University of Oxford MSc Financial Economics 2017/2018

 
University of Oxford MSc Financial Economics 2017/2018
University of Oxford
MSc Financial Economics
2017/18
University of Oxford MSc Financial Economics 2017/2018
“Do not join this programme
expecting a year of relaxation.
But if you are ready to expand
your perspectives, to stretch
yourself far beyond your limits, and
to reap the intellectual and spiritual
rewards, then … join crafting the
legacy that is the Oxford MSc in
Financial Economics.”

Matthew Pon, MFE 2015
University of Oxford MSc Financial Economics 2017/2018
A nine-month top-ranked Masters in Finance
The Oxford MSc Financial Economics (MFE) is a full-time nine-month
programme that will provide you with outstanding training in the tools
of financial economics sought by many financial institutions, companies,
and public organisations. It combines a rigorous academic core with
tailored practical applications, designed in consultation with leading
financial recruiters.
The MFE is run jointly by Oxford Saïd’s finance faculty and the University’s
Department of Economics. The finance faculty at the Business School is
one of the fastest growing and most prestigious in Europe and they work
closely alongside the most diverse and well-known groups of economists
in the world.
This distinctive programme is delivered through Oxford Saïd and features
interactive classes, use of case studies, practitioner teaching, and
proactive careers support. The programme is currently ranked number
one in the UK and 11th in the world by the FT ranking for Masters in
Finance 2016.

                         The Oxford MSc Financial Economics is distinctive
                         because of its emphasis on the fundamental economics
                         that underpins much of finance. This feature makes our
                         course intellectually more difficult but also broader,
                         and the skills learnt on the programme more flexible
                         and transferable. Taught by world-class faculty, and
                         attracting highly-motivated, intellectually curious
                         students, the MFE fully equips its graduates to excel
                         in today’s competitive markets and weather financial
                         storms successfully.”
                         Peter Eso, Programme Director

                         Professor Peter Eso is Associate Professor in Economics at the University of Oxford.
                         He is interested in how information disclosure and communication affect economic
                         outcomes in auctions, bargaining, and other game-theoretic models of trade.

                                                                             www.sbs.oxford.edu/mfe             3
University of Oxford MSc Financial Economics 2017/2018
Programme outline
The MFE programme begins with pre-course training to help
you become familiar with key concepts and techniques. This
is followed by three days of training in ‘financial markets and
institutions’ which takes place in a major financial centre; in past
years, students have visited London, New York, and Shanghai. You
will then be immersed in four core modules and your choice of
five electives. You also have the opportunity to be involved in the
Oxford Saïd Finance Lab, a series of practical workshops on financial
modelling and real-world case studies.

                                                                                Pre-course international module
                                                                               We have introduced a three-day
                                                                               financial markets and institutions
                                                                               pre-course that will link academic
                                                                               instruction with talks and seminars by
                                                                               industry practitioners, talks by potential
                                                                               employers, and alumni events. You will
                                                                               be introduced to the wide variety of
                                                                               financial markets and products in a key
                                                                               international financial centre, such as
                                   Pre-course training
                                                                               New York, Hong Kong, or London.
                                  Once accepted on the programme we
                                  will provide you with pre-course reading
                                  so that, if you lack a background in
                                  finance or economics, you can become
                                  familiar with key concepts and techniques
                                  introduced early on in the programme.
                                  Before the first term you will be required
                                  to take pre-course classes in maths
                                  (depending on your existing level),
                                  in MATLAB (a computer language),
                                  and in accounting. You will also attend
                                  pre-course careers training. A maths
                                  workbook has been prepared for you
                                  to study over the summer before the
                                  programme starts. You can also take
                                  additional mathematics and computing
                                  classes should you need further practice
                                  and support.

4      University of Oxford MSc Financial Economics 2017/18
University of Oxford MSc Financial Economics 2017/2018
Four core modules
During your time on the programme, you will take four core modules that are all
carefully integrated: the economics and econometrics modules apply theories and
methodologies to finance and the finance modules provide the underlying economic
principles of financial practice.

Asset Pricing explores the theory and        debt, and dividend policy. You will
practice of valuing claims to uncertain      learn about the relevance of different
cash flows, such as stocks and stock         financial institutions to the financing of
options, bonds and foreign-exchange          firms, the takeover process, corporate
instruments. You will be taught the          restructurings, and financial distress.
CAPM and the Black-Scholes formula,
                                             Financial Econometrics provides you
and some advanced material such
                                             with a background in the fundamentals
as consumption-CAPM and pricing
                                             of empirical modelling and testing in
formulas for “exotic options.” About
                                             finance. This will allow you to better
half of the module is dedicated to the
                                             understand crucial concepts like risk,
application of advanced statistical
                                             evidence, and prediction.
methods to the area of asset pricing and
to practical work with real-world data.      Economics is the study of how
                                             financial and commercial frameworks
Corporate Finance studies the financing,
                                             and conditions impact on individual
valuation, and corporate governance
                                             situations and business units. You will
of firms. You will learn the fundamental
                                             learn to apply the basic tools of market
principles of financial accounting,
                                             and firm analysis, game theory, incentive
the valuation of firms’ assets and
                                             theory, and auctions. It will also provide
the determinants of firms’ financial
                                             an introduction to fundamental ideas in
structures. You will be taught the key
                                             macroeconomics reinforced by lectures
components of firms’ financial decisions
                                             from the Economics faculty.
and the operation of financial markets,
including new issues of securities,

Oxford Saïd Finance Lab                      Five electives
In addition, you can apply to take part      The wide range of electives available
in the Oxford Saïd Finance Lab. This is a    enables you to gain a deeper knowledge
series of practical workshops on financial   of areas of special interest. You will
modelling combined with practitioner-led     be expected to complete five elective
case studies. There is also a sponsored      modules and they are subject to change
team-based challenge providing real-         from year-to-year depending on
world experience and analysis, and plenty    demand. In the past we have offered the
of networking opportunities. See page 7      following:
for more details.
                                             • Advanced Financial Econometrics
                                             • Asset Management
                                             • Behavioural Finance
                                             • Capital Raising and Finance
                                             • Cases in Finance and Investments
                                             • Competition and Regulation
                                             • Continuous Time Finance
                                             • Corporate Valuation
                                             • Emerging Market Finance
                                             • Financial Crises and
                                               Risk Management
                                             • Fixed Income and Derivatives
                                             • Mergers, Acquisitions
                                               and Restructuring
                                             • Private Equity

                                                                                          www.sbs.oxford.edu/mfe   5
University of Oxford MSc Financial Economics 2017/2018
“Even with high level
qualifications and diplomas
from top ranking schools,
finding a job is not an easy task
nowadays. The MFE offers
a tremendous amount of
advantage compared with other
programmes in this respect.
Through the Finance Lab,
students have the opportunity
to meet and learn from
senior executives of leading
investment banks in small
settings, gaining invaluable
insights and knowledge that
will help in interviews and in the
preparation of cover letters and
essays.”

Lorenzo Duretto, MFE 2016
University of Oxford MSc Financial Economics 2017/2018
Oxford Saïd Finance Lab
How to break into investment banking,
private equity, and asset management

The Oxford Saïd Finance Lab, a joint venture between the Private Equity Institute, the
finance faculty, and the Careers Centre, is a tailored financial graduate training programme
which is highly respected by financial services recruiters and senior finance professionals.         “Finance Lab is a pioneering
                                                                                                     approach to learning and
We recommend that you apply to join the Lab if you are interested in pursuing a career
                                                                                                     networking in finance, bridging
in specific areas of finance, especially M&A, Corporate Finance, Leveraged Finance, Real
                                                                                                     the gap between universities
Estate and Infrastructure Finance, Capital Markets, Distress & Restructuring, Private
                                                                                                     and industry.”
Equity, and Asset Management.
The Oxford Saïd Finance Lab takes place over two terms. It will introduce you to the key
                                                                                                     Andreas T. Angelopoulos,
concepts, instruments, and models required for finance courses, electives, and interviews.
                                                                                                     Oxford Saïd Finance Lab
In particular you will gain the skills to develop a financial model following a step-by-step
                                                                                                     founder and Programme
methodology, and connect the business plan with financial statements, the valuation, the
                                                                                                     Director
finance structure, the risks, and the investment returns.
The programme covers 150 hours of teaching that connect theory with practice through
a series of practical workshops on financial modelling, challenges and real-world case
studies led by expert practitioners, each followed by a networking event that offers a
chance to connect with practising professionals.
A mandatory component of the Lab is participating in at least one of four challenges:
the Bridgepoint Private Equity Challenge, Centerview M&A Challenge, Rothschild Global
Advisory Challenge, and the Hermes GPE Private Markets Challenge. The best Finance Lab
students will form a team of five to participate in the annual Oxford Chicago Global Private
Equity Challenge, which takes place in Oxford and Chicago alternately.
In addition to the Lab, students participate in the annual Wharton Private Equity Challenge,
competing with more than 25 leading business schools in New York City. Oxford Saïd won
the 2016 challenge.
Investment banks that have taken part:
•   Bank of America Merril Lynch                  •   Houlihan Lokey
•   Barclays                                      •   JP Morgan
•   Centerview                                    •   Lazard
•   Citi                                          •   Moelis
•   Deutsche Bank                                 •   Morgan Stanley
•   Evercore                                      •   PJT
•   Goldman Sachs                                 •   Rothschild

Private equity funds that have taken part:
•   3i                                            •   CDC
•   Advent International                          •   Denham
•   Ardian                                        •   Goldman Sachs Merchant Banking
•   Bain Capital                                  •   Hermes GPE
•   Bayside                                       •   ICG
•   Blackstone                                    •   KKR
•   Bridgepoint                                   •   Oak Tree Capital
•   Carlyle                                       •   Terra Firma

                                                                                               www.sbs.oxford.edu/mfe                  7
Professional partnerships
CFA
The CFA (Chartered Financial Analyst) Institute is a global organisation which administers
the CFA qualification, a rigorous three-tiered professional qualification open to those      “Through utilising the MFE’s
working within the finance sector, a highly regarded qualification by recruiters.            strong links to practitioners,
                                                                                             I was able to gain insight into
Oxford Saïd is the founder member of the CFA Educational Partnership programme,
                                                                                             the daily work life of London
which officially recognises that 70% of the CFA qualification’s required body of
                                                                                             finance professionals, was
knowledge is embedded within the MFE curriculum.
                                                                                             offered several opportunities to
A large proportion of MFE students are registered with the CFA Institute. This               network, giving me the edge in
partnership gives them the opportunity to:                                                   the recruitment process,
                                                                                             and received great preparation
• Access CFA Institute curriculum materials                                                  for my current summer
• Access information on the nature of CFA examinations, including printed copies of          internship with a leading US
  sample examinations                                                                        investment bank.”
• Attend professional development events organised by the Institute
                                                                                             Julian Muller, MFE 2016,
• The partnership also offers a scholarship to five MFE students. Under each
                                                                                             joining Morgan Stanley
  scholarship, CFA registration fees are waived and the enrolment fee is lowered

The MFE and the CFA do not provide exemptions from each other’s exams.

Actuarial society exemption
Actuaries provide commercial, financial, and prudential advice on the management of
assets and liabilities – especially where long-term management and planning are critical
factors. Actuaries traditionally work in finance, investment and risk management,
general insurance, life insurance, pensions, and social security.
The Institute of Actuaries and the Faculty of Actuaries are the two chartered
professional bodies for UK actuaries, working closely together across the UK as The
Actuarial Profession.
Our programme has been approved by the Actuarial Profession as being of the required
standard and leads to blocks of exemptions from the Profession’s exams, providing that
a suitable overall standard is achieved.

                                                               We offer a number of
                                                           professional partnerships
                                                             and exemptions to help
                                                              fast-track your career
                                                                         in finance.”

8            University of Oxford MSc Financial Economics 2017/18
Career success
The Careers Development Centre provides guidance and advice to help you
meet your career goals in international business. During the academic year, the
Careers Development Centre delivers a wide range of activities to assist you
with your career planning and skills development.
These include workshops and one-on-one meetings addressing areas such
as CV writing, interview preparation, networking and presentation skills,
and opportunities to meet with recruiters through panel discussions and on-
campus presentations.

Our Careers team has developed relationships with a range of organisations in:
                                                                                          “I appreciated the emphasis
•    Investment banking                                                                   by the career development
•    Asset management                                                                     team on the importance of
•    Private equity and venture capital                                                   the choice of careers we make
•    Risk management                                                                      today and how this decision
•    Investment consulting                                                                can have a significant impact on
•    Strategy consulting                                                                  career openings … Even though
                                                                                          it is very difficult to foresee
                                                                                          how one’s career will turn out,
The Careers Development Centre also aims to maximise your contact                         the team really tried to make
with potential employers by providing:                                                    us consider the long-term,
                                                                                          which is an incredibly valuable
• Informal sector-based panel discussions with representatives from leading               advice, given that it comes
  financial institutions                                                                  from individuals with extensive
• Advanced financial modelling training in collaboration with the finance faculty, and    experience and a deep
  corporate competitions to build practical skills                                        understanding of the various
• Visits by employers and recruiters to meet with students and to make                    roles in the industry.”
  presentations about their organisations
• Events with alumni and other networks, aimed at facilitating sector-based contact       Nathalie Mylog, MFE 2016
  and knowledge sharing

Alumni networks
Aside from a world-class education, you will also have the opportunity to engage
with alumni during your studies using the Oxford Business Alumni LinkedIn group. This
group is maintained by the Oxford Saïd Alumni Relations Office, so you will know you
are connecting with genuine Oxonians. You will also be invited to a selection of alumni
events during the year and have the opportunity to connect with alumni through their
colleges’ Middle or Senior Common Rooms.
Within the School, you can join or start an Oxford Business Network (OBN). OBNs
are student-led groups which exist to promote the exchange of ideas and knowledge
surrounding an industry, interest, or geographical region. Upon graduation, you
will then be able to the Oxford Business Alumni (OBA) Network. This is a truly
international community with more than 13,000 members, living in over 130
countries across the globe. You will also become a member of the University of
Oxford’s wider alumni community.

10            University of Oxford MSc Financial Economics 2017/18
Beyond the MFE

•     Average post-MFE annual salary: £49,729
•     Percentage of students employed within 3 months of
      programme completion: 85%

Employment by region                                                 Top employers:
(expressed as a percentage over each region)
                                                                     •   Bain & Company
                                                                     •   Bank of America Merrill Lynch
                              •   53%   UK                           •   Barclays
                              •   28%   Asia                         •   Credit Suisse
                              •   11%   Europe                       •   Deutsche Bank
                              •   4%    Oceania                      •   Goldman Sachs
                              •   2%    MENA                         •   HSBC
                              •   2%    N America                    •   JP Morgan
                                                                     •   Lazard
                                                                     •   McKinsey & Co.
                                                                     •   Morgan Stanley
                                                                     •   OC&C Strategy Consulting

MFE post-graduation careers choices
(expressed as a percentage over each section)

                              •   37%    Investment banking
                              •   22%    Management consulting
                              •   15%    Other
                              •   12%    Sales, trading & research
                              •   8%     Investment management
                              •   4%     Advisory
                              •   2%     Private equity

Please note this data only relates to those students who provided
employment data and not the whole class.
How to apply
We operate a staged admissions process. The deadline for receiving
applications will be on the stated deadline date at 23:59 (UK time). You will
benefit from submitting your application as early as possible in the year as
availability can be more limited in the final admissions stage. Also, if you are
interested in a particular college, or want to live in college accommodation,
you are more likely to be successful if you submit your application in the
earlier stages.

Requirements                                                                                 *Minimum Score:
1.   A good undergraduate degree: As guidance a 2.1 degree (GPA 3.5 or its equivalent).      • TOEFL iBT - 110
2.   A GRE or GMAT score: We expect the average scores to be around the 90th                 • IELTS - 7.5
     percentile on the quantitative tests.
3.   A Test of English as a Foreign Language (TOEFL) or International English
     Language Test Scheme (IELTS): You do not need to take the TOEFL or IELTS test
     if you have studied full time at degree level for a minimum of nine months at a
     recognised institution where the medium of instruction is English. Please see our
     website for further information on our language requirements and how to request a
     waiver if applicable.*
4.   University academic transcripts: These should outline the subjects studied and
     grades obtained.
5.   Two references: Professional or academic
6.   A 500-word personal statement: Title on the application form

The Oxford College system
As an Oxford student, you will belong to one of the University’s 38 colleges or six halls.
College life will enrich your time at Oxford, offering you the chance to socialise with
students and faculty from diverse academic backgrounds in situations ranging from
high table dinners to guest speaker events to college balls. All MFE teaching takes place
at Oxford Saïd, so your college will act solely as a social base. Some colleges may also
provide you with accommodation.
Once you receive an offer to join the MFE programme, you will be able to name one
college you would like to apply to. If you do not secure membership at your first choice,
the admissions team will place you elsewhere. Colleges have their own alumni societies
and professional networks.

12           University of Oxford MSc Financial Economics 2017/18
Class profile 2015-16

ates
ates
ass
 tesmates
           80                   22            20-29            97.5%
                                                                97.5%
80 80Class
ass Size
           80
             79
         Class 80 80
               Size
                Size
                        22
                         80
                                22
                               22
                             Average
                           Average
                     Average Age
                                     Age
                                     Age 2220-29
                                          22
                                           22
                                                19-26
                                                 22
                                               Age
                                              Age  20-29
                                                   Range
                                                   Range
                                            Age Range    20-29  20-29
                                                                     96%
                                                                 20-2920-29
                                                          International      97.5%
                                                                        Students
                                                               International
                                                          International Students
                                                                                 97.5%9
                                                                                     97
                                                                                      97
   Class Size
          Class Class
                 Size
              Class    Size
                    Size  ClassAverage
                                Size   Age Average
                                        Average
                                       Average Age AgeAge
                                                  Age
                                                 Average AgeRange   AgeInternational
                                                                    Age  Range
                                                                         Range
                                                                        Age
                                                                    Students
                                                              Age Range     Range    Students
                                                                                      Internatio
                                                                                       Internat
                                                                                        Internat
                                                                             International Stude

             41%                                         23                         738                      2 yrs
        Female Students                        Nationalities                      GMAT Score             Work Experience

41%         41%       23
                     41%43% 23 23GMAT
                                              738
                                            23 23            738  2 yrs738      2 yrs 22
     41%Female41%
le Students        Nationalities          23      Score738    Work738
                                                              744          2
                                                                    Experience yrs
           41%
Female Students
                      Female
                  Female
               Students               Nationalities
                                              Nationalities GMAT
                         Students Nationalities
           Female Students
                                                                 Score
                                                            GMAT Score
                          Nationalities NationalitiesGMAT Score GMAT Work
                      Students                                            23
                                                                     GMAT Score       Work
                                                                             Work Experience
                                                                     ScoreExperience
                                                                                  Work E                          738                           2
      Female Students                                          Nationalities                                 GMAT Score                       Work

       Nationality                                                                 Previous educational background

                                   6%Previous
                                      Eastern education
                                              Europe background
                                                                                                              •   49%   Economics
                                                                                                              •   13%   Finance
        8% North America   25% Western  40% Economics
                                                     12% South Asia
                                                                4% Accounting
                                    26% Finance              3% IT                                            •   13%   Business Studies
                             Europe 10% Mathematics          1% Physics
                                    8% Business studies      38%      East Asia
                                                             1% Psychology                                    •   9%    Mathematics
                                        7% Engineering
                                                                                                              •   5%    Engineering
                                                                                                              •   5%    Accounting
                                                                                                              •   3%    Physics
                                                                                                              •   1%    IT
                                                                                                              •   1%    Biological Sciences
                                                                                                              •   1%    Psychology

         1% Caribbean
                        3% Latin America

                                                          7% South East Asia
14   University of Oxford MSc Financial Economics 2017/18
Next Steps
Open days
We host a number of open days at Oxford Saïd over the application cycle. This is an
opportunity for you to hear about the programme from the Programme Director, get
advice from our Admissions and Careers Services, learn more about the Oxford Business
Alumni Network, speak with current students, and get a tour of the School and Oxford.
Join us on:
• 20 October 2016
• 17 November 2016
• 16 February 2017

Fees
Tuition fee: £35,805                          Please note that applications received
Application: £100 (non-refundable)            after the staged deadlines will be held
College fee: £3,021                           over to be considered in the next stage.

 Deadlines         Application deadline Interview decision on Final decision on
 Stage 1           9 September 2016       23 September 2016 14 October 2016
 Stage 2           28 October 2016        18 November 2016       9 December 2016
 Stage 3           6 January 2017         27 January 2017        24 February 2017
 Stage 4           17 March 2017          7 April 2017           28 April 2017

                                                                                               “… in the last seven months
                                                                                               I have received support and
                                                                                               friendship from my MFE
                                                                                               classmates. Those people who
                                                                                               I didn’t know one year ago are
                                                                                               now close friends who have
                                                                                               encouraged me to go on in
                                                                                               difficult times ... I don’t think the
                                                                                               MFE is about who gets the best
                                                                                               grades, but about competing
                                                                                               against yourself to get the best
                                                                                               result you can, feeling satisfied
                                                                                               about giving your best effort.”

                                                                                               Rodrigo Navarro, MFE 2016

                                                                                         www.sbs.oxford.edu/mfe                        15
MFE Admissions Office
Saïd Business School
Park End Street
Oxford, OX1 1HP
Tel. +44 (0)1865 288871
Email: mfe-enquiries@sbs.ox.ac.uk
www.sbs.oxford.edu/mfe

Saïd Business School                Taught Programmes               Executive Education            Strategy, Risk and Reputation
Saïd Business School at the         MBA                             Leadership                     Oxford Scenarios Programme
University of Oxford blends
                                    Oxford 1+1 MBA                  Oxford Advanced Management     Consulting and Coaching
the best of new and old. We
                                                                    and Leadership Programme       for Change
are a vibrant and innovative        Executive MBA
business school, but yet deeply                                     Oxford Strategic               Oxford CIO Academy
                                    MSc Financial Economics
embedded in an 800-year-                                            Leadership Programme
                                                                                                   Corporate Affairs Academy
old world-class university. We      MSc in Major Programme
                                                                    Oxford High Performance
create programmes and ideas         Management                                                     Oxford Strategic Marketing
                                                                    Leadership Programme
that have global impact. We                                                                        Programme
                                    MSc in Law and Finance
educate people for successful                                       Women Transforming
                                                                                                   Oxford Programme
business careers, and as a          Diploma in Financial Strategy   Leadership Programme
                                                                                                   on Negotiation
community seek to tackle world-
                                    Diploma in Global Business
scale problems. We deliver                                                                         Corporate Reputation
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cutting-edge programmes             Diploma in Organisational                                      and Executive Leadership
and ground-breaking research        Leadership                      Oxford Chicago Valuation       Programme
that transform individuals,                                         Programme
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organisations, business practice,
                                    Innovation                      Oxford Investment              Custom Programmes
and society. We seek to be a
                                                                    Management Programme
world-class business school         BA in Economics and
community, embedded in a            Management                      Oxford Private Equity
world-class university, tackling                                    Programme
world-scale problems.
                                    Research Programmes             Oxford Real Estate Programme
                                    DPhil Programme in              Oxford Impact Investing
                                    Management Studies              Programme

WWW.SBS.OXFORD.EDU                                                                                           © 2016 SAID BUSINESS SCHOOL.
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