General Meeting

USIT General Meeting Announcements Portfolio Update Market Update Lecture: Careers in Finance Pitch: WFM Agenda

USIT General Meeting Need to meet new officers What do I do now? Officer/SCG positions

USIT General Meeting Pitch sign ups for the 30 th, 7 th, and 14 th Lecture Topics LBOs Financial Crisis Employment Is a college degree worth the cost Pitch sign ups/Lecture

$5 entry fee Fall Portfolio Challenge Build and manage your own portfolio Compete with other McCombs students Top three winners receive prizes in May Register at usiteam.org/events

USIT General Meeting Announcements Technical Workshops Every Thursday 7-8 CBA4.328 This Week: Multiples Analysis

USIT General Meeting Announcements

Portfolio Update

USIT General Meeting FNMA (6.96%) – volatile ACC (6.44%) – Insider selling; giving pass previous gains BBRY (6.2%) – Announcement of Passport; Earnings coming up on Sep. 26; Acquired Movirtu GY(4.5%) – Analyst downgrade Portfolio Update

USIT General Meeting Fannie Mae- 6 month

USIT General Meeting ACC- 3 month

Company Overview - ACC Largest student housing company 1 st publicly traded student housing REIT Real Estate Investment Trust Distribute 90% of income as dividends Does not pay corporate income tax $4.2 billion worth of developments Partners with universities to build both on and off campus properties Headquartered in Austin

Market Update

USIT General Meeting Market Performance

USIT General Meeting Alibaba IPO  What is Alibaba?  Is it larger than Ebay and Amazon?  2013 transactions totaled $248 bn  More than Ebay + Amazon

USIT General Meeting Alibaba IPO  Why am I talking about Alibaba?  IPO  Midpoint price range of $155 bn

USIT General Meeting By buying stock in Samsung you get stock in?  A. The Bundesbank  B. A off shore account in Jamaica  C. Samsung  D. A South Korean Pension fund 2. By buying stock in Alibaba you get stock in?  A. The Dallas Cowboys  B. Chinese equivalent of social security  C. Alibaba  D. An agency in the Cayman Islands 3. The largest IPO in U.S. history was?  A. AT&T  B. Visa  C. General Motors  D. Facebook Alibaba IPO

USIT General Meeting Freedom!!!!!

USIT General Meeting United Kingdom Are England and the UK the same thing?

USIT General Meeting Folks Who are these people?

USIT General Meeting Scottish Independence What’s going on? Who’s involved Why are they doing this? Why does it matter? YES NO

USIT General Meeting What is it? Where is it being employed? Principal actors? What’s the big news right now? Quantitative Easing

Nov Fed announces QE1 and starts buying up to $1.7 trillion in securities March 2010 QE1 ends Nov Fed enters QE2, buys $600 billion in securities over seven months June 2011 QE2 ends Jan Fed begins taper Mortgage backed Securities Nov Fed begins QE3 $85 billion pm TWIST Federal Reserve Assets: Key Dates May/June 2013 Fed hints at tapering Source: U.S. Federal Reserve

USIT General Meeting QE Tapering Quantitative Easing 2014 Tapering  Tapering began in January of 2014 and will continue through October 2014.

USIT General Meeting Japanese Quantitative Easing 26 Source: Bank of Japan; Trading Economics Japan Central Bank Balance Sheet (Billion JPY)  1999 Japan hits 0% interest rate  2010 Japan starts QE  August 2011 BOJ increases balance sheet by 10T  October 2011 BOJ increases balance sheet by 5T  April 2013: Abenomics begin 130T over two years o Represents ~23% of GDP

USIT General Meeting Monetary Easing in Europe 27 Source: European Central Bank European Central Bank Balance Sheet (Euro)  In Sep ECB announces proposal for 1tn Euros of bank targeted initiatives intended to bring balance sheet to 2012 levels:  Proposed program would be 7.8% of the Euro Area GDP  Largest prong is the purchase of over 500bn Euros worth of covered bonds and ABS (in millions of Euros)

Introduction to Careers in Finance

USIT General Meeting Banking Private Equity Hedge Funds Corporate Finance PWM Major Fields

USIT General Meeting Retail Banking Commercial Banking Private Banking Investment Banking Banking

USIT General Meeting Investment Banking

USIT General Meeting You don’t invest Long hours Long weeks Decent pay Modeling Pitch books Other junk Basic Facts

USIT General Meeting Product Groups Specialized type of banking Coverage Groups Specialized industry of focus Fields within Banking

USIT General Meeting NYC Houston San Francisco Charlotte Investment Banking Geography

USIT General Meeting Investment Banking Career Hierarchy

USIT General Meeting Financial buyers Utilize methods such as LBOs Look for turn around of distressed company Liquidity event IPO Private Equity

USIT General Meeting Asset Management Small teams Limited number of large investors Not accessible to public Typically not undergraduates Hedge Funds

USIT General Meeting M&A Capital Raising Work focuses on your company Corporate Finance

USIT General Meeting Managing money Very relationship driven AUM fees Commission fees Problematic incentives PWM