NUS Quantitative Finance Club Jan 30th, 2010 Time: 9:30-11:30 am Venue: LT26

Speakers & Major topics

Liu Jianpu (Year3): Overview of QF major, Admission,

Joint-Program , comparison among QF, mathematics and statistics Liu Siyang (Year4, Deutsche Bank offer receiver): Career prospective Miao Zheng (Year3): CFA (Chartered Financial Analyst ) Lu Jun (Alumnus, PHD in statistics): Future education after graduation Kang Yuliang (Year3, Double Degree in Business): Double Degree in Business Liu Xuan (Alumnus, Hedge Fund Trader): Q&A on career & working experiences

 Found in 2007 by a group of enthusiastic students A platform to interact, for students who are interested in the Quantitative Finance field Promote the knowledge of investment science and

computational finance skills to interested students Develop students leadership and expose them earlier to the financial industry

Who Are We?

 Hong Kong Financial Trip Jan, 2009 Shanghai-Beijing Financial Trip Dec, 2009 Industrial Visit to Bloomberg RMI Workshop Bazaar What Junior Talk Have We Senior Talk Done? CUDA Training Networking Session & Alumni Dinner

 Career Path Workshop

T-shirt Design Competition Industrial Visit

And so on

We are Recruiting!!!
Organize exciting events related to finance Exclusive assess to events like industrial visit Opportunities to meet up with senior management in financial institutions Network with industrial professionals More interaction with QF profs & seniors Build up your resume Have FUN!!!!

One-time membership fee:

Liu Jianpu Quantitative Finance, Year3

Outline
QF overview
Admission requirement

Officially Overvie w
How to apply

QF, Math, Stat

Cut off point Double degree

Interview

Options in QF

Market Trends

Double major & minor

CFA

Graduat e study

Q&A

Officially Overview

Quantitative Finance is a multidisciplinary program that combines mathematics, finance and computing with a practical orientation that is designed for high-calibre students who wish to become professionals in the finance industry. The curriculum is multidisciplinary with coverage in the following areas: Mathematical Theory and Tools Statistical Tools Computing Theory and Techniques Financial Theory and Principles Core Financial Product Knowledge Retrieved from http://ww1.math.nus.edu.sg/undergrad.aspx?file=UP-CF

QF overview

Admission requirement

Options in QF

Q&A

Career Prospects

Career opportunities are available in financial institutions such as banks, securities firms, insurance companies, investment companies, IT firms that support the financial institutions and multinationals. The salary is an outlier, financial industrials salary is the highest unless you are you own boss(entrepreneurship) But very difficult to step into, working hour is very long for some high salary department, 16-20 hours per day. Need much more effort(presentation, leadership, teamwork in CCA & experience in internship, CAP>4.0 is OK)

QF overview

Admission requirement

Options in QF

Q&A

Courses

QF overview

Admission requirement

Options in QF

Q&A

QF or not (course)
QF Applied Mathematics
Financial math(QF minus biz module)

Statistics
How to design experiment?

mathematics

Statistics

Operation research

Regression analysis, time series analysis, stochastic process

Computing

Scientific Computing

Actuarial statistics

Finance

Mathematics, computing foundation

QF overview

Admission requirement

Options in QF

Q&A

QF or not (career)
QF Applied Mathematics
Operations research analysts in the airline, shipping and port industries

Statistics

Banking

Government

securities firms, insurance companies, investment companies

Banking and financial industrial

Manufacturing

Education

Financial

Graduate study

marketing research, private consulting

QF overview

Admission requirement

Options in QF

Q&A

Admission Requirement
To apply for this program, applicants must satisfy all the following conditions: 1. Enrolled in the Faculty of Science; and 2. Studied for two semesters in NUS; and 3. Obtained a CAP of at least 3.50 at the end of the second semester of study; and 4. Passed the following four qualifying modules in the two semesters: - CS1101 Programming Methodology, - MA1102R Calculus, - MA1101R Linear Algebra I, - MA2216/ST2131 Probability; and 5. The group average point (GAP) for the qualifying modules must be at least 3.50.

QF overview

Admission requirement

Options in QF

Q&A

Application & CAP

Email will be sent during April or May

Application deadline: early June Interview: Around 10 - 12 June Result of application: End June CAP above 4.7 should be no problem CAP around 4.5,4.6 may be called to interview, may also enter QF without interview, sometimes above 4.5 is not even given the chance of interview and rejected directly

QF overview

Admission requirement

Options in QF

Q&A

Interview
In application form you will be asked whether you are able to join the interview or not What Question will be asked: The QF director do not allow to release the sample interview question!!! Suggestion: read financial newspaper(FT,WSJ), learn option, futures, forward, swap, at least Google it

QF overview

Admission requirement

Options in QF

Q&A

Options in QF(career)
Market is still not good, fierce competition(from biz, eng, especially SMU) Quant needs maths, physics, or chemistry PHD, Singapore has no much space for Quant, New York City needs Singapore mainly middle and back office(finance, risk management, structure, operations, IT) The market will become better! Still one of the industry with high compensation

QF overview

Admission requirement

Options in QF

Q&A

Double Degree
business Career centre is powerful, presentation skills econ Learn more about the econ background, useful computing Solid IT skills IT department in bank can also earn a lot

QF overview

Admission requirement

Options in QF

Q&A

Double Major
Statistics(174MC) Declare before bidding MA1101, MA1102, CS1101,MA2108, ST2131 3 more 2000 and above MA or ST module Business(166MC) Learn 5 biz modules by the end of 3rd semester Computing(166MC) Email will be sent

QF overview

Admission requirement

Options in QF

Q&A

Minor
Statistics
Declare before bidding MA1102, ST2131, double count Very common

Business
Learn 3 biz modules by the end of 5th semester

computing
Email will be sent

QF overview

Admission requirement

Options in QF

Q&A

Module Planning
ST2131,CS1101

QF2101

QF3101

MA3245

QF4201

QF4102

MA4257

MA4267

QF overview

Admission requirement

Options in QF

Q&A

Module Planning
MA1101 MA1104

MA3252

MA3236

MA4254,MA4264,MA4260

MA4264,MA4260

QF overview

Admission requirement

Options in QF

Q&A

Module Planning
ST2131 FIN2004

ST3131

FIN3101, FIN3102

ST4233

ST4245(QF3101 can also be the pre)

FIN4111

FIN4112(depends on topics)

QF overview

Admission requirement

Options in QF

Q&A

Study Plan
This is not an aggressive study plan. Only 160 MCs are planned.
Assumptions: 1.Statistics minor is taken, since its so common. 2.CS1102 is taken in the first year. 3.FRs are chosen as SP1201,LSM1301 and PC**** 4.Time clashes are not considered. 5,Some modules are only offered in one semester, subject to change every year

QF overview

Admission requirement

Options in QF

Q&A

Module Planning
Year 1 Sem1 Sem2 Year 2 Sem1 Sem2 Year 3 Sem1 Sem2 Year 4 Sem1 Sem2

50MC MA1101R MA1102R CS1101 SP1201 LSM1301 GEK**** MA1104 ST2131 CS1102 MA2108 GEM**** PC**** 40MC QF2101 MA2213 ACC1002X ST2132 SS**** QF3101 MA3245 FIN2004 ST3131 ST3*** 40MC MA3220 MA3236 MA4257 FIN3101 ST3236 MA4264 MA4267 ST4245 FIN3*** $$**** 32MC QF4199(FYP) QF4102 $$**** $$**** $$****

QF overview

Admission requirement

Options in QF

Q&A

CFA

NO.1 Exam in financial industry, especially for financial analyst and fund managers can only be taken in your last year of undergraduate study Mainly for non-finance background ppl to prove passion to enter the industry $1500 SGD for level1 Level 1: Easy for QF students

Will help litter when looking for job since you only pass level1

QF overview

Admission requirement

Options in QF

Q&A

CFA

The curriculum includes these topic areas: 1. Ethical and Professional Standards 2. Quantitative Methods (such as the time value of money, and statistical inference) 3. Economics(EC1301) 4. Financial Reporting and Analysis(ACC1002X) 5. Corporate Finance(FIN3101) 6. Analysis of Investments (stocks, bonds, derivatives, venture capital, real estate, etc.)(QF3101,FIN3102,MA3245) 7. Portfolio Management and Analysis (asset allocation, portfolio risk, performance measurement, etc.)(QF3101,FIN3102)

QF overview

Admission requirement

Options in QF

Q&A

Graduate Study

Master in Quantitative Finance(new, no industry link, even no presentation, no biz course, no scholarship, $20K) Master in Financial Engineering(difficult to get in, money) MBA(need working experience) PHD in math, statistics, finance, econ(will not guarantee a better job, long term plan, hardworking)

QF overview

Admission requirement

Options in QF

Q&A

Q&A
Can I study QF module if I am not QF students? Can, but timetable clash, high bidding point for biz module are big problems The difference between QF and Financial Mathematics Financial Mathematics is more math, no biz module, not very industry related, no presentation The difference between QF and ACC, business, econ Accounting: financial report analysis, how to make financial report, may google ACCA or four big accountancy and see what they do Business: marketing, management, supply chain, finance module, presentation very good, powerful career centre Econ: learn the macro and micro economic, gauge government policy, quite different from finance What mathematics knowledge are useful? Linear Algebra, CalculusMore advanced math will not be very useful. Quant is another story, need PHD Modeling, Optimization, PDE, numerical methods are useful for financial math, but for working Admission

QF overview

requirement

Options in QF

Q&A

Thank you

jianpu@nus.edu.sg

Liu Siyang, Year 4,QF major

Why Quantitative Finance?

You could earn a ticket to give you a head start in

financial service industry. Quantitative Finance Courses: learn about fix- income pricing, fix-income derivative, option pricing, swaps. Finance Courses: Financial accounting, finance, corporate finance, financial markets. Computing: a good foundation of programming skills.

Comparison between Math and Stats Major

In Math and Stats major, it is not easy to study any

business courses, nowadays business courses are harder and harder to bid. QF would provide more opportunities to improve your soft skills. QF is an elite program in NUS and is more recognized by the investment banks.

CFA & ACCA

CFA is short for certified financial analyst. It is a

program brought up by an US institute. You can learn a lot of financial knowledge by studying its curriculums. It is ideal for students with non-financial discipline to get into financial industry. However, CFA is no guarantee for a job. ACCA an accountancy program where you can be an accountant, auditor, financial controller. Its scope is quite narrow compared with CFA.

Career prospects
Singapore just experienced its worst economic

downturn in its history. All sectors of economy were greatly hurt, financial industry is no exception. However, financial institutions in the world are robust. TOO BIG TO FAIL?

Potential careers
Credit Risk Management: provide structuring advice

and credit approval, manage credit exposure of derivatives and foreign exchanges portfolios. Market Risk Management: work together with trading floors to analyze and aggregates market risk exposed to the banks.

Potential careers
Private Wealth Management: client facing relationship

managers to help high net worth client to manage their finances. Finance: financial controller to account for the traders positions. Investment Banking: 1. Merger &Acquisitions 2. Trading and sales 3. Structuring

Potential careers
Operations and Technology: people who serve

different departments to make all the banking operation running smoothly. Asset management: portfolio managers, fund managers, hedge fund analyst.

Want to know more about banking?

Recommend to read this -> And remember : you can be

whoever you want to be.

http://85.195.122.57/files/M

225825_20080206_153755/pd f_en/DB_UGIB_Investmen tbanking.pdf

Miao Zheng Year 3, QF Major

About CFA
History: Into Our Sixth Decade First proposed by Benjamin Graham in 1942 as a member of the New York Society of Securities Analysts (NYSSA, founded 1937) Founding members of CFA Institute include the worlds oldest corporate financial manager societies, the Investment Analysts Society of Chicago (founded 1925) and NYSSA
Recognition: Worldwide The Economist ranked the CFA Program as the gold standard among investment analysis designations Regulators around the world recognize the value of the charter

Global network of nearly 100,000 members Highly active professional membership organization Members play leading roles in:
Investment companies Mutual funds Broker-dealer/investment banks Banks Consulting firms Insurance companies Pensions and foundations Research and academic institutions

Benefits of CFA Program

Credibility: Clients and colleagues regard you with a

presumption of expertise Competitive advantage: Employers and clients want the experience that comes with the CFA charter Connections: Youll join a global network of more than 78,000 professionals Recognition: Youll earn a designation praised by employers and media

Potential employers of CFA holders

J.P. Morgan Chase & Co. Allianz AG Bank of America Barclays MO Nesbitt Burns, Inc. Morgan Stanley CIBC World Markets PricewaterhouseCoopers Citigroup Credit Suisse Group Deutsche Bank RBC Financial Group Goldman Sachs HSBC UBS AG ING Group

MBA vs CFA
The plus points of an MBA An MBA is still exclusive: it works in its favour that the CFA has been devalued now that more and more people are taking it (including, allegedly, one child's violin teacher). The best i-banking and asset management jobs still go to graduates of the top 10 MBA schools. An MBA offers contacts and networking; a CFA offers all the networking opportunities of an after-work home study course. An MBA from a top 10 school is infinitely better than a CFA, but a CFA has the prestige of an MBA from a top 20 school. A good MBA is a bonus for career changers; a CFA is best for someone already in the industry. An MBA gives you a prestigious brand name to market yourself with. The plus points of a CFA A CFA is more difficult than an MBA; it's also more relevant, and more comprehensive. A CFA teaches hard skills and tests you on them; by comparison, an MBA teaches soft skills. A CFA is an excellent route into asset management. A CFA is already mandatory for most senior equity analysts and is increasingly required for fixed income analysts. Each of the three CFA exams requires 250 hours of study in your own time. That shows true commitment. MBA courses offer an introduction to financial theory. The CFA provides the tools to develop creative solutions to complex financial problems and a growing number of top MBA schools are including it in their curriculum.

Conclusion
It helps to have both the MBA for strategy and networking and the CFA for financial analysis.

Become a CFA Charterholder

Pass all three exams and meet the professional and ethical

requirements, plus the relevant amount of work experience Have four years of acceptable work experience May be accrued while you're in the CFA Program, after you've passed all three exam levels, or in previous positions At least 50 percent of your work experience must be:: Directly involved in the investment decision-

making process Engaged in responsibilities and/or producing a work product that informs or adds value to that process

CFA Exams
Level I:
June & December every year

Level II & III:

June every year
Notes: You must be in the final year of your bachelor's degree program at the time of registration for Level 1 exam. You must finish your bachelors degree when registering for Level II exam.

Exam Venue

Exam Fees

Topics outline
I. Ethical and Professional Standards II. Quantitative Methods III. Economics IV. Financial Reporting and Analysis V. Corporate Finance VI. Equity Investments VII. Fixed Income VIII. Derivatives IX. Alternative Investments X. Portfolio Management and Wealth Planning

Useful courses in NUS

Introduction to Statistics (ST1131) Finance (FIN2004) Financial Accounting (ACC1002) Financial Statement Analysis (FIN3113) Corporate Finance ( FIN3101) Investment Analysis (FIN3102) Financial Markets (FIN3103) Fixed Income Securities (FIN3120A) Options and Futures (FIN3116) Financial Risk Management (FIN3118) Principles of Economics (EC1301) Microeconomics (EC2101) Macroeconomics (EC2102)

Topic Area Weights

Level I exam
multiple-choice questions (3 choices)
consists of 240 questions in a six-hour time frame: morning session and

afternoon session Result will be released within 60 days after exam date posts scores as pass or fail with an indication of performance across topic areas or questions to help identify strengths and weaknesses.

Passing rate

Textbook
Included in the registration fees for the exam
Be mailed to you after registration Copies also available in Biz Library

Advices
Take relevant courses in school to learn the stuffs in

systematic way Start preparation earlier Refer to official text books

SEP
Highly recommended since its an experience to

expand culture exposures and discover other countries Recommend to go in Sem 1 if you want apply internship in Sem 2 CAP may not be the only criteria for getting good schools Show your preparations and good attitude throughout your application and interviews

Overview Opportunities Career after degree

Overview
A high percentage of QF seniors pursue further study

after graduation. Many forms

Full time research under scholarship Part time master by course others

Graduate study by research

It does not meant for everybody.
You must love research, have passion and patience. You will have scholarship, but you wont be rich.

Normally will proceed to PhD study, but you can drop

half way. Determine what kind of people you are is very important

If you are the right kind of person

Obtain a high CAP (aim first class or second upper

honor) Study more theoretical modules during your undergraduate course since your future competition is fierce. Try some research projects to get you familiar with research process.

If you are more like industry people

Find a good job first.
You can study a part time master by course. Many people follow this track since even you are in

career field, degree counts! Be prepare exhaustive classes after one day heavy work.

Others
Go abroad, be prepare for the bond, be ethically right!
MFE- you need to pay Master of quantitative finance-also you need to pay.

Full time opportunities

Full time academic research PhD in NUS mathematics, statistics, economic departments SMA Master in Quantitative Finance MAS sponsorship Go abroad to study in top universities if you are determined to be a professor NUS graduate School

Part-time opportunities
Master of financial engineering NUS NTU (rumor to be better) Master By course track in math, statistics departments

Career Perspectives: PhD

PhD: To be a professional researcher or professor.
PhD in quantitative field: to be a quantitative analyst

in a top bank (very limited in Singapore, I suggest you go abroad to study the PhD)

Career Perspectives: Master

More broad job opportunities compare to PhD.
Can join banks, big four, consulting, insurance. Promotion in the job, from an analyst to an associate.

If you study MBA after several-year work, you can

promote to a manager.

Final word
Determine you are more like an industry person or

academic person as soon as possible and fight for your goal!

DDP Opportunity for QF Daniel Yuliang

Follow your dreams

Double counting Career services New friends Workload Plan early

Its your own choice

QF3101 Investment Instruments QF3201 Basic Derivatives and Bonds MA2216 Probability MA3252 Linear and Network Optimization MA4260 Stochastic Operations Research ST1131 Introduction to Statistics ST1232 Statistics for Life Sciences ST2131 Probability ST2132 Mathematics Statistics ST2334 Probability and Statistics

Its your own choice

QF4102 QF4201 CZ2206 MA2222 MA3245 MA4257 MA4267 ST2131 ST3234 ST3235 ST3246 ST4235
http://bschool.nus.edu.sg/NUSBBA/DualDegrees/DoubleDegree Program/AdhocDoubleDegrees.aspx

Life is fun!
Work like you don't need the money, love like you've never been hurt and dance like no one is watching.
- Randall G Leighton
http://www.56.com/u79/v_NDg1ODU2NjA.html

Q & A

Liu Xuan Class of 2004/2005 Hedge Fund Trader

 1400-1600 Jan.30@LT31
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