Chartered Financial Analyst®
A Symbol of Integrity and Professional Excellence
®
CFA® Program
1
2006 CFA® PROGRAM
Sponsored by:
CFA® Program
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Benefits of the CFA Program
Knowledge
CFA® Program
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Chartered Financial Analyst®
“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
CFA® Program
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Chartered Financial Analyst®
Switzerland
CFA charterholders or
candidates in the CFA
program are to be favored
CFA® Program
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Chartered Financial Analyst®
The Chartered
Financial Analyst
(CFA) designation is
strongly preferred
CFA® Program
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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
Professional
CFA® Program
• Investment Counselor
• Investment Firm Manager
• Portfolio Manager
• Portfolio Strategist
• Sales/Marketing
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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%
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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
CFA® Program
• 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
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Benefits of the CFA Program
Earning Power – The CFA Premium
The CFA Premium: US$48,000
$248,000
Median Total Compensation for U.S.-based CFA
Institute members with 10+ years experience
$200,000
Source: 2005 Compensation Survey
Not to scale…
NonCharterholders
CFA® Program
CFA
Charterholders
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Global Passport: The CFA Charter
Members’ and Candidates’ Locations
76,521 Members and 87,409 Candidates Worldwide*
United States & Canada
Members: 56,211
Candidates: 40,205
Europe
Members: 9,516
Candidates: 13,081
Asia & Mainland China
Members: 627
Candidates: 8,853
Latin America
Members: 751
Candidates: 1,479
Africa & Middle East
Members: 1,407
Candidates: 3,972
CFA® Program
Pacific Asia
Members: 8,009
Candidates: 19,819
* as of June 2005
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Global Passport: The CFA Charter
Global Perspective
CFA® Program
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Global Passport: The CFA Charter
International Recognition
CFA® Program
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What is the CFA Program?
Rigorous Self-Study Program
CFA® 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 at every level.
Surveys reveal that successful CFA candidates spend, on average,
in excess of 250 hours per level preparing for the examinations.
There is no substitute for spending the requisite time mastering the
curriculum.
But, success on the CFA examinations is not merely achieved by
committing the requisite hours.
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What is the CFA Program?
Practical, Relevant Education
Practitioners at every step of the process
CCC
COE
Curriculum
Examinations
Body of Knowledge
Grading
Practice Analysis
Leaders in the
Investment Community
CFA® Program
Setting of Minimum
Passing Score (MPS) by
CFA Institute Governors
CCC: Candidate Curriculum Committee
COE: Council of Examiners
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What is the CFA Program?
Learning Tied to Current Practice: The Practice
Analysis Survey
• Determines topics taught in the CFA Program
• 2005-2006 Survey now underway
• 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
CBOK: Candidate Body of Knowledge
LOS: Learning Outcome Statement
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The CFA Course of Study
CFA Body of Knowledge™
• Ethical and Professional Standards
• Quantitative Methods
• Economics
• Financial Statement Analysis
• Corporate Finance
Investment Tools
• Analysis of Equity Investments
• Analysis of Debt Investments
• Analysis of Derivatives
• Analysis of Alternative Investments
Asset Valuation
• Portfolio Management
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The CFA Course of Study
Three Levels – Topic Areas
Approximate Percentage Breakdown
5%
5%
10%
15%
10%
30%
Asset
Valuation
50%
Investment
Tools
40%
Investment
40%
Tools
Asset
Valuation
50%
Portfolio
Mgt.
35%
Asset
Valuation
10%
Level I
Level II
Level III
Investment Tools
Asset Valuation
Portfolio Management
Ethics & Professional Standards
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Preparation for the CFA Exams
Self-Study Materials
CFA® Program
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Preparation for the CFA Exams
2006 Level I Primary Textbooks
Standards of Practice Handbook 9e (AIMR, 2005)
Quantitative Methods for Investment Analysis 2e
Defusco, McLeavey, Pinto, & Runkle (CFA Institute, 2004)
Economics: Private and Public Choice 10e
Gwartney, Stroup, Sobel, & Macpherson (South-Western, 2003)
International Investments 5e Solnik & McLeavey (Addison Wesley, 2003)
The Analysis and Use of Financial Statements 3e
White, Sondhi, & Fried (Wiley, 2003)
Fundamentals of Financial Management 8e
Brigham & Houston (Dryden, 1998)
Investment Analysis and Portfolio Management 7e
Reilly & Brown (South-Western, 2003)
Fixed Income Analysis for the CFA Program 2e
Fabozzi (Frank J. Fabozzi Assoc., 2004)
Analysis of Derivatives for the CFA Program
Chance (AIMR, 2003)
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Preparation for the CFA Exams
2006 Level I Primary Textbooks
Beginning in 2006, the Level I
Curriculum is modularized, with the
relevant readings for each Study
Session bundled with its topics and
Learning Outcomes Statements.
SOFT/HARD COVER: SOFTBOUND
VOL 1: 798 pages,
VOL 2: 1150 pages,
VOL 3: 816 pages,
VOL 4: 1034 pages
PUBLISHER: CFA INSTITUTE
DATE PUBLISHED: JUNE 2005
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The CFA Examinations
2006 Exam Format
Multiple
Choice
Level I
Item Set
Constructed
(Objective) Response
(Essay)
●
100%
Level II
●
100%
Level III
CFA® Program
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●
50%
50%
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The CFA Examinations
Graded with Great Care
• 350+ CFA charterholders gathered in Charlottesville in
2005 to grade the examinations
• Teams of practitioners and academics
• Rigorous and thorough process
• Consistency and fairness across all papers
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The CFA Examinations
Historic Pass Rates
Pass Rates: 2005
Pass Rates: 1963-2004
100%
100%
90%
90%
80%
80%
70%
70%
56%
60%
55%
40%
60%
50%
50%
36%
30%
20%
20%
10%
10%
0%
0%
CFA® Program
49%
52%
I
II
40%
30%
I
68%
II
III
III
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Registering for the CFA Program
Bachelor’s Degree Requirement
Candidates’ Highest Degree
2%1%
31%
Master’s
CFA® Program
66%
Bachelor’s
Bachelor’s
Master’s
Doctorate
Law
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Registering for the CFA Program
Three Ways to Register
• CFA Exam Date: June 3, 2006
(see signup deadlines)
• Register online at:
www.cfainstitute.org
• Download forms from the CFA
Institute website and register by mail
• Or 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
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*
Level I Curriculum (members’ and candidates’ price) US $350
Approximate Total Costs for Level I
US$1,085
*Registration & Enrollment by 1st fee deadline.
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Registering for the CFA Program
Important Deadlines
June 2006 Examinations (Levels I, II, & III)*
15 September 2005 – 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
* Check the CFA Institute
website for the most
recently-announced dates.
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Registering for the CFA Program
Important Deadlines
2006 REGISTRATION AND ENROLLMENT FEE SCHEDULE
for June Examination Dates
Received
Received
Received
on or before on or before on or before
15-Sep-05 15-Feb-06 15-Mar-06
Registration (first time
candidates only)
US$375
US$375
US$450
Enrollment (all candidates)
US$360
US$440
US$670
Total fee
US$735
US$815
US$1120
* Check the CFA Institute
website for the most
recently-announced dates.
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Scholarships for the CFA Program
Two Scholarship Programs
• Society Scholarships – Available for Any Level*
– Awarded to qualified candidates by local CFA Institute Society
– CFALA scholarship includes cost of review program and money
for books.
– 15 December 2005 – Deadline for all forms to be received by
CFALA for Society Scholarship
http://www.cfala.org/cfmfiles/asp/scholarship.asp)
– 31 January 2006 – Final Deadline for all forms to be received by
CFA Institute from the society
(http://www.cfainstitute.org/university/overview.html)
• Student Scholarships – For New Level I Only*
– Awarded by CFA Charterholders who are full-time faculty
members. Please check with your instructor for deadlines.
* Registration fees waived – candidate pays US$150 for enrollment
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CFALA Mission and Goals
• Established in 1931, the CFA Society of Los Angeles (the Society) is
a network of investment management professionals in the greater
Los Angeles area, CFA Society of Los Angeles is a member society
of CFA Institute.
• The mission of the Society is to provide access to information,
expertise and personal interaction to further members' professional
development and to promote the value of the profession and the
CFA designation.
The Society strives to fulfill this purpose as:
• a local Forum bringing together people, knowledge and practical
experience
• a respected Partner with other organizations for the purpose of
serving mutual interests and the meaningful exchange of ideas
• a Premier Source for professional resources and development
• a powerful Voice representing ethical standards of practice and the
interests and value of the profession.
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The CFA Society of Los
Angeles currently has
1,773 members.
CFA Charterholder Information
Percent
CFA charterholder
78%
Non-charterholder
22%
15% of our members are CFA
program candidates at some level
Industry Classifications
Percent
Investment Company/Mutual Fund
29%
Investment Management Counseling
24%
Broker Dealer, Investment Banking
12%
Commercial/Retail Banking, Bank Trust Departments
11%
Consulting Firm
10%
Other businesses including government, academic, and miscellaneous
9%
Insurance Company
3%
Corporate/Public Sponsor & Foundation/Endowment
2%
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Topical Programs
• Current issues in the investment industry are presented at
luncheons or dinners throughout the Los Angeles area. Previous
presentations include topics on Wealth Management, Time
Diversification and Behavioral Finance.
Corporate Presentations
• Corporate presentations to members are held as luncheons at local
downtown venues. Presentations have included Colgate-Palmolive,
Tag-It Pacific, Sysco Corp., Boise Corp. and Novartis Inc., among
many others.
Continuing Education Programs
• Educational classes are available to members at a discounted rate.
Courses have included the Foundations of Investments, Fixed
Income Analysis, and Hedge Fund Investments.
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Social Gatherings
• An open forum to meet with other members in the industry, and their
families in a non-business environment. Events have included “A
Night at the Hollywood Bowl” and Wine Tasting.
Being a member of CFALA has its rewards - we have hosted resume
writing workshops and other career discussion panels for our
members.
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Job Placement Listings
•
•
•
•
•
Members have access to employment opportunities in the Southern
California area via the subscription job listings on the CFALA
website.
It’s free for CFALA members - you just need to enter your User ID
and password to access the site. Non-members pay a fee.
The jobs featured are for internships and relatively new graduates,
all the way up to senior manager and executive levels.
As of 11/7/2005 there were approximately 100 jobs listed.
Soon it may include listings for the Western United States.
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Annual Career Expo
Usually takes place in late April and in 2006, we will be celebrating our 10th
anniversary!
The aim is to provide information about various career tracks and the many
types of financial jobs that are open to people entering the industry.
One of the panel discussions relates to tips and strategies on how to start a
career in the industry.
The main highlight for many folks who come to the Expo is our networking
reception, where we have about 30 analysts, portfolio managers, financial
advisors, bankers, consultants, trust managers, and recruiters
available. This gives the audience a chance to ask questions and
interact.
We have heard of success stories from members who have hired interns.
More and more, we are bringing in folks who are actively recruiting college
level graduates.
We must be doing something right (or wrong) - a lot of folks in the Expo are
repeat attendees.
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Basic Accounting For CFA Level I Candidates (2 Saturdays)
Date: Saturday, January 7th and 21st, 2006
Time: 9:00 am - 1:30 pm
Cost: $125.00 for Members and $150 for Non-Members
Location: USC (room to be determined)
The goal of this course is to help prepare the Level I CFA candidate for the
accounting and financial analysis topics of the CFA exam.
Many CFA candidates have "rusty" accounting / financial analysis skills, or
have never been exposed to these often puzzling areas via college
courses or work experience.
The CFA program assumes a basic working knowledge of accounting and
financial analysis for the Level I CFA exam.
Since the instructor for this course has also served as the instructor for the
USC / LASFA CFA® Review program for several years, he understands
how best to bridge this critical knowledge gap."
https://www.cfala.org/cfmfiles/cal/eventlist2.cfm?id=593&t=e&d=Z
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USC/CFALA CFA® Review Program
Since 1984, CFA Society of Los Angeles, Inc. (“CFALA”) in partnership with the
University of Southern California, Marshall School of Business (“USC”) has
offered CFA® Review Programs for each level of the CFA® Study and
Examination Program.
In the Spring, we offer both Weekday and Saturday Review Courses for Level I
and Level II and a Weekday Review Course for Level III candidates.
CFALA also offers a Saturday Review Course for candidates preparing to take
the December Level I examination.
While live instruction is the cornerstone of our program, candidates are
provided with supplemental study tools including a full-length practice
examination, access to recorded classroom lectures via the CFALA
website, and Schweser Notes and Schweser Pro software.
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Weekly Review Course: begins in January.
Classes are held once a week and end in late May on the USC Campus.
I: Tuesdays starting January 3 (5:00-8:00 pm)
II: Thursdays starting January 5 (5:00-8:00 pm)
III: Wednesdays starting January 4 (6:30-8:30 pm)
Saturday Review Course (Levels I & II only): begins in January
Will be held on 10 Saturdays before the 6/03/06 exam.
Classes begin at 9:00 am and will end at 5:00 pm. (Lunch will not be
provided.)
First class sessions are schedule for Saturday, 14 January
Please note: if you miss a weekly class you can attend the Saturday class as a
makeup and vice versa. All classes will be digitally recorded and posted
online for review via ID and password.
Cost: $1299 Non-members, $1149 CFALA members.
Register and pay by December 31, 2005 and receive a $100 discount.
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The registration fee for the Review Course includes: the Schweser Study Notes,
Schweser Pro, the full length practice exam and access to online recordings of the
Review Classes.
Mentor Program:
Each Level I candidate may choose to be assigned a mentor (a CFALA member
who is a CFA Charterholder) who will periodically provide support and answer
questions regarding the candidates exam preparation. Candidates who wish to be
assigned a CFALA Mentor please contact cfareview@cfala.org.
Text Book & Assigned Reading:
Tuition for the USC/CFALA CFA Review Program does not include the cost of
text books. All text material should be purchased before the start of class by using
the order form in the back of your CFA Institute Study Guide.
Class sessions will cover the material in your study guide but NOT
NECESSARILY IN STUDY GUIDE ORDER. Please refer to the class schedule
when preparing for class sessions.
Candidates are expected to read and study the appropriate materials BEFORE each
review session.
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Example of Online Presentation
Contact Us:
CFA Society of Los Angeles, Inc
555 W. 5th St., 31st Fl.
Los Angeles, CA 90013
Telephone (213) 627-1500
Fax: (213) 947-4855
Email: info@cfala.org
Web: www.cfala.org
USC/CFALA CFA Review Program
555 W. 5th St., 31st Fl.
Los Angeles, CA 90013
Telephone: (213) 627-1230
Fax: (213) 947-4855
Email: CFAreview@cfala.org`
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More Information About the CFA Program
www.cfainstitute.org
The Americas
P.O. Box 3668
560 Ray C. Hunt Drive
Charlottesville, VA 22903
USA
Phone: 800-247-8132 or 434-951-5499
Fax:
434-951-5262
E-mail: info@cfainstitute.org
Asia-Pacific
Suite 3407
Two Exchange Square
8 Connaught Place
Central
Hong Kong, SAR
Phone: 852-2868-2700 or 852-8228-8820
Fax:
852-2868-9912
E-mail: infohk@cfainstitute.org
Europe
29th Floor
One Canada Square
Canary Wharf
London E14 5DY
United Kingdom
CFA® Program
Phone: 44-20-7712-1719
Fax:
44-20-7712-1601
E-mail: infoeu@cfainstitute.org
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Chartered Financial Analyst®
A Symbol of Integrity and Professional Excellence
®
CFA® Program
46