There is no other investment
bank quite like Barclays Capital
But then you’d expect us to say
that. Most of our competitors
have probably said the same, so
how are we really different?
Barclays Capital is the investment banking division
of Barclays Group
Global Retail Banking
(GRB)
Corporate and Investment Banking
Barclays
Capital
Our focus today
Barclays
Corporate
Wealth
Management
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UK Retail
Banking
Western
Europe
Cards and
Consumer
Finance
Why BarCap is different
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• Global businesses with resilient models
• Maintaining strategic momentum in challenging market conditions
• Focus on talent and culture
• Emphasis on developing talent
The investment banking landscape has changed
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Industry Consolidation
Bear Stearns/ WAMU
JPMorgan Chase
Merrill Lynch/ Countrywide
Bank of America
HBOS
Lloyds TSB
Wachovia
Wells Fargo
Industry Restructuring
Freddie Mac and Fannie Mae
Nationalised by US Government
Goldman Sachs & Morgan Stanley
Bank Holding Companies
AIG, RBS, Lloyds/ HBOS, Citi,
UBS
Significant Gov’t shareholding
Industry Retrenchment
Several large universal banks pulled back from international markets
The market dislocation provided Barclays Capital
with a unique opportunity to acquire Lehman
Brothers
Market Cap, September 2007 = 100
$ terms
Govt permits GS & MS
to became bank
holding companies
Northern Rock
nationalised
125
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US Govt bails out AIG,
Freddie Mac & Fannie
Mae
100
75
50
JPMorgan buys Bear
Stearns
US subprime
mortgage crisis Jul
07
Lehman files for
bankruptcy
BoA buys
Merrill
WaMu fails &
sold to JPM
25
Wells Fargo buy
Wachovia
0
Sep-07
Dec-07
Mar-08
Total Market Cap of all global exchanges
Jun-08
Sep-08
Lehman Market Cap
Source : World Federation of Exchanges members
The Lehman acquisition accelerated our existing
strategy by greatly expanding our US footprint
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• Top tier global ambition requires significant presence in the
Americas
– Americas accounts for highest portion of global IB revenues
– US represents the largest capital market globally
• Strong relative performance through market dislocation and
universal banking model positioned Barclays to accelerate
organic build through acquisition of Lehman Brothers’ North
American businesses
Barclays Capital well positioned to emerge from market dislocation as one of the
new global bulge bracket of investment banks
Barclays Capital’s new mission statement
“To be the Premier Global Investment Bank”
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An overview of investment and corporate banking
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Primary Markets
Secondary Markets
Clients issue
& borrow capital
Financing
- Equities
- Bonds
- Loans
Risk Mgmt
- Treasury
- M&A
- Event driven
Advisory
Investment Banking
Financing &
Risk Solutions
Trading
Sales
IBD / Corp Fin
ECM
Equities
Distribution
M&A
- Sector
- Region
DCM
Credit
Global Loans
Interest Rates
Lev Fin
Foreign Exchange
Risk Solutions
Commodities
BARX
Research
Research
Emerging Mkts
Banks
- Commercial
- Investment
- Central
Real Money
- Pension
- Mutual
- Insurance
- Asset managers
Leveraged
- Hedge funds
Prime Services
Private Equity
Clients invest
& hedge risks
How we are set up to meet Italian clients’ needs
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BarCap Italian franchise is organized in three major groups
•
Organised in a matrix structure to focus on product and industry expertise, the Distribution Team totals 31 sales
people (split between London and Milan)
•
Clients covered are
Distribution
–
–
–
–
•
Growth of Equities franchise expected to outperform market with addition of Lehmans’ cash equties and research;
•
Overall, a leading foreign player in the market – top 3 together with Deutsche Bank and JPM
•
Organised in Client Coverage (3 people) of Financial Institutions clients such as Banks, Insurance Companies,
Banking Foundations and State-controlled financial institutions
•
Mission – Senior client coverage: identify strategic client needs and position solution-driven products in conjunction
with product specialists mainly from the Distribution team
•
Organised in Client Coverage (14 people mainly based in Milan) and Products Coverage (17 people split between
Milan and London). Recent hiring of ex-Lehman resources with M&A, Real Estate and Capital Markets expertise
•
Current client base is composed of c. 100 entities. Classified as Corporates (60%) and Public Sector related entities
(40%) according to their ownership structure, as Diamond (5%), Platinum (5%) and Gold (90%) according to their
overall wallet size across all the products
•
Currently in top 5 position.
IBD FIG
IBD
Corporate
and Public
Sector
Banks and Bank Foundations,
Insurance Companies,
Asset Managers, Pension Funds and other real money accounts,
Private Banks
1
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BarCap positioning in Italy
Barclays Capital vs. Premier Italian Competitors1
2008 Estimate of ranking by revenue
Ranking
Top 3
5-10
Not in Top 10
(Yet!!)
Product
•
Public Sector Finance
•
IRD Vanilla & Exotic / FX
•
Commodities
•
Equity Derivs Strategic
•
Primary Bonds / Secondary Credit Cash
•
Flow Credit Derivatives
•
Fund-linked Derivatives
•
Futures and Options
•
Equity Derivatives Flow
•
EM (inc FX and Corp Bonds, excl
Equities)
•
Credit Derivatives Structured
•
Global Loans
•
DCM / Converts / Rights
•
M&A
•
Real Estate
3
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Barclays Capital Italian Distribution
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Italian Distribution: Organisational Chart
•
•
The Italian Distribution Team is organised in a matrix structure to focus on product and industry expertise
The Italian Team totals more than 30 sales people of which around 50% in Solutions Sales (Structured Products) and
50% in so called “flow” business.
•
In terms of Global Distribution organisational structure we differentiate from our competitors through integrated Fixed
Income & Equity Division. This structure allows us to be more effective in approaching clients and work with a solution
approach
Country/Regional
Head
Structured
Products/Solutions
Sales
AMs / Pensions
Banks
Global Product Heads
Insurances
Rates
Credit
Multiasset / Client-Industry Driven
FX
Equity
Deriv
Private
Banking
Commo
dities
Single Asset / Product Specific
5
Equity
Cash
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Client sectors – trends and strategies
Trends
Pension
Funds
•
•
Asset
Managers
Banks /
Private
Banks
Insurance
•
BarCap approach
Behaving differently depending on the client but generally continue to invest across asset
classes
Educate on full BarCap product range:
•
•
Highlighting integrated approach
Leading with inflation and equity linked
Collapse of AUM in traditional/bench-mark
strategies
•
Active in widening range of alternative & flow
products – e.g., equity derivatives (TRS &
iShares)
Leverage Commodities leadership to support
shift to alternatives
•
Build out flow capabilities in targeted fashion
(e.g., enhancing FX coverage)
•
Capitalise on Private Banking growth potential
by meeting demand for Total Return Product
and Strategic Business
•
At same time, consider providing access to
Certificates to cater to investors outside
traditional private banking channels
•
Respond to need, by focusing on:
•
Several bank mergers as well as mergers
between banks & asset managers = fewer
players / trades but bigger deals
•
Significant growth potential in Private
Banking: only 65% of €820b HNWI AUM
managed in private banks to date
•
All under pressure & in need for yield on life
portfolios as well as new premiums
•
•
Business volume increasingly balance sheet
dependent
7
•
•
Alternative products / strategies
Structured credit solutions for life
portfolios
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What do Equity sales do?
INVESTORS
FUNDS
FUNDS
$
BANKS
$
PROMOTERS
$
SGR “XYZ”
$
$
FUND MANAGER
Info, seminars, meetings
with companies & analysts,
training, access to Stock
Exchanges
ANALYSTS
$
SALES
COMPANIES
Orders
Execution
TRADERS
NYSE/NASDAQ/BORSA
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More on investment styles
The fund manager’s investment approach influences both
the stock selection and the variables he/she chooses to
focus on.
INVESTMENT
STYLE
STOCK
SELECTION
VARIABLES
•Value vs Growth
•Momentum vs contrarian
•Top down vs bottom up
Taking the investment decision
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Once a portfolio manager has collected as many as possible
information on the macro, sector and micro levels he/she can
formulate his/her growth hypothesis and build his/her own model,
run a DCF, find a target price and arrive to the….
BEST POSSIBLE investment decision!!!!
There are infect many variables he/she cannot consider which
could influence the performance of the selected stock:
Sector rotation, shocks, macro changes, unexpected news,
market expectations....
Where do Equity sales get the supporting info?
• Internal research
• Ufficial Government web sites
• Company websites
• Trade shows
• Books
• Company visits
• Newspapers
• Relationships
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Ongoing training and development
• Initial Training Programme
• Continuous Professional Education
• Mentoring
• Professional qualifications
• On the desk
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Internships at Barclays Capital
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• Your perspective: Getting to know the firm and deciding if it is right for
you
• Our perspective: Ultimately we feel this is the best way to hire a
graduate and therefore want to get to know you as well as possible
• Internship experience:
–
–
–
–
Training
Meet the Managing Director and Director initiative
Buddy programme
Desk experience and appraisals
A "real life" internship experience as close as possible to that of
a newly-hired graduate
Hiring levels
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• Analysts
– Hold a Bachelor or Masters degree or equivalent with work experience
limited to internships
• Associates
– Significant previous work experience plus studying for a Business School
MBA
– Typically hired into areas such as: Investment Banking, Research, Sales,
Strategy & Planning, Structuring, Trading
• Quantitative Associates
– Hold a PhD or similar in a highly quantitative subject, and hired into highly
quantitative roles
– Typically hired into areas such as: Quantitative Analytics, Trading,
Structuring & Research
Hiring areas for analysts
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• Investment Banking
• Prime Services
• Research
• Sales
• Structuring
• Trading
• Infrastructure
– Compliance, Corporate Communications, Finance, Global Financial Risk
Management, Global Marketing, Human Resources, Legal, Operations,
Technology
Next steps
• Application and selection process
–
–
–
–
All applications must be made online
Online numerical and verbal reasoning tests
First round interviews
Final round assessment events
• Application deadlines
– Full time positions: 15 November 2009
– Internships: 31 December 2009
– Spring Session: 31 January 2010
www.barcap.com/expectexcellence
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•
"This publication has been prepared by Barclays Capital, the investment banking division of Barclays Bank PLC, for information
purposes only.
•
This publication is confidential, and no part of it may be reproduced, distributed or transmitted without the prior written permission
of Barclays Capital.
•
Barclays Capital, its officers, directors, partners and employees do not accept any liability whatsoever for any losses whatsoever
(whether direct, indirect or consequential) arising from reliance on the information contained in this publication.
•
This publication is the property of Barclays Capital only and Barclays Capital does not waive any intellectual property rights in the
contents of this publication.
•
Barclays Capital is the investment banking division of Barclays Bank PLC, which is authorised and regulated by the UK Financial
Services Authority and a member of the London Stock Exchange. Barclays Bank PLC is registered in England (No. 1026167) with its
registered office at 1 Churchill Place, London E14 5HP."
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Q&A