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2004-2005 CFA® Program 1
2004-2005 CFA® PROGRAM
Sponsored by:
2004-2005 CFA® Program 2
Chartered Financial Analyst®
A Symbol of Integrity and Professional Excellence
®
2004-2005 CFA® Program 3
What is the CFA Program?
Rigorous Self-Study 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 atevery 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 • Investment Counselor • Chief Investment Officer • Investment Firm Manager • Equity Analyst • Portfolio Manager • Fixed Income Analyst • Portfolio Strategist • Investment Banker • 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 • Mellon Financial Corporation • Barclays • Merrill Lynch & Co., Inc. • BMO Nesbitt Burns, Inc. • Morgan Stanley • CIBC World Markets • Northern Trust Corporation • Citigroup • PricewaterhouseCoopers • Credit Suisse Group • Prudential Financial • Deutsche Bank • Putnam Investments • Fidelity Investments • RBC Financial Group • Goldman Sachs • Scotia Capital • ING Groep N.V. • State Street • J.P. Morgan Chase & Co. • UBS AG • Lehman Brothers • Wellington Management
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Benefits of the CFA Program
Earning Power – The CFA Premium
Non-Charterholders
CFACharterholders
The CFA Premium: US$40,000
Median Total Compensation for CFA Institutemembers with 10+ years experienceSource: 2003 Compensation Survey
$163,000
$203,000
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Global Passport: The CFA Charter
Growing Non-US Numbers
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
40,000
45,000
1990 1993 1996 1997 1998 1999 2000 2001 2002 2003
AsiaCanadaEuropeOther
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Global Passport: The CFA Charter
Members’ and Candidates’ Locations
68,378 Members and 129,389 Candidates Worldwide*
United States & CanadaMembers: 52,058Candidates: 65,726
EuropeMembers: 7,492Candidates: 19,373
Asia & Mainland ChinaMembers: 610Candidates: 6,899
Latin AmericaMembers: 457Candidates: 2,125
Pacific AsiaMembers: 6,608Candidates: 29,777
Africa & Middle EastMembers: 1,153Candidates: 5,489
* as of December 2003
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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
• Analysis of Equity Investments • Analysis of Debt Investments • Analysis of Derivatives • Analysis of Alternative Investments
• Portfolio Management
Investment Tools
Asset Valuation
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40%
40%
10%
10%
50%
35%
5%
10%
50%
30%
15%
5%
The CFA Course of Study
Three Levels – Topic Areas
Approximate Percentage Breakdown
Level I Level II Level III
Investment ToolsAsset ValuationPortfolio ManagementProfessional Standards
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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 2eDefusco, McLeavey, Pinto, & Runkle (CFA Institute, 2004)
Economics: Private and Public Choice 10eGwartney, Stroup, Sobel, & Macpherson (South-Western, 2003)
International Investments 5e Solnik & McLeavey (Addison Wesley, 2003)
The Analysis and Use of Financial Statements 3eWhite, Sondhi, & Fried (Wiley, 2003)
Fundamentals of Financial Management 8eBrigham & Houston (Dryden, 1998)
Investment Analysis and Portfolio Management 7eReilly & Brown (South-Western, 2003)
Fixed Income Analysis for the CFA Program 2eFabozzi (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
*Beginning in 2005, Level II exams will be 100% item set.
Multiple Choice
Item Set (Objective)
Constructed Response
Level I ●100%
Level II* ●100%
Level III ●50%
●50%
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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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0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
I II III
The CFA Examinations
Historic Pass Rates
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
I II III
Pass Rates: 2004* Pass Rates: 1963-2004*
34% 32%
64%
50% 52%
68%
*Level I totals do not include results for the December 2004 exam.
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Registering for the CFA Program
Bachelor’s Degree Requirement
Bachelor’s
Master’s
Doctorate
Law
Candidates’ Highest Degree
66%
31%
1%2%
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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 $375Enrollment fee for Level I examination US $360Study 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 deadline15 February 2005 – Second deadline 15 March 2005 – Final deadline
December 2005 Examinations (Level I only)
17 March 2005 – Early registration deadline15 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 sponsorssubmit final list of scholars to Scholarship Office
31 January 2005 – Final Deadline: all forms receivedby 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 AmericasP.O. Box 3668 Phone: 800-247-8132 or 434-951-5499560 Ray C. Hunt Drive Fax: 434-951-5262Charlottesville, VA 22903 E-mail: [email protected]
Asia-PacificSuite 3407 Phone: 852-2868-2700 or 852-8228-8820Two Exchange Square Fax: 852-2868-99128 Connaught Place E-mail: [email protected] Kong, SAR
Europe29th Floor Phone: 44-20-7712-1719One Canada Square Fax: 44-20-7712-1601Canary Wharf E-mail: [email protected] E14 5DYUnited Kingdom
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Chartered Financial Analyst®
A Symbol of Integrity and Professional Excellence
®