Master of Commerce in Applied Finance

Purpose

The primary purpose of the Master of Commerce in Applied Finance is to provide advanced training in 3 key financial areas-Capital Markets and Financial Instruments, Corporate Finance and Valuations, and Applied Portfolio Construction and Research. Graduates will be prepared to enter strategic management and transaction roles in financial organisations across the continent.

Learners will master the technical aspects of modern finance through high-level theoretical engagement with the subject matter, coupled with the ability to relate intellectual knowledge to the different, interconnected constructs of finance in practice. The qualification will provide learners with a structured and sustained learning opportunity at the cutting edge of global knowledge and experience, with abundant opportunities for applied research in the context of financial markets. One third of the qualification is applied research, where learners will complete research components in each of the three core areas.

A qualified applied finance practitioner should master advanced concepts of the pricing of all financial instruments together with the different valuation methods across industries. Graduates will be astute learners of the markets, familiar with the technical and practical characteristics of the vast array of modern financial instruments and market mechanisms. Graduates will also be well versed in accounting, regulations, and the key pieces of legislature that govern the global and South African financial services industries. Financial skills are widely sought after, especially as the development of the continent increases the need for advanced understanding of financial instruments and their applications. This qualification will contribute the necessary academic rigour and discipline to a flourishing profession. This will include examinations of patterns of ownership, competition laws and access to markets.

Rationale

Finance and financial management and its many applications are a growing field, characterised by chronic skills shortages.

It is also clear from the Department of Higher Education and Training (DHET's) "List of Occupations in High Demand" that there is a need for, and scope to increase both the intake and graduates on this qualification. In addition, financial markets are rapidly changing, and these current issues in finance are unfortunately not covered in undergraduate and Honours Degrees.

Such topics include the increase in the issue of domestic and foreign debts, both by government and South African companies; the credit ratings of South Africa and associated companies; the new Basel III rules; the issue of related securities; the expansion of tradeable futures; the settlement; mark-to-market and; the auditing of these financial instruments etc. From the number of applicants to our existing qualifications we know that is there an increasing demand for this type of qualification across South Africa, the Southern African Development Community (SADC) and sub-Saharan Africa.

Graduates of the Master of Commerce in Applied Finance will go on to work in areas where there are chronic skills shortages.

These include but are not limited to the following positions

• Finance Manager.
• University Lecturer.
• Accountant General.
• Management Accountant.
• External Auditors.
• Accountant in Practice.
• Forensic Accountant.
• Investment Analyst.
• Investment Manager.
• Investment Advisor.
• Financial Markets Practitioner.
• Financial Investment Advisor.
• Management Consultant.

Recognition of Prior Learning (RPL)

RPL will be applied individually on a case by case basis in accordance with the RPL policy of the Department of Finance and Tax. Learners will require at least an Level 7 qualification in such cases.

Entry Requirements

The minimum entry requirements are

A qualification at Level 8 with

• A minimum of 18 credits for Mathematics at Level 5.
• A minimum of 18 credits for Microeconomics at Level 5.
• A minimum of 18 credits for Macroeconomics at Level 5.
• A minimum of 18 credits for Statistics at Level 5.
• A minimum of 2-years relevant work experience.

This qualification consists of compulsory modules at Level 9 totalling 180 Credits.

Modules

• Capital Markets and Financial Instruments, 30 Credits.
• Corporate Finance and Valuations, 60 Credits.
• Topics in Financial Management, 30 Credits.
• Capital Markets and Financial Instruments Res Reports, 15 Credits.
• Corporate Finance and Valuations Res Report, 30 Credits.
• Topics in Financial Management Research Report, 15 Credits.

1. Exhibit mastery of sophisticated theoretical subject matter.
2. Display a practical understanding of economics, finance and the commercial aspects of financial services and the strategies employed.
3. Demonstrate the ability to combine practical financial market knowledge and technical, statistical and computing knowledge to model and adapt existing transactions in new areas as they expand through South Africa and the rest of Africa.
4. Analyse financial market data from various sources, make sound judgements, and propose solutions and/or applications.
5. Demonstrate a thorough and complete understanding of the accounting, legal, legislative, and regulatory frameworks that govern financial markets.
6. Apply relevant practical and technical knowledge to manage market, credit, and operational exposures effectively.
7. Address complex financial management challenges systematically and creatively.
8. Demonstrate critical thinking and problem-solving abilities, taking into account the business environment, products, technical aspects, and the external market and governance context
9. Exhibit excellent written and verbal communication skills.
10. Conduct independent research in the field.
11. Apply disciplinary knowledge and research skills to practical business and industry problems.
12. To understand the role of trustees in pension plans and in financial investment advice.

The following associated assessment criteria are assessed in an integrated manner across all the Exit Level Outcomes

• Ensure compliance with all internal and external regulations, policies and procedures, and the maintenance of ethical and professional conduct.
• Display an understanding of mathematical models related to the modelling of exposures on all products that bear Market and Credit Risk.
• Analyse technical and descriptive reports to produce succinct market commentary, and identify links between potential risks and market fundamentals.
• Explain and attribute risk and profitability relative to relevant market variables affecting the value and performance of various financial assets.
• Act as a business enabler by identifying opportunities for new and existing financial transactions.
• Demonstrate the ability to translate complex technical concepts into understandable notions for non-experts and senior management.
• Support staff at different levels in an organisation to understand, analyse risk, as well as decompose profitability relative to risk exposures.
• Exhibit the abilities to understand and implement assorted valuation methods across different industries throughout Africa.
• Ensure adherence to a strong code of ethics and corporate governance as prescribed by best practice.
• Maintain effective working relationships with senior management, external regulators, supporting areas, colleagues, and internal and external clients.
• To not only understand but implement the valuation methods across different industries throughout Africa.
• Understand the relationships between reserve bank rates, bond yields and equity valuations.
• To be able to understand, price and develop corporate finance transactions, particularly as they pertain to Black Economic Empowerment (BEE).
• Students will obtain a thorough grounding in Investment Risk concepts.
• Students will obtain a thorough grounding in Capital Markets and Financial Instruments.
• Prepare and implement industry standard transactions in the following areas including, but not limited to, BEE, Derivatives, Capital Market Structuring and Financing.
• Prepare and implement industry standard reports and transactions in the following areas; Corporate Strategy, Financial Analysis, Valuations, Mergers and Acquisitions, Capital Budgeting, Cost of Capital, Dividend Policy and Securitisation.
• Analyse, report and transact in the areas of Pension Plans, Risk Management, Financial Management and Investment Management.
• Develop or identify research methodologies to address these questions/problems.
• Implement research methodologies.
• Analyse and interpret the results of the research.
• Write up the research process and outcomes as a report.

Integrated Assessment

Learners are required to pass all modules of the qualification, all of which are compulsory. There are extensive and continual assignments in all three qualification modules.

Capital Markets and Financial Instruments: This module will be assessed through a sequence of assignments, case studies, tests and exams. The assignments are in the areas of Monitory Bank Policy, an Analysis of Indices, Internal Rate of Return (IRR), Black Economic Empowerment (BEE) Transactions, Hedge Funds and Currency Evaluations.

Corporate Finance and Valuations: This module will be assessed through a sequence of modelling assignments. It will also contain written Valuation and Corporate Finance reports. The learners will have to demonstrate practical understanding of the many varied ways of evaluating cash flows. Assessment is based on Assignments, tests and exams. The assignments include the areas of Case Studies, EVA, Monte Carlo Simulation, Sources of Finance, Share Buy-Backs, Securitisation and Behavioural Finance.

Topics in Financial Management: This module will be assessed through a sequence of assignments, case studies, individual security analysis, tests and exams.

Research reports: The three individual research components will each be tied to the subject matter for each of the preceding three courses.