2006 CFA PROGRAM Sponsored by: 2004-2005 CFA Program 1
Mission Statement To lead the investment profession globally by setting the highest standards of ethics, education, and professional excellence. 2004-2005 CFA Program 2
Benefits of the CFA Program Knowledge 2004-2005 CFA Program 3
Benefits of the CFA Program Respect and Credibility Most common occupations of CFA charterholders CEO/Principal Chief Investment Officer Equity Analyst Fixed Income Analyst Investment Banker Investment Counselor Investment Firm Manager Portfolio Manager Portfolio Strategist Sales/Marketing Professional 2004-2005 CFA Program 4
Benefits of the CFA Program Diverse Career Opportunities Mutual Funds / Investment Companies 25% Brokerage / Investment Banks 19% Investment Management Counselors 14% Commercial Banks / Trust Companies 13% Consulting Firms 6% Insurance Companies 5% Other 18% 2004-2005 CFA Program 5
Benefits of the CFA Program Opportunity Top 24 Employers Bank of America Barclays BMO Nesbitt Burns, Inc. CIBC World Markets Citigroup Credit Suisse Group Deutsche Bank Fidelity Investments Goldman Sachs ING Groep N.V. J.P. Morgan Chase & Co. Lehman Brothers Mellon Financial Corporation Merrill Lynch & Co., Inc. Morgan Stanley Northern Trust Corporation PricewaterhouseCoopers Prudential Financial Putnam Investments RBC Financial Group Scotia Capital State Street UBS AG Wellington Management 2004-2005 CFA Program 6
High Regard for the Charter: Job Postings 2004-2005 CFA Program 7
Chartered Financial Analyst Switzerland CFA charterholders or candidates in the CFA program are to be favored 2004-2005 CFA Program 8
Project Partners - Luxembourg Head of Analytical services Remuneration: 100000-150000 per annum + Excellent Package Position Type: Employee Employment type: Full time An excellent opportunity has come up for a Head of Analytical services person to join a top investment European bank. You will be responsible for gathering and processing of all the data used in the fund business. Responsibilities will include designing and maintaining all data repositories, maintenance of the analytical and quantitative tools intended for mutual fund clients. A close cooperation with the Technology department would be required. At least five years experience in the financial industry in positions involving analytical work with a high quant content. Specific knowledge of the global fund industry is also required. Even if the position does not require software programming the candidate must have a sound technology knowledge allowing him or her to maintain high level conversations with the technology area or even to prototype the proposed solutions or products. In depth derivatives knowledge and comprehension desirable. Experience in defining and implementing software will be taken into account. You must have a: University degree in economics, mathematics, physics, or a related discipline. Master in Finance, master in quantitative finance, CFA, or similar level also required. Fluent English required, other European language desirable Project Partners is acting as an Employment Agency in relation to this vacancy. 2004-2005 CFA Program 9 The Chartered Financial Analyst (CFA) designation, or similar level, is required.
City of New York 2004-2005 CFA Program 10 The Chartered Financial Analyst (CFA) designation is strongly preferred
Robert Half France Analyste Financier / Gestion Alternative Location: France-Paris Remuneration: Non précisé Position Type: Employee *Société de gestion alternative couvrant une large gamme d'activités de gestion recherche un : Au sein de l'équipe de gestion event driven, vous serez chargé de formaliser des analyses financières en support des gérants. Vous participez à la mise en place et au développement des outils de la cellule d'analyse financière. Analyste financier buy side vous êtes chargé de l'analyse d'actions grandes valeurs multi sectorielles en fonction de l'actualité ou d'idées développées avec les équipes de gérants. Vous rédigez des rapports de recherche sur les sociétés notées, d'études sectorielles et de commentaires sur des thèmes d'actualité. Vous possédez une expérience de deux à trois années en analyse financière buy side. Vous êtes idéalement un généraliste et vous souhaitez vous investir dans une fonction élargie au sein d'une équipe de gestion alternative. Vous êtes proactif, créatif, et avez envie de faire partie intégrante d'une équipe de gérants seniors, en apportant vos capacités analytiques sur des secteurs et des zones géographiques très diversifiées. Rigoureux, pragmatique, vous êtes à l'aise tant à l'écrit qu'à l'oral en français et en anglais. Vous êtes issu d'une formation financière supérieure (Ecole de commerce, 3ème cycle), et avez l'ambition d'obtenir le diplôme de la SFA ou le CFA dans le futur si ce n'est déjà fait. 2004-2005 CFA Program 11 Ambition to obtain the CFA is favorable.
Abu Dhabi Investment Authority An excellent educational background including an M.B.A. and/or C.F.A. is required 2004-2005 CFA Program 12 An excellent educational background including an M.B.A. and/or C.F.A. is required
Paris Product specialist taux Remuneration: non précisé Position Type: Employee Employment type: Full time *Un Asset Manager de renommée internationale, basé à Paris, recherche pour son département gestion obligataire, un : Product specialist taux Missions : Au sein de leur département Obligataire, vous serez responsable de la gamme de leurs produits et serez en étroite relation avec toutes les fonctions «support», en charge de les commercialiser. Profil : Vous justifiez d une formation Bac+5, type grandes écoles et idéalement, vous êtes titulaire du CFA. Vous avez une excellente expertise des produits obligataires, maitrisez parfaitement les relations commerciales, avez une bonne capacité rédactionelle et parlez l anglais couramment. Vous avez une expérience minimum de 10 ans en tant que gérant obligataire. Vous êtes dynamique, aimez travailler en équipe, êtes rigoureux, organisé et disposez d un excellent relationnel. The Chartered Financial Analyst (CFA) designation is preferred. 2004-2005 CFA Program 13
Benefits of the CFA Program Earning Power The CFA Premium The CFA Premium: US$40,000 $203,000 $163,000 Median Total Compensation for CFA Institute members with 10+ years experience Source: 2003 Compensation Survey Non- Charterholders CFA Charterholders 2004-2005 CFA Program 14
High Regard for the Charter: Media 2004-2005 CFA Program 15
Becoming a CFA is now a passport for excellence and international mobility. Financial Times 21 June 2004 2004-2005 CFA Program 16
CFA Is Global Passport To Career: Advisor s Designation Is Respected Worldwide For Its Skills And Its High Ethical Standards National Post 13 June 2005 When you are hiring investment professionals you automatically know anyone with a CFA has a high standard of education and professional ethics, says Chris Guthrie, hedge fund manager and president of Hilldale Investment Management. The CFA gives immediate material information about anyone who holds it. And it is very rare to see fraud at firms run by CFAs. 2004-2005 CFA Program 17
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 2004-2005 CFA Program 18
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. 2004-2005 CFA Program 19
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 Economist Feb. 26-Mar 4, 2005 2004-2005 CFA Program 20
2004-2005 CFA Program 21
Global Passport: The CFA Charter Growing Non-US Numbers 45,000 40,000 35,000 30,000 Asia Canada Europe Other 25,000 20,000 15,000 10,000 5,000 0 1990 1993 1996 1997 1998 1999 2000 2001 2002 2003 2004-2005 CFA Program 22
Global Passport: The CFA Charter Members and Candidates Locations 81,659 Members and 93,769 Candidates Worldwide* United States & Canada Members: 58,830 Candidates: 41,418 Europe Members: 10,806 Candidates: 14,030 Asia & Mainland China Members: 945 Candidates: 11,614 Latin America Members: 860 Candidates: 1,674 Africa & Middle East Members: 1,620 Candidates: 4,556 Pacific Asia Members: 8,598 Candidates: 20,477 2004-2005 CFA Program 23 * as of 28 March 2006
Global Passport: The CFA Charter Global Perspective 2004-2005 CFA Program 24
Global Passport: The CFA Charter International Recognition 2004-2005 CFA Program 25
What is the CFA Program? Rigorous Self-Study Program 2004-2005 CFA Program 26
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 at every level. 2004-2005 CFA Program 27
What is the CFA Program? Practical, Relevant Education Practitioners at every step of the process 2004-2005 CFA Program 28
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 2004-2005 CFA Program 29
The CFA Course of Study CFA Body of Knowledge Ethical and Professional Standards Quantitative Methods Economics Financial Statement Analysis Corporate Finance Analysis of Equity Investments Analysis of Debt Investments Analysis of Derivatives Analysis of Alternative Investments Investment Tools Asset Valuation Portfolio Management 2004-2005 CFA Program 30
The CFA Course of Study Three Levels Topic Areas Approximate Percentage Breakdown 15% 5% 10% 10% 40% 5% 35% 50% 50% 30% 40% Level I Level II Level III 10% Investment Tools Asset Valuation Portfolio Management Ethics & Professional Standards 2004-2005 CFA Program 31
Preparation for the CFA Exams Valuable Learning Experience 2004-2005 CFA Program 32
The CFA Examinations 2005 Exam Format Multiple Choice Item Set (Objective) Constructed Response Level I 100% Level II* 100% Level III 50% 50% *Beginning in 2005, Level II exams will be 100% item set. 2004-2005 CFA Program 33
The CFA Examinations Graded with Great Care 350+ CFA charterholders in 2005 Teams of practitioners Rigorous and thorough process Consistency and fairness across all papers 2004-2005 CFA Program 34
June 2005 Exam Exam results 58,908 candidates from 144 countries sat 184 cities worldwide 25% no-show rate (compared to a 10-year average of 27% Pass rates 36% at Level I 56% at Level II 55% at Level III Combined pass rate is 48% 2004-2005 CFA Program 35
CFA Program Historical Combined Pass Rates Combined Pass Rates: 1963-2005 1.00 Percent Pass 0.80 0.60 0.40 0.20 0.00 1963 1967 1971 1975 1979 1983 1987 1991 1995 1999 2003 Year 2004-2005 CFA Program 36
Registering for the CFA Program Bachelor s Degree Requirement Candidates Highest Degree 2% 1% 31% Bachelor s Master s Doctorate Law 66% 2004-2005 CFA Program 37
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 2004-2005 CFA Program 38
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 2004-2005 CFA Program 39
Registering for the CFA Program Connecting with a Local Society 2004-2005 CFA Program 40
Registering for the CFA Program 1st Year Program Costs 2006 Approximate Costs for New Level I Candidates Registration fee to enter CFA Program US $375 * Enrollment fee for Level I examination US $360 * Study materials for Level I: Study Guide Free CFA Institute publications US $268 Primary textbooks US $427 Approximate Total Costs for Level I US$1,430 *Registration & Enrollment by 1 st fee deadline. 2004-2005 CFA Program 41
Registering for the CFA Program Important Deadlines June 2006 Examinations (Levels I, II, & III) 15 September 2006 Early registration deadline 15 February 2006 Second deadline 15 March 2006 Final deadline December 2006 Examinations (Level I only) 17 March 2006 Early registration deadline 15 August 2006 Second deadline 15 September 2006 Final deadline 2004-2005 CFA Program 42
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 * Registration fees waived candidate pays US$150 for enrollment 2004-2005 CFA Program 43
Scholarships for the CFA Program Important Deadlines Scholarship Application Deadlines 14 January 2006 Faculty and society sponsors submit final list of scholars to Scholarship Office 31 January 2006 Final Deadline: all forms received by CFA Institute For more information on the scholarship programs, go to http://www.cfainstitute.org/university/overview.html. 2004-2005 CFA Program 44
More Information About the CFA Program www.cfainstitute.org The Americas P.O. Box 3668 Phone: 800-247-8132 or 434-951-5499 560 Ray C. Hunt Drive Fax: 434-951-5262 Charlottesville, VA 22903 E-mail: info@cfainstitute.org USA Asia-Pacific Suite 3407 Phone: 852-2868-2700 or 852-8228-8820 Two Exchange Square Fax: 852-2868-9912 8 Connaught Place E-mail: infohk@cfainstitute.org Central Hong Kong, SAR Europe 29th Floor Phone: 44-20-7712-1719 One Canada Square Fax: 44-20-7712-1601 Canary Wharf E-mail: infoeu@cfainstitute.org London E14 5DY United Kingdom 2004-2005 CFA Program 45
Chartered Financial Analyst A Symbol of Integrity and Professional Excellence 2004-2005 CFA Program 46