Kuwait University College of Business Administration Center of Excellence in Management. Chartered Financial Analyst Programs (CFA )

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1 Kuwait University College of Business Administration Center of Excellence in Management F i n a n c i a l P r o g r a m s Chartered Financial Analyst Programs (CFA )

2 Dr. Ahmad Y. Dashti Globalization, on-line trading and significant increase in the number of people investing in the stock market these are some of the key forces that have led to an explosive growth in the financial services industry. As such, both employers and investors have sought the need for accepted standards by which the knowledge, integrity, and professionalism can be validated in a global basis. These standards are the Chartered Financial Analyst (CFA) program. The very broad curriculum of the CFA program builds an excellent knowledge of core areas of investment, from portfolio management and asset valuation to derivatives and quantitative analysis. Also, the extreme respect (from peers, employers, and clients) comes from the fact that no other designation within the profession of investment management carries as much prestige as the CFA charter. Having the CFA designation after your name, as a symbol of the professional excellence, puts you in the select company of the leading investment strategists, analysts, and investment managers. The rigorous curriculum and the required work experience make the CFA charter the most recognized achievement within the world, both employers and investors recognize the CFA designation as the definitive standard for measuring competence and integrity within the profession of investment management. Allocating that time (three years) and the tremendous efforts to such program should promise great benefits. That s why the CFA charter is often made an eligibility requirement for senior-level positions and frequently many employers are willing to sponsor their employees to participate in the program. Supervisor: Dr. Ahmad Y. Dashti, Ph.D, MSc., MBA, University of Nebraska- Lincoln and University Of Southern California-Los Angeles. He Has joint Kuwait University in Where he has taught in undergraduate and MBA programs. He has served as a chairman of Business Administration Department. His teaching and research interests are in the areas of security valuation, derivatives and risk management, international finance, and stock market microstructure.

3 Increase your competitiveness entering the job market; Join our CFA Program The CFA Program CFA stands for Chartered Financial Analyst. This is a professional designation related to finance and is awarded to individuals by the Association for Investment Management and Research (AIMR). In order to attain this designation, the prospective candidate must complete a set of requirements set forth by AIMR. For more information you may visit AIMR s site at The CFA designation is highly regarded in the financial services industry and represents an advanced level of knowledge and experience. Role of the Financial Analyst Financial analysts are involved in the process of securities analysis, investment and risk management, investment banking and financial analysis. They generally play a leadership role working at many levels in.an organization Industry Employment Typical examples of financial analysts are: portfolio managers, analysts, economists, financial planners, stockbrokers, accountants, teachers, and individuals working in the banking industry. Many financial analysts work for corporations other than financial institutions. According to AIMR, as of 1999, 37 percent of CFA charter holders worked in the retail market, i.e., supporting individual investors, and the remainder worked for corporate clients. CFA

4 Who Should Attend? This class will benefit CFA Level I candidates who are looking for in depth study in one of the key areas of the CFA exam. Professionals not taking the CFA exam will also find the course a useful refresher. Our comprehensive study guides are organized according to AIMR Study Sessions. The books will focus directly on the exam material, guiding you to what AIMR expects you to know. Custom course outlines focus on what you need to pass the exam. Certification Participants who accomplish the minimum standard for attendance, shall receive a certificate from the Center of Excellence in.management An in-house exam will be administered two weeks prior to IMER exam. The exam will be 6 hours long and will simulate the CFA testing environment. Upon passing our exam, participant shall receive a certificate from the Center of Excellence in Management- Kuwait University. The CFA program will offer a prize valued KD100 to participants passing IMER exam from the first trial.

5 Job Responsibilities The following are examples of various jobs and related responsibilities Brokerage financial analysts in these roles work with individual investors helping them achieve their financial goals. They recommend to their clients financial plans involving various products such as stocks, bonds, mutual funds, mortgages, and insurance. Consultation and Research financial analysts working in this capacity research companies or industries to determine if they are good investments. Mutual fund managers and stockbrokers use this information in picking stocks for the mutual fund or for recommending stocks to their clients. Pension plans and corporations with excess cash also utilize this information for investment purposes. An example of an entry-level position for a Research Analyst would be working for a mutual fund company or a pension plan. Investment Banking the financial analyst works with other firms and governments/agencies that bring new stock and bond offerings to the market, and facilitates mergers between companies. Pension Planning the financial analyst in this position determines which investments should comprise : the fund or pension plan. This is a senior level position commanding some of the highest incomes for financial analysts Marketing a financial analyst working in this area typically works for a financial management company, such as a mutual fund, and is responsible for the company s communications to investors and for business development. Other examples Real Estate Consulting - the financial analyst determines the current and future values of real estate projects; Auditor - the financial analyst works for a regulatory agency or a broker/dealer and audits branch offices for compliance with business standards and adherence to ethical guidelines; Writer - the financial analyst works for an investment newsletter; Arbitrator - the financial analyst works for a regulatory agency that settles lawsuits between brokers and investors. CFA

6 CFA Topics This 110 hours program covers the entire body of knowledge as defined by AIMR and prepares participants for the CFA level I Exam. Lesson 1: Ethical and Professional Standards, Quantitative Methods 1 1- AIMR Codes and Standards 2- Rules of Procedure for Proceedings Related to Professional Conduct 3-Global Investment Presentation Standards (GIPS ) 4-The Time Value of Money 5-Statistical Concepts and Market Returns Lesson 2: Quantitative Methods 2 1- Probability, Expected Value, and Variance 2- Common Probability Distributions 3-Sampling and Estimation Lesson 3: Quantitative Methods 3 1- Hypothesis Testing 2- Simple Correlation and Regression Analysis Lesson 4: Macroeconomic Analysis 1- National Income Accounting 2- Cycles in Economic Activity 3- The Aggregate Demand/Aggregate Supply Macroeconomic Model 4- Keynesian Foundations of Modern Economics 5- Fiscal Policy 6- Money and Banking 7- Monetary Policy 8- The Role of Expectations in Economic Analysis Lesson 5: Macroeconomic Analysis 1-The Law of Supply and Demand 2- Demand and Consumer Choice 3- Costs and the Supply of Goods and Services 4- Competitive Market Structures 5- The Supply and Demand for Productive Resources Lesson 6: Global Economic Analysis 1- International Trade Theory 2- International Finance and the Foreign Exchange Market 3- The Organization of the Currency Exchange Market Lesson 7: Financial Statement Analysis 1 1- An Overview of the Financial Reporting System 2- Financial Ratio Analysis 3- Measuring the Quality of Financial Statement Data Lesson 8: Financial Statement Analysis 2 1- Accounting for Inventories and the Cost of Goods Sold 2- Accounting for Fixed Assets: Depreciation, Depletion and Amortization 3- Accounting for Liabilities and Interest Expense Lesson 9: Financial Statement Analysis 3 1- Accounting for Leases (FASB 13) 2- Off-Balance-Sheet Financing Techniques 3- Accounting for Nonrecurring Items 4- Accounting for Income Tax Expenses (FASB 109) 5- Lesson 10: Financial Statement Analysis 4 6- Accounting for Equity Capital and Per Share Data 7- Computing Basic and Diluted Earnings Per Share 8- Accounting for Gains and Losses on Marketable Securities 9- Statement of Cash Flows 10-Quality of Earnings Analysis 11-International Accounting Practices Lesson 10: Financial Statement Analysis 4 1- Corporate Investing and Financing Decisions 2- Risk Analysis and the Cost of Common Equity Capital Lesson 12: Equity Investments 1- An Overview of Markets, Instruments, and Trading Procedures 2- Stock Market Indexes 3- Portfolio Return Measurement 4- Capital Market Efficiency 5- Equity Valuation 6- Determining Relative Valuations Using Multiples 7- Forecasting Earnings, Free Cash Flows, and Dividends: The Historical Approach 8- Valuation of the Stock Market 9- Technical Analysis 10- The Global Equities Market Lesson 13: Debt Investments 1 1- Features of Fixed Income 2- Risks in Fixed-Income Securities 3- Bond Sectors and Instruments 4- Determining Interest Rates 5- Analyzing Yield Spreads 6- Valuing Fixed-Income Securities Lesson 14: Debt Investments 2 1- Measuring Returns on Fixed-Income Securities 2- Measuring Interest Rate Risk 3- Time Value of Money and Fixed-Income Securities Lesson 15: Derivative and Alternative Investments 1- Forward and Future Contracts 2- Options 3- Swaps 4- Real Estate 5- Professional Asset Management: Investment Companies 6- Venture Capital Investments Lesson 16: Portfolio Management and CFA Exam hints 1- The Portfolio Management Process 2- Modern Portfolio Theory 3- In-House CFA Exam hints

7 Program Details Date: Mid-February to mid-may 2004 Venue: Center of Excellence in Management, College of Business Administration - Kuwait University. Timing: Level 1 CFA Exam now offered twice a year, in May and in December 5:00pm 8:15pm Saturday, Monday and Wednesday Other arrangements are possible upon the approval of participants. Refreshment breaks are at 6:30pm to 6:45pm. Program Sessions:The program consists of 18 sessions which will be covered within 100 hours. Instructors: The CFA program instructors are Ph.D. holding faculty at the College of Business Administration-Kuwait University, and professionals from renouned institutions, with specialty in Quantitative methods, Accounting, Economics, Finance, Investment, and Ethics. For any inquiries please call: , Ext Top Ten Companies that employ CFA Charter holders Merrill Lynch & Co., Inc. J.P. Morgan Investment RBC Dominion Securities Inc. CIBC Wood Gundy Putnam Investment Management Salmon Smith Barney Nesbitt Burns, Inc. Morgan Stanley Dean Writer PaineWebber Incorporated Loomis, Sayles & Company Largest Number of Candidates in Year 2000 by Country USA 33,500 Canada 9,500 Hong Kong 4,800 Singapore 3,800 U.K. 2,500 Japan 2,300 South Korea 2,100 South Africa 1,600 Malaysia 1,100 Switzerland 1,000 Tuition Cost: KD 1,400 per person for each level. Special Offer: Participants (on an individual basis) who register for this course before February 1st will receive a 10% discount. Cancellation of registration will be subject to a 25% cut of the total tuition. The Participant will pay the examination fees directly to the IMER. However our office will assist in registration arrangements. CFA The Participant should procure all the reference materials and lecture notes directly from the publishers, Again our office will assist if needed. Disclaimer The Association for Investment Management and research (AIMR) does not endorse, promote, review or warrant the accuracy of the products or services offered by CEM seminars, or endorse the pass rates claimed by CEM seminars. AIMR and CFA are trademarks owned by AIMR.

8 Kuwait University - College of Business Adminisration Center of Excellence in Management Tel: Oper Ext Fax: P.O. Box 5486 Safat, Code no: Kuwait