FMA 2021-2022 Recruitment
Slide Deck for the FMA Spring 2022 Recruitment Season
Slide Deck for the FMA Spring 2022 Recruitment Season
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<strong>FMA</strong> Recruiting Information<br />
<strong>2021</strong> – <strong>2022</strong> School Year
Table of Contents<br />
‣ I. Overview of <strong>FMA</strong> Programs<br />
‣ II. Auburn Student Investment Fund Overview<br />
‣ III. New Candidate Technical Curriculum<br />
‣ IV. Application & Interview Process<br />
‣ V. Questions & Contact Information<br />
[ 2 ]
I. Overview of <strong>FMA</strong> Programs
<strong>FMA</strong> Overview<br />
The mission of Auburn <strong>FMA</strong> is to develop, train and mentor top students interested in finance through continuing<br />
education programs, case competitions, corporate visits, leadership seminars and networking opportunities.<br />
<strong>FMA</strong> Goals<br />
‣ Empower students by educating them early on in their college experience about the different career paths<br />
within finance<br />
‣ Foster a student-led support network for classmates interested in investment banking, asset management<br />
and consulting<br />
‣ Teach practical and relevant technical skills that prepare candidates for their recruiting processes<br />
‣ Facilitate unique corporate recruiting relationships through a strong Auburn and <strong>FMA</strong> alumni network<br />
<strong>FMA</strong> Membership<br />
Targeted Industries<br />
74 75<br />
82 79 78 77<br />
<strong>FMA</strong>’s Career Paths<br />
47<br />
40<br />
47<br />
23<br />
27<br />
20 20 20<br />
Asset<br />
Management<br />
Corporate<br />
Banking<br />
Consulting<br />
Corporate<br />
Finance<br />
Investment<br />
Banking<br />
Private<br />
Wealth<br />
2016A 2017A 2018A 2019A 2020A <strong>2021</strong>A <strong>2022</strong>E<br />
New Members<br />
Total Members<br />
Selected opportunities for growth<br />
[ 4 ]
Placement Results<br />
Overview<br />
‣ Since its inception in Fall 2014, <strong>FMA</strong> has<br />
supported over 120 students in their pursuit of<br />
rewarding and competitive careers<br />
‣ Continuing to expand legacy placements<br />
including Goldman Sachs, Jefferies, Moelis,<br />
Piper Sandler, Stephens and Credit Suisse<br />
‣ In the spring <strong>2021</strong> graduating class, average<br />
starting compensation for 20 graduates was<br />
$116,000<br />
Average Starting Compensation<br />
$57,000 $65,000 $74,000<br />
$93,500 $90,500<br />
$95,600<br />
$116,000<br />
$57,939<br />
2020 NACE<br />
Business<br />
Major<br />
Average<br />
2015 2016 2017 2018 2019 2020 <strong>2021</strong><br />
Full-time & Internship Placement<br />
Full-time & Internships Placement Rates<br />
100% 100%<br />
85%<br />
57%<br />
Freshman Sophomore Junior Senior<br />
[ 5 ]
Placement Map<br />
<strong>FMA</strong> internship & full-time placement out of undergraduate<br />
[ 6 ]
Investment Banking Overview<br />
Investment Banks act as financial advisors to companies at very specific, impactful moments of their life-cycles.<br />
Investment Banking Services<br />
‣ M&A/Restructuring advisory<br />
‣ Investment banks work in advisory capacity when a company undergoes a merger, acquisition, or restructuring<br />
process<br />
‣ Capital raising<br />
‣ T-Mobile acquires Sprint for $26bn<br />
‣ JC Penny bankruptcy<br />
‣ Investment banks underwrite both equity and debt raises through their access to the capital markets<br />
‣ IPO’s, bond issuances, etc.<br />
On the Job<br />
‣ Quantitative analysis<br />
‣ Build Excel financial models to arrive at<br />
company valuation<br />
‣ Qualitative analysis<br />
‣ Refine technical analysis and add industry<br />
color to create digestible presentation in<br />
PowerPoint<br />
‣ Access to C-Suite/Upper-level management<br />
‣ Extremely competitive<br />
‣ ≤ 1% acceptance rate (~5x more difficult than<br />
admittance into Harvard)<br />
‣ ~80 – 100 hours/week<br />
‣ ~$150k total compensation<br />
Exit Opportunities<br />
‣ Typical Investment Banking analyst stint of 2 years<br />
‣ Learning on the job unparalleled when compared to<br />
other entry-level positions<br />
‣ (~2x quality of work)*(~2x hours worked) =<br />
(~4x material learned)<br />
‣ Career “pledgeship”<br />
‣ Private Equity, Hedge Fund, Venture Capital, Public<br />
Service, Corporate Development, Consulting, Search<br />
Fund, Graduate Business School<br />
‣ Dictate terms of next job position<br />
‣ Category, industry, location, size, etc.<br />
[ 7 ]
<strong>FMA</strong> Member<br />
Finance Major<br />
Finance Minor<br />
<strong>FMA</strong> Process<br />
Freshman / Sophomore Year<br />
Junior Year<br />
Senior Senior Year Year<br />
• In-depth career panel overview<br />
• New Candidate Technical Curriculum<br />
• Access to Wall Street Prep and TTS<br />
• Engaged mentors via upperclassmen<br />
and alumni network<br />
• Participate in ASIF<br />
Program with course<br />
credit<br />
• <strong>FMA</strong> Practical<br />
Application Course<br />
• Interact directly with<br />
“elite” employers<br />
• <strong>FMA</strong> Financial Modeling<br />
Course<br />
• Evaluate and select fulltime<br />
opportunity (Fall)<br />
• Serve as a resource for<br />
younger <strong>FMA</strong> members<br />
• Entry-level coursework<br />
• BUSI 1010 & 2010<br />
• Begin major coursework<br />
• FINC 3010<br />
• Begin full-time job search<br />
• Begin relevant finance<br />
elective courses<br />
• Entry-level coursework<br />
• Begin major coursework<br />
• Entry-level coursework<br />
for finance minor<br />
• Begin full-time job search<br />
less aware of the finance<br />
recruiting process<br />
Recruiting begins for crucial junior summer internships<br />
[ 8 ]
<strong>FMA</strong> Events<br />
On-campus Events<br />
‣ Info Sessions<br />
‣ Employers come in to speak about their available roles and then host a Q&A session<br />
‣ Dates: Weekly basis throughout the fall at 5:00PM on Tuesdays or Thursdays<br />
‣ Financial Leadership Summit<br />
‣ Capstone event that includes an executive panel and various smaller breakout groups<br />
‣ Speakers have included Raymond Harbert, John Murphy (CFO of Coca-Cola) and Paul Jacobson (CFO of Delta)<br />
‣ Opportunity to engage with <strong>FMA</strong> alumni from across geographies and career paths<br />
‣ Date: Home football game Friday and Saturday in November<br />
‣ Meet & Greet<br />
‣ Exclusive career-fair style event with selected employers<br />
‣ Date: Fall<br />
Off-campus Events<br />
‣ Corporate Visits<br />
‣ Students take day trips to visit firms in the Southeast<br />
‣ Trips have included McKinsey & Company (Houston), Duff & Phelps (Atlanta) and Retirement Systems of Alabama<br />
Dates: ~2 – 3 trips throughout the semester<br />
‣ New York Trip<br />
‣ Group of students visit firms and attend national <strong>FMA</strong> event in New York City<br />
‣ Direct interaction with top firms such as Goldman Sachs, JP Morgan and Moelis<br />
‣ Date: Week before spring break<br />
‣ Alumni Events<br />
‣ Tailgate or dinner style event organized for student and alumni interaction<br />
‣ Dates: ~2 – 3 throughout the fall and summer<br />
‣ Case Competitions<br />
‣ Placed 1 st internationally in Duff & Phelps YOUniversity Deal Challenge for a $15k prize<br />
‣ Placed 1 st nationally two years in a row in Duff & Phelps YOUniversity Deal Challenge for a $15k prize<br />
[ 9 ]
II. Auburn Student Investment Fund Overview
Integrated Financial Leadership Program<br />
ASIF Overview<br />
Our Mission<br />
The Auburn University Student Investment Fund’s mission is first to provide ambitious, intellectually curious<br />
students with a deeper understanding of financial markets through real world security analysis and portfolio<br />
management. The Fund focuses on delivering hands-on, practical experience in valuation techniques, equity<br />
research and risk management while achieving superior returns to the S&P 500 and maximizing the return on<br />
invested capital.<br />
Portfolio Snapshot<br />
✓ Mid-to-Large Cap<br />
($1+ billion)<br />
75%<br />
Equities<br />
33%<br />
TMT<br />
19%<br />
FIG<br />
✓ 3-5 Year Investment<br />
Horizon<br />
13%<br />
Real Estate<br />
✓ Performance<br />
Benchmarked to<br />
S&P 500<br />
25%<br />
Cash<br />
4%<br />
Healthcare<br />
9%<br />
Industrials<br />
12%<br />
Consumer<br />
Discretionary<br />
10%<br />
Consumer<br />
Staples<br />
[ 11 ]
Integrated Financial Leadership Program<br />
ASIF Performance<br />
14 Single Equities Historical Benchmarked Performance<br />
ASIF S&P 500<br />
YTD 18.98% 17.76%<br />
1-Year 30.76% 30.65%<br />
2-Year<br />
(Annualized)<br />
3-Year<br />
(Annualized)<br />
20.97% 21.30%<br />
15.13% 14.36%<br />
ASIF Performance vs. Capital Invested<br />
600,000<br />
500,000<br />
AUM<br />
$560,568<br />
400,000<br />
300,000<br />
200,000<br />
Oct-17 Jan-18 Apr-18 Jul-18 Oct-18 Jan-19 Apr-19 Jul-19 Oct-19 Jan-20 Apr-20 Jul-20 Oct-20 Jan-21 Apr-21 Jul-21 Oct-21<br />
*Inception: 10/19/17<br />
[ 12 ]
III. New Candidate Technical Curriculum
New Candidate Technical Curriculum<br />
The purpose of <strong>FMA</strong>’s new candidate technical curriculum is to provide candidates with a solid foundation of<br />
technical training as they prepare to apply for future internships and full-time positions.<br />
Overview<br />
‣ Weekly 1-hour meetings – Tuesdays at 5pm<br />
‣ All attendees will be given a New Candidate Guide that includes technical interview guides and additional<br />
<strong>FMA</strong> resources (career guide, templates, etc.)<br />
‣ Class Topics: Networking & Professional Preparation, Cash Flows, DCF, LBO, Comparable Analyses<br />
‣ Candidates will complete weekly assignments and readings on material covered in class<br />
‣ Candidates will meet with their assigned mentor and older <strong>FMA</strong> members for recruiting guidance<br />
Benefits<br />
‣ Access to <strong>FMA</strong> mentors and alumni connections<br />
‣ Access to <strong>FMA</strong> resources, content and guides that<br />
have helped past students secure elite positions<br />
and internships<br />
‣ Professional development opportunities that are<br />
not available to those outside of the program<br />
Exit Interview<br />
‣ At the end of the New Candidate Training<br />
program, each prospective candidate will go<br />
through an exit interview<br />
‣ The exit interview is an opportunity for the<br />
candidate and Auburn <strong>FMA</strong> to ensure that finance<br />
and the <strong>FMA</strong> program is the right path for them<br />
The <strong>FMA</strong> New Candidate Program is a comprehensive ~10-week session that provides New Candidates with the<br />
resources and knowledge to secure top internships and jobs<br />
[ 14 ]
New Candidate Technical Curriculum<br />
Class Topic Description<br />
1 Introduction / Interview Process The traditional structure of the recruiting process and do’s / don’ts<br />
2 Networking Proactively reaching out to professionals to learn about their experiences<br />
3 Behavioral Interview Skills Navigating the qualitative part of interviews<br />
4 Accounting Overview of accounting through the perspective of a technical interview<br />
5 Cash Flows and Cost of Capital Highlighting the foundation of finance and how cash flows dictate value<br />
6 Discounted Cash Flow Analysis Most common intrinsic form of valuation and its application in excel<br />
7 Comparable and Precedent Transactions Market approach to valuation and its application in excel<br />
8 Leveraged Buyout Overview The investment approach and valuation perspective of the financial buyer<br />
9 Overall Interview Skills Overview Transfer the knowledge learned throughout training to interview skills<br />
[ 15 ]
IV. Application and Interview Process
Applicant Qualifications & Commitment<br />
Qualifications<br />
‣ Pursuing a Career in Finance<br />
‣ <strong>FMA</strong> is looking for students who are confident they want to pursue a career in finance<br />
‣ We are open to students of any major, but at minimum, require a minor in finance<br />
‣ Graduation<br />
‣ To apply for spring <strong>2022</strong>, students must be graduating between December 2023 and May 2025<br />
‣ Students who are graduating in May 2023 must have already secured an internship for summer <strong>2022</strong> to apply<br />
‣ Academics<br />
‣ Applicants must have above a 3.6 cumulative GPA to qualify for membership<br />
‣ Freshmen with below a 3.6 cumulative GPA are still encouraged to attend recruitment info sessions<br />
Commitment<br />
‣ General Meetings<br />
‣ Members are required to attend all <strong>FMA</strong> events throughout the year<br />
‣ More information on the meetings can be found on the “<strong>FMA</strong> Events” slide<br />
‣ New Candidate Training<br />
‣ New Candidates are required to attend every New Candidate Technical Curriculum meeting<br />
‣ These meetings occur during the spring semester of your first year in Auburn <strong>FMA</strong><br />
‣ More information on the meetings can be found on the “New Member Technical Curriculum” slide<br />
‣ <strong>FMA</strong> Coursework<br />
‣ <strong>FMA</strong> members are provided access to three special courses within the finance track<br />
‣ All members are required to take these courses and they will count towards a finance major or finance minor<br />
‣ Practical Application (3 credit hours)<br />
‣ ASIF I (3 credit hours)<br />
‣ ASIF II (3 credit hours)<br />
[ 17 ]
Application & Interview Expectations<br />
Interview Preparation Guidance<br />
‣ The <strong>FMA</strong> recruiting process will include a resume drop, first-round interview and a second-round interview.<br />
‣ The questions asked during interviews will be mostly behaviorally based, but some will have a focus on your financial<br />
acumen. The bullets below are examples of questions you could be asked.<br />
‣ During the interview, <strong>FMA</strong> is looking to evaluate three main aspects about you for your candidacy<br />
‣ “Hireability” – Does your resume and background make you a competitive candidate for internships and fulltime<br />
employment?; Basic financial knowledge questions<br />
‣ Walk me through your resume / tell me about yourself.<br />
‣ What experience on your resume is most applicable to <strong>FMA</strong> and why?<br />
‣ What are your plans for this upcoming summer?<br />
‣ What is investment banking or X industry?<br />
‣ What is the most recent finance news article you have read?<br />
‣ What are the three financial statements?<br />
‣ Motivation / Interest in Finance – Are you committed to pursuing a career in finance / staying involved with<br />
<strong>FMA</strong>?<br />
‣ Do you understand what the <strong>FMA</strong> member commitment entails?<br />
‣ Why do you want to work in investment banking or X industry?<br />
‣ What steps have you been taking thus far to help you achieve your career goals?<br />
‣ If your major isn’t finance, why did you choose that major?<br />
‣ What other groups are you involved with on campus / what are your other time commitments?<br />
‣ Personality / Character<br />
‣ Why did you decide to come to Auburn / where else did you apply to school?<br />
‣ Where do you want to live upon graduation?<br />
‣ In your opinion, what is the most impressive thing on your resume?<br />
‣ What do you do for fun?<br />
‣ What is your favorite book?<br />
[ 18 ]
Application & Interview Process Timeline<br />
December <strong>2021</strong><br />
S M T W TH F S<br />
1 2 3 4<br />
5 6 7 8 9 10 11<br />
12 13 14 15 16 17 18<br />
19 20 21 22 23 24 25<br />
26 27 28 29 30 31 1<br />
January <strong>2022</strong><br />
S M T W TH F S<br />
2 3 4 5 6 7 8<br />
9 10 11 12 13 14 15<br />
16 17 18 19 20 21 22<br />
23 24 25 26 27 28 29<br />
30<br />
Key date<br />
November 30 th , <strong>2021</strong> • <strong>FMA</strong> info session (5PM Lowder 15)<br />
December 1 st , <strong>2021</strong> • Applications open (https://www.auburnfma.com/contact)<br />
January 14 th , <strong>2022</strong> • Applications close<br />
January 17 th , <strong>2022</strong> • MLK Day (no class)<br />
January 19 th – 21 st , <strong>2022</strong> • First-round interviews<br />
January 25 th – 27 th , <strong>2022</strong> • Second-round interviews<br />
January 29 th , <strong>2022</strong> • Decisions released<br />
[ 19 ]
V. Questions & Contact Information
Questions?<br />
‣ Kennedy Jarvis – Co-President<br />
‣ klj0038@auburn.edu<br />
‣ Jonathan Hu – Co-President<br />
‣ jyh0003@auburn.edu<br />
‣ Tracy Richard – Director & Finance Instructor<br />
‣ richate@auburn.edu<br />
Extensive information and resources can be found on our website:<br />
https://www.auburnfma.com<br />
Interest Form / Application Link:<br />
https://www.auburnfma.com/contact<br />
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