|
In this article, you’ll hear from an interviewee who went to a “non-target” Canadian university, landed front-office internships in Canada and is now working full-time in investment consulting for a top firm in Hong Kong. Pretty impressive, but what’s in it for you? In part 1 of this interview, you’ll learn:
Leaving Canada for Hong Kong: Breaking In? Q: Let’s get started! Can you walk us through your background and how you ended up in Hong Kong? A: Sure, I was actually raised in Hong Kong and moved to Canada during high school. I studied Finance at a “non-target” Canadian university, and, by the time I graduated, I had completed front-office internships at two Canadian Big Five banks. I wasn’t exactly sure what I wanted to do, but was in need of a change. So I decided to go back to Hong Kong to take part in the “Asian growth story”! Quick note: Canada’s “Big Five” are Canada’s 5 largest banks: Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), Bank of Nova Scotia (Scotia Bank), Bank of Montreal (BMO) and Canadian Imperial Bank of Commerce (CIBC). In Canada, they’re sort of like the bulge bracket banks in the US and they tend to work on bigger deals and attractive higher-profile clients. Q: Wow, quite a decision! Did you have an action plan? How long did it take you to find a job? A: It took 2 months to find a job from the time I landed in Hong Kong. I focused mainly on online applications directly on companies’ websites (followed by a cold email to the hiring manager whenever possible), job boards (e.g. eFinancialCareers), and also messaging people on LinkedIn. Q: So did you start applying from abroad or only when you got there? A: I started applying from Canada and was able to line up a few interviews for a few positions from there. Most firms outside of the bulge brackets were only interested in when I would actually arrive in Hong Kong, so you’re far better off saving your efforts for when you actually get there. Also, personal connections are very important, especially for top-tier firms, as the screening process is just as strict as it is in North America. Ever Heard of Investment Consulting? Q: You said you ended up accepting an Investment Analyst position at a global investment consulting firm. Can you explain what an Analyst in investment consulting does? A: In investment consulting, we work with pension funds, endowments, sovereign wealth funds, and foundations to design portfolio structures and implement various strategies to satisfy their risk and return objectives. We focus on asset allocation (e.g. bonds, equities, alternative assets, etc.) rather than trading specific securities. Q: Right, so this is different from asset management because you’re not actually investing yourself? A: Yes, we’re not talking about researching stocks/bonds and managing a portfolio – that’s the job of an investment manager. In investment consulting, we help clients source the appropriate managers that will help them attain their risk/return objectives. Q: Can you explain what you mean by “sourcing investment managers”? A: I mean that once we have established the client’s risk tolerance and have built an investment strategy, we will refer our client to an asset management institution that actually buys and sells securities for them and manages their portfolio (the investment manager). For example, we might refer our client to JP Morgan Asset Management for an equity mandate and to PIMCO for a bond mandate. In this example, JP Morgan and PIMCO are the investment managers. Focus on Recruiting Q: Going back to recruiting, what strategy would you recommend to readers looking to break into finance in HK? Online applications? Networking with alumni? Cold calling? A: It depends on the job. For IB and S&T at top-tier firms, on-campus recruitment from a target school domestically or abroad is still your best bet. For other roles like asset management, I feel networking is best, as many of those firms do not have large graduate classes that warrant on-campus recruitment. It definitely helps if you’re from a target school since you get the benefit of the brand name. I haven’t actually tried cold calling before, but I think it could work – I actually had good success with cold emails here, which then translated into real calls, despite those persistent rumors that networking “doesn’t work” outside North America. Q: So let’s say I am not from China or Hong Kong, and I don’t speak the language – could I still get a job? In other words, do foreigners stand a chance? A: In my group, coincidentally, most people are Canadian-Chinese. We also have senior consultants from Europe and Australia, so it’s quite diverse overall. Out of my team of 25, I would say 30% are Canadian-Chinese, 30% are locals and the rest are from all over the world. Most of the team is not from Hong Kong, so you would actually stand a good chance here even if you were a foreigner. Q: So just to clarify, you’re saying that Mandarin and/or Cantonese are not necessary? A: The language requirements depend on the type of firm and the group you’re in:
Foreigners in senior positions on my team only speak English. Juniors here – especially Chinese applicants – are better off being fluent in English, with working knowledge (conversational skills and some reading & writing) of Mandarin and/or Cantonese. The majority of our deliverables are in English so that’s our primary language in writing and presenting. However, some domestic clients do prefer Chinese in communicating and even in reports. Mandarin language skills are definitely becoming more important because a lot of incoming business is from mainland China. And most of the growth comes from the mainland and Taiwan, since other regions are saturated. Q: OK, so it sounds like foreigners might actually stand a chance – at least in certain areas of finance. What’s the interview process like? A: I had 5 rounds of interviews which included fit and technical questions, a short writing exercise (responding to a client request) and a stats exercise (think CFA Level 1 statistics). Five rounds is more than what you would typically see – 3 or 4 would be the norm for this type of position. The overall process took 1 month from the first interview to the offer. The first few rounds were similar and I received both fit and technical questions. They focused mostly on fit in the 3rd and 4th rounds. All interviews were in person and were conducted by 1 or 2 interviewers, except for the last one which was a group interview in front of 7-8 people. For that last interview the candidates had to work together as a group to solve and present a case. We were given information on a list of investment managers and had to structure a portfolio by determining the asset allocation and selecting an appropriate manager line-up. We had an hour to prepare and 15 minutes to present and answer follow-up questions from the panel. Side Note: Yes, assessment centers make their appearance once again – you could potentially see them almost anywhere outside of North America. Q: So what were the actual questions like? I’m assuming the “technical” questions were more about the markets and pitching stocks? A: Yes – be prepared to discuss the markets and/or pitch a stock. Also understand how risk/return dynamics tie into each other within a portfolio. Interviewers will not typically go as in-depth on the markets as in IB or S&T interviews, but you still need to know the basics. For the fit part, you will not get the “burn the midnight oil” questions you would hear in IB interviews – but you will get questions on your organizational, problem solving, communication, and other soft skills. In investment consulting, you become a “Jack of all trades”. You therefore do not need to be an expert in any area (as a junior), but you do need to have broad knowledge of everything. Consultants must be able to talk about the markets, politics, asset classes, custodians, asset managers, risk management, and so forth. Q: Since you’ve worked both in North America and in Hong Kong, what would you are the key differences in terms of CVs, the recruiting process, interviews? A: In HK, assessment centers are the norm. Also, you will most likely be asked to complete an online test and/or one during the interview. Everything else is pretty similar. The same one-page layout for CVs is the norm for junior positions. The interview process depends more on the firm type, their size, and the group you’re aiming for, so that one isn’t as related to North America vs. HK. Q: Finally, the million dollar question: Bcom vs. Msc vs. MBA vs. CFA – What’s the best? A: Ah, the debate that’s been raging since the beginning of time! I have to say a brand-name school is still the most highly valued. Asia in particular still places a premium on brand-name schools for top-tier firms. But it gets more flexible once you hit second-tier firms – and most jobs that require or prefer a Master’s degree are related to strategic, economic, or quant work. For everything else, it depends on your personal situation – the Msc is more useful for rebranding / grade-boosting purposes, the MBA is better if you’re making a big career transition, and the CFA is most helpful if you want to do portfolio management or something else in the public markets and you already have solid work experience and good grades. Mandarin language skills are definitely a plus, and if you’ve had the opportunity to study or work in China, that would also be a plus. Q: Great, this concludes part 1 of our interview. Thanks for your time – very interesting! A: My pleasure – looking forward to part 2! Still to Come… Stay tuned for part 2 of this interview where we will learn all about investment consulting with a special focus on Hong Kong: a day in the life, work culture, salaries, exit opps and everything else you need to know. I would add “models and bottles” to that list as well, but as a female I’d feel weird doing so (sorry, Brian!). |
|
|
So you’ve heard all about 
