Finance LSM Academic year 2017 2018 Manuel Kolp

Finance @ LSM Academic year 2017 -2018 Manuel Kolp Septembre 2010 1

Specificities to Finance options • 2 campuses – Mons & LLN - Mobility financially supported by UCL • 6 majors – Financial eng. - quantitative corp. finance - financial management – financial management - managerial corp. finance – révisorat & expertise comptable • Majors and options depend – On the chosen master (GEST vs INGE) – On the location • 1 Track : Financial Management / CFA 3

Specificities to Finance options • Learn things … and doing things – Theory + a lot of practice – Industry-driven projects/cases – Professional certification (CFA, Bloomberg Market Concept) • Staff – UCL staff with external experience (private/public) – Guest professors from the outside (private/public) • Two option streams – GEST : more “managerial” – INGE : more “quantitative” 4

LSM Majors: Accounting & Finance INGE LLN MONS Financial Engineering Quantitative Corporate finance GEST Managerial Corporate finance Financial Management (+ CFA track, optional) Revisorat & expertise comptable 5

LSM Majors: Accounting & Finance INGE LLN MONS Financial Engineering Quantitative Corporate finance Financial Management GEST Managerial Corporate finance Financial Management (+ CFA track, optional) Revisorat & expertise comptable 6

Financial Engineering : team (1/2) Prof. Leonardo Iania Relevant Experience: ECB, National Bank of Belgium Interests: Macro finance, Financial econometrics Courses: Investments, Macro Finance, Advanced Finance Prof. Sophie Bereau Relevant Experience: Banque de France, University of Namur Interests: Financial econometrics, Network, R Programming Courses: Computational Finance Prof. Frederic Vrins Relevant Experience: Quant ING trading room, EPL Interests: Mathematical finance, risk, pricing Courses: Elements of Stochastic Calculus, Derivative pricing 7

Financial Engineering : team (2/2) Prof. Anh Nguyen Relevant Experience: FRM, Nagelmakers, ICHEC Interests: Portfolio & asset management Courses: Investments Tom Dechaene Relevant Experience: Sup. Board of ECB, Director at NBB Interests: bank supervision Courses: Advanced finance Kenstantijn Maes Relevant Experience: Deputy head Europ. commission, NBB Interests: Interest rates & credit risk, macro finance models Courses: Macro finance 8

Financial Engineering (INGE-LLN) • All in English • Q 1: Financial Engineering I – Advanced Finance (LLSMS 2223) – Iania & Dechaene – Computational Finance (LLSMS 2224) - Béreau – Elements of Stochastic Calculus (LLSMS 2225) - Vrins • Q 2 : Financial Engineering II – Macro Finance (LLSMS 2012) – Iania & Maes – Investments (LLSMS 2013) – Iania & Nguyen – Derivative Pricing (LLSMS 2226) - Vrins 9

Financial Engineering : Learning outcomes At the end of this major you will be able to: • Use tools to deal with uncertainty (in finance) in a scientific way • Discover and price derivative products • Understand & manage associated market risks • Manage your own portfolio of assets • Have an overview of the current topics in financial markets • Perform advanced econometrics analysis to study asset returns • Use modelling (R) and professional (Bloomberg) platforms • … 10

LSM Majors: Accounting & Finance INGE LLN MONS Financial Engineering GEST Managerial Corporate finance Quantitative Corporate finance Financial Management (+ CFA track, optional) Revisorat & expertise comptable 11

Quantitative Corporate Finance : team (1/2) Denis Knaepen Relevant Experience: Managing director/Board Member of CBC Interests: Finance, Asset Management… Courses: International Financial Management Prof. Luc Hernard Relevant Experience: CRO, BNP Paribas (Luxembourg) Interests: Risk management, banking Courses: Corporate Finance Prof. Leonardo Iania Relevant Experience: ECB, National Bank of Belgium Interests: Macro Finance Financial econometrics Courses: Real Options, Foundations of Investments

Quantitative Corporate Finance : team (2/2) Prof. Anh Nguyen Relevant Experience: FRM, Nagelmakers, ICHEC Interests: Portfolio & asset management Courses: Foundations of investments Prof. Yue Zhang Relevant Experience: Mc. Master University Interests: Corporate finance Courses: Empirical Finance 13

Quantitative Corporate Finance (INGE-LLN) • All in English • Q 1: Quantitative Corporate Finance I – Corporate Finance (LLSMS 2128) - Henrard – Real Options (LLSMS 2054) - Iania – Foundations of Investments (LLSMS 2138) – Iania & Nguyen • Q 2 : Quantitative Corporate Finance II – Empirical Corporate Finance (LLSMS 2027) - Zhang – International Financial Management (LLSMS 2029) - Knaepen – Advanced Corporate Finance (LLSMS 2140) - Zhang 14

Quantitative Corp. Finance: Learning outcomes At the end of this major you will: • Know fundamentals of asset management & firm valuation • Understand the capital structure of a firm • Deal with financial instruments (equity, interest rates, etc) • Learn the international trade environment of firms • Understand the organization and challenges of international firms : what are the risks and how to mitigate them ? • Decision making : corporate investment and financial strategies • Learn scientific methods and tools • … 15

LSM Majors: Accounting & Finance INGE LLN MONS Financial Engineering Quantitative Corporate finance GEST Managerial Corporate finance Financial Management (+ CFA track, optional) Revisorat & expertise comptable 16

Managerial Corporate Finance: team (1/2) Prof. Bruno Colmant Relevant Experience: Head of Macro res. @ Degroof-Petercam Interests: Finance, Macro Courses: IAS/IFRS Prof. Luc Hernard Relevant Experience: CRO, BNP Paribas (Luxembourg) Interests: Risk management, banking Courses: Risk Management of Financial Institutions Prof. Yue Zhang Relevant Experience: Mc. Master University Interests: Corporate finance Courses: Advanced Corporate Finance 17

Managerial Corporate Finance: team (2/2) Prof. Leonardo Iania Relevant Experience: ECB, National Bank of Belgium Interests: Macro Finance Financial econometrics Courses: Advanced Finance, Econometrics of Financial Markets Prof. Philippe Gregoire Relevant Experience: Managing director of Confluence Interests: Asset management Courses: Entrepreneurial Finance Axel Funhoff Relevant Experience: Antwerp Man. School, Duval Union (CFO) Interests: corp. finance, management consulting, business dev. Courses: Entrepreunarial Finance Pascal Hubinot Relevant Experience: Solvay, Union Fin. Boël (gen. manager) Interests: Treasury Courses: International Financial Management 18

Managerial Corporate Finance (GEST-LLN) • All in English • Q 1: Managerial Corporate Finance I – Entrepreneurial finance (LLSMS 2014) – Funhoff & Grégoire – IAS/IFRS (LLSMS 2017) - Colmant – International financial management (LLSMS 2108) - Hubinot • Q 2 : Managerial Corporate Finance II – Advanced corporate finance (LLSMS 2009) - Zhang – Risk management of financial institutions (LLSMS 2009) - Henrard – Project evaluation (LLSMS 2118) - Iania 19

Managerial Corporate Finance: Learning outcomes At the end of this major you will: • Know the financing process and the capital structure of a company • Analyzing cash coming from and returning to stockholders • Know valuation principles and practice • Understand firm’s management in a globalized trade and capital markets environment • Know the legal environment of the firm • Be able to quantify and manage risks of financial institutions • Asses the impact of the new banking regulations on the risk appetite, the business model and the governance of financial institutions • … 20

LSM Majors: Accounting & Finance INGE LLN MONS Financial Engineering GEST Managerial Corporate finance Quantitative Corporate finance Financial Management (+ CFA track, optional) Revisorat & expertise comptable 21

LSM Majors: Accounting & Finance INGE LLN MONS Financial Engineering GEST Managerial Corporate finance Quantitative Corporate finance Financial Management (+ CFA track, optional) Revisorat & expertise comptable 22

Financial Management (INGE/GEST-MONS) • All French except Equity Valuation (English) • Q 1: Asset management – Equity Valuation – Fixed income Analysis – Derivative securities • Q 2: Risk management – Behavioral finance – Portfolio Management – Risk Management and Financial Institutions 23

Financial Management: team (1/2) Prof. Catherine D’Hondt Relevant Experience: FUCa. M, Université de Perpignan Interests: Market Microstructure, Behavioural finance Courses: Portfolio Management Prof. Isabelle Platten Relevant Experience: Univ. Lille II, UNamur Interests: Risk Management, Insurance Courses: Fixed Income Analysis, Derivative Securities Prof. Rudy de Winne Relevant Experience: FUCa. M Interests: Market Microstructure, Behavioral Finance Courses: Behavioral Finance Prof. Frederic Vrins Relevant Experience: Quant ING trading room, EPL Interests: Derivative pricing Courses: Fixed Income Analysis 24

Financial Management: team (2/2) Xavier Suin Relevant Experience: PWC senior manager Interests: Equity valuation Courses: Equity valuation Prof. Mikael Petitjean Relevant Experience: BNP, IESEG Interests: Financial Markets, Ethical finance Courses: Equity valuation Pascal Van Wynendaele Relevant Experience: FUCa. M, Edhec, Fortis, Belfius Interests: Risk management, Financial regulation Courses: Risk management of Financial Institutions 25

Financial Management: Learning outcomes The major covers part of the CBOK (CFA Institute) At the end of this major you will know: • The practice of firm valuation, including mergers and acquisitions • How to analyze and manage risks in the bond market • How to describe and analyze derivative products, the principles of pricing and hedging in derivative markets • The foundations of portfolio construction & performance measurement • The complexity of decision making in financial markets, including behavioral aspects • How to identify risks related to financial institutions and the prudential regulations governing them • Use Bloomberg platform related to financial markets 26

Financial Management: Evaluation Final grade • Final exam + extra activity Final exam • Multiple choice questions: Equity evaluation • Open questions: Fixed income analysis, Derivative securities, Risk management and financial institutions, Portfolio management • Oral exam: Behavioral Finance Extra activity • Group work: Equity evaluation, Portfolio management, Behavioural Finance • Homework & Quiz : Derivative securities, Fixed Income Analysis • Bloomberg Market Certificate • Introduction to IFRS (workshop) 27

LSM Majors: Accounting & Finance INGE LLN MONS Financial Engineering GEST Managerial Corporate finance Quantitative Corporate finance Financial Management (+ CFA track, optional) Revisorat & expertise comptable 28

CFA Track - Financial Management • Double degree UCL – ICHEC (GEST only!) http: //www. uclouvain. be/421878. html • Program : – Major “Financial Management” – Advanced Financial Analysis (Q 3 – ICHEC Bxl) • No Erasmus • Admission in Q 3 subject to conditions (60 credits in year 1 with at least 70%) • Good match with the job market : students are prepared to pass the CFA exam (levels 1 & 2) at the end of their cursus; scholarships available 29

Advanced Financial Analysis (BXL (ICHEC); GEST; Q 3) • Q 3: Advanced Financial Analysis – Alternative Investments & Advanced portfolio management – Advanced Financial Analysis and Reporting – Ethics in Finance • Extra activity – Participation to the CFA Research Challenge (first step with other BS of the BENELUX) Completing the CFA Program shows employers and clients you have mastered a broad range of practical portfolio management and advanced investment analysis skills 30

LSM Majors: Accounting & Finance INGE LLN MONS Financial Engineering GEST Managerial Corporate finance Quantitative Corporate finance Financial Management (+ CFA track, optional) Revisorat & expertise comptable 31

Un programme complet Q 1 Q 2 LE GROUPE Gouvernance, internationalisation et consolidation LA SOCIETE Règles d’évaluation, gestion et contrôle • • Contrôle interne et gestion des risques • Droit comptable • Règles d’évaluation 15 crédits Q 3 Droit des sociétés approfondi et gouvernance d’entreprise • IAS & IFRS • Normes comptables internationales de consolidation 15 crédits Prérequis LA PROFESSION D’AUDITEUR • Audit et compétences professionnelles • Nomes d’audit internationales • Droit de l’entreprise en difficulté • Déontologie et exigences légales du contrôle* 15 (+6*) crédits Prérequis Possibilités d’échanges et stage à l’étranger Cours durant la 2 ème partie de chaque quadrimestre 32

L’équipe « Revisorat et expertise comptable » (1) Victor Collin Expérience: Reviseur d’entreprises Intérêts: sociétés, ASBL, analyse financière Cours: Déontologie et exigences légales du contrôle Werner Derijcke Expérience: Avocat à la Cour de cassation, malherbe (présent), Liedekerke, White & Case, Jones Day Intérêts: Société, Sûretés, Insolvabilité Cours: Droit des sociétés approfondi et gouvernance d’entreprise Raphaël Gevers Expérience: Avocat, Partner Daldewolf Intérêts: Droit des entreprises en difficulté (faillite et réorganisation judiciaire) Cours: Droit de l’entreprise en difficulté 33

L’équipe « Revisorat et expertise comptable » (2) Prof. Anne-Catherine Provost Expérience: University of Texas, Ieseg, Université Saint-Louis Intérêts: Comptabilité, Contrôle des performances Cours: Règles d’évaluation Yvan Stempnierwsky Expérience: Of Counsel Arendt Intérêts: Droit comptable, Règles d’évaluation Cours: Droit comptable ; IAS & IFRS Jean Thilmany Expérience: Conseil fiscal Intérêts: Fiscalité de l’entreprise Cours: Impôt des sociétés 34

L’équipe « Revisorat et expertise comptable » (3) Bernard Vandenborre Expérience: Reviseur d’entreprises, AVISOR, Pw. C (10 ans) Intérêts: Matières révisorales Cours: Déontologie et exigences légales du contrôle Prof. Bénédicte Vessié Expérience: Reviseur d’entreprises Intérêts: Audit, IFRS, Consolidation Cours: Contrôle interne et gestion des risques; Normes comptables internationales de consolidation ; Audit et compétences professionnelles ; Normes d’audit internationales 35

« Revisorat et expertise comptable » Dispositifs pédagogiques et d’évaluation Dispositifs pédagogiques • Cours interactifs • Mises en situation-problème • Classes inversées • Etudes de cas • Serious game • Projets intégrateurs • … Dispositifs d’évaluation • Examen écrit/oral (à livre ouvert/fermé) ; QCM ; Présentation orale; Rapport écrit ; Travaux de groupe/individuel ; Essai individuel 36

« Revisorat et expertise comptable » Débouchés • Reviseur d’entreprises • Expert comptable et conseil fiscal • Audit interne • Contrôle de gestion • Consolidation • Fonctions administratives et financières • … Þ PME / Sociétés belges / Groupes nationaux et internationaux 37

« Revisorat et expertise comptable » Les ‘plus’ de la majeure 90% des intervenants = Professionnels réputés • Reviseurs d’entreprises, experts-comptables, conseillers fiscaux, avocats Cours orientés “Pratique” • Stage = Junior (stagiaire) Accès direct aux instituts • Dispense complète aux 23 examens d’entrée de l’Institut des Reviseurs d’entreprises (Belgique & Luxembourg) • Dispense quasi-complète aux examens d’entrée (18/25) de l’In des Experts-comptables et des Conseils fiscaux 38

Manuel Kolp Septembre 2010 39