2004-2005 CFA ® Program 1 2008 CFA ® PROGRAM Sponsored by:
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Transcript of 2004-2005 CFA ® Program 1 2008 CFA ® PROGRAM Sponsored by:
2004-2005 CFA® Program 1
2008 CFA® PROGRAM
Sponsored by:
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To lead the investment profession globally by setting the highest
standards of ethics, education, and professional excellence.
Mission Statement
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Benefits of the CFA Program
Knowledge
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Benefits of the CFA Program
Respect and Credibility
Most common occupations of CFA charterholders
• CEO/Principal • Investment Counselor • Chief Investment Officer • Investment Firm Manager • Equity Analyst • Portfolio Manager • Fixed Income Analyst • Portfolio Strategist • Investment Banker • Sales/Marketing Professional
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Benefits of the CFA Program
Diverse Career Opportunities
Mutual Funds / Investment Companies 26%
Brokerage / Investment Banks 18%
Investment Management Counselors 12%
Commercial Banks / Trust Companies 15%
Consulting Firms 7%
Insurance Companies 5%
Other 17%
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Benefits of the CFA Program
Opportunity – Top 24 Employers
•UBS•Citigroup•JP Morgan Chase & Co•Merrill Lynch•RBC•Bank of America•Credit Suisse•HSBC•Morgan Stanley•Goldman Sachs•Deutsche Bank
•TD Bank Financial Group•Wachovia•CIBC•Barclays•BMO Financial Group•Allianz AG•FMR Corporation•PricewaterhouseCoopers•Lehman Brothers•Mellon Financial•ABN AMRO Bank
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Industry’s High Regard for the Charter:U.S.A.
U.S. Department of Labor Occupational Outlook Handbook recommends CFA certification for those pursuing careers as Financial Analysts and Personal Financial Advisors.
See Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2006-07 Edition, Financial Analysts and Personal Financial Advisors , on the Internet at http://www.bls.gov/oco/ocos259.htm (visited April 18, 2006).
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High Regard for the Charter:
Job Postings
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London, UK
The Chartered Financial Analyst (CFA) designation required
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CFA certificate desirable.
United Nations
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An excellent educational background including an M.B.A. and/or C.F.A. is required
An excellent educational background including an M.B.A. and/or C.F.A. is required
Abu Dhabi Investment Authority
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Switzerland
CFA charterholders or candidates in the CFA
program are to be favored
Switzerland
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City of New York
The Chartered Financial Analyst (CFA) designation is strongly preferred
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High Regard for the Charter:
Media
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“For an investment professional, procuring the coveted CFA Charter is like winning the grand slam in golf. The competition is fierce, the course is grueling, and the stress is like nothing you have ever experienced.”
London (Ontario) Free Press Business Monthly
20 September 2004
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Nikkei Financial Daily
Chartered Financial Analyst Qualification Gaining International Recognition – Emphasis on Ethics, Attention from Financial Community Growing
Nikkei Financial Daily
20 July 2004
“The Chartered Financial Analyst (CFA) qualification is highly rated in financial circles around the world. In many countries it is essential for people working for financial institutions to obtain the license.”
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3 February 2006L’Agefi (France)
CFA — The Global Passport
Excerpt: [translation] The number of candidates prepared for the CFA exam is increasing in France. The designation is already well known in New York and London in the financial services sector. “Passing the CFA facilitated my ability to grow in my career in risk management, which was one of my objectives in preparing to receive the charter,” said Manual Arrive, who is responsible for structured finance analysis at Fitch Ratings in London. There are between 800 and 1000 candidates in France who will take the exam on June 3, 2006 – a dramatic change from the 1990s when the qualification was relatively unknown in France. Rapid growth in CFA candidates is likewise occurring worldwide.
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22 May 2006 Financial Times
Rise Of The Grueling Professional ExamThe CFA for financial analysts is one of the fastest growing
qualifications and increasingly seen as a rival to the MBA, says Phil Davis.
Excerpt: As summer approaches in the northern hemisphere and thoughts turn to holidays and the World Cup, spare a thought for those sitting in exam rooms sweating over their future. Many are in full-time education but others are joining the growing band taking professional exams. One of the fastest-growing of these is the Chartered Financial Analyst (CFA) qualification that 84,000 people in 89 countries will be taking on June 3.
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2 June 2006
Bloomberg
CFA Test-Takers Seek Wall Street Success, Global Acceptance
Excerpt: Investment banks increasingly require CFA credentials for employees and job candidates. Goldman Sachs Group Inc. and Merrill Lynch & Co. are among the largest employers of chartered analysts, along with Bank of America Corp., Fidelity Investments and Northern Trust Corp.
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“Whereas there are tens of thousands of finance degrees available around the world, ranging from the excellent to the worthless, there is only one CFA, managed and examined by an American association of financial professionals, the CFA Institute. It used to be just an American qualification. But explosive growth has made it, in effect, global currency.”
The EconomistFeb. 26-Mar 4, 2005
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Global Passport: The CFA Charter
Members’ Locations
92,988 Members and 135 Societies Worldwide*
United States & CanadaMembers: 63,767
EuropeMembers: 13,103
Asia & Mainland ChinaMembers: 1,987
Latin AmericaMembers: 1,036
Pacific AsiaMembers: 10,970
Africa & Middle EastMembers: 2,112
* as of January 2, 2008
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Candidate Enrollments(for June 2007 and December 2007 exams)
U.S.49,622
Europe23,606
Canada12,780
Singapore6,272
U.K.9,580
P.R. China12,926
Hong Kong10,867
Korea6,094
Taiwan3,414
Australia3,339
Latin America
2,587
Middle East & Africa
8,241
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Candidate Makeup
• 68% US
• 78% Male
• Age 31
• 68% Non-US
• 74% Male
• Age 30
June 1993 June 2007
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What is the CFA Program?
Rigorous Self-Study Program
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What is the CFA Program?
Three Levels and Three Exams
Level I – Knowledge and comprehension of fundamental investment tools and concepts
Level II – Application and analysis focused on asset valuation
Level III – Synthesis and evaluation of client needs and portfolio management issues
Ethical and professional standards are emphasized atevery level.
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What is the CFA Program?
Practical, Relevant Education
Practitioners at every step of the process
COEEAC
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What is the CFA Program?
Learning Tied to Current Practice
• Practice Analysis determines topics taught in the CFA Program
• Conducted every five years: currently in 2005-2006
• Involves investment practitioners worldwide: Regional Expert Panels and member surveys
• “What knowledge and skills are needed by an investment professional?”
• CBOK, curriculum, LOS and exams all based on what practitioners need to know
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The CFA Course of Study
CFA Body of Knowledge™
• Ethical and Professional Standards
• Quantitative Methods • Economics • Financial Reporting and Analysis • Corporate Finance
• Equity Investments • Fixed Income • Derivatives • Alternative Investments
• Portfolio Management and Wealth Planning
Investment Tools
Asset Classes and Valuation
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40%
40%
10%
10%
50%
40%
10%
50%
30%
15%
5%
The CFA Course of Study
Three Levels – Topic Areas
Approximate Percentage Breakdown
Level I Level II Level III
Investment ToolsAsset ValuationPortfolio ManagementEthics & Professional Standards
Percentages are average approximations of the actual topic weights for exam purposes, which have a range of target weights. Actual content of future
exams may vary.
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Preparation for the CFA Exams
Valuable Learning Experience
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The CFA Examinations
2007 Exam Format
Multiple Choice
Item Set (Objective)
Constructed Response
Level I ●100%
Level II ●100%
Level III ●50%
●50%
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The CFA Examinations
Graded with Great Care
• 291 CFA charterholders from 37 countries in 2007
• Teams of practitioners
• Rigorous and thorough process
• Consistency and fairness across all papers
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December 2006 Exam
Exam results: Level I
• Candidates Enrolled: 41,808
• 28,082 candidates from 146 countries sat
• 48 cities worldwide
• 33% no-show rate
• Pass rate of 39%
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June 2007 Exam
Exam results• Over 70,000 candidates from 163 countries sat• Cities worldwide• 26% no-show rate (compared to a 10-year
average of 27%)• Pass rates –
– 40% at Level I– 40% at Level II– 50% at Level III
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CFA ProgramHistorical Combined Pass Rates
Combined Pass Rates: 1963 - 2007
0.00
0.20
0.40
0.60
0.80
1.00
1963 1967 1971 1975 1979 1983 1987 1991 1995 1999 2003 2007
Year
Pe
rce
nt
Pa
ss
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Registering for the CFA Program
Three Ways to Register
• Register online at: www.cfainstitute.org
• Download forms from the CFA Institute website and register by mail
• Contact CFA Institute for a paper CFA exam registration and enrollment package
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Registering for the CFA Program
CFA Charter Requirements
• Sequentially pass Level I, II, and III exams
• Have four years of acceptable work experience
• Provide professional references (Level III)
• Join CFA Institute as a member and apply for membership in a local CFA Institute society
• Submit professional conduct statement
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Registering for the CFA Program
Connecting with a Local Society
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Registering for the CFA Program
1st Year Program Costs – June 2008
Approximate Costs for New Level I Candidates
Registration fee to enter CFA Program US $390Enrollment fee for Level I examination US $600
• Custom curriculum included!Approximate Total Costs for Level I US $990
*Registration & Enrollment by 1st fee deadline.
**
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Registering for the CFA Program
Important Deadlines
June 2008 Examinations (All Levels)
September 26, 2007 Early Registration
February 15, 2008 Second Deadline
March 17, 2008 Final Deadline
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Scholarships for the CFA Program
Three Scholarship Programs
Student Scholarships – For New Level I Only*Awarded by qualified CFA charterholder full-time faculty
members
Faculty Scholarships – Available for Any Level*Awarded to qualified full-time faculty directly by CFA
Institute
Society Scholarships – Available for Any Level*Awarded to qualified candidates by local
CFA Institute society
http://www.cfainstitute.org/university/overview.html* Registration fees waived – candidate pays US$220 in June 2008 (curriculum included beginning with June 2008 enrollment)
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More Information About the CFA Program
www.cfainstitute.org
The AmericasP.O. Box 3668 Phone: 800-247-8132 or 434-951-5499560 Ray C. Hunt Drive Fax: 434-951-5262Charlottesville, VA 22903 E-mail: [email protected]
Asia-PacificSuite 3407 Phone: 852-2868-2700 or 852-8228-8820Two Exchange Square Fax: 852-2868-99128 Connaught Place E-mail: [email protected] Kong, SAR
Europe10th Floor Phone: 44-20-7531-0751 One Canada Square Fax: 44-20-7531-0767Canary Wharf E-mail: [email protected] E14 5DYUnited Kingdom
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Chartered Financial Analyst®
A Symbol of Integrity and Professional Excellence
®