MASTER IN FINANCE AND INVESTMENT

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MASTER IN FINANCE AND INVESTMENT

  1. 1. Finance MASTER IN FINANCE AND INVESTMENT 2010
  2. 2. It is not fair to ask of others what you are unwilling to do yourself. Anna Eleanor Roosevelt 01 MASTER IN FINANCE AND INVESTMENT 02
  3. 3. Finance is the lynchpin of taught-skills necessary for both navigating enterprises successfully, and ensuring stable economic activity nationally and globally. Until all of us have IMPORTANCE OF FINANCE SPECIALIZATION The Master in Finance & Investment stands on three necessary pillars of Finance – quantitative/macro-environment foundation Finance is the lynchpin of taught-skills necessary for both knowledge, firm grasp of the workings of financial markets and made it, none of us navigating enterprises successfully, and ensuring stable economic activity nationally and globally. It is composed of several important facets and thus requires its practitioners to acquire their evolutionary nature, and solid understanding of corporate finance and governance. The program is for high intelligence and motivated individuals with relevant undergraduate degrees (in have made it. a dedicated, focused and comprehensive set of training, to be appropriately qualified. The Master of Management in Finance & Investment Management (Master in Finance & Investment) at Wits e.g., business, economics, engineering, mathematics, statistics and law) who seek to pursue careers in specific areas of finance either as practitioners or researchers. The Master in Finance & Rosemary Brown Business School (WBS) is designed to fill this training need. Investment requires a set of core courses, track-oriented courses, and a program thesis; with a 12-month, full-time completion In fact, a specialization in graduate Finance is a hallmark of period. Being a block-release based program, the duration is most renowned Business Schools globally. The reasons for designed to equally accommodate students who are working this phenomenon are: (1) Finance is an indispensable unifying and needing to tool-up quickly for career advancement in the knowledge-area for success in both enterprise and the finance field. The teaching staff is populated by top-rate Finance macro-economy. (2) Finance experts require a program-based academics from both WBS and partnering reputed international training to garner the necessary breadth and depth of knowledge graduate programs, and practitioners with rich finance industry for its effective understanding and application. experience. Importantly, the WBS’ Master in Finance & Investment program design is motivated by the special need for Finance in the Emerging market context. Gone are the days when Finance was most relevant in the developed market context, due to the fact that financial innovations emanated from this environment, with Kalu Ojah, Ph.D. international finance transactions being essentially an Professor of Finance “intra-developed markets” affair. With globalization, emerging Director: Master in Finance & Investment markets have become inexorably connected to the dynamism of financial markets and their breathtaking paced innovations. The contagion of the Sub-prime mortgage market (developed markets) originated global financial crisis makes the case for why emerging markets must acquire the requisite capacity needed to understand the workings of financial markets, how to leverage their opportunities, and how to anticipate and mitigate their systemic threats. 03 MASTER IN FINANCE AND INVESTMENT 04
  4. 4. The Master in Finance & Investment’s mission is quality, contemporary and relevant Finance education. Management works in the system; leadership works on the system. Stephen R. Covey ONE OF AFRICA’S PREMIER BUSINESS SCHOOLS These faculty members are research active and publish emerging market and globally relevant finance articles in reputed The WBS brand is unquestionably one of the most recognized and international journals as exemplified by the following samples: sought after in South Africa and Africa as a whole. It exemplifies Ncube, M and Satchell, S (2002), “The statistical properties of its mission statement of “sculpting global leaders”. It has been Black-Scholes option pricing”, Mathematical Finance, 7:3; Ncube, ranked for a number of years by the Professional Management M (1996), “Modelling implied volatility with OLS and panel data Review as the leading Business School in Africa, its MBA program models”, Journal of Banking & Finance, 20:1; Asea, P and Ncube, has been ranked #1 for the sixth consecutive year by the South M (1998), “Heterogeneous information arrival and option pricing” African Financial Mail, the London Financial Times has ranked Journal of Econometrics, 83; Gietzmann, M, Ncube, M and Selby, its Executive Programs among the top sixty in the world. WBS is M (1997), “Auditor performance, implicit guarantees, and the accredited by the Council on Higher Education, the Association volatility of legal liability”, Journal of International Auditing, 1:1; of MBAs and the US-based Graduate Management Admissions Bhimani, A and Ncube, M (2006), “Virtual integration cost and Council Program. the limits of supply chain scalability”, Journal of Accounting & Public Policy, 25:4; “The South African Dictionary of Finance” ed. WBS’ global reach and reputation is demonstrated by the several Ncube, M (2009); Mokoaleli-Mokoteli, T, Taffler, R, and Agarwal, V, students exchange programs and collaborative partnerships it (2009), “Behavioral bias and conflicts of interest in analyst stock has with reputed international graduate business programs such recommendations”, Journal of Business Finance & Accounting, as Duke University’s Fuqua School of Business, London Business 36:3; Ojah, K and Karemera, D (1999), “Random walks and market School, UCLA’s Anderson School of Management, Wharton School, efficiency tests of Latin American emerging equity markets: A to name a few. It is one of the very select Business Schools in revisit”, The Financial Review, 34:2; Ojah, K and Manrique, J Africa that belong to the Partnership in International Management (2005) “Determinants of corporate debt structure in a privately (PIM), which is populated by the major graduate business programs dominated debt market: A study of the Spanish capital market”, of the world – e.g. Wharton School, Kelly School, Babson College, University of Michigan, University of Thunderbird, University Applied Financial Economics, 15:7; Ojah, K and Monplaisir, of Western Ontario, York University, Tel Aviv University, Kuwait L (2003), “Investors’ valuation of global product design and University, Pontificia Universidad Catolica de Chile, Chinese development”, Journal of International Business Studies, 34:5; University of Hong-Kong, Keio University, Yonsei University and Ojah, K (2007), “Cost, valuation and long-term operating effects Thammasat University. of global strategic alliances”, Review of Financial Economics, 16:1; Gwatidzo, T and Ojah, K (2009), “Corporate capital structure TOP-RATE AND RELEVANT QUALITY FACULTY determinants: Evidence from five African countries”, African Finance Journal, 11:1; Ojah, K, Gwatidzo, T and Kaniki, S (2009), Consistent with Master in Finance & Investment’s mission of “Legal environment, finance channels and investment: Evidence quality, contemporary and relevant Finance education, its faculty from the East African Community” Journal of Development Studies, members hold graduate degrees (particularly Ph.D.s) from forthcoming. top international Business and Economics programs such as Cambridge (UK), Cranfield (UK), London and Queens (UK), Saint Louis (USA), New School (USA), Witwatersrand (South Africa), etc. 05 MASTER IN FINANCE AND INVESTMENT 06
  5. 5. The WBS brand is unquestionably one DESCRIPTION OF CORE COURSES • Finance Macro-environment Analysis: of the most recognized and sought after • Corporate Finance & Financial Statement Analysis: This core course acknowledges that the existence and nature in South Africa and Africa as a whole. of financial markets, firm’s financing and investing strategies It exemplifies its mission statement of This core course places finance within the context of the goal of are influenced by the macroeconomic environment – whether the firm, and as such dwells on measuring the firm’s activities due to government policy or international trend/shocks. “sculpting global leaders”. and performance in light of the firm’s strategy and goal. It dwells on interest rate determination, inflation management Topics such as financial statement and analysis, accounting policy; tax/spending policy, exchange rate policy, and their and economic profits, tax and retirement funds accounting, linkages to financial markets; and highlights stylized facts on capital structure, agency issues, dividend policy, firm the relationship between business cycles and financial markets. valuation and valuation methods, are covered. • Applied Financial Econometrics: • Investments: This course highlights the quantitative tools’ applications It introduces the economics of how individuals and firms that are commonplace in almost all finance areas. It introduces manage and grow their wealth (unconsumed earnings). basic data describing statistical techniques, modern regression STRUCTURE AND DETAILS OF THE MASTER IN FINANCE & topics in global, macro- economic and political environments) Financial markets/institutions are discussed alongside their techniques, and various aspects of time-series econometrics INVESTMENT 4. Applied Financial Econometrics (a mélange of multivariate that make sense of several financial data of varying corresponding investable securities, with emphases on the analysis & time-series specific to financial markets) frequencies. A major emphasis is placed on practical exercises valuation of debt securities, equity securities, and basic To be completed in the 1st quarter (January-March) with computer packages of Excel, E-Views and/or Matlab. Taking into consideration (a) core course requirement for solid derivative securities. Overviews of background topics such as finance expertise, (b) special finance expertise needs of the capital asset pricing models, market efficiencies (anomalies), B. ELECTIVE COURSES (4): and portfolio theory, are presented. emerging market and global environments, and (c) a relatively seamless students exchange or collaboration with current 1. Four from the pool of available electives (with 1-2 areas of and potential partnering institutions, the Master in Finance & specialization in view), to be completed within the 2nd quarter Investment at WBS, is structured as follows. (April-June) and 4th quarter (October-December) C. PROGRAM THESIS: It is designed for individuals with relevant undergraduate degrees (in e.g. business, economics, engineering, mathematics, statistics 1. This thesis portion commences by the beginning of the 2nd and law) who intend to pursue careers in specific areas of finance quarter of the program (April) and completed by December. either as practitioners or researchers. Individuals with limited The list of possible elective courses on offer at both WBS and backgrounds in numeracy would need some basic mathematical partnering international graduate institutions is presented training or brushing-up. A meaningful work experience in the below, and arranged under three streams of specialization. sphere of finance and/or management would be a plus, but not a requirement. CORPORATE FINANCE STREAM The program is expected to be completed within a maximum of • Advanced Corporate Finance & Corporate Governance twelve months, including the completion of a program thesis. • Project Finance & Capital Budgeting Analysis The program’s time-tabling is based on a block-release formula. • Advanced Financial Statement Analysis & Disclosures The program is comprised of three parts: core courses, elective BANKING AND CAPITAL MARKETS STREAM courses and a program thesis; with a total of eight units of courses and the program thesis. The multiplicity of electives grouped • Banking Operations & Financial Institutions Management under three streams of Finance is designed to permit students to • Investment Banking & Primary Markets decide upfront (from the ‘get-go’) the areas of Finance they seek • Development & Entrepreneurial Finance to slant their expertise towards. Further, the numerous electives • International Finance and Globalization enhance the seamlessness of our students’ ability to take courses • Emerging Markets & Financial Market Development from our collaborative partners. The program is organized as comprising the three following components: INVESTMENTS AND FINANCIAL ENGINEERING STREAM • Trading and Securities Selection A. CORE COURSES (4): • Asset Management & Portfolio Formation • Derivatives, Debt and Structured Contracts 1. Corporate Finance & Financial Statement Analysis • Real-estate Markets & Mortgage Finance 2. Investments • Models, Forecasting and Risk Management 3. Finance Macro-environment Analysis (comprised of special 07 MASTER IN FINANCE AND INVESTMENT 08
  6. 6. Wits continues to produce graduates who can play their part in our expanding economy. DESCRIPTION OF ELECTIVE COURSES Corporate Finance Stream • Advanced Corporate Finance & Corporate Governance: This course deepens some of the topics introduced in the core corporate finance course, such as agency theory and the market for corporate control, models of corporate governance and how firms can optimize the cost of capital (operation) The quality of a leader is within a given model. Special topics on capital and debt structures of firms, ownership structure reorganization and financial distress management (M&A, JV, Buy-out, etc). reflected in the standards • Capital Budgeting & Project Finance: they set for themselves. This course looks at how businesses and/or government units practically increase their value by effectively evaluating and selecting attractive long-term projects. It involves forecasting of cash flows and industry/macroeconomic environments, Ray Kroc determination of risk profiles and corresponding cost of capital. These budgeting tools, alongside risk-sharing arrangements, are then used to understand how firms and government finance manage large scale, long-live projects that would ordinarily be difficult for one entity to handle exclusively. Case studies are generously employed. • Advanced Financial Statement Analysis & Disclosures: Basic knowledge on how firms measure and report their activities and performance is expanded in ways that equips a financial economist to extract the most from financial reports and disclosures. Consequently, special topics in financial accounting, managerial accounting and information economics are presented – earnings management, consolidation and special items accounting, harmonization of accounting standards, asset impairment, legislation on disclosures, etc. Banking and Capital Markets Stream • Banking Operations & Financial Institutions Management: This course introduces more comprehensively the plethora 09 MASTER IN FINANCE AND INVESTMENT 10
  7. 7. With globalization, emerging markets have become inexorably connected to the dynamism of financial markets and their breath-taking paced innovations. of financial institutions and markets that exist within and strategic alliances, globalization and risk diversification most national confines, with a significant emphasis on the potentials. economics of financial intermediation and the dominance of thrift institutions in the performance of that function. More • Emerging Markets & Financial Market Development: than one-half of the course is devoted to understanding core activities of commercial banks – including asset-liability The structural and institutional differences between emerging management, capital adequacy and liquidity management, and highly developed economies are shown to throw up regulation, consolidation and reform, banking systems, significantly different financial markets between these two capital arbitrage behavior and credit risk management. national market types. Opportunities and/or obstacles of operating in emerging markets are illustrated in topics such • Investment Banking & Primary Markets: as financial market liberalization and market development, sovereign debt management, contagion, cross-border This is a course on the economics of how publicly traded investment flows and diversification, and emerging market firms and government units raise external funds for their asset valuations. activity. The forums by which these economic units access external funds – organized, private or over-the-counter Investments and Financial Engineering Stream markets – are introduced. Standard securities pricing and • Trading and Securities Selection: issuing procedures are presented, with significant readings and discussions on topics such as IPO, SEO, certification, This course dwells on two main planks of the investments conflict of interest, auctions and cornering of markets, and sub-area: securities selection (with emphasis on equity, regulation of investment banking and intermediation. bond and currency), and the mechanics and procedures for securities trading and settlement. Valuation techniques, • Development & Entrepreneurial Finance: markets microstructures, and trading models are further emphasized. A great deal of guest-lectureship is used here so This course is largely eclectic and explorative, bringing as to enhance gaining knowledge of real-time trading practices. together various areas of finance and development economics in search of optimal ways of providing funding to • Asset Management & Portfolio Formation: entrepreneurs, particularly small and medium enterprises that generally have limited or no access to traditional funding It provides a broad coverage of popular investment sources. Emphasis is placed on special issues of venture funds – equity funds, fixed income funds, mutual funds, A big man is one who capital and private equity, and the nexus between non-government credit institutions, government credit schemes and banks. pension/retirement funds, and hedge funds – with emphasis on motivation, institutional underpinnings and management of each of these funds. A significant portion of the course makes us feel bigger • International Finance and Globalization: dwells on a hands-on portfolio formation and optimization exercises that draws from various computational models. when we are with him. This course puts financial management analysis of firms in its international context. The following major topics are covered via lectures and case presentations: international monetary • Derivatives, Debt and Structured Contracts: This course focuses on breaking down the conceptual and systems and global capital markets, currency value theoretical underpinnings of contingency claims/contracts John C. Maxwell determination and exchange risk management, and their valuation models. Key topics here are options, multinationality, wealth effects of cross border M&A futures, swaps; and how they are used as investment assets 11 MASTER IN FINANCE AND INVESTMENT 12
  8. 8. Emerging markets must acquire the requisite capacity needed to understand the workings of financial markets. as well as portfolio hedge instruments. Special attention is 3. Transcript letter of your last qualification also given to models of fixed income and structured contracts, with a highlight of their linkage to derivatives. Submission deadline for applications: 23 November 2009 The secret of a leader lies • Real-estate Markets & Mortgage Finance Details of this road-map/application proccess, and the contact details of the programme manager are: in the tests he has faced This course surveys the real-estate markets locally and internationally, and highlights these markets increasing influence on financial markets and the macro-economy. Rajeshree Naidoo (Raj) Programme Manager over the whole course of It focuses on institutions that have been set up to address the special features of these huge mortgage (housing credit) markets, the mortgage loan based derivatives (securitization, Tel no: +27 (0)11 717 3142 Fax no: +27 (0)11 717 3514 Email: rajeshree.naidoo@wits.ac.za his life and the habit of pass-throughs, spvs, etc) and modeling and valuing of these often complex credit contracts. action he develops in • Models, Forecasting and Risk Management: meeting those tests. This eclectic course combines topics from statistics, calculus and modeling, to provide more in-depth skills for computational financial analyses. It covers time-series Gail Sheehy analysis including autocorrelation, causality, co-integration, and volatility forecasting. These time-series techniques are combined with stochastic calculus to engineer contracts which permits hedging of various kinds of financial risks. FEES Detailed information will be found in the Fees Booklet, which is given to students when they register. The cost of the MM is R 80 588.00 HOW TO APPLY AND OTHER RELEVANT INFORMATION Application Process 1. MM Application form from faculty office 2. Brief synopsis or profile of your qualifications, work background and why you wish to do the qualification. 13 MASTER IN FINANCE AND INVESTMENT 14
  9. 9. Ebony + Ivory 12901 Wits Business School, University of the Witwatersrand, 2 St. David’s Place, Parktown, Johannesburg, South Africa, Call Centre: 0861 000 (WBS) 927 Website: www.wbs.ac.za

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