GUIDE TO FINANCE & ECONOMICS PROGRAMS

Transcription

1 GUIDE TO FINANCE & ECONOMICS PROGRAMS

2 !!!! CONTENTS 1. Master of Finance (MFIN/MSF) 3 2. Master of Financial Economics (MFEcon) 9 3. Master of Quantitative Finance or Financial Engineering (MQF/MFE) Master of Economics (MEcon) Future Careers Available To Finance Masters Graduates Three Student Profiles Appendix 31!! Page 2!

3 1 MASTER OF FINA NCE (MFin/MSF) Page 3!

4 MASTER OF FINANCE (MFIN/MSF) This program is designed to prepare graduates for careers in financial analysis, investment management and corporate finance. An alternate degree title is Master in Finance or Master of Science in Finance. The latter is often abbreviated MSF in North America. Usually a one or two-year program, this master s degree doesn t always require work experience or a specific undergraduate degree, but applicants usually do have prior coursework in a variety of science, mathematics, and engineering disciplines (Linear Algebra, Calculus, Statistics, Econometrics, Basic Computer Programming).Also, some MFin programs (BC, UIUC, and Purdue) DO tend to require work experience, and while not always required, experience will always be a plus to your application. Are you a natural-born leader, or are you a numbers lover? Answering that question may help you decide between the management-focused MBA and the more quantitative Masters in Finance degree. Deciding what degree is a better fit can be difficult and varies for each person. But it's a misconception that one degree is truly better than the other; each serves the needs of different students. The MFin degree, which has grown in popularity in recent years, gives students a serious edge when it comes to high-level finance knowledge, For example, MIT's Master of Finance program, which launched in 2009, offers students double the number of finance courses that an MBA non-finance track student is offered. Beyond academics, the two degrees have plenty of differences when it comes to tuition costs and length of study, job offers, and even networking opportunities. While figuring out which degree is right for you can be challenging, both can lead to the promised land, helping applicants nab choice jobs and hefty paychecks to boot. Here's what aspiring master s students should know about MBA versus Masters in Finance programs: MFIN COURSEWORK Long popular in Europe, specialized finance programs are often one year long instead of the two years required for most full-time business degrees. When it comes to academics, it's easy to assume that a Masters in Finance program is just a shortened version of the MBA. That's simply not true, given that a significant portion of the MFin is taught at a PhD level of rigor it s very quantitative. Unlike MBA students, MFin students spend little time developing entrepreneurial skills or general management skills, improving communication abilities, studying marketing, or taking social impact-focused courses. However, business school faculty teach both programs so the quality of instruction is the same. WORKING THE MFIN NETWORK As a relatively new degree in the US, the Masters in Finance has significantly fewer alumni and is not always well known by all employers. At times, getting the Page 4!

5 attention of companies who traditionally recruit from MBA programs can be difficult for MFin students and certain applicants note spending more time selling their skills. That perception will change as Master of Finance programs become more popular, and among the top MFin programs (and top employers) it already has. MFIN ACCEPTANCE REQUIREMENTS Generally, an MBA is more competitive than an MFin when it comes to certain admission criteria. Finance applicants are typically younger and may only have internship experience at the start of the program, while MBA applicants need at least two to three years of work experience. Because MFin programs often accept students without full-time work experience, instead they often look at the quantity and quality of internship experiences a candidate has. Requirements for the Graduate Management Admission Test (GMAT) score varies from school to school, but they almost always like to see a GMAT score of 600 or more. With more work experience, students applying to business school tend to be older than students applying to finance-specific programs. MFIN DESTINATIONS AND JOB PLACEMENT Big name employers like Barclays Capital, J.P. Morgan Chase and Bank of America Merrill Lynch hired Master of Finance students from top programs like MIT this year. The median base salary for MIT finance graduates is $105,000, compared with $119,000 for Sloan MBA graduates. This information, however, may be on the aggressive side, as many of our clients and mentors have reported actual starting salaries of $65,000 to $80,000.While salaries are comparable, job opportunities are narrower in scope. Graduates primarily find career opportunities focused solely within financial service firms and finance positions. Their peers at MBA programs, however, often pursue opportunities in consulting, entrepreneurship, or even the non-profit sector. KEY APPLICATION REQUIREMENTS! GMAT or GRE scores! Resume! Comprehensive work history! Essays! Evaluative Interviews! Two letters of recommendation! Self-reported TOEFL or IELTS scores (international only) CORE PROGRAM COURSES The focus is on investment analysis, corporate finance and financial management/managerial accounting. Advanced topics could include portfolio management, financial modeling, mergers and acquisitions, and real options. Some may offer non-quantitative elective coursework, such as corporate governance, business ethics and business strategy. Page 5!

6 TOP PROGRAMS: Tier One! MIT Sloan School of Management (Master of Finance)! Princeton Bendheim Center for Finance (Master of Finance)*! Vanderbilt University (Owen) - MS Finance! University of Rochester (Simon) - MS Finance! Washington University in St. Louis (Olin) - MS Finance! Boston College (Carroll) - MS Finance Tier Two! George Washington University - MS Finance! Purdue University (Krannert) - MS Finance! U of Illinois at Urbana-Champaign - MS in Finance, Corporate Finance! Brandeis University MS Finance! Tulane Freeman School of Business (Master of Finance) Tier Three! Case Western Reserve University - MS Finance! Lehigh University (MS in Analytical Finance)! American University (Kogod) MS Finance! Syracuse University (Whitman) MS Finance * Princeton s program is typically considered an MFE program, since it is run by the math department. Students from the M. Finance programs listed above are recruited by top financial services companies. However, as many of these programs are fairly new, schools that also have top MBA programs such as MIT, Vanderbilt, and BC will have relatively stronger name and reputation recognition with recruiters. Representative employers for MIT Master of Finance grads include:! Investment banking: (Structured finance, Capital markets, Trading and risk management, Derivatives research, Private equity/merchant banking, Hedge funds):goldman Sachs, Deutsche Bank, Barclays, BNP Paribas, Morgan Stanley, D.E. Shaw & Co., Fortress, Global Investment Management! Asset management: (Major asset managers, Quant shops/alternative asset managers, Private wealth management):fidelity Investments, Wellington Management, Putnam Investments, Citi, Pimco, Bessemer Trust! Risk management: AIG, American Express, RiskMetrics Group, Liberty Mutual, J.P. Morgan! Government financial regulators: NYSE, U.S. Federal Reserve, FINRA! Treasury and corporate finance: Fidelity Investments, Raytheon, Thomson Reuters, General Motors Page 6!

7 ! Financial information systems and data providers: Thomson Reuters, Bloomberg, Dow Jones, Standard & Poor s, Moody s, Fitch! Retail and commercial banking: Citi, HSBC, Bank of America, UBS! Venture capital and private equity: Sequoia Capital, KPCB, Watermill Group, Blackstone Group, Quadrangle Group, Permira, GMO, 3i! Corporate finance and corporate restructuring: General Motors, Thomson Reuters, Raytheon, Fidelity Investments! Financial services and consulting: Deloitte, McKinsey & Company, Capital One, Watson Wyatt, Cambridge Associates, Hewitt, Mercer PROFILES OF SUCCESSFUL CANDIDATES AT TOP PROGRAMS Entering classes at top programs have median quantitative GRE scores of 790 (164 on the new GRE). Typical quantitative GMAT scores are 49.5 or 95%. Particular attention is paid to an applicant s mathematics background (courses taken, grades, scores on the quantitative sections of the tests, etc.). One common reason applicants are not admitted is that their mathematical background is not strong enough. How many applicants per year? Up to 1,400 applicants for a class of 85. During the 2012 application cycle, Tulane s AB Freeman School of Business received 647 MFIN applications for 120 spots. How many accepted per year? Total class size varies from In 2012, Princeton s MFIN program received 815 applications and offered admission to 48 applicants -- roughly a (5%) acceptance rate. How many are international? International students represent generally 70% or more of total class size. Foreign language test requirement? TOEFL: Scores of 600 on the PBT, 250 on the CBT, or 100 on the IBT are recommended. Lower-end minimum scores are 550 (paper-based) or 213 (computer-based) or 80 (Internet-based) on the TOEFL or an overall band score of 6.5 on the academic IELTS with no individual band score below 5. How much does it cost? $30,000 - $55,000 per year. HERE S THE DEAL Many American Master of Finance programs have no work requirement, enabling younger students to apply for MS programs. However, most European programs for instance, London Business School and Cambridge University require that MS applicants have relevant work experience in the finance industry. Page 7!

8 In general, Master of Finance programs cost less and can be obtained much more quickly than an MBA. That also means students are unemployed for a shorter time. For example, tuition at the 10-month Specialized Masters in Finance program at Ohio State costs $49,000, compared with about $85,000 for the university's two-year MBA program not to mention the income forgone during the time that students attend graduate school. However, saving money and time are only parts of the equation. Before you apply, it's worth taking the time to assess your career goals and see how they align to the degree offerings. Since both are quality degrees, it's about choosing the right fit. If you know that you want to do finance and finance only, and/or you do NOT want to go out there this year and get a job then the MFin is for you. But if you want to work in an area away from pure unadulterated finance that may require softer skills like organizational processes, or if you have some work experience already, then the MBA is a better bet. Page 8!

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