mfe open house thursday, november 1st, 2018 · 2018. 11. 12. · mfe: “congruence of finance...

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MFE Open House

Thursday, November 1st, 2018

Sayed “Ajaz” Hussain, Co-Director MFE Program

Times Higher Education Rankings (2018)

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Rank Name

1 University of Oxford

2 University of Cambridge

3 Stanford University

4 Massachusetts Institute of Technology

5 California Institute of Technology

6 Harvard University

7 Princeton University

8 Yale University

9 Imperial College London

10 University of Chicago

11 ETH Zurich

12 Johns Hopkins University

12 University of Pennsylvania

14 UCL

15 University of California, Berkeley

16 Columbia University

17 University of California, Los Angeles

18 Duke University

19 Cornell University

20 University of Michigan

21 University of Toronto

22 Tsinghua University

23 National University of Singapore

24 Carnegie Mellon University

25 Northwestern University

26 London School of Economics and Political Science

27 New York University

28 University of Washington

29 University of Edinburgh

30 University of California, San Diego

# 1 in Canada

# 21 Worldwide

# 20 Worldwide (US News and Report)

Top 10 Public University Worldwide

https://www.timeshighereducation.com/world-university-rankings/2018/world-ranking#!/page/0/length/25/sort_by/rank/sort_order/asc/cols/stats

MFE Program: Joint Collaboration Between

Department of Economics and the Rotman School of Management

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Department of Economics

# 1 in Canada

# 19 Worldwide

Tilburg Research Rankings 2016

Rotman School of Management

# 2 in Canada

# 86 Worldwide

Financial Times 2018

The MFE program is administered by the Economics Department

https://www.economics.utoronto.ca/index.php/index/index/ranking

http://rankings.ft.com/businessschoolrankings/global-mba-ranking-2018

U of Toronto MFE Program

Founded in 1997: First MFE Program in Canada

Fiercely, Proudly, and Unapologetically Academically Rigorous Program in

Theoretical, Applied, and Professional Finance & Economics

𝑀𝐹𝐸 ≠ 𝑀𝐵𝐴,𝑀𝐹,𝑀𝐹𝑅𝑀,𝑀𝐹𝐼𝑀,𝑀𝐴𝑀

𝑀𝐹𝐸 ≈ 𝑀𝐴 with Real Options

Superstar Faculty

Exclusive, Elite Program with a Solid Track Record

Extensive & Magnanimous Alumni Network

Singularly Devoted Staff4

MFE: “Congruence of Finance & Economics”Foundations of Factor Investing, MSCI, December 2013

Factors have their roots in the Academic Literature … The oldest and most well-known model of stock returns is the

Capital Asset Pricing Model (CAPM) .. [in which] the expected return to any stock could be viewed as a function of

its beta to the market.

… “Arbitrage pricing theory” (APT) holds that the expected return of a financial asset can be modeled as a function

of various macroeconomic factors or theoretical market indexes ..

.. the challenge of building factor models .. continues to be, essentially empirical in nature .. researchers generally

look for factors that are persistent over time and have strong explanatory power over a broad range of stocks. Since,

unlike stock returns, factors cannot be directly observed, there of course remains a vigorous debate about how to

define and estimate them.

There are three main categories of factors today: macroeconomic, statistical, and fundamental.

Macroeconomic factors include measures such as surprises in inflation, surprises in GNP, surprises in the yield

curve, and other measures of the macro economy .. Statistical factor models identify factors using statistical

techniques such as principal components analysis (PCA) where the factors are not pre-specified in advance ..

Fundamental factors capture stock characteristics such as .. valuation ratios, and technical indicators, to name a few.

The most popular factors today .. have been studied for decades as part of the academic asset pricing literature and

the practitioner risk factor modeling research

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Foundations of Factor Investing

MFE: “Congruence of Finance & Economics”Investors, Look up your algorithms, Wall Street Journal, October 29th, 2018

… passive trading strategies may no longer fit the conditions of the information economy.

Start with the business cycle. The present 10-year recovery is one of America’s longest. Does that mean the expansion must soon end? Not necessarily. The economy likely is still at the start of a profound economic

transformation ..

In the new “virtualization” economy, intelligent software applications are easing industry’s need for capital and labor. These technologies … improve efficiency. They’ve led to stable or declining consumer prices, alleviating

wage and other inflationary pressures.

Virtualization is helping the U.S. economy sustain Goldilocks conditions – strong growth, low unemploymentand moderate inflation. The economy now seems resilient enough to continue without … extraordinary

monetary or fiscal policies.

What about the formula under which higher interest rates lead to growth-stock selloffs? … Unlike traditional industrial growth companies, which relied on debt-financed capital investment in plant and equipment to

fuel their growth, the modern cohort of growth stocks are high-margin, high-multiple companies.

The assumption that today’s trade disputes herald the end of global free-trade arrangements also deserves closer attention. .. slapping tariffs on China’s exports only incentivizes the Chinese to depreciate their currency,

and with it their consumers’ power to buy American.

The greatest challenge to U.S. markets and the broader economy is the huge burden that kick-the-can fiscal policies have imposed on coming generations ..

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https://www.wsj.com/articles/investors-look-up-from-your-algorithms-1540759980

U Toronto’s MFE Program: Our League

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Superstar Faculty




MFE: August of “Fall I” Term

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August

“Fall I”

Sept. – Dec.

“Fall I”

January – April

“Spring”

May – August

“Summer”

Sept. – Dec.

“Fall II”

MFE: 15 Courses

Ten Core Courses

ECO

Math-Stats

(through mid Sept.)

Financial Economics

Micro Macro

Econometrics

RSM

CorporateFinance

Options& Futures

Security Analysis

& Portfolio Management

Internship

Counts as two Courses

Five Elective Courses (Max two RSM courses)

Professional Development

Accounting/Financial Modeling

Resume/cover letters

Interviewing/Networking

Mentoring/Coaching

Alumni & Industry Connections

MFE: September – December “Fall I” Term

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August

“Fall I”

Sept. – Dec.

“Fall I”

January – April

“Spring”

May – August

“Summer”

Sept. – Dec.

“Fall II”

MFE: 15 Courses

Ten Core Courses

ECO

Math-StatsFinancial

Economics

Micro Macro

Econometrics

RSM

CorporateFinance

Options& Futures

Security Analysis


Internship



Towards Summer Internship

Interviewing/Networking

Recruiting/Info Sessions

Technical Training

Alumni Mentors/Network

MFE: “Spring” Term

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August

“Fall I”

Sept. – Dec.

“Fall I”

January – April

“Spring”

May – August

“Summer”

Sept. – Dec.

“Fall II”

MFE: 15 Courses

Ten Core Courses

ECO

Math-StatsFinancial

Economics

Micro Macro

Econometrics

RSM

CorporateFinance

Options& Futures

Security Analysis


Internship



1st Elective

2nd Elective

3rd Elective

4th Elective

5th Elective

MFE: “Summer” Term

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August

“Fall I”

Sept. – Dec.

“Fall I”

January – April

“Spring”

May – August

“Summer”

Sept. – Dec.

“Fall II”

MFE: 15 Courses

Ten Core Courses

ECO

Math-StatsFinancial

Economics

Micro Macro

Econometrics

RSM

CorporateFinance

Options& Futures

Security Analysis


Internship



1st Elective

2nd Elective

3rd Elective

4th Elective

5th Elective

Internship is Mandatory but not Guaranteed

Unlike other “MFE” programs, we do not appoint

“unplaced” students as “RAs” or “Program staff ”

MFE: “Fall II” Term

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August

“Fall I”

Sept. – Dec.

“Fall I”

January – April

“Spring”

May – August

“Summer”

Sept. – Dec.

“Fall II”

MFE: 15 Courses

Ten Core Courses

ECO

Math-StatsFinancial

Economics

Micro Macro

Econometrics

RSM

CorporateFinance

Options& Futures

Security Analysis


Internship



1st Elective

2nd Elective

3rd Elective

4th Elective

5th Elective







Superstar Faculty




(Some of) Our Superstar Faculty …

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Angelo Melino

(Econ)

Martin Osborne

(Econ)

Christian Gourieroux

(Econ)

Xioadong Zhu

(Econ)







Superstar Faculty




(Some of) Our Students Have Come From ..

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MFE: Cohort Size (Target ≈ 28)

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MFRM: 59 students

MF: 40 studentsRecession

“MFE”

Brand

MFE Cohorts: % Females, % Males, % U of T Undergrad

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% Female

% Male% U of T

MFRM: 58% Female

MF: 50% Female

MFE Cohorts : Average Age, % U of T Undergrads

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Average Age (start)

% U of T

MFRM: 23 years

MF: 28 years

MFE Cohorts : % Domestic, % International

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% Domestic

% International

MFE Class of December 2019

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370 Applicants

49 Offers

26 Enrolled

MFE Class of December 2019

23

14

91

1

1

1

MFE: % of Students Placed in Internship

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Recession

Average Intern

Salary

Annual Basis

$76,500

(N/A Bonus)

MFE’s 100% is 100%

Class of Dec ’18: Internships (100% Placed)

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MFE Class of December 2019: Internship Placements

As of October 31, 2018 (with five months to go until Summer 2019), 46% of the incoming class has lined up a Summer 2019 Internship

BMO Investment Banking = 1

TD Investment Banking = 1

RBC Sales & Trading = 1

OTPP = 6

MacKenzie Investments = 1

RBC Credit Risk = 1

OP Trust = 1

“With so little to go on, headhunters rely on college grades and the pedigree of their current employers [school] as proxies ..”

Source: “No Experience? No Problem” Wall Street Journal, October 31, 2018

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“Fall 2018” “Spring 2019” “Summer 2019” “Fall 2019”

MFE: % of Graduates with Full Time Jobs

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2 out of 28 graduates unplaced

In 2018

MFRM program

placed 78% of graduates

Last Five Years: MFE Graduates Placed at:

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Albourne Partners

Allianz Investment Mgmt.

Bank of Canada

Bermuda Hedge Fund

BlackRock

BMO Capital Markets

BMO Financial Group

Caisse de Depot

Capital One

CBRE Caledon Capital

CEM Benchmarking

Charles River Associates

CIBC

CIBC Asset Management

CIBC Capital Markets

CIBC World Markets

City of Toronto

CPPIB

Deloitte

Denham Capital

Ernst & Young

Fontainburg

Goldman Sachs HK

IBM Risk Analytics

JP Morgan

KingSett Capital

Lazard

Mackenzie Investments

Macquarie Group

Ministry of Infrastructure

Morguard Investments

National Bank Financial

Novantas

OMERS

OPTrust

OTPP

Picowork Limited

Purpose Investments

RBC

RBC Capital Markets

Scotiabank

TD Bank

TD Securities

The Brattle Group

Wells Fargo

MFE vs. Rotman’s MF & MFRM

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Economics & Rotman

Masters of Financial Economics

(MFE)

Rotman

Masters of Finance

(MF)

Rotman

Master of Financial Risk

Management (MFRM)

Founded: 1999 2007 Circa 2015

Full or Part

Time?Full Time

Part Time

(Weds & Alternative Sats)Full Time

Admissions: Min 3.30 GPA Min 3.0 GPA + 2 years work experience Min 3.0 GPA

Program Length:Courses: 12 months

Internship: 4 months

Courses: 16 months

“Project”: 4 months

Courses: 3 months

“Project”: 2 month

Courses: 3 months

Courses in: Economics + Rotman Rotman Rotman

# Courses:15 courses

(incl. internship (2 courses))

13 courses (incl. one online course) +

Project10 courses + “Project”

Domestic

Tuition:$50,865 $68,680 $44,280

International

Tuition:$71,250 $86,860 $61,880

2020 Class Size: 27 students 40 students 59 Students

Current Class Years

of Work

Experience:

0 – 3 years 2 – 15 years 0 – 7 years

Full-time Placement

Rate all cohorts:99% N-A Most Recent Cohort = 78%







Superstar Faculty




MFE Alumni Network: Currently 343 Members

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Position CompanyAssistant Professor Australian National University

Assistant Professor of Finance University of Minnesota

Associate Director RBC

Associate Director Scotiabank

Associate Professor of Accounting McGill University

Associate Vice President TD Bank

AVP TD Risk Management

CEO NexusCrowd Inc.

Chief Risk Officer Bank of Canada

Director Bank of America Merrill Lynch

Director Blair Franklin Capital Partners

Director Canada Guaranty Mortgage

Director CIBC

Director CIBC Asset Management

Director CIBC Capital Markets

Director Freestone Capital Management

Director GMP Securities L.P.

Director Government of Ontario

Director Morguard Group of Companies

Director National Bank Financial

Director Ontario Teachers' Pension Plan

Director RBC

Director RBC Capital Markets

Director RioCan

Director Ropes & Gray, New York

Director Scotiabank

Director Scotiabank GBM

Director TD Securities (USA) LLP

Director Bank of Canada

Director and Senior Economist CIBC World Markets

Director, Advisory KPMG

Director, FICC BMO Capital Markets

Executive Director CIBC

Executive Director Morgan Stanley, UAE

Founder & CEO Anchor Taiwan

Head of Market Research Nidera

Head of Pensions Department of Finance Ireland

Managing Director Branding and Promo

Managing Director CIBC Capital Markets

Managing Director CPPIB

Managing Director National Bank Financial

Managing Director RBC Capital Markets

Managing Partner Family Office

President Uptown Coders Inc.

Principal OTPP

Principal The Deetken Group

Senior Director CIBC

Senior Director CIBC

Vice President HSBC

Vice President Invesco Canada

Vice President Istuary Toronto Capital Inc.

Vice President J. Hilburn

Vice President Macquarie Group

Vice President MCB Capital Markets

Vice President Peerage Capital

Vice President Picowork Limited

Vice President RBC Capital Markets

Vice President RBC Capital Markets (USA)

Vice President Société Générale, NYC

Vice President TD Securities

Vice President TorQuest Partners

Vice-President BMO Capital Markets

Vice-President Clarus Securities

Vice-President Holt Renfrew

Vice-President HSBC

Vice-President Manulife Financial

Vice-President National Bank Financial Markets

Vice-President Northleaf Capital Partners

Vice-President RBC Capital Markets

Vice-President Roxgold Inc

Vice-President TD Securities

MFE Advisory Board: External Members (2018)

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Tiff Macklem

Dean

Rotman School of Management

Paul Mastrodicasa, MFE 2005

Managing Director, Institutional Equity Trading

RBC Capital Markets

Danilo Simonelli, MFE 2005

Managing Director, All OTPP Hedge Funds

OTPP

Karen Berlin

President and Managing Director

The PeliKan Group Inc.

Harold Wolkin

Formerly: Managing Director Diversified Industries Group

BMO Capital Markets







Superstar Faculty




MFE Program Staff

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Angelo Melino

Professor & MFE Co-Director

[email protected]

Ajaz Hussain

Associate Professor (Teaching Stream) & MFE Co-

Director

[email protected]

Ayesha Alli

MFE Program Officer

[email protected]

Marfisa Queiroz

MFE Program Assistant

[email protected]

Please e-mail [email protected] for admissions enquiries

mailto:[email protected]





Applying to the MFE Program

Required: Minimum 3.30/4.0 GPA (B+) in fourth year of an Undergraduate (“four-year”) program in any of these subjects:“Commerce”, Economics, Finance, Mathematics, or Statistics

Required: At least two semester courses in each of the following subjects:

Calculus, Probability/Stats/Econometrics, Micro, Macro

Required: For non-native English speakers or students with fewer than three years of education at an English language school: TOEFL (min 102; speaking 26, writing 22), COPE (min 76), MELAB (min 85), IELTS (min 7), Level 60 course at U of T School of Continuing Education (min B)

Recommended: GRE/GMAT for Foreign School undergrads:

Min GRE Quant Score = 160; Min GRE Analytical Writing = 3.5

Min GMAT Quant Score = 49; Min overall GMAT Score = 710

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MFE: Admissions ProcessApplications Open

Nov 15th, 2018

Apply at SGS Application Site

Applications

Deadline

Jan 22nd, 2019

1st Round Offers

Late Feb to early March 2019

[2 weeks to respond]

2nd Round Offers

Mid-March 2019

[2 weeks to respond]

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“Application Packet”

$150 admission fee (per “master’s program”)

At least two reference letters from professors (academic advisors).

Reference letters from “employers” may be accepted in exceptional cases

One page “Statement of Interest”: Why are you applying to the MFE Program?

One page resume

(All) Post-secondary transcripts (be sure to send Fall 2018 grades by Jan 2019)

(If applicable): GRE/GMAT/TOEFL/English Language Proficiency Scores

“Video Interview” with fixed set of questions (link available after fee paid)

Note: Final round candidates may be interviewed in person or “online video”

Candidates can check the “status” of application online

MFE: Expected Fees Incoming Class Fall 2019

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Fees subject to change by SGS Domestic Students International Students

1st Year Tuition $33,910 $47,500

2nd Year Tuition $16,955 $23,750

Incidental FeesGraduate Student Union

Athletics & Recreation

Hart House & Student Life

$2,411 $2,411

Ancillary Fees – 1st Year $1,348 $1,348

Ancillary Fees – 2nd Year $568 $568

TOTAL (CAD $) $55,192 $75,577

FUNDING OPTIONS

MFE Entrance scholarships ($2,000 - $10,000)

Top-ranked MFE candidate receives $6,000 Brian A. Miron Award

U of Toronto School of Graduate Studies (SGS) Awards

Department of Economics TA positions

Ontario Graduate Scholarships: $5,000 per term for 2-years

Federal & Provincial Government Awards

“Meet and Greet MFE Students”

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mfe open house thursday, november 1st, 2018 · 2018. 11. 12. · mfe: “congruence of finance...

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