Finance Recruit: Careers in Banking

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1 Research Analyst (from CMC s Careers in Business Guide) Research Research departments are generally divided into two main groups: fixed-income research (bonds) and equity research. Both types of research can incorporate several different efforts, including quantitative research (corporate financing strategies, specific product development, and pricing models), economic research (economic analysis and forecasts of economic trends, interest rates, currency movement), and individual company research. These are "sell-side Analysts (as the banks they work for "sell" or market stocks to investors), rather than "buy-side Analysts, who work for the institutional investors - mutual funds, pension plans, insurance companies, or high net worth individuals. It is vital to the investment bank that both fixedincome and equity research groups stay on top of emerging companies in the industry, and relay such information to the sales force, traders, and investment bankers with a speed never thought humanly possible. As a Research Assistant/Analyst/Associate, you'll meet with company management and analyze a company's financial statements and operations, provide written and verbal updates on market trends and company performance, attend or organize industry conferences, speak with the sales force, traders, and investment bankers about company or industry trends, develop proprietary pricing models for financial products, make presentations to clients on relevant market trends and economic data, offer forecasts and recommendations, and watch emerging companies. Research Analyst (from CSI.ca s Career Planning Map ) (From The Insiders Guide to the Best Jobs on Bay Street by Joe Kan. Copyright John Wiley & Sons; 1 edition. Used by arrangement with John Wiley & Sons, Inc.) The sell-side equity analyst provides in-depth research and analysis on a single industry (or sometimes several related industries) and is therefore considered an expert in that specific industry sector. Unlike deal/transaction-oriented investment bankers, research analysts provide ongoing industry and company coverage. The institutional sales/trading desk looks to the analyst for timely insights on industry developments and company-specific investment ideas. The investment bankers look to the analyst for a more technical perspective (ie., a healthcare analyst may comment on the science behind a new vaccine) or simply the analyst s financial forecasts on the companies covered. Analysts often come up through the research department ranks after having served as research associates for two to four years. Associates that are deemed to have analyst potential and are ready to take on analyst responsibilities are given an opportunity when their senior analyst leaves the firm or when the firm is expanding research coverage in a certain industry sector. However, not all firms promote associates to the analyst role. In the past, one energy boutique in Calgary, for example, only hired its analysts from industry. The firm s senior management felt it was the best way to differentiate the firm s research product from that of its competitors. Most firms, however, like to keep their associates motivated and hungry by dangling the carrot of future opportunities within the firm for those that excel. Senior professionals from corporate Canada who are financially savvy, especially those from more technical industries like energy, healthcare/biotech and mining, can bring a wealth of industry knowledge and industry contacts to the table.

2 When hiring analysts for most industry sectors, the primary consideration is relevant work experience, and educational background is secondary. However, there are a couple of industry sectors where candidates should have a more technical academic background. More often than not, sell-side analysts in the healthcare/biotech sector have some kind of health sciences undergraduate and/or masters degree (biochemistry,pharmacology, etc.), and analysts in the junior mining space have an earth sciences background (geology, mineral exploration, etc.). Candidates without these backgrounds have been hired as analysts in those sectors, but with mixed results. When a mining exploration company s prospects are based on the results of one drill hole or an emerging biotech company s prospects are based on evaluating early Phase II clinical trials, an analyst needs to have the technical background to have credibility. A glance at the top five ranked analysts in the biotech/pharmaceuticals sector confirms the point all five have health sciences backgrounds. Responsibilities include: Conducting industry and company research Interaction with institutional clients Writing and preparing research comments and reports Communicating information to institutional sales & trading desk Building/maintaining financial models and financial analysis Supervision/mentoring of research associate Attending industry conferences Respond to information requests from retail network Alternate Name Sell-side Analyst Earning Potential $100,000 to $150,000+/year

3 Sample Job Posting: Research Mawer Investment Management Ltd. Established in 1974, Mawer Investment Management Ltd. is the largest independent money manager in Alberta, providing investment management for individuals and institutions. Assets under management are approximately $9.6 billion. The company is proud of its reputation as one of Canada s most respected investment counsellors, and is committed to exceeding client expectations through its disciplined investment approach, strength across multiple asset classes, highly professional team and commitment to service excellence. For more information, visit our website at The firm is seeking an individual for the following position in Calgary: FULL-TIME RESEARCH ANALYST The Research Analyst will assist both fixed income and equity portfolio managers in the research process which includes: generating investment ideas, analyzing corporate news & public documents, interviewing management, building discounted cash flow models, and making recommendations for the purchase and sale of investments. The analyst will also assist in the reporting, sales and marketing, and compliance of equity and fixed income products. This is a generalist role that provides exposure to a broad array of industries within both domestic and international asset classes. Candidates should demonstrate a passion for investment management, expertise in Excel, and familiarity with financial statement analysis. Required skills also include strong analytical ability, and superior speaking and writing skills. Knowledge of VBA and fluency in a second language would be assets. Candidates should be completing (or have) an undergraduate degree and be prepared to enroll in the CFA program. Applicants should provide their résumé, a cover letter, latest university transcripts, and a short essay (400 word limit) explaining why they want to be an investor and describing the areas outside of investing in which they excel.

4 Sample Job Posting: Research bcimc GENERAL DESCRIPTION: The Research Analyst functions as part of the Research & Risk Measurement (RRM) Department, and reports directly to the Head of Research, Capital Markets Research Group. The RRM Department consists of the Economic, Capital Markets Research and Risk Measurement groups. The Capital Market Research group has three primary responsibilities: 1) conducting fundamental and quantitative research on global companies, industries and sectors; 2) conducting research to develop strategic investment themes to be implemented over a multi-year horizon across asset classes; and 3) developing, expanding and maintaining a research and data warehouse/platform to support quantitative research as part of this effort, the group develops and maintains research on many companies in which bcimc has investments or a potential interest. The Capital Market Research group primarily serves bcimc s asset class departments (for example, assisting the equity department in evaluating relative valuations of companies considered for inclusion in active pools, or supporting credit risk analysis in the fixed income department or potential private equity transactions). QUALIFICATIONS: The Research Analyst will have at least 3 years experience in specialized sector analysis (e.g. financial institutions, ideally including North American banks, insurance and diversified financials), supplemented with a university degree in Commerce, Business, Finance or Economics. An MBA or CFA designation is preferred and knowledge of structured finance would be an asset. The position also requires strong knowledge of corporate finance, micro-economics, investment portfolio theory and the institutional structure of financial markets. The Analyst must be inclined to take initiative, responsibility for their work and perform as a team player. SPECIFIC ACCOUNTABILITIES: 1. Research on Companies, Industries, Sectors Provides company/sector research on specialized areas (e.g. Canadian banking sector and diversified financials) in support of internal active equity pools managed by the equity department. Provides credit research on global banks for bcimc s Fixed Income department. Prepares and delivers clear and well structured research for internal audiences, including the Head of Research, and asset class VPs. Delivers research insight and valuation ideas over and above institutional research to improve portfolio performance. Constructs and develops the necessary financial models to forecast and rank companies within their respective sectors. Embraces the potential, through experience and ability, to mentor junior analysts. 2. Thematic Research Conducts research on the development of investment themes to guide long-term strategic positioning of client portfolios, focused on sustainable capital market opportunities to improve long-term portfolio returns.

5 3. Relationship Management Develops and manages relationships with asset class department heads and staff. Liaises regularly with active equity portfolio managers and the Head of Research. Develops and manages relationships with appropriate internal and external subject matter experts. 4. Actively adheres to compliance and risk management policies, and participates in business continuity planning. COMPETENCIES: Analytical Skills Effective performers have strong research and analytical skills; they are able to locate and interpret relevant information to produce insightful reports and to provide well thought out recommendations based on a rigorous process of organizing and analyzing data. Applies broad knowledge of macro/micro economics, corporate financial reporting, financial modeling, capital markets and considerable knowledge of their sector to the analysis of company performance. Displays good judgment in identifying key data and qualitative information for analysis. Applies quantitative and qualitative analytical techniques using a range of technical tools. Interprets the outcome of the analysis in relation to the asset class needs. Clearly and accurately conveys key findings, providing necessary supporting facts and analysis, and makes appropriate recommendations. Organizing & Planning Effective performers have strong organizing and planning skills that allow them to be highly productive and efficient. They manage their time wisely and effectively prioritize multiple complex tasks. Effectively prioritizes multiple tasks and competing demands ensuring priority is given to appropriate tasks. Adjusts to changing priorities appropriately by displaying flexibility and willingness to reorganize tasks. Focuses efforts on research and analysis that will add the most value to their findings and recommendations. Anticipates increases in workload based on business cycles and asset class needs, planning in advance to meet increased demand. Maintains a meticulous attention to detail regardless of volume and complexity of work. Initiative Effective performers are proactive and take action without being prompted. They don t wait to be told what to do or when to do it. They see a need, take responsibility, and act on it. They have a strong results orientation and make things happen. Continually focuses on achieving desired results within established timelines. Takes personal accountability for their performance. Understands the department goals and their role in achieving

6 them; consistently strives to meet those goals. Learns quickly and uses new information and systems effectively. Consistently responds to asset class questions and issues in a timely and effective manner. Relationship Building Effective performers devote appropriate time and energy to establishing and maintaining relationships. They initiate contacts readily and maintain them over time. They are able to utilize relationships to access information that may otherwise not be readily available. Proactively identifies relevant contacts and establishes beneficial relationships with colleagues and external parties. Effectively manages long-term business relationships; builds trust and maintains collaborative relationships. Proactively shares expertise freely with others and provides explanations where necessary. Is seen as credible in their area of expertise by both internal and external contacts. Influences, persuades and motivates others; establishes personal power base built on mutual trust, expertise, and honesty. Communicativeness Effective performers recognize the essential value of continuous information exchange and the competitive advantage it brings. They actively seek information from a variety of sources and disseminate it in various ways. They use modern technologies to access and circulate information. Offers their full attention when others speak; asks necessary questions and summarizes or clarifies requests to ensure understanding. Synthesizes information and communicates it to others in writing in a clear, concise and accurate manner. Presents research and analysis effectively in a group setting; responds with finesse when faced with on-the-spot questions or challenges during or after presentations. Gathers information, asks questions, and presents information and recommendations in a tactful, diplomatic, and professional manner. Displays confidence and conviction in interactions with others; appropriately challenges the positions of others.

7 Sample Job Posting: Analyst, Global Equity RBC Position Purpose: RBC Global Asset Management ( RBC GAM ) is a North American-based asset manager with global scope and industry-leading investment management capabilities. The RBC GAM group of companies, including Phillips, Hager & North serving institutional clients in Canada, manage approximately CAD $250 billion (US $250B, 156B or 182B) in assets worldwide on behalf of individual, high net worth and institutional investors through mutual funds, pooled funds, hedge funds, segregated accounts and specialty investment strategies such Cash Management. The incumbent will work with the Global Equity Research team to support various global equity funds by designing, maintaining and monitoring excel-based applications that analyze global consumer staples and health care companies. Key Accountabilities: PRIMARY RESPONSIBILITIES: Provide portfolio managers with stock ideas, utilizing various quantitative, technical and fundamental tools to screen for companies Responsible for writing reports on global health care and global consumer staples sectors for presentation at quarterly strategy meetings Detailed company analysis, which includes the building of proprietary earnings forecasts and expected return models, as well as a written research report Maintain detailed excel-based portfolios that include position details, as well as individual stock and sector weights Daily maintenance of spreadsheets that analyze portfolio positions and performance relative to global benchmark indices Maintain a model portfolio for companies in the sectors under coverage Various administrative functions to support the Portfolio Managers JOB SPECIFICATIONS: Comprehensive understanding of the capital markets Advanced knowledge of Excel Knowledge of Visual Basic, Bloomberg, and HOLT an asset Excellent verbal and written communicational skills Self-starter Team player

8 WORKING CONDITIONS: Must be able to work in a high pressure and dynamic environment, while respecting time commitments Attention to detail is critical, especially with respect to spreadsheet analysis Must demonstrate strong initiative on existing projects, as well as highlight potential process improvements for better monitoring portfolios, measuring performance and analyzing companies Must be able to multi-task and work within a diverse team KEY RELATIONSHIPS: Portfolio Managers and Analysts Research analysts from both sell-side brokers and proprietary research services Compliance Department Performance Measurement team Job Requirements: (Knowledge/ Experience): Undergraduate Business Degree/MBA/Masters of Finance Must have some experience in researching health care companies, or the industry, at either a sell-side or buyside firm, or have worked in the health care industry Minimum of 2 to 4 years of capital markets experience, preferably in equity research Advanced knowledge of Excel including VBA knowledge Working towards or completed the CFA designation

9 Sample Job Posting: Equity Research Connor, Clark & Lunn Connor, Clark & Lunn Financial Group provides investment management services to individuals, advisors, pension plans, institutional investors and foundations. As a multi-boutique asset management firm, Connor, Clark & Lunn Financial Group is uniquely focused on creating the conditions for success for its clients, partners and employees. The firm has offices in Vancouver, Edmonton, Calgary, Regina, Toronto, Ottawa, Montreal, Halifax and London, England and through its affiliated investment managers is responsible for the investment of over $44 billion in financial assets Connor, Clark & Lunn Investment Management Ltd, an affiliate of the Connor, Clark & Lunn Financial Group, is looking for an Equity Research Associate for our Canadian Equities team. The person will work closely with the Portfolio Managers and will assist in the coverage of one or more TSX/S&P industry sectors. This role is based in Vancouver, BC. Job Description Working closely with the Portfolio Managers to research companies for Canadian equity portfolios Providing research and analysis of Canadian Equities Consolidating and analyzing information from company financial statements, industry conferences and company presentations, analysts, and company management teams Building and maintaining financial models Presenting research findings to the Portfolio Managers Candidate Profile At least 1 to 3 years of experience in equity analysis Demonstrated ability to understand financial statements Strong analytical skills Demonstrated ability to consolidate and focus a large amount of data into succinct written or verbal communications Proven ability to work with a team of senior investment professionals Undergraduate degree accounting, finance, or commerce Completion of CFA Level 1 is preferred