firms are sitting on plenty of capital and some firms are still hiring, especially those with a strong China and Southeast Asia focus.

Skill needed: Strong analytical, quantitative, and communication skills are essential. Initiative to find investment opportunities and business acumen are also important.

CFA module focus: Ethics | Financial Reporting Analysis | Corporate Finance | Supplemental: Negotiation skills, Financial Modeling

RESEARCH AND ANALYSIS

What to expect

o Analyzing potential investment returns and risks, and

forming recommendations.

o Buy-side analysts typically work for asset management

firms, while sell-side analysts work for securities brokers.

Hiring trend: Job opportunities may depend on areas of specialization that are in demand.

Skill needed: Strong quantitative, analytical, and communication skills are essential.

CFA module focus: Ethics | Financial Reporting Analysis | Corporate Finance | Equity |

Fixed Income | Supplemental: Financial Modeling

INVESTMENT BANKING

What to expect

o Advice clients about a listing, a merger, or an acquisition

o Help corporate clients tap equity capital markets through

(IPOs), placements, rights issues, and other equity or equity-

linked products.

o Competition for client mandates is stiff; hence, innovative

financing ideas count the most.

Hiring trend: Investment banks are expected to shrink in size over the next few years. In

Asia, M&A and debt capital markets are faring better than equity capital markets.

Competition is high for entry-level investment banking jobs.

Skill needed: Strong analytical and quantitative skills are important; so are multitasking and communication skills.

CFA module focus: Ethics | Financial Reporting Analysis | Corporate Finance | Supplemental: Negotiation skills | Financial Modeling

RISK MANAGEMENT

What to expect

o Identify potential problems, assess their impact, and mitigate them.

o Play an important role in maintaining a healthy balance between risk taking and profit

making

Hiring trend: Efforts to curb excessive risk taking following the global financial crisis have

resulted in a wave of regulations.

Skill needed: Strong analytical and quantitative skills are important; so are multitasking and

communication skills.

CFA module focus: Ethics | Quantitative (Level 1,2) | Risk Management (Level 3) |

Equity | Fixed Income | Economics | Derivative

FINANCIAL ADVISORY

What to expect

o Performing painstaking analysis to assess the potential value

and risks of a transaction.

o Perform a wide array of tasks: due diligence and financial

modeling, valuation assessments, design appropriate

accounting, etc.

o Work on various projects with diverse clients.

Hiring trend: The world’s largest accounting firms are among the leading providers of transactions advisory services.

Skill needed: Strong quantitative, analytical, organizational, and communication skills are important.

CFA module focus: Ethics | Financial Reporting Analysis | Corporate Finance | Equity | Fixed Income | Supplemental: Financial Modeling, Negotiation skills

CORPORATE FINANCE

What to expect

o Involves a lot of number crunching and analysis, financial

modelling and forecasting, and strategic thinking.

o Ability of puting numbers into a business context for

management and the board to use in their decision making.

Hiring trend: Hiring for various roles in corporate finance remains relatively strong as companies focus on delivering value to shareholders

Skill needed: Strong quantitative, analytical and technical skills are essential. Communication, leadership, and influencing skills are also important.

CFA module focus: Ethics | Financial Reporting Analysis | Corporate Finance | Equity | Supplemental: Financial Modeling, Financial Forecasting

FUND MANAGEMENT CAREER PATH

Graduation

Internship

Analyst

Senior Analyst

Team Manager

Head of Fund

Director/ Fund company owner

Finance/Accounting/Business degrees are good starts. But they are not the only choices.

CFA

Equity Funds, Securities Firms, Private Equity, Investment Banking … can offer the jobs. No matter where you works for, consistent jobs are preferable.

CFA program provides useful expertises.CFA is a gold standard in the industry

Less job positions, more challenges, and highly respected

HOW TO BALANCE BETWEEN PERSONAL LIFE AND CFA

Expectation managemento For you

o For your family

o For your employer

Building a good schedule for studying and workingo Decide when to start

o Think about your big plan

o Build a weekly plan

RECOMMENDED STUDY METHOD

o Use curriculum – You should start soon

o Reading through to get the big picture of the topic before coming to class

o You could just review learning outcome

o Finishing all exercises in curriculum for each reading

o Having your own note for each reading, section and subject

o Trying to draw mind map for each reading

o Refering to extra papers recommended from lecturers if you have time

WHY YOU SHOULD USE THE ORIGINAL CFA BOOKS

o How you could become analyst if you can’t read 2,500 pages in 6 months.

o The goal of CFA exam and preparation is to prepare for you the pressure in the industry

o You could have a big picture of the subject with CFA curriculum but not for Schweser Note

o You can have good memory when learing with Curriculum

o You could approach the experience of CFA Charter Holders through case study in the Curriculum

o This uses the language of the exam and the investment world

HOW TO USE CURRICULUM EFFICIENTLY

o Making questions about the topic of section and reading before you read

o Skiming and Scanning to have a big picture first

o Take note for what you have read

o You should summarize each reading with your own words

o You should also create mind map for each reading

o Do all exercises at the end of each reading, especially for Quiz section

WHAT STUDENTS SHOULD PREPARE AT UNIVERSITY

NET WORK

DUE DILIGENCE

CAMPUS ACTIVITIES

INTERNSHIP

MENTORS

o Meeting people in Finance and Investment Industry and learn from them

o Research all finance areas and prepare for them: What do people in each specific filed do? Job requirement? Skills and qualification to be achieved?

o Extra-curricular can build up your skills: leadership, time management, collaboration and other soft skills. CFA Institue Research Challenge and similar competition should boost up your knowledge a lot.

o Fresh graduates are understandably short on work experience when they join the job market. Then internship opportunities help you exposure to the experience.

o Practical insights and advice from mentors and sponsors can help you save time in penatring into the industry.

Q&A