Career Development
CFA Austria
02 06 2008
2008 CFA® PROGRAM
Sponsored by:
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Mission Statement
To lead the investment profession
globally by setting the highest
standards of ethics, education, and
professional excellence.
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CFA Austria
www.cfaaustria.org
CFA Austria currently has 189 members
CFA charterholders 89 %
NON-CFA charterholders 11 %
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CFA Austria
Commercial/Retail Bank 18 %
Mutual Fund 17 %
Investment Bank / Broker Dealer 12 %
Institutional Investment Manager (diverse client base) 12 %
Institutional & Private Client Investment Manager (mix ) 12 %
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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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GBIKTM and the CBOKTM
Global Body of Investment KnowledgeTM
The GBIK is the comprehensive outline of mainstream knowledge for the
investment profession, encompassing an entire career – novice through
expert – for both generalists and specialists.
Candidate Body of KnowledgeTM
The CBOK is the inventory of knowledge and responsibilities expected of
the professional practitioner of investment management at the level of a
new charterholder. The CBOK, resulting from practice analysis, is
organized into four functional areas: Ethical and professional standards,
investment tools, asset valuation, and portfolio management. The CBOK
is the roadmap for CFA curriculum development.
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Bodies of Investment Knowledge
All Investment Knowledge
Frontier (emerging)
GBIK
GBIK
PWM
Candidate
Candidate
BOK
BOK
BOK
CIPM
BOK
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What is the CFA Program?
Learning Tied to Current Practice
• Practice analysis determines topics taught in the CFA Program
• Involves investment practitioners worldwide: Regional expert
panels and member surveys
• The question asked in practice analysis is “What knowledge and
skills are needed by an investment professional with four years
of experience?”
• Candidate Body of Knowledge (CBOK), curriculum, learning
outcome statements (LOS) and exams all based on what
practitioners need to know
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Practice Analysis Process
2006 and Prior
• Previously on approximately a 5-year cycle
• Regional expert and employer panels in 18 cities (with 2 additional
cities participating online)
• Broad survey followed regional expert panels
• All charterholders invited to participate
• Nearly 11,000 responses
• Input used by Practice Analysis Task Force to set topic weights
and specific knowledge areas
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Practice Analysis Process
New Process
• In FY2008, a new continuous practice analysis process was initiated.
• Global Body of Knowledge will be updated on a continuous basis
using a collaborative website followed by regional panels and
targeted surveys.
• Portions of the Candidate Body of Knowledge will be updated on
an annual basis. Test specifications will continued to be updated
on a multi-year cycle.
• Results of practice analysis will form the foundation of all
educational programs at CFA Institute – including the CFA
Program and continuing education offerings.
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Education Advisory Committee
The Education Advisory Committee (EAC) is responsible for
providing oversight and guidance to the processes by which CFA
Institute develops the Global Body of Investment Knowledge (GBIK),
Candidate Body of Knowledge (CBOK) and CFA program curriculum
materials.
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Educational Content Committee
Structure
Societies
Members
Working Body
Research Foundation
Board of Trustees
Publications
CFA Digest Ed. Board
FAJ Ed. Board
FAJ Advisory Council
Candidates
Education Advisory
Committee
Conferences
Annual Conf. Comm.
FAS Board
Private Wealth
Advisory Committee
Global Body of Investment
Knowledge & Practice Analysis
Universities
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What is the CFA Program?
Practical, Relevant Education
COE
EAC
EXAMINATIONS
CURRICULUM
GRADING
STANDARD
SETTING
BODY OF
KNOWLEDGE
PRACTICE ANALYSIS
Practitioners at
every step of
the process
MINIMUM PASSING
SCORE (MPS)
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Global Passport: The CFA Charter
Members’ Locations
94,975 Members and 135 Societies Worldwide*
United States & Canada
Members: 65,033
Europe
Members: 13,359
Asia & Mainland China
Members: 2,050
Latin America
Members: 1,056
Africa & Middle East
Members: 2,199
Pacific Asia
Members: 11,267
* As of 1 April 2008
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High Regard for the Charter: Financial Times
“The big attraction…is [that] the CFA [charter]
qualification becomes a second passport, an
international gold standard.”
Rise of the grueling professional exam
Financial Times
22 May 2006
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High Regard for the Charter: Financial Times
Financial Times, 18 June 2007
Financial Training Special Report
CFA Program and CFA Institute featured in 4 articles:
1. The CFA Qualification – A popular course that complements
other degrees.
2. The CFA Institute – Goal is to be a global one-stop shop.
3. From the courtroom into the classroom – The fallout from
scandals has given a boost to courses.
4. An Expanding Market – The must-have degree (included a table
entitled “Masters in Finance programmes and CFA – at a glance”).
In addition, a full-page table of the Financial Times Masters in
Finance Programmes included a column indicating if the
program was a CFA Programme Partner.
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High Regard for the Charter: The Economist
“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
26 Feb.-4 Mar. 2005
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High Regard for the Charter: L’Agefi

“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 3 June
2006 – a dramatic change from the 1990s when the qualification was
relatively unknown in France.

CFA — The Global Passport

L’Agefi (France)

3 February 2006
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High Regard for the Charter: Bloomberg.com
“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.”
Bloomberg
2 June 2006
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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
• 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
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
Employers with Largest Numbers of CFA Charterholders
UBS
BMO Financial Group
Citigroup
Allianz AG
JP Morgan Chase & Co.
FMR Corporation
Merrill Lynch
PricewaterhouseCoopers
RBC
Lehman Brothers
Bank of America
Mellon Financial
Credit Suisse
ABN AMRO Bank
HSBC
ING
Morgan Stanley
Scotiabank Group
Goldman Sachs
Wells Fargo
Deutsche Bank
State Street
TD Bank Financial Group
Deloitte
Wachovia
Prudential Financial
CIBC
AMVESCAP
Barclays
KPMG
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High Regard for the Charter: Job Postings
Switzerland
CFA charterholders or
candidates in the CFA
program are to be favored
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High Regard for the Charter: Job Postings
ING Wholesale Banking
Equity Analyst Benelux and Nordic Banks
•ING is a pan European broker that search an equity analyst to join the
banking team to cover Benelux and Nordic stocks. The location can be
either London or Amsterdam (possibly Brussels). The role requires
modeling, forecasting, writing research and market research with
institutional clients.
•Requirements: At least 5 years experience doing research either on the
buy side or sell side. Strong analytical and communication skills. An
equivalent experience in consultancy or banking could be considered.
CFA charter is a must. Dutch speaker preferably.
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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
Investment Tools
Asset Classes and
Valuation
• Portfolio Management and Wealth Planning
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The CFA Course of Study
Three Levels – Topic Areas
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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Charterholders and Candidates
As of 1 April, there were 82,177 active
charterholders worldwide (more than 100,000
have been awarded).
As of 1 April, there are 119,378 candidates for
the June 2008 exam worldwide. There are more
than 175,000 registrations for fiscal year 2008.
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Candidate Enrollments
(for June 2007 and December 2007 exams)
Canada
12,780
U.S.
49,622
Latin
America
2,587
U.K.
9,580
Korea
6,094
Europe
23,606
P.R. China
12,926
Middle East
& Africa
8,241
Singapore
6,272
Hong Kong
10,867
Taiwan
3,414
Australia
3,339
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Candidate Makeup
June 1993
• 32% non-U.S.
• 78% Male
• Age 31
June 2007
•
•
•
68% non-U.S.
74% Male
Age 30
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Preparation for the CFA Exams
Valuable Learning Experience
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The CFA Examinations
2008 Exam Format
Multiple Choice
Level I
Level II
Level III
Item Set
(Objective)
Constructed
Response
●
100%
●
100%
●
●
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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2007 Exam Results
June 2007
More than 70,000 candidates from 163 countries sat
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
December 2007
More than 37,000 candidates sat for Level I in December with
a pass rate of 39%
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CFA Program
Historical Combined Pass Rates
Combined Pass Rates: 1963 - 2007
Percent Pass
100%
80%
60%
40%
20%
0%
1963 1967 1971 1975 1979 1983 1987 1991 1995 1999 2003 2007
Year
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Curriculum
•
Each study session is designed for flexible, self-directed
study
•
Readings are drawn from a variety of materials, published by
CFA Institute and other sources
•
Each reading has learning outcome statements (LOS): “The
candidate should be able to…”
•
Each LOS has one or more command words, which indicate
type of learning expected: “discuss, calculate, contrast”
•
LOS are NOT an exact proxy for examination questions, but
mastering LOS is the best study approach
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Custom Curriculum
• Six volumes at each level
represent the entire curriculum.
• More cost effective – beginning
with the June 2008 exam, the
exam registration fee also
includes the complete curriculum
and one sample exam.
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Examinations
• Multiple choice: Stand-alone individual multiple choice
questions; 1 question = 1.5 minutes, exam = 240
questions = 360 points
• Essay: Discussion-type and problem-solving questions;
½ exam = typically 10-18 questions with variable
minutes = 180 points
• Item set: Vignette with set of accompanying related
multiple choice questions (items); 1 question = 3
minutes, 1 item set = 6 questions, ½ exam = 10 item
sets = 180 points
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Registering for the CFA Program
CFA Charter Requirements
• Sequentially pass Levels 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
• Sign and submit professional conduct statement
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Connecting with a Local Society
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CFA Charter Ethics Requirements
• http://www.cfainstitute.org/centre/codes/ethics/index.html
•What Do the Code and Standards Cover?
•Code of Ethics:
•Place the integrity of the profession and the interests of clients above
your own interests
•Act with integrity, competence, and respect
•Improve and maintain your professional competence
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Standards of Professional Conduct:
Professionalism
Integrity of the capital markets
Duties to clients
Duties to employers
Investment analysis and recommendations
Conflicts of interest
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More Information About the CFA Program
www.cfainstitute.org
Europe
One Canada Square, 10th Floor
Canary Wharf
London E14 5AB
United Kingdom
Phone:
Fax:
44-20-7531-0751
44-20-7531-0767
E-mail:
info@cfainstitute.org
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Contact Information
Dennis W. McLeavey, D.B.A., CFA
CFA Institute
Head, Education
Europe, Middle East and Africa
One Canada Square, 10th Floor
London E14 5AB
United Kingdom
+44 (0)20 7531 0756 tel
+44 (0)20 7531 0767 fax
Email: dennis.mcleavey@cfainstitute.org
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