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HEC Paris

HEC Paris

Ranking the Master’s in Finance Programs

An MBA isn’t for everyone. Some students aren’t looking for a transformative experience where they can switch roles and industries. They don’t want a general business education. Instead, they’d prefer to delve deep into the technical details. If you love finance and the markets – and aren’t looking to move into a leadership role – a Masters in Finance (MiF/MSc) may be the degree for you.

And a MiF/MSc is certainly becoming a popular degree. According to an AACSB International study cited by The Financial Times, enrollment in MiF/MSc programs has jumped by nearly 25 percent over the past four years. And the number of companies looking to hire MiF/MSc grads has grown four percent (to 35 percent) in one year courtesy of a year-end GMAC study released in January. Among those employers, the GMAC reports that 61 percent expect starting salaries to grow at or above the rate of inflation.

That’s good news for prospective MiF/MSc  students, who are often attracted to the degree by its track record of getting them a quicker return at a lower cost. For example, students can immediately enter a MiF/MSc program after graduation, rather than spending years gaining experience before entering an MBA program. “It makes sense to do a specialised degree earlier in your career because it will serve you well for the first decade,” Thomas Robinson, president of AACSB International, tells The Financial Times.

If you’re looking for a top notch program, where do you go? Overseas, of course. That was the finding of the latest Financial Times’ (FT) ranking of MiF/MSc  programs. Unlike most rankings, FT separates its rankings into two categories: Pre-experience (where students have minimal professional experience in finance) and post-experience (catering to students who’ve worked in the finance sector for several years). The former is far more popular, with the rankings including 56 schools from pre-experience and five schools in the post-experience category.

To formulate the ranking, FT surveyed Class of 2012 alumni, with 4,643 completing surveys for pre-experience (up 12.5 percent from the previous year) and 427 respondents responding for post-experience.  To qualify, schools needed 20 alumni responses. Overall, the response rate was 41 and 38 percent, down a percentage point each from the previous year’s survey.

To calculate the ranking, the data is broken into two categories. The first category, given a 55 percent weight, includes survey responses to factors like salary, placement, and international mobility. In the second category, which carries a 45 percent weight, is comprised of 10 data points supplied by the schools. It includes areas like ethnic and gender diversity among board members, faculty and students, as well as the school’s international reach.

In the pre-experience category, HEC Paris repeated as the top MiF/MSc program. It scored a perfect 100 percent placement rate for its student within three months of graduation. The school graduated the happiest alums, with 93 percent of HEC Paris grads agreeing that the program helped them fulfill their professional goals. The program also ranked third in value for the money (course and opportunity costs vs. income after graduation) and fifth for placement (value of the school’s career services). Average Salaries (within three years of graduation) also increased $92,613 over $90,798 the previous year.

That said, HEC Paris’ lead over other MiF/MSc programs is seemingly eroding. Last year, the program ranked first in value and third for placement (representing a two spot drop in each category this year). At the same time, graduates from four other programs – MIT Sloan, Boston College, Peking University, and IE Business School – were earning higher salaries. Even more, HEC Paris grads lagged behind many schools in career progression (15th). When it comes to the percentage of female faculty and students, the school ranked near the bottom.

Spain’s ESADE and IE Business School ranked just below HEC Paris. ESADE highest marks came in career progression (5th), aims achieved (93 percent), and placement (4th). Conversely, IE Business excelled in salary ($96,169), career progression (7th), and aims achieved (93 percent). Ironically, despite producing a 96 percent placement rate, the school ranked 28th among students for career services. France’s ESCP Europe and MIT Sloan rounded out the top 5, with the former making its mark on placement (3rd) and the latter’s graduates earning the highest salaries ($113,134).

Overall, eight American programs appear on the list, including MIT Sloan (5th), Boston College (17th), Washington Olin (27th), Brandeis (29th), Rochester Simon (30th), Illinois Institute of Technology Stuart (33rd), Tulane Freeman (37th), and Arizona Eller (49th).

Among individual categories, two Swiss schools, the University of St. Gallen and HEC Lausanne, generated the highest alumni scores for value (though St. Gallen alums earned, on average, $18,000 more per year). Italy’s Universita Bocconi and China’s Peking University Guanghua ranked one and two in terms of career services. Boston College and the UK’s Cranfield School of Management produced the highest alumni scores in career advancement. Six schools – UK’s Exeter, Arizona Eller, France’s Skema, Universita Bocconi, HEC Paris, and Peking University Guanghua each placed 100 percent of their students within three months of graduation. France’s Skema Business School also reported the highest percentage of female faculty (46 percent), while Leeds University Business School drew the highest percentage of female students (91 percent).

In the post-experience category, the London Business School topped the list for the fifth consecutive year. Pay remained relatively steady at $129,502 (down $239 from the previous year), but still offered a 46 percent increase over pre-degree earnings. The school also ranked first in career services, as evidenced by their 88 percent placement rate. LBS also tied for first in aims achieved (87 percent). However, the program did drop in terms of perceived value and career progression among alumni.

LBS rival Cambridge Judge again finished second, with salaries climbing from $119,882 to $123,153 (and 63 percent over pre-degree earnings). Singapore Management University jumped into the top five, displacing the University of Hong Kong. Florida International University ranked first in value for the money, despite a 30 percent placement rate and average salaries of $68,869 within three years of graduation. Surprisingly, the University of Illinois ranked dead last (out of five) in value, career progression and placement success in alumni surveys.

To see the Financial Times’ Masters in Finance rankings, check out the next page.

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Source: Financial Times

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