Welcome!

Department of FinancePamplin Preview

Dr. Vijay Singal

What Do You Want From a Finance Degree?

Knowledge/Education?

Placement/Job?

Money/Stability?

Prestige/Position?

Why You Should Choose Finance

YOU SHOULD BE INTEREST IN IT!!!AND IN OUR DEPARTMENT Students come first. Faculty are dedicated to improving the

intellectual environment The curriculum and department changes

to meet the needs of students. Graduates have excellent employment

opportunities.

Department Excellence

Largest Major in Pamplin

200 Juniors; 250 Seniors

Highest Employment Rates (even higher than Engineering.)

Availability of faculty for student interaction.

What You REALLY Want

From Us – Quality and Commitment

For You – RESULTS

How Do We Do It?

Commitment to students Undergraduate program

Current students, faculty, and alumni all working together to create a stronger future by building a stronger present.

Commitment to Our Students

Curriculum – continually revised to better prepare students for the market place

Placement – relationship with alumni and companies help our students reach their employment goals

Ranking – Nationally ranked undergraduate program – 40th U.S.

Undergraduate Curriculum

How many finance classes necessary to be a finance major or to have a finance concentration?- Virginia Tech: 9 classes- Maryland: 6 classes- UVa: 6 classes- NC State: 5 classes- Wake Forest: 5 classes- UNC: 4 classes

Fixed income, M&A, derivatives, international

Finance Tracks

Investments and CFA® Track Focuses on the purchase and sale of

stocks/bonds by individuals and institutions. Assess the value of securities and design investment policies and portfolios that are consistent with the goals of the investor.

Finance Tracks

Corporate Financial Management Track Focuses on the internal decisions of

companies to raise funds and invest in corporate assets.

Finance Tracks

Financial Services Management Track Focuses on the management and

regulation of institutions and the role they play in the economy.

Financial Accounting Track A combination of Finance and

Accounting skills that are used to evaluate the company for valuation, investment, or lending.

Finance Track (Coming Fall 2007)

Certified Financial Planning (CFP) Focuses on the management of assets

for individuals and small businesses Areas include:

Insurance planning and risk management Employee benefits planning Investment planning Tax planning Retirement and estate planning

A Faculty to be Proud of

Great student evaluations of classes and teachers Median Class/Teacher Evaluation: 4.37 on a 5.0

scale Faculty to student ratio (1:25)

A Faculty to be Proud of

20 Faculty University Level TEACHING Awards

3 Wine Award Recipients 1 Alumni Teaching Award Recipient 1 Alumni Award for Excellence in

International Education State Level TEACHING Awards

1 SCHEV Outstanding Faculty Award

A Faculty to be Proud of

Books – Our faculty teach the nation.

Well over 1 ½ million students nationally have learned finance using textbooks written by our professors.

Faculty authored books on Personal finance, Corporate finance, Investments, Internet law, Stock market mispricings, and Statistical properties.

Faculty Books

Faculty Research

Our faculty stay informed of current trends and latest research in the financial world, and publish their newest research in top tier finance journals.

Virginia Tech ranks 8th in research productivity based on publications in a set of 16 finance journals (latest study for the last decade).

Virginia Tech ranks 16th in research productivity based on publications in the top three leading Finance Journals (latest study for the last decade).

Some faculty rank in the top 50 professors nationwide.

Scholar of the Week

Virginia Tech is home to about 1300 researchers. Each week, the Vice President for Research recognizes one outstanding researcher in the entire University.

The first three Business School faculty to be recognized are all in the Finance Department. One more faculty member was recently recognized.

New Faculty

Dr. Mike Cliff (Ph.D. Finance, University of North Carolina)

Dr. Alexei Ovtchinnikov (Ph.D. Finance, Purdue University)

Dr. Ozgur “Ozzie” Ince (Ph.D. University of Florida)

Students to be Proud of

Equity Fund – SEED – 25 students Started in 1992 Manages $4.5 million (real money)

Bond Fund – BASIS – 15 students Started in 2006 Manages $4 million (real money)

Are We Successful?

Year SEED S&P 500 Difference2005 – 2006 18.473% 11.727% +6.747%2004 – 2005 5.700% 6.690% -0.990%

2003 – 2004 19.759% 19.559% +0.200%

2002 – 2003 3.995% 3.254% +0.741%

Alumni to be Proud of

Last two years: 30-35 alumni have visited campus to meet with students formally and informally. Companies represented include Wachovia, Merrill

Lynch, Citigroup, CSFB, GE, Capital One, Genworth, Sony, etc.

Allows our students a chance to interact with alumni who can explain practical applications of current class teachings.

Extremely helpful in keeping our curriculum up to date in a changing financial landscape.

Winners of Pamplin Outstanding Young Alumnus Award

2003Bunge Foods

2004Sony

2005Atria

2006MGM Mirage

Why Do We Do It?

Positive Results

Placement

The TOP department in on-campus interviews – over 900 granted to students last year

Location: VA (50%), MD/NC/DC (20%)

New York: Growing presence Tremendous help from alumni

Companies Hiring Finance Majors

Access National Bank BB&T (Branch Banking

and Trust Company) Capital One Circuit City Stores, Inc. Ferguson Enterprises First Citizens Bank General Electric

Company Genworth Financial

Ingersoll Rand John Hancock Financial

Services Marriot Corporation Merrill Lynch Northrop Grumman Pricewaterhouse

Coopers Virginia Asset

Management, LLC Wachovia

SHOW ME THE MONEY!!!

$20,000

$25,000

$30,000

$35,000

$40,000

$45,000

1988 1992 1996 1999 2002

Annualized Growth Rate = 6.6%

Undergraduate Finance Salary Report

CollegeMean Salary

Finance25th

Percentile

Finance 50th

Percentile

Finance 75th

Percentile

2003-2004 $39,325 $34,750 $40,000 $45,000

2004-2005 $41,000 $38,000 $42,250 $47,000

2005-2006 $45,000 $40,000 $45,000 $50,000

Information as reported to VT Career Services in the annual post-grad report

Thank you

For additional informationhttp://www.finance.pamplin.vt.edu/

Student Organizations

SEED Student-managed Endowment for Educational

Development (25 Students) Manages an equity portfolio of $4 million on behalf

of the Virginia Tech Foundation. SEED earned 19.54% during 2005-06 (April-March),

beating the S&P 500 by 780 basis points.

BASIS Bond And Securities Investing by Students (15

Students) Manages $4 million for the Virginia Tech Foundation

Special skills

Equity Fund – SEED – 25 students Bond Fund – BASIS – 15 students CFA® awareness and training

Finance Club

SEED Program

Pamplin College of Business

Brandon Rice Former Co-Chief Executive Officer SEED 2004 - 2006

History of SEED 1991: Dr. Don M. Chance’s Vision supported by

Dean Richard Sorensen

1992: Original proposal to Virginia Tech Foundation (VTF)

1993: Funded with $1 million

1995: Additional funds of $1 million provided

2006: BASIC is currently being proposed to the Virginia Tech Foundation

Description of SEED Currently $4.5 million under management

(started at $3.8 million last April 1)

Student-run investment portfolio: Nation’s largest run as an extracurricular activity Third largest portfolio in terms of funds managed

Entirely student run: Administration Security Selection Personnel

2005-2006 Team: 21 members

SEED Organizational StructureSEED Organizational S tructure

Voting M em bers

Non-Voting M em bers

A d visors :D r. B illings ley

D r. K eow n

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C onsum er D isce t iona ry

C o-C E O 's

Investment Approach Approach:

Equity Valuation and Portfolio Management Taught by Advisor Dr. Randall Billingsley

Focus Security Selection Sector Allocation

Long-term perspective appropriate to VTF

Member Selection Process Typically 70 – 100 applicants Applicant requirements:

Resume Transcript Letter of Recommendation Two one page essays

Approximately 35 interviews offered 2 Stage interview process:

Analytical PowerPoint buy/sell recommendation on an assigned

company Behavioral

18 Selected to new team, with 7 returning members New team totals 26 members

Applying to SEED Who can Apply?

Sophomores, Juniors and Graduate

When do you Apply? Fall Semester (September/October)

Why should you Apply? Gain real world investing experience Leadership opportunities Network with peers and Alumni

Trips to New York City and Charlotte

Do you have to have experience to apply? No, but energy and enthusiasm to learn about and how to invest

are necessary.

Current Team Placements

Alex Karjavine – Merrill Lynch (Investment Banking)

Brandon Rice – Merrill Lynch (Investment Banking)

Christine Myers – Wachovia Securities (Investment Banking)

Allison Davis – Wachovia Securities (Structured Products)

Matt Kochan – Wachovia Securities (Structured Products)

Brandon Phibbs – General Electric (FMP)

Thomas Fast – General Electric (FMP)

DJ Terreri – PriceWaterhouseCoopers (Auditing)

Ross Sucosso – Wachovia Securities (Internal Auditing)

Zach Toth – Beers and Cutler (Consulting )

Scott Randa – Genworth Financial (Marketing and Sales )

Michael Roberts – NVR Homes (Loan Officer)

For More Information…

Check out our website! www.seed.cob.vt.edu

E-mail Thomas Fast or Barrett Clark (Current Co-CEO’s) tfast@vt.edu barrettc@vt.edu

E-mail me… bjrice@vt.edu

A Partial List of Employers of our 2003 Graduates:

Employer JobTitle City/State

Access National Mortgage Analyst Reston, VA

American Express Financial Advisors Associate Financial Advisor Blacksburg, VA

American Express Financial Advisors Financial Advisor Centreville, VA

BB&T Commercial Lender Winston-Salem, NC

Bennett Plumbing Inc. Office Manager Alexandria, VA

Bottcher America Sales Representative Chicago, IL

Capital Management Group Investment Advisor Washington, DC

Chase Manhattan Loan Officer Assistant Annandale, VA

CIA Finance Officer Langley, VA

General Services Administration Financial Management Specialist Washington, DC

General Services Administration Financial Management Trainee Washington, DC

John Hancock Financial Services General Agent McLean, VA

Liberty Mutual Sales Associate Richmond, VA

Lockheed Martin Unknown Gaithersburg, MD

SunTrust Private Banking Associate Roanoke, VA

Virginia Asset Management Financial Advisor Norfolk, VA

Wachovia Securities Operations Specialist Richmond, VA