FT SPECIAL REPORT Business Education Financial Training

Monday June 23 2014 www.ft.com/reports | @ftreports

Lessons to Inside » be learnt Judgment day Our rankings of from Great business schools’ masters in finance programmes Recession Page 2 John Authers Who will teach responsibility in a buck­passing world? Page 3

Eastern openings The financial crisis highlighted failings of Reforms open up information and understanding. Educators opportunities in

are trying to fill the void, reports Emma Boyde Bromley David Illustrator: Chinese asset management usiness education is itself a he says. One of the main messages to Financial education, he says, should to six years work experience. It is a mission, the latest application trends Page 4 business, so it is not unu- emerge from the catastrophic events no longer simply be aimed at generat- departure from Insead’s traditional survey from the Graduate Manage- sual to receive a marketing that led to what is being referred to as ing profits. It is now crucial for reduc- offerings – MBA programmes and ment Admission Council (GMAC) pub- spiel when enquiring about the “Great Recession”, is that manag- ing risk and generating wealth. Age- short courses for executives – and is a lished annually in September might The self­made a programme. Just occasion- ers had been authorising financial ing populations are relying on money determined attempt to produce profes- indicate poor timing. More than half Bally, however, it is possible to detect a deals they did not understand. “They they have set aside. “How this money sionals who can work in a strategic (53 per cent) of schools surveyed in woman sense of urgency from an academic were ashamed to ask how they is managed is crucial.” role within the financial services 2013 reported fewer applications for An entrepreneur’s who feels he or she is on a mission. worked.” Insead’s response was to join other industry. programmes against For Massimo Massa, professor of Prof Massa sees a perfect storm business schools, especially in Prof Massa envisages them taking 42 per cent reporting a rise in interest. leap of faith from banking and finance at Insead, the brewing, in which the complexity of Europe, that already offered such pro- on jobs as divisional managers in The drop in interest is in marked finance to fashion sense of urgency relates to the need the financial system must be balanced grammes to provide a master in banks or as partners specialising in contrast to the previous four years, for more knowledge of the world of against a pressing need to provide for finance programme. Launched in 2013, finance in a consultancy. Page 4 finance. “The crisis changed things,” an ageing global population. it is aimed at professionals with four Despite Prof Massa’s sense of Continued on Page 5 2 ★ FINANCIAL TIMES MONDAY JUNE 23 2014 Business Education Financial Training

Financial Times Global Masters in Finance 2014 Post-experience programmes Alumni career progress Programme diversity International experience & research

3-year

2014 2013 2012 avg School name Country today Salary t(US$) increase Salary (%) rank money for Value rank progress Career rank Aims achieved success Placement rank at three Employed months (%) faculty Female (%) students Female (%) board Female (%) faculty International (%) students International (%) board International (%) mobility International rank course International rank experience with Faculty (%) doctorates course Average length (months)* internships Company (%)* in 2014 Rank 1 111 UK 129,741 50 1 1 2 2 83(94) 24 28 30 86 95 75 2 2 100 13 6 1 2 --- University of Cambridge: Judge UK 119,882 73 2 3 4 4 89(96) 13 40 6 71 92 38 1 1 98 13 22 2 3333 University of Illinois at Urbana-Champaign US 62,002 85 4 4 3 5 34(48) 24 50 21 17 95 2 3 3 91 12 0 3 45-- University of Hong Kong China 60,212 78 5 5 5 1 84(70) 29 54 9 37 14 27 5 3 97 14 0 4 5444 Florida International University: Chapman US 73,952 42 3 2 1 3 14(59) 34 30 29 55 57 0 4 3 89 12 0 5

Financial Times Global Masters in Finance 2014 Pre-experience programmes Alumni career progress Programme diversity International experience & research The top 45 masters in fi nance programmes

3-year

2014 2013 2012 avg Business school Country (US$) today Salary rank money for Value rank Careers rank Aims achieved success Placement rank at three Employed months (%) (%) faculty Female (%) students Female (%) board Female faculty International (%) students International (%) board International (%) mobility International rank course International rank experience Languages with Faculty (%) doctorates length course Average (months)* internships Company (%)* in 2014 Rank 1111 HEC Paris France 90,798 1 8 2 3 98(77) 22 28 13 65 79 65 2 11 1 100 10 100 1 25-- Esade Business School Spain 84,548 2 9 1 5 91(91) 31 27 18 35 70 82 1 8 1 92 12 70 2 34-- Edhec Business School France 71,336 4 18 5 7 87(79) 32 27 17 39 68 67 4 1 1 87 8 100 3 4223 Essec Business School France/Singapore 73,412 16 3 6 12 93(85) 30 16 10 51 37 50 3 3 1 98 13 100 4 5323 IE Business School Spain 84,780 13 4 8 25 94(95) 34 15 28 55 96 82 10 15 0 96 10 18 5 61057 University of St Gallen Switzerland 75,460 3 6 4 4 100(61) 13 20 25 78 78 67 25 10 1 100 31 68 6 7646 University of Oxford: Saïd UK 91,544 9 41 3 9 95(82) 13 40 44 57 96 59 5 36 0 100 9 0 7 8=878 ESCP Europe France/UK/Germany/Spain/Italy 68,309 17 22 11 10 86(98) 36 21 35 67 33 52 12 6 1 95 13 100 8 8= 20 27 18 Università Bocconi Italy 74,460 20 21 21 2 100(36) 36 29 5 27 35 45 8 9 2 89 28 100 8 10= 10 12 11 Skema Business School France 59,046 24 17 12 19 91(87) 44 38 32 38 75 55 6 4 1 76 15 100 10 10= - - - MIT: Sloan US 106,502 10 38 18 33 76(99) 20 44 11 37 87 49 21 26 0 100 12 0 10 12799 Grenoble Graduate School of Business France/UK/Singapore 59,316 27 11 19 28 93(74) 43 35 53 44 88 53 7 5 0 80 24 86 12 13= 13 8 11 Peking University: Guanghua China 86,689 12 14 7 1 100(100) 23 38 5 12 7 82 45 25 1 95 22 95 13 13= 12 18 14 Stockholm School of Economics Sweden 77,224 7 15 10 11 98(97) 23 22 7 31 52 0 14 14 0 92 21 15 13 15 14 10 13 UK 63,464 37 13 28 27 96(73) 36 49 12 76 97 12 24 36 1 100 14 18 15 16 15 13 15 Imperial College Business School UK 64,536 29 33 17 13 89(87) 31 44 38 89 95 50 15 36 0 100 12 22 16 17 16 15 16 City University: Cass UK 60,003 25 28 9 17 66(95) 30 57 47 70 92 53 9 22 0 96 12 0 17 18 8 11 12 Cranfi eld School of Management UK 67,047 14 5 22 30 98(67) 26 23 19 51 96 23 22 36 1 92 12 0 18 19 22 21 21 Nova School of Business and Economics Portugal 45,586 32 37 42 6 94(95) 44 31 33 29 47 33 17 2 1 100 20 80 19 20 27 32 26 Frankfurt School of Finance and Management Germany 75,599 26 10 23 22 91(92) 14 27 0 14 54 0 38 12 1 100 22 54 20 21= 19 21 20 Poland 58,397 15 16 25 14 94(87) 32 48 18 22 16 64 42 7 1 88 24 43 21 21= 28 - - Boston College: Carroll US 94,750 5 1 27 41 25(43) 36 32 8 18 76 3 39 32 0 86 12 0 21 23 17 14 18 HEC Lausanne Switzerland 65,148 6 34 31 21 78(81) 27 26 27 81 61 55 16 17 0 100 24 55 23 24 25 26 25 Belgium 59,286 8 19 30 8 91(88) 29 40 17 24 45 92 28 19 1 90 10 100 24 25 18 19 21 Rotterdam School of Mgt, Erasmus University Netherlands 62,106 11 25 15 31 77(48) 20 32 30 42 69 30 11 16 0 100 14 21 25 26 21 20 22 Eada Business School Barcelona Spain 53,612 22 2 32 42 87(84) 33 29 38 47 73 43 13 13 1 57 10 13 26 27 26 - - Illinois Institute of Technology: Stuart US 78,230 40 7 40 45 37(85) 24 44 18 21 96 7 18 36 0 83 21 0 27 28 31 25 28 Durham University Business School UK 49,459 23 40 26 32 83(57) 36 55 38 64 95 38 26 23 0 93 12 1 28 29 23 24 25 Washington University: Olin US 72,733 39 35 13 15 95(85) 21 23 10 42 42 1 31 36 0 97 13 0 29 30 29 30 30 Tulane University: Freeman US 68,634 34 12 29 40 45(99) 37 58 14 32 96 29 40 36 0 87 11 0 30 31= 23 17 24 Brandeis University International Business School US 67,636 45 31 16 29 51(80) 34 48 14 23 76 19 20 18 0 83 21 73 31 31= 31 23 28 UK 47,796 31 23 39 20 77(48) 41 44 36 47 96 36 29 35 0 82 9 0 31 33= 30 31 31 University of Strathclyde Business School UK 47,780 18 39 20 38 93(69) 37 38 35 32 92 47 23 21 0 86 12 8 33 33= 33 - - University of Edinburgh Business School UK 44,232 42 24 35 39 96(51) 33 48 36 51 84 50 27 34 0 92 14 11 33 35 36 28 33 Management School UK 42,177 33 30 14 16 88(54) 30 62 25 46 99 31 35 24 0 88 12 0 35 36 34 35 35 University College Dublin: Smurfi t Ireland 45,754 21 44 38 35 97(63) 31 43 20 47 74 41 19 27 0 100 12 38 36 37--- University of Rochester: Simon US 73,196 44 43 37 34 80(85) 18 52 11 25 89 14 34 30 0 82 14 0 37 38 35 34 36 Nottingham University Business School UK 33,924 35 29 33 37 86(86) 38 64 18 38 91 12 30 31 0 88 12 0 38 39--- Adam Smith Business School, University of Glasgow UK 40,879 28 20 43 26 80(8) 37 61 15 56 96 0 36 36 0 85 12 0 39 40 40 - - QUT Business School Australia 41,644 36 36 36 23 n/a 49 49 31 35 82 8 32 33 0 85 18 0 40 41--- Leeds University Business School UK 27,954 41 27 24 18 76(47) 40 69 40 44 100 47 33 36 0 79 14 0 41 42 37 29 36 University of Bath School of Management UK 31,848 38 42 34 24 87(83) 33 77 31 63 97 12 37 29 0 99 12 1 42 43 39 33 38 Tilburg University Netherlands 49,789 19 32 41 43 58(41) 20 27 43 45 36 0 41 28 0 93 18 7 43 44--- Universidad Adolfo Ibañez Chile 46,195 30 26 45 36 71(89) 15 17 12 32 3 12 43 20 0 66 15 100 44 45--- University of Arizona: Eller US 40,657 43 45 44 44 100(12) 30 39 19 25 65 0 44 36 0 76 12 6 45 Footnotes: * Data in these columns are for information only and are not used in the rankings Although the headline ranking fi gures show the relative postions of each institution, the pattern of clustering among the schools is equally signifi cant. Some 230 points separate the top programmes, HEC Paris, from the school ranked number 45. The top 12 participants, from HEC Paris to Grenoble Graduate School of Business, form the top group of pre-experience Masters in Finance providers. The second group, headed by Peking University: Guanghua, spans schools ranked from 13 to 33, a range of some 55 points in total. Differences between schools are small within this group. The remaining 11 schools headed by Lancaster University Management School make up the third group.

Contributors » Online poll » Judge and Sloan make strong debut 85% think a John Authers Madison Marriage vice-president of Siebert salary increase after the of students enrolled in the helps him “stand out Senior investment columnist FTfm reporter master’s boosts Masters in Finance Brandford Shank, an invest- programme. latest pre-experience cohort among other [local] gradu- job security, but ment bank. Judge, whose In the pre-experience were from overseas. In par- ates”. Emma Boyde Kylie Wong Schools rated on alumni earn the second- ranking, HEC Paris comes ticular, Chinese nationals Overall, 38 per cent of Business education reporter Associate editor, Ignites Asia which factors do outcomes after pre­ highest average salary first for value for money accounted for a third of this graduates work overseas. they see as threats? among institutions ranked, and second for aims group. Most of these work in the Della Bradshaw Leyla Boulton and post­experience gained top places for inter- achieved and international However, distinctions UK (45 per cent), ahead of Business education editor Commissioning editor Find out more at: programmes, writes national mobility and inter- mobility. Its graduates should be made between the US (13 per cent) and Andy Mears ft.com/job­security national course experience. boast on average the fourth- schools in anglophone coun- Switzerland (8 per cent). Charlotte Clarke Picture editor Laurent Ortmans The FT ranks master’s in highest average salary tries (UK, US, Australia and Italian and French nation- Online and social media Steven Bird finance programmes sepa- ($91,000), behind MIT’s Ireland) and those else- als are those most willing producer, business education Designer rately: those for people with Sloan ($107,000), Boston Col- where. to work abroad, with two- Cambridge’s Judge Busi- little or no background in lege’s Carroll ($95,000) and In the first group, 91 per thirds of them expats, Laurent Ortmans For advertising, contact: ness School has shot the financial industry (pre- University of Oxford’s Saïd cent of students are from mostly in the UK. Business education statistician Gemma Taylor, straight into second place of experience) and those for ($92,000) overseas, with Chinese Masters in finance gradu- +44 (0)20 7873 3698, or the FT’s rankings of Mas- professionals who have “HEC’s finance pro- ates earn on average a sal- Adam Palin email [email protected], ters in Finance for profes- already worked in the sec- gramme offers the perfect HEC Paris ary of $64,000 three years Online money editor (acting) or your usual FT sionals with relevant prior tor (post-experience). balance between lectures ranks first for after graduation. Singapore representative. experience. It is the first London Business School from top researchers and value for ($93,000) leads the US time Judge has participated has topped the post-experi- professionals from the most money in pre­ ($87,000) and the United in the rankings, which sep- ence rankings since they prestigious financial institu- experience Arab Emirates ($81,000) for arately assess both post- were first established in tions,” says Etienne Casara, programmes the best-paid location. experience and pre-experi- 2011. This fourth edition of an HEC graduate and now Three years after gradua- ence programmes. the tables also saw HEC in analyst at Forum Partners, tion, 87 per cent of alumni London Business School, Paris fight off strong chal- a property investment and accounting for nearly three work in finance, and the which in 2014 again came lenges in the pre-experience corporate finance firm. in five students. most popular sectors are first out of the five ranked rankings. The latter assess Esade, in Spain, came a In the non-anglophone investment banking/merg- in the so-called post-experi- 45 programmes this year up close second. The school is category, 55 per cent of stu- ers and acquisitions, con- ence category, scores high- from 40 in 2013. ranked first for aims dents are from overseas sulting, accounting and est on value for money and All the rankings are achieved and international with only 7 per cent from asset management. career progress. Its gradu- based on criteria including course experience. Univer- China. Moreover, two-thirds The most lucrative pay is ates earn the highest aver- alumni salary three years sità Bocconi registers the of Chinese who graduated achieved at hedge funds age salary at $130,000. after graduation; seniority; strongest progression, in 2011 have moved back to ($100,000) followed by pri- “The programme had all geographical mobility, and jumping 12 places to eighth. China since graduating. vate equity/venture capital the benefits of an MBA international course experi- MIT Sloan is the best new One says “the very good ($94,000). Retail banking without any of the fluff,” ence. entrant in the pre-experi- reputation in China” of the ($37,000) and accounting says Anton Voinov, an In addition, the post-expe- ence group, coming in at school he attended, Notting- ($42,000) trail at the other LBS graduate and now a rience ranking measures number 10. Three-quarters ham Business School, end of the pay scale.

Key to the weighting of ranking factors

Weights for the different alumni salaries today, course most recent graduating class International faculty (5) [5]: International mobility (10) criteria as a percentage of length, fees and other costs, that found employment calculated according to [8]: calculated according to the overall ranking they including the opportunity cost within three months. The faculty diversity by citizenship changes in the country of informed are shown in of not working during the figure in brackets is the and the percentage whose employment of alumni brackets (pre­experience) programme.* percentage of the class for citizenship differs from their between graduation and [post­experience]. Careers (10) [7]: calculated which the school was able to country of employment – the today.* according to the career provide data. figure published in the table. International course Salary today US$ (20) [20]: status of alumni three years Female faculty (4) [3]: International students (5) experience (10) [8]: average alumnus salary three after graduation. Progression percentage of female faculty. [5]: calculated according to calculated according to four years after graduation, US$ is measured according to For this and all other gender­ the mix of nationalities criteria that measure PPP equivalent.* seniority and company size.* related criteria, schools with among current master’s international exposure during Salary increase (n/a) [20]: Aims achieved (5) [3]: the 50:50 (male:female) students and the percentage the master’s programme. average difference in alumnus extent to which alumni composition receive the whose citizenship differs from Languages (3) [n/a]: number salary before the master’s fulfilled their goals or reasons highest possible score. country of study – the figure of extra languages required and today. Half this figure is for doing a masters.* Female students (4) [3]: published in the table. to graduate. calculated according to the Placement success (5) [3]: percentage of female International board (2) [2]: Course length (months): absolute salary increase in effectiveness of the careers students on the master’s percentage of the board average length of the monetary terms, and half service in supporting student programme. whose citizenship differs from master’s programme. according to the percentage recruitment, as rated by Women on board (1) [1]: the school’s home country. increase.* alumni.* percentage of female Faculty with doctorates (6) *Includes data for current and Value for money (5) [3]: Employed at three months members on the school [6]: percentage of full­time one or two preceding years calculated according to (5) [3]: percentage of the advisory board. faculty with doctorates. where available. FINANCIAL TIMES MONDAY JUNE 23 2014 ★ 3 Business Education Financial Training Will CFA become new MBA? Who is responsible for teaching responsibility?

Qualifications The cheaper – if tougher – option is gaining ground, writes Emma Boyde Many in financial services Take for example the spend their lives trying to pre-crisis power of credit keep regulators happy. But rating agencies. The “Basel his month thou- advertisements, according as regulation adapts to a II” bank regulations gave sands of people to Mr Mehta. He says the more complicated financial investors a big incentive to around the world complexity of financial mar- world, a new culture of buy anything stamped filed into examina- kets is one driver. outsourcing responsibility triple A by agencies. That tion centres to put “Also, employers want to has emerged. Regulators way lay disaster. Tthemselves through the make sure they have hired set the rules, and often Ratings were only ever same agony: the CFA exam- people who are not only Ethics allow new companies and advertised as opinions, inations at Levels I, II and competent but [on whose JOHN AUTHERS business models to take a based on publicly available III. character they have pivotal role. information: the agencies Historical data suggest received guidance].” “You are an investment And yet the biggest fell short when investment that more than half of them Between 10 and 15 per adviser and manager for business schools find it banks started trying to are likely to fail at each cent of the CFA curriculum Outrageous Wealth hard to prepare their persuade them that stage of their attempt. is focused on ethics, and Managers (OWM) which students to joust with products based on Those pass rates and the candidates have to pick you joined recently, having regulators. One problem is subprime mortgages should sheer complexity of what approved courses of actions worked for a number of practical: these days, the be rated triple A. the students have had to in complex scenarios. years for Azure, a wealth top schools are global, but After the crisis, it is the study are beginning to con- “Even for the most honest management subsidiary of regulation is country- Dodd-Frank legislation in fer a premium on the quali- people, it’s not trivial. It a major UK bank.” specific. There is little the US that has had fications they receive. can be tricky and that’s So begins a question in point in briefing students unforeseen consequences. Indeed, some argue that why we teach it,” says Mr the online ethics test that on US rules, if they are Companies must be more students who have com- Mehta. the UK’s Chartered going to return to work in transparent with investors, pleted all three levels and Then there are cost con- Institute for Securities and China. This problem tends who must take part in won the right to put the siderations. Each stage of a Investment (CISI) requires to be farmed out to votes on executive pay. three letters CFA after their CFA qualification costs all candidates for its professional bodies, who The response, it appears, names and be called a char- about $1,000. There is an qualification to take. has been to leave investors tered financial analyst have expectation that, despite The test soon moves into relying on a few proxy an advantage over those the hundreds of hours of the territory of fantasy companies for advice on with an MBA. study recommended for role-playing games. On a Both regulations how to vote as the easiest “I think there might be a each level, a person will be train, you find yourself and the structure of way to show regulators crossing point soon – I able to do it in their own facing Bruce, a former they have taken their think the CFA in the finan- time while in employment. colleague who admits that capital markets duties seriously. cial industry might soon By contrast, MBA pro- times are tough at Azure, Not only regulations but eclipse the MBA,” says grammes often require one and shuffles anxiously foster a culture of the structure of capital Mark Shackleton, professor Reputation: CFA exams are notoriously difficult, with fewer than half passing them Bloomberg to two years full-time study through his papers. When ‘passing the buck’ markets foster a culture of of finance and associate and can cost hundreds of he leaves, you realise that “passing the buck”. dean of postgraduate stud- thousands. he has left on top of a full Bankers once knew they ies at Lancaster University student is advised to sit the “If people sign up for an do have the advantage In the end, educators sug- rubbish bin a sheaf of often rely on candidates would suffer if a loan they Management School. exam. Globally, a quarter of MBA qualification, there’s when it comes to network- gest the choice should come possibly confidential learning rules on the job. made defaulted. Now, they “The reputation of these those who register to study an expectation that they are ing. Here, too, the CFA down to your plans and papers, bearing the Azure Business schools restrict can sell that risk on. two three-letter acronym for the CFA do not turn up going to get through or be Institute argues that it can what stage you are at in logo. What should you do? themselves to broader As the public has lost programmes will go in dif- for the exam, says Nitin helped through,” says Prof provide a valuable alterna- your career. Candidates are given a ethical issues. But that trust in the financial ferent directions,” he adds. Mehta, managing director Shackleton. tive. Andrew Clare, professor multiple-choice set of raises more dilemmas. services sector, it is critical Lancaster was so for Europe, Middle East and The CFA qualification is While study for the three of management at Cass options, leading to further Some schools offer a to inculcate a culture of impressed by this trend Africa (Emea) at the CFA also being helped by growth levels is usually done on Business School and a pan- ethical dilemmas. By the standalone course in ethics greater responsibility. Who that it recently launched a Institute. in the number of charter one’s own, after becoming a ellist in the FT’s live Q&A end it is not at all clear – with the risk of implying is going to do this? specialist master’s pro- He says the programme of holders. There were 50,647 charter holder people have (see page 6), says if you what the “right” answer is. that all other classes are The CISI’s online world gramme aimed at preparing study is so arduous that in 2003, the vast majority of the option to join the insti- want to build a career in The exercise captures the unethical. Others attempt of moral dilemmas is as students for CFA Level I. many do not feel ready. whom were from the US. By tute – a global organisation finance, it might be a good difficulty of behaving well to “suffuse” all their imaginative an attempt at The MSc Financial Analy- “Only one in five people 2013, that figure had more that gives access to continu- idea to get a CFA and a in a financial environment. curriculum with ethics – this as any. But surely sis course is a full-time one- who start the qualification than doubled to 108,888 – ing professional education master’s degree first. And you must pass if you prompting students to such training needs to year programme that become CFA charter hold- more than a third of whom and opportunities to net- He says: “When you want want the qualification. complain that ethics are start earlier – in university accepts 30 students a year ers,” he adds. were from outside the US. work individually and at to go into the management This is one of the more ultimately ignored. or business school – and with first class honours The small number who do The number is large the many events it organ- side, that’s when an MBA original ways of dealing Either way, dealing with continue once candidates degrees in quantitative sub- pass all three levels con- enough to help the qualifi- ises throughout the year. might help.” Mr Mehta with a long-running and specific rules is left are on the job. Then, jects, or a minimum GMAT trasts with the experience cation gain traction but Even at lower levels, can- agrees: “If I decided my true difficult problem: how do unaddressed. And this is perhaps, when they do find score of 650. In the final on MBA programmes. small enough to remain didates can subscribe to the vocation lay in finance and you teach business important because the an old friend has left some term, Fitch Learning, an While it can be very diffi- exclusive. By contrast, institute’s JobLine. investment, I might favour students about ethics? And default response to recent potentially valuable papers external specialist in finan- cult to get into a top-flight more than 1m people in the Meanwhile, anecdotal evi- obtaining a CFA qualifica- beyond the broad issue of regulation has been to unguarded, they will know cial education, provides MBA programme, once world probably hold an dence suggests CFA qualifi- tion first and then getting ethics, how do you train outsource responsibility, exactly what to do. coaching. accepted, students can be MBA. cations are increasingly an MBA later, if I was going them to deal with the creating new vulnerability John Authers video: MBA Even then, not every confident they will finish. MBAs, it has been argued, demanded in financial job to go into management.” specifics of regulations? in the financial system. or not? ft.com/mbaversus 4 ★ FINANCIAL TIMES MONDAY JUNE 23 2014 Business Education Financial Training

China Reforms pave way for upturn in Growth in fund fund management sector appointments

China’s efforts to liberalise Securities and Futures its currency and open its Commission of Hong Kong. capital markets are also Alexa Lam, deputy chief industry opens creating job opportunities for executive of the SFC, told a people in the asset conference in December that management industry. the regulator had been This is particularly true of working on strengthening sales and investment the market’s portfolio up jobs for the management, recruiters say. management and fund On the institutional side, administration capabilities. investors such as the China The Hong Kong­China Investment Corporation, the mutual recognition initiative world’s fourth largest is part of that drive. right candidates sovereign wealth fund, as Both Mr Mullally and Ms well as the National Council Ip say they are positive for Social Security Fund, are about the growth in portfolio diversifying offshore and management positions, not increasingly outsourcing their just in Hong Kong but portfolios to external across the region. Asset management Qualifications required managers. In terms of specific asset This is boosting the classes, fixed income vary widely by role, writes Madison Marriage potential demand for China­ appears to be the fastest focused sales positions, says growing in Asia at the John Mullally, Hong Kong­ moment. he global fund industry is Aberdeen Asset Management, based associate director of Significant recruitment has expected to undergo a big Europe’s biggest listed fund company, banking and financial taken place in the fixed­ rise in assets under manage- only requires qualifications such as services at recruitment income space in recent ment over the next five the CFA or the Investment Manage- group Robert Walters. months, says Chris Mead, years, creating a vast ment Certificate (IMC) for employees Also upbeat is Charity Ip, regional director for Tnumber of jobs as banks and other focusing on investment management. a Hong Kong­based Singapore and Malaysia at areas of financial services cut back. These can be completed while work- consultant at Morgan recruitment firm Hays. The consultancy PwC recently pre- ing at the group, according to Sarah McKinley who specialises in Meanwhile, Marc Baloch, dicted that assets under management Smith, Aberdeen’s graduate recruit- recruiting for asset director of the financial will surge from $64tn today to more ment and programme manager. She management, private than $100tn in 2020. adds that the company is agnostic in banking, private equity and John Mullally: This growth is likely to create jobs terms of the undergraduate degrees hedge fund positions in CFA preferred across the industry, with recruiters sought, with recent graduates having Hong Kong, Singapore and but not a noting an uptick in demand for sales, studied subjects ranging from history Taiwan. must­have marketing, compliance, IT and invest- to medieval languages to law. US can- Ms Ip says that China­ for sales ment management staff. didates are more likely to possess an focused hirings in the asset The qualification requirements, MBA, although this is “more due to a management industry have however, vary significantly by role, general focus on the qualification by been on the increase services practice at Harvey according to Neil Owen, global prac- US graduates rather than an Aber- recently, if not dramatically. Nash Executive Search Asia tice director at Robert Half UK, the deen selection criterion”, she says. This is partly because the Pacific, says that portfolio recruitment firm. “We view [MBAs] as part of the over- mutual recognition of funds managers who are well He says MBAs and Chartered Finan- all experience and qualification mix of by Hong Kong and China is versed in multi­asset cial Analyst (CFA) qualifications are a candidate, be they a graduate or a seen as a potential driver of strategies and private equity not necessary for many middle office more senior applicant, but they are not expansion rather than an will find more opportunities roles, such as investment risk report- critical in obtaining a role,” she says. top level of the UK’s biggest compa- Career path: MBAs dream job for portfolio management opportunity that deserves in the region. ing or calculating counterparty expo- Paul Gerla, chief executive of Dutch nies, with 28 per cent of FTSE 100 are important for candidates. immediate action. In terms of qualifications, sure, which can make candidates fund house Kempen Capital Manage- chief executives having secured one, corporate finance In terms of where graduates should The initiative, which is a Chartered Financial overqualified. Candidates applying for ment, is similarly relaxed about the according to figures from Robert Half. roles in the US focus their applications, three types of still awaiting approval from Analyst (CFA) designation, fund manager, investment analyst choice of academic discipline. He says: However, Jeanne Branthover, head market Bloomberg fund companies are most likely to China, would allow Hong though preferred, is and valuation roles, by contrast, regu- “KCM is looking for academic creden- of the global financial services practice experience rapid growth and take on Kong­domiciled and “certainly not a must­have” larly require an MBA or CFAs. tials for our investment staff. This at headhunting firm Boyden in New new staff in the process over the next authorised funds to be sold for sales­related positions, The ideal career path into these doesn’t need to be per se in economics York, says that MBAs for asset man- five years, according to PwC. into China and vice versa. says Mr Mullally, noting roles is for candidates to leave a or econometrics; we prefer smart peo- agement staff “are out of favour”. Fund groups with a foothold in Sales positions in general that such roles would be leading university with a strong ple with high grades.” “They can make a difference at Asia, South America, Africa and the have been more in demand more relationship­driven. degree, secure their first role as an But Frederic Jamet, head of invest- entry level, but when [candidates are] Middle East are in a good position, and offer better prospects in For positions associated analyst in an investment bank, then ment at the French arm of State experienced, the track record and given that those regions could terms of remuneration than with portfolio management, either take a part-time MBA or have Street Global Advisors, one of the relationships far outweigh the educa- account for 34 per cent of global other jobs in the fund companies would typically their employer sponsor them to do a world’s biggest fund houses, says that tion.” While MBAs assets under management by 2020, up management sector in favour candidates with full-time course, according to Mr portfolio management recruits tend to This is particularly true for sales might not be from 10 per cent today. Asia, especially in Hong good quantitative skills and Owen. He adds that MBA qualifica- need quantitative or statistical and marketing staff, for whom “pres- Passive fund providers are also Kong, Singapore, Japan an aptitude for the industry tions are particularly important for degrees, or a business and economics entation, pedigree, relationships, [and] crucial for expected to grow quickly: PwC esti- and South Korea, Ms Ip that can be demonstrated corporate finance roles in the US mar- background. While MBAs might not connections” are all important, Ms mates that allocations to passive says. through their own portfolio, ket, while CFAs are highly regarded be crucial for entry level candidates, Branthover says. CFAs, MBAs and entry level funds, which track an index and tend Sales and marketing have Mr Mead says. in the UK hedge fund industry. they are increasingly common at the PhDs can, by contrast, help secure the candidates, to charge lower fees than actively long been the dominant area “In addition to a good managed products, will triple over the in Hong Kong. qualitative degree from a they are next five years. In 2012, some three­ reputable university, increasingly Lastly, alternative fund houses spe- quarters of the territory’s Chartered Alternative cialising in private equity, property or 32,188 fund management Investment Analyst and CFA common at hedge funds are expected to double employees were engaged in qualifications are an their assets under management in the sales and marketing, advantage,” he says. top level of same timeframe, while active fund according to the latest companies groups will see assets rise by just available data from the Kylie Wong 5 per cent. FINANCIAL TIMES MONDAY JUNE 23 2014 ★ 5 Business Education Financial Training Partnerships Professional bodies begin to and short accept Moocs courses will CFA Institute is keen to Online education deliver its content to a broader audience, and is Interactive courses experimenting with online help remove barriers education. John Bowman, plug funding managing director of edu- to career choices, cation, says: “We are a mission-oriented organisa- writes Adam Palin tion, so have no problem sharing information.” The institute, which shortfall Distance learning is fami- develops the curriculum liar to many of those pursu- and exams for CFA qualifi- ing professional financial cations, has been observing qualifications. Both the the Mooc trend. renowned Chartered Finan- “Despite the high dropout cial Analyst (CFA) pro- rates and dispersion of gramme and the ACCA quality, we are seeing a qualification, offered by the democratisation of learn- Association of Chartered ing,” he says. Certified Accountants, fall The body has dabbled into this category. with more traditional fee- While the era of simply paying online programmes, receiving textbooks in the most recently for its Clari- post from these qualifying tas investment certificate bodies is over, learning has for non-financial profession- remained a relatively inde- als working in finance. pendent affair. The institute has learnt Advances in technology, three main lessons from the not least from massive open programme, which has not online courses – better seen the level of take-up known as Moocs – offer expected since its launch great opportunities for last year. more interactive distance The first lesson, says Mr learning. They also expand Bowman, is that courses the number of people able are “a hard sell” if they to study for these qualifica- require supplementary tions. materials. Secondly, stu- In a significant step, dents learn best by doing, ACCA, the professional rather than sitting in front accountancy body, has of talking heads on a decided to exempt students screen. Finally, it costs time who pass a Mooc from and money to deliver good paper F1 (Accountant in online courses. Business), one of 14 mod- Nonetheless, the Institute Meet the dean Steef van de Velde has a tricky ules required to gain its says it is committed to fur- qualification. ther online means of meet- balancing act to sustain, says Della Bradshaw Tall order: the RSM dean, has to juggle financial targets and government agendas Charlie Bibby The Mooc in question, ing changing demand. “Stu- developed by the UK’s Uni- dents want learning to be versity of Exeter Business f Steef van de Velde had not an undergraduate degree from RSM are planning overseas expansion and School, will launch on the become a business academic, he Biography had the right to study on its Masters increased levels of students services FutureLearn Mooc platform could perhaps have followed a Life in brief in Finance degree if they chose. – all of which are expensive. ‘The money in September. Students will ‘Finance scares very different career in his The result of this was a mixed Prof Van de Velde believes that has to come gain free access to lectures, people and the chosen sport of beach volleyball. ●Born in 1960 in Anna Jacobapolder culture on the finance programme, partnerships, not overseas campuses, reading materials and IAs it is, the 6ft 6in professor says in the province of Zeeland, the says the dean. On the one hand, the are the way forward for RSM, and from the learning forums. key is to convince his height has come in useful in Netherlands school could select the very best that the academic rigour of the Clare Minchington, execu- academia as well as sport, joking ●1985 Received an MSc in applicants from overseas, but had to school is critical in developing these market. In a tive director of strategy and them that it is that it was a big contributing factor econometrics from the Erasmus accept anybody with an partnerships. “We’re very academic sense, we development at ACCA, says not so daunting’ in his appointment as dean of the School of Economics undergraduate degree from RSM. and for a lot of [partner] schools this that the course offers a Rotterdam School of Management at ●1990 Earned a PhD in mathematics “So we had a mix of very talented is attractive.” have to means of attracting people Erasmus University in the and computer science from the and well-motivated students with RSM is already a member of two who may not have seen the less time-bound and con- Eindhoven University of Technology become Netherlands: “I say the tallest others who weren’t in the same prestigious partnerships: the Cems qualification as an option. strained by platform.” ●1997 Joined RSM Erasmus as professor always becomes dean.” league.” network of largely European “It’s strange to say, but The most advanced inno- associate professor of operations more He took over almost three years management and technology This year, the school will operate a business schools that teach pre- private’ there aren’t enough skilled vations are arguably being ago as dean at RSM, a school which ●2008 Became vice­dean at RSM competitive entry system for all 200 experience masters programmes; and accountants in the world,” made by leading business – unlike many European business ●2011 Appointed dean at RSM places on the 14-month programme. One MBA, an Executive MBA she says. “Moocs can help schools. In January, Geor- schools – has built its reputation on Erasmus, following George Yip’s What is more, RSM will launch a programme for working managers. remove a barrier to access- getown University’s Mc- being a rigorous research institution. retirement second masters level finance degree RSM’s partners in One MBA are ing the [ACCA] course by Donough School of Business In the Financial Times MBA in September 2015. This will be 18 the Kenan-Flagler school at the offering content for free.” launched an online master’s rankings, RSM ranks third in months in length and even more University of North Carolina in the ACCA itself performs the in finance enabling stu- Europe, behind London Business selective in its intake, building on US, Fundação Getulio Vargas in role of examining body, dents to participate in class- School and Insead – trumping the involves teaching more executive RSM’s undoubted strengths in Brazil, Egade in Mexico and Xiamen rather than tutor. However, room sessions from any- likes of Oxford and Cambridge in the short courses. These command teaching finance. University in China. the organisation does work where in the world. The UK, Iese in Spain and HEC Paris in comparatively higher fees than The new course will also be “All are very international closely with trainers, course, directed at students France. degree programmes, and fundraising. outside the public university system, schools,” he says. The dean may look including BPP and Kaplan with professional experi- RSM has secured its strong The school also offers large numbers ensuring that the fees will be a little closer to home for his next which provide courses and ence, involves on-demand research reputation because it has a of masters degrees – of the 7,500 competitive with those of RSM’s peer expansion plans, with Germany materials for students pur- interactive content and live large faculty – there are 250 students, 1,500 are on masters schools internationally. clearly a target market. “It is only a suing the qualification. professor-led seminars. academics working there – and programmes. The cuts in public funding come at two-hour drive to the Ruhr.” “We don’t want to disrupt Allan Eberhart, pro- enjoys strong financial support from But the RSM dean also has to a time when all top business schools these companies’ business gramme director, says that the Dutch government. perfect a tricky balancing act: to hit models [through providing the sessions are in many But, as the amiable Prof van de the school’s financial targets, while content free],” says Ms ways better than on-campus Velde is quick to point out, the ensuring the accessibility of RSM’s Minchington. “For us, the classes, as there are no dis- levels of state funding that public business degrees and meeting the strategic challenge is to tractions for students. universities have traditionally political and social agenda of the Videos on FT.com » give greater access . . . with- Despite the virtual class- enjoyed cannot continue. Dutch government. out reducing quality. It’s a room’s advantages, there “The money has to come from the The strictures of the higher delicate balance.” remains a role for human market,” he says. “In a sense, we education system in the Netherlands, Steef van de Velde John Authers Ms Minchington says that interaction. have to become more private.” and in particular the insistence on reservations about recognis- “Finance scares people It is a funding crisis faced by open-access programmes, has posed a The school is moving What can MBAs still ing the FutureLearn course and the key challenge is to almost all public universities in the particular problem for the school’s to a US model of offer in the face of a were overcome by a convince them that it is not world, with those in the Netherlands master’s in finance programme, requirement that students so daunting,” explains Igna- seeing a funding shortfall of 25 per ranked 25th in the world by the FT looking to alumni to stiff challenge from complete an independently cio de la Torre, academic cent over the past 10 years, he says. this year. help fund expansion other qualifications? invigilated exam if they director of Spain’s IE Busi- As at many other business schools, Until recently, the open-access want the F1 waiver. ness School’s masters in Prof van de Velde’s strategy at RSM agenda meant that all students with ft.com/bized­video ft.com/mbaversus Like ACCA, the US-based finance programmes.

Lessons to be learnt from the Great Recession are about more than just profits

Continued from Page 1 also borne out by a similar the CFA programme has masters programmes in banking industry. might choose to study for a dip in the number of candi- remained robust despite the Cass, 1,000 are taking Business schools are also master’s in finance or other dates registering to study strong headwinds.” courses in an aspect of among Wilmington’s clients professional examinations. which all saw more schools for exams that lead to a Mr Mehta believes the finance. – it delivers specialist train- They might study on cam- reporting a rise in applica- qualification as a chartered market for financial educa- Heidi Pickett, director of ing in Europe and the US to pus or follow a programme tions than a fall. This is a financial analyst. tion and training remains the master of finance pro- students who wish to gain online, such as the Master trend that peaked in 2011, After a steady rise from resilient. gramme at MIT Sloan, entrance to investment of Science in Finance (MSF) when 83 per cent of schools 173,716 registrations in 2008 His view is supported by reports a similar experi- banking. Clients include delivered by Georgetown reported a rise in applica- to 219,642 in 2012, the CFA schools such as Cass Busi- ence. She says the school Insead, Cass and the Lon- University’s McDonough tions against just 17 per Institute, which administers ness School, famous for its received 1,600 applications don Business School. School of Business. cent reporting a fall. the exams, says registra- proximity to the City in for its 120 places. It delivers large bespoke Just over a third of the The figures are partly tions in 2013 fell to 212,129. London, where demand for “We have still not tapped contracts too; for example, alumni surveyed for the indicative of an increase in Nitin Mehta, managing its specialist master’s all the areas of the world.” training on money launder- pre-experience programmes supply – GMAC data also director of the CFA Insti- courses still exceeds supply. Trying to keep up with ing for 10,000 employees of in this year’s FT Masters in show that 32 per cent of tute for Europe, Middle “We’ve always had big changes, particularly those one bank. Finance rankings said they graduate management East and Africa, says: “I demand for our master’s in relating to regulation or Charles Brady, chief exec- also had one or more profes- admission test (GMAT) believe the decrease proba- finance courses,” says new financial products, has utive of the Wilmington sional qualification. score reports went to spe- bly reflected a continuing Andrew Clare, professor of also created opportunities professionals in account- Adkins Matchett & Toy, Group, says: “A lot of what It would appear that cialised masters pro- contraction in the financial asset management at Cass for specialist short course ancy, banking, charities, provides specialist training we do is based on regula- financial training is still a grammes in the 2013 testing sector following the recent and associate dean for providers, such as the financial services, health- to first-year MBA students tion and compliance.” “need-to-have” rather than year, up from 20 per cent in crisis. MSc programme. Wilmington Group, which care, insurance, legal and on internships at invest- The picture emerging in a “nice-to-have” qualifica- 2009. “Perhaps more remarka- Prof Clare says that of the offers specialist training, pensions. ment banks, or to newly 2014 is one of increasing tion for those entering the But the fall in interest is bly, the trend in demand for 1,300 students enrolled in through its subsidiaries, to Wilmington’s subsidiary employed associates in the choice. Prospective students finance industry. 6 ★ FINANCIAL TIMES MONDAY JUNE 23 2014 Business Education Financial Training Leap of faith from finance to fashion

Interview Helena Farstad On FT.com Ask the expert The head of Multemyr tells Are you interested in a Charlotte Clarke why she left career in accounting to start her label finance? Confidence has grown in the elena Farstad is a qualified financial markets, Chartered Institute of with 51 per cent Management Accountant of global senior managers sharing a who swapped financial positive outlook for 2014, and 53 per services for fashion design. cent expecting an increase in salary HIt is not a route she originally this year, according to a survey from aimed to take. Born in Norway, she the Association of Executive Search started her financial training at Consultants. Imperial Chemical Industries in 2003 But is it the best route to take? and by 2006, was a senior manager And which course is more suitable for at Lloyds Banking Group working on your interests and needs? the integration of TSB and HBOS. Our experts will answer your When the recession hit in 2010, she questions on Wednesday 25 June, resigned but that was the extent of between 2pm and 3pm BST. Post her plan. your questions now to [email protected] “I realised my personal values [for and they will be answered on the day environmental, social and economic on our blog. sustainability] no longer On the expert panel: corresponded to my day-to-day work, Kate Lander, head of education for but I didn’t know what else I should the Europe, Middle East and Africa do,” says Ms Farstad, who had by region at the CFA Institute then experienced three acquisitions – Before joining the CFA last year, Ms Uniquema/Croda, ICI/Akzo Nobel and Lander worked as a transition HBOS/Lloyds – and witnessed the manager at Northern Trust in London. consequences of a chemical industry She is a CFA charterholder and has in decline. “I resigned anyway and served as director of the CFA started to do research.” programme at 7city Learning and BPP Today, she is chief executive of Professional Education. Multemyr (which means “cloudberry Andrew Clare, professor of asset marsh” in Norwegian) a management and associate dean for womenswear label that aims to Suits you: Helena Farstad decided to create clothes that satisfied both her wardrobe essentials and her desire for sustainable business practices Rosie Hallam the MSc Programme at City provide customers with a high- University quality, classical range of responsibly Before joining Cass, Prof Clare was a sourced garments. She is also the co- in her former career, the ex-City business practices – I decided it was legal expertise. Coupling this shopping bags to replace them with senior research manager in the founder of The WISE Creative, a worker also hopes to provide some time to create my own. Every piece knowledge with a desire to make more ethical material, having failed monetary analysis wing of the Bank of non-profit organisation of functional relief to women in has a specific function [making things that were more tangible than to notice the plastic when placing England. He also spent three years independent labels based in and business. Her dresses and skirts have them] as stylish and hard working as spreadsheets, the disengaged the order. working as the financial economist for dedicated to manufacturing their little pockets on the waist that fit the women who wear them.” accountant finally found her niche. Overall however, Ms Farstad is Legal and General Investment products in the UK. business cards, for example. Despite moving away from financial The first Multemyr collection happy with her switch. She thinks Management. “My parents call it ‘nonchy’ [as in “Have you been at an event and services, the contacts Ms Farstad debuted in 2012, designed in sustainability demands a new Heidi Pickett, director of the Master nonchalant] elegance,” says Ms not known where to put your cards made during that time helped her collaboration with Neliana business model – in which profit and of Finance programme at MIT Sloan Farstad, 34, describing the style of after handing in your coat and bag?” find direction. When starting her Fuenmayor, a designer with shareholder returns are not the only School of Management her women’s clothing with a family she asks. “It can be frustrating. After research, she spoke to Lloyds’ head experience from Burberry Prorsum criteria for judging performance but Before Sloan, was senior managing expression for someone who knows years working in industry – of sustainability who introduced her and Stella McCartney. The WISE where transparency and co-operation director of global business integration how to dress flatteringly for any continuously looking for clothes that to the chief executive of Pure Creative launched six months later. also matter. All her customers, for State Street Global Markets. occasion. “[The] overall aesthetic satisfied both my wardrobe essentials Leapfrog, a charity that acts as “I could not have done all this – example, are fully informed about Mark Shackleton, professor of offers effortless and sophisticated and my desire for sustainable broker between professional services and so quickly” she says, “had I not each piece, from the source of the finance and associate dean for dressing from day to night.” and renewable energy projects. “I had project management skills and fabric to the final mark-up. “Real postgraduate studies at Lancaster Elegant blouses, chic pencil skirts ended up working there for two financial planning knowledge. I was change can follow, if people become University Management School and classic cut jackets are all made years which gave me a fresh view of part of it, but I was supervising it.” emotionally engaged,” she says. “The Prof Shackleton’s research interests from 100 per cent natural fabrics, ‘My personal values no the third sector,” she says. While Ms Farstad’s training helped clothing industry has an adverse include real options, option rate of including organic silks, cottons and longer corresponded to Ms Farstad continued working with surmount business challenges, she impact on the environment. As our return, corporate finance, and energy virgin wool. Colours range from black old friends from the City, talking still made mistakes. relationship with clothes is often derivatives. and grey to gold and guava pink. my day­to­day work’ their language but also translating it On one occasion, she spent hours emotional, [such transparency] Having been tied to wearing suits for organisations with no financial or cutting the plastic handles off 100 makes perfect sense to me.”