2004-2005 CFA® PROGRAM
Sponsored by:
2004-2005 CFA® Program
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Chartered Financial Analyst®
A Symbol of Integrity and Professional Excellence
®
2004-2005 CFA® Program
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What is the CFA Program?
Rigorous Self-Study Program
2004-2005 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.
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What is the CFA Program?
Practical, Relevant Education
Practitioners at every step of the process
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What is the CFA Program?
Learning Tied to Current Practice
• Determines topics taught in the CFA Program
• Conducted every five years: next 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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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
• Chief Investment Officer
• Equity Analyst
• Fixed Income Analyst
• Investment Banker
2004-2005 CFA® Program
• Investment Counselor
• Investment Firm Manager
• Portfolio Manager
• Portfolio Strategist
• Sales/Marketing Professional
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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
2004-2005 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$40,000
$203,000
Median Total Compensation for CFA Institute
members with 10+ years experience
$163,000
Source: 2003 Compensation Survey
NonCharterholders
2004-2005 CFA® Program
CFA
Charterholders
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Global Passport: The CFA Charter
Growing Non-US Numbers
45,000
Asia
Canada
Europe
Other
40,000
35,000
30,000
25,000
20,000
15,000
10,000
5,000
0
1990 1993 1996 1997 1998 1999 2000 2001 2002 2003
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Global Passport: The CFA Charter
Members’ and Candidates’ Locations
68,378 Members and 129,389 Candidates Worldwide*
United States & Canada
Members: 52,058
Candidates: 65,726
Europe
Members: 7,492
Candidates: 19,373
Asia & Mainland China
Members: 610
Candidates: 6,899
Latin America
Members: 457
Candidates: 2,125
Africa & Middle East
Members: 1,153
Candidates: 5,489
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Pacific Asia
Members: 6,608
Candidates: 29,777
* as of December 2003
Global Passport: The CFA Charter
Global Perspective
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Global Passport: The CFA Charter
International Recognition
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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%
40%
50%
50%
30%
35%
40%
10%
Level I
Level II
Investment Tools
Asset Valuation
Portfolio Management
Professional Standards
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Level III
Preparation for the CFA Exams
Self-Study Materials
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Preparation for the CFA Exams
2005 Level I Primary Textbooks
Standards of Practice Handbook 8e (AIMR, 1999)
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
Valuable Learning Experience
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The CFA Examinations
2005 Exam Format
Multiple
Choice
Level I
Item Set
Constructed
(Objective) Response
●
100%
●
Level II*
100%
Level III
●
●
50%
50%
*Beginning in 2005, Level II exams will be 100% item set.
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The CFA Examinations
Graded with Great Care
• 750+ CFA charterholders in 2004
• Teams of practitioners
• Rigorous and thorough process
• Consistency and fairness across all papers
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The CFA Examinations
Historic Pass Rates
Pass Rates: 2004*
Pass Rates: 1963-2004*
100%
100%
90%
90%
80%
80%
70%
60%
60%
50%
50%
40%
68%
70%
64%
34%
52%
I
II
40%
32%
30%
30%
20%
20%
10%
10%
0%
0%
I
50%
II
III
*Level I totals do not include results for the December 2004 exam.
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III
Registering for the CFA Program
Bachelor’s Degree Requirement
Candidates’ Highest Degree
2% 1%
Bachelor’s
Master’s
Doctorate
Law
31%
66%
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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 – 2005
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 1st fee deadline.
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Registering for the CFA Program
Important Deadlines
June 2005 Examinations (Levels I, II, & III)
15 September 2004 – Early registration deadline
15 February 2005 – Second deadline
15 March 2005 – Final deadline
December 2005 Examinations (Level I only)
17 March 2005 – Early registration deadline
15 August 2005 – Second deadline
15 September 2005 – Final deadline
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Scholarships for the CFA Program
Three Scholarship Programs
Student Scholarships – For New Level I Only*
Awarded by CFA charterholder full-time faculty
members
Faculty Scholarships – Available for Any Level*
Awarded to 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
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Scholarships for the CFA Program
Important Deadlines
• Scholarship Applications
14 January 2005 – Faculty and society sponsors
submit final list of scholars to Scholarship Office
31 January 2005 – Final Deadline: all forms received
by CFA Institute
• Scholarships apply to June 2005 exam only
• No scholarships currently available for December 2005
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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
2004-2005 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
®
2004-2005 CFA® Program
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