2. General Meeting 2 9.16.2014

3. USIT General Meeting 2 9.16.2014 Announcements Portfolio Update Market Update Lecture: Careers in Finance Pitch: WFM Agenda

4. USIT General Meeting 2 9.16.2014 Need to meet new officers What do I do now? Officer/SCG positions

5. USIT General Meeting 2 9.16.2014 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

6. $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

7. USIT General Meeting 2 9.16.2014 Announcements Technical Workshops Every Thursday 7-8 CBA4.328 This Week: Multiples Analysis

8. USIT General Meeting 2 9.16.2014 Announcements

9. Portfolio Update

10. USIT General Meeting 2 9.16.2014 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

11. USIT General Meeting 2 9.16.2014 Fannie Mae- 6 month

12. USIT General Meeting 2 9.16.2014 ACC- 3 month

13. 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

14. Market Update

15. USIT General Meeting 2 9.16.2014 Market Performance

16. USIT General Meeting 2 9.16.2014 Alibaba IPO  What is Alibaba?  Is it larger than Ebay and Amazon?  2013 transactions totaled $248 bn  More than Ebay + Amazon

17. USIT General Meeting 2 9.16.2014 Alibaba IPO  Why am I talking about Alibaba?  IPO  Midpoint price range of $155 bn

18. USIT General Meeting 2 9.16.2014 1. 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

19. USIT General Meeting 2 9.16.2014 Freedom!!!!!

20. USIT General Meeting 2 9.16.2014 United Kingdom Are England and the UK the same thing?

21. USIT General Meeting 2 9.16.2014 Folks Who are these people?

22. USIT General Meeting 2 9.16.2014 Scottish Independence What’s going on? Who’s involved Why are they doing this? Why does it matter? YES NO

23. USIT General Meeting 2 9.16.2014 What is it? Where is it being employed? Principal actors? What’s the big news right now? Quantitative Easing

24. Nov. 2008 Fed announces QE1 and starts buying up to $1.7 trillion in securities March 2010 QE1 ends Nov. 2010 Fed enters QE2, buys $600 billion in securities over seven months June 2011 QE2 ends Jan. 2014 Fed begins taper Mortgage backed Securities Nov. 2012 Fed begins QE3 $85 billion pm TWIST Federal Reserve Assets: Key Dates 2007 2008 2009 2010 2011 2012 2013 2014 May/June 2013 Fed hints at tapering Source: U.S. Federal Reserve

25. USIT General Meeting 2 9.16.2014 QE Tapering Quantitative Easing 2014 Tapering  Tapering began in January of 2014 and will continue through October 2014.

26. USIT General Meeting 2 9.16.2014 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

27. USIT General Meeting 2 9.16.2014 200820092010201120122013 Monetary Easing in Europe 27 Source: European Central Bank European Central Bank Balance Sheet (Euro)  In Sep. 2014 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)

28. Introduction to Careers in Finance

29. USIT General Meeting 2 9.16.2014 Banking Private Equity Hedge Funds Corporate Finance PWM Major Fields

30. USIT General Meeting 2 9.16.2014 Retail Banking Commercial Banking Private Banking Investment Banking Banking

31. USIT General Meeting 2 9.16.2014 Investment Banking

32. USIT General Meeting 2 9.16.2014 You don’t invest Long hours Long weeks Decent pay Modeling Pitch books Other junk Basic Facts

33. USIT General Meeting 2 9.16.2014 Product Groups Specialized type of banking Coverage Groups Specialized industry of focus Fields within Banking

34. USIT General Meeting 2 9.16.2014 NYC Houston San Francisco Charlotte Investment Banking Geography

35. USIT General Meeting 2 9.16.2014 Investment Banking Career Hierarchy

36. USIT General Meeting 2 9.16.2014 Financial buyers Utilize methods such as LBOs Look for turn around of distressed company Liquidity event IPO Private Equity

37. USIT General Meeting 2 9.16.2014 Asset Management Small teams Limited number of large investors Not accessible to public Typically not undergraduates Hedge Funds

38. USIT General Meeting 2 9.16.2014 M&A Capital Raising Work focuses on your company Corporate Finance

39. USIT General Meeting 2 9.16.2014 Managing money Very relationship driven AUM fees Commission fees Problematic incentives PWM