Chartered Financial Analyst CFA Program

1. Chartered Financial Analyst (CFA) Program Ernesto D. Francisco, Jr, CFA For Mark Yu, CFA President, CFA Philippines Chairman, JFINEX Dec. 15, 2007

2. CFA Institute Overview Benefits of the Charter CFA Program Career Opportunities Course Providers Scholarship Local Society

3. CFA Institute Benefits of the CFA CharterEarning Power – The CFA Premium The CFA Premium: US$48,000 $248,000 Social (Prestige – Professional Standards & Integrity) and Financial Benefits… Philippines – Median Survey between PHP1M to PHP1.5M annual compensation packageSocial (Prestige – Professional Standards & Integrity) and Financial Benefits… Philippines – Median Survey between PHP1M to PHP1.5M annual compensation package

4. CFA Institute Benefits of the Charter CFA vs. CPA The CFA Charter is recognized GLOBALLY CFA vs. MBA* $236,510 vs. $200,000 (18% premium) $255,000 (combined CFA and MBA) CFA vs. no CFA designation** $180,000 vs. $116,850 (54% premium) *2005 Compensation Survey – median salary for those with 10 or more years of work experience **2005 Compensation Survey – median salary regardless of levels of work experience

5. CFA Institute Emphasize Program Prestige…Emphasize Program Prestige…

6. CFA Institute “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… GLOBAL CURRENCY.” -- The Economist, Feb. 26-Mar 4, 2005

7. CFA Institute Benefits of the CFA CharterOpens doors

8. Career Opportunities

9. CFA Institute Career Opportunities (Local) Investment/Brokerage Houses Trust & Mutual Fund Industry Bank Treasury Regulatory Institutions Financial Advisory Groups of Big 4 Risk Management Departments of Publicly Listed or Multinational Firms

10. CFA Institute Investment/Brokerage Houses WHAT THEY DO Perform Valuation (e.g. IPO, M&A) Perform Investment Analysis (Research Reports) EXAMPLES Spencer Yap, CFA – President, BPI Securities April Lee-Tan – Head of Research, Citiseconline Gio de la Rosa, CFA – Analyst, Deutsche Regis Denis Du, CFA – Associate Director, ATRKimEng Jun Villaluz, CFA – BPI Capital Sheryll Verano, CFA – AO Capital

11. CFA Institute Trust & Mutual Fund Industry WHAT THEY DO Manage Pension Funds for Institutional Investors Manage UITF & Mutual Funds for Retail Investors EXAMPLES Mike Garcia, CFA – Head of Trust, Unionbank Offers additional ~PHP100K/annum compensation for every level you pass Trust/UITF – ING, MIB, MBTC, BPI, BDO Mutual Fund – SunLife, Philam Asset Management

12. CFA Institute Trust Industry Update

13. CFA Institute Bank Treasury WHAT THEY DO Manage FX/Bond Transactions Develop & Manage Derivative (e.g. Futures, Swaps, Options) Products EXAMPLES Toto Tansingco, CFA – Treasurer, Metrobank Sponsors Employees on a Case-to-case Basis Lester Castolo, CFA –Treasurer, MIB Strong Supporter of CFA Program, Sponsors employees for the CFA Program Corrie Purisima, CFA – VP, HSBC

14. CFA Institute Regulatory Bodies WHAT THEY DO Opportunity to influence policy & mandate best practices among banking institutions Audit Derivative & Fixed Income activities of Banking Institutions Manage the Treasury Position of the Central Bank EXAMPLES Mary Jane Chiong, CFA – Head, Capital Market Specialist Group, BSP Alphew Cheng, CFA – OIC, Treasury Head, BSP Sponsors all employees who want to take it, will have 5 CFA Charterholders by late 2007.

15. CFA Institute Other Employers

16. CFA Institute Regional Opportunities Hong Kong - The CFA designation is recognized by the HK Securities and Futures Commission as fulfillment of education requirements for investment advisors. Thailand - The passage of the CFA Level I exam is a sufficient requirement for a fund manager license. Australia - The CFA program is recognized on the list of approved courses to fulfill the education requirements for licensing as investment advisors. Sri Lanka - The CFA designation is recognized by the Securities and Exchange Commission of Sri Lanka as an accepted educational qualification for fund manager license. Thailand L1 – Brokers, L2 – Derivative Traders, L3 – Fund ManagersThailand L1 – Brokers, L2 – Derivative Traders, L3 – Fund Managers

17. CFA Institute Global Opportunities

18. CFA Program

19. CFA Institute What is CFA Institute? Global nonprofit association with more than 150,000 investment-professional constituents from 135 nations around the world. Headquartered in Charlottesville, VA, USA – CFA Institute also maintains regional offices in London & Hong Kong. CFA Institute sets industry standards for knowledge, professionalism, & integrity through the (Chartered Financial Analyst®) CFA® Program CFA Institute and 131 local CFA Institute societies provide ongoing career development for members through continuing education, advocacy, and professional conduct programs. Ethical and professional standards – the CFA Institute Code of Ethics and Standards of Professional Conduct, and GIPS® (Global Investment Performance Standards) – foster high levels of integrity and transparency within the investment management process. What is CFA Institute? Global nonprofit association with more than 150,000 investment-professional constituents from 135 nations around the world. Headquartered in Charlottesville, VA, USA – CFA Institute also maintains regional offices in London & Hong Kong. CFA Institute sets industry standards for knowledge, professionalism, & integrity through the (Chartered Financial Analyst®) CFA® Program CFA Institute and 131 local CFA Institute societies provide ongoing career development for members through continuing education, advocacy, and professional conduct programs. Ethical and professional standards – the CFA Institute Code of Ethics and Standards of Professional Conduct, and GIPS® (Global Investment Performance Standards) – foster high levels of integrity and transparency within the investment management process.

20. CFA Institute

21. CFA Institute The CFA Program is growing around the world and transforming CFA Institute into a global organization. Currently the majority of CFA charterholders are living and working in North America, but the candidate population is much more diverse. More than half of all candidates in the CFA Program are outside the U.S., and we expect that within 10 years the majority of charterholders will be outside the U.S. The CFA Program is growing around the world and transforming CFA Institute into a global organization. Currently the majority of CFA charterholders are living and working in North America, but the candidate population is much more diverse. More than half of all candidates in the CFA Program are outside the U.S., and we expect that within 10 years the majority of charterholders will be outside the U.S.

22. CFA Institute What is the CFA Program?Three Levels and Three Exams The CFA Program is divided into three levels, each culminating in an examination. Level I is offered twice each year (June & December). Levels II & III are offered only at the June administration. Candidates must pass each level sequentially. The candidate begins with Level I, an objective exam that focuses on Fundamental Concepts & Tools for Investment Valuation and Management. Level II, also an objective exam, focuses primarily on asset valuation while Level III, emphasizes portfolio management. The format of the Level III examination is 50% constructed response and 50% selected response (item set). The Study Program at Levels II and III builds on the knowledge learned at prior levels. The competence level rises for each of the examinations. At Level I emphasis is on basic knowledge and comprehension. Levels II and III involve higher order learning skills, such as analysis and synthesis. In keeping with the CFA Institute mission, Ethical and Professional Standards are emphasized at every level. The CFA Program is divided into three levels, each culminating in an examination. Level I is offered twice each year (June & December). Levels II & III are offered only at the June administration. Candidates must pass each level sequentially. The candidate begins with Level I, an objective exam that focuses on Fundamental Concepts & Tools for Investment Valuation and Management. Level II, also an objective exam, focuses primarily on asset valuation while Level III, emphasizes portfolio management. The format of the Level III examination is 50% constructed response and 50% selected response (item set). The Study Program at Levels II and III builds on the knowledge learned at prior levels. The competence level rises for each of the examinations. At Level I emphasis is on basic knowledge and comprehension. Levels II and III involve higher order learning skills, such as analysis and synthesis. In keeping with the CFA Institute mission, Ethical and Professional Standards are emphasized at every level.

23. CFA Institute The material covered in the CFA Program’s curriculum is designed to reflect a Body of Knowledge that keeps pace with the ever-changing dynamics of the global investment industry. The CFA Program focuses on the principles of investment analysis and management. The Body of Knowledge is a systematic way of setting a framework for making investment decisions. The Body of Knowledge includes the 10 general topic areas listed here. Each of these topic areas is broken into sub-topics and serves as the framework on which the entire program is constructed. CFA Institute publishes the CFA Program Study Guides that candidates receive upon enrolling in each level of the program. The study guides contain the reading assignments to teach the Body of Knowledge and on which the examinations are based. The material covered in the CFA Program’s curriculum is designed to reflect a Body of Knowledge that keeps pace with the ever-changing dynamics of the global investment industry. The CFA Program focuses on the principles of investment analysis and management. The Body of Knowledge is a systematic way of setting a framework for making investment decisions. The Body of Knowledge includes the 10 general topic areas listed here. Each of these topic areas is broken into sub-topics and serves as the framework on which the entire program is constructed. CFA Institute publishes the CFA Program Study Guides that candidates receive upon enrolling in each level of the program. The study guides contain the reading assignments to teach the Body of Knowledge and on which the examinations are based.

24. CFA Institute The weightings for each Level shown here are approximate and may vary from year to year, but provide a clear idea of the emphasis at each Level. Because of the importance to the CFA Program, Ethics and Professional Standards are a significant component of each Level. The Level I curriculum and examination focuses on tools and concepts that apply to investment valuation and management. Level I also provides an overview of the processes of asset valuation and portfolio management. Reflecting the typical “business core” at many colleges and universities, this Level includes strong emphasis on financial statement analysis, economics, and quantitative methods. Level II deals primarily with asset valuation. Candidates must be able to apply a variety of valuation models in analyzing and valuing specific equity, debt, and alternative investments. Level III has a clear emphasis on portfolio management. Candidates are required to demonstrate the ability to determine investor objectives and constraints. In addition, applying investment policy and capital-markets expectations to the asset allocation decision-making process is a key focus. The weightings for each Level shown here are approximate and may vary from year to year, but provide a clear idea of the emphasis at each Level. Because of the importance to the CFA Program, Ethics and Professional Standards are a significant component of each Level. The Level I curriculum and examination focuses on tools and concepts that apply to investment valuation and management. Level I also provides an overview of the processes of asset valuation and portfolio management. Reflecting the typical “business core” at many colleges and universities, this Level includes strong emphasis on financial statement analysis, economics, and quantitative methods. Level II deals primarily with asset valuation. Candidates must be able to apply a variety of valuation models in analyzing and valuing specific equity, debt, and alternative investments. Level III has a clear emphasis on portfolio management. Candidates are required to demonstrate the ability to determine investor objectives and constraints. In addition, applying investment policy and capital-markets expectations to the asset allocation decision-making process is a key focus.

25. CFA Institute The CFA Program is relevant to the investment profession because the Body of Knowledge is based on the continual feedback from practicing investment professionals & leading finance academics. The entire process begins with a detailed job analysis performed every five years in which thousands of analysts and portfolio managers participate to develop a list of core topics for the program, i.e., the CFA Candidate Body of Knowledge (CBOK®). The Candidate Curriculum Committee (CCC) selects reading materials and drafts Learning Outcome Statements (LOS) for each reading to teach the topics in the CBOK. The Council of Examiners (COE) creates the examination for each level to test candidates’ mastery of the knowledge represented by the assigned readings. Each question is based on one or more Learning Outcome Statements. The CFA Program is relevant to the investment profession because the Body of Knowledge is based on the continual feedback from practicing investment professionals & leading finance academics. The entire process begins with a detailed job analysis performed every five years in which thousands of analysts and portfolio managers participate to develop a list of core topics for the program, i.e., the CFA Candidate Body of Knowledge (CBOK®). The Candidate Curriculum Committee (CCC) selects reading materials and drafts Learning Outcome Statements (LOS) for each reading to teach the topics in the CBOK. The Council of Examiners (COE) creates the examination for each level to test candidates’ mastery of the knowledge represented by the assigned readings. Each question is based on one or more Learning Outcome Statements.

26. CFA Institute The exam formats have changed over the years. The program utilizes 100% multiple choice questions at Level I, 100% item sets at Level II, and a combination of essays/problems and items sets at Level III. Item sets are comprised of a case or vignette followed by six multiple choice questions each related to the case or vignette. They allow candidates to demonstrate a deeper understanding of the material than traditional multiple choice questions. The exam formats have changed over the years. The program utilizes 100% multiple choice questions at Level I, 100% item sets at Level II, and a combination of essays/problems and items sets at Level III. Item sets are comprised of a case or vignette followed by six multiple choice questions each related to the case or vignette. They allow candidates to demonstrate a deeper understanding of the material than traditional multiple choice questions.

27. CFA Institute Global Pass Rates  

28. CFA Institute Candidates can register online or complete a paper application and submit it by mail to CFA Institute. The registration and enrollment package is available through the mail from CFA Institute or it can be downloaded/printed from the CFA Institute website. Candidates must complete the entire application form and enclose appropriate payment if they want to complete their enrollment on a timely basis. Early enrollment is encouraged because it allows the candidate a longer period for exam preparation. In addition, enrollment fees increase as the final deadline for registration approaches for each exam administration. Candidates can register online or complete a paper application and submit it by mail to CFA Institute. The registration and enrollment package is available through the mail from CFA Institute or it can be downloaded/printed from the CFA Institute website. Candidates must complete the entire application form and enclose appropriate payment if they want to complete their enrollment on a timely basis. Early enrollment is encouraged because it allows the candidate a longer period for exam preparation. In addition, enrollment fees increase as the final deadline for registration approaches for each exam administration.

29. CFA Institute Fee Schedule

30. CFA Institute To earn the CFA designation, candidates must meet these requirements. Candidates may accumulate work experience while sitting for the exams and may take the exams without any prior work experience. Keys to appropriate work experience include spending a substantial portion of professional time working in the investment decision-making process and/or applying the various parts of investment knowledge in performing the job. No references are required to enter the program. References from employers, business associates, and/or professors are submitted after passing Level II. Prior to receiving a charter, candidates must become a member of CFA Institute and apply for membership in one of its affiliated societies. Candidates who have completed Level I are eligible for full membership in CFA Institute and in most societies. To earn the CFA designation, candidates must meet these requirements. Candidates may accumulate work experience while sitting for the exams and may take the exams without any prior work experience. Keys to appropriate work experience include spending a substantial portion of professional time working in the investment decision-making process and/or applying the various parts of investment knowledge in performing the job. No references are required to enter the program. References from employers, business associates, and/or professors are submitted after passing Level II. Prior to receiving a charter, candidates must become a member of CFA Institute and apply for membership in one of its affiliated societies. Candidates who have completed Level I are eligible for full membership in CFA Institute and in most societies.

31. CFA Institute To earn the CFA designation, candidates must meet these requirements. Candidates may accumulate work experience while sitting for the exams and may take the exams without any prior work experience. Keys to appropriate work experience include spending a substantial portion of professional time working in the investment decision-making process and/or applying the various parts of investment knowledge in performing the job. No references are required to enter the program. References from employers, business associates, and/or professors are submitted after passing Level II. Prior to receiving a charter, candidates must become a member of CFA Institute and apply for membership in one of its affiliated societies. Candidates who have completed Level I are eligible for full membership in CFA Institute and in most societies. To earn the CFA designation, candidates must meet these requirements. Candidates may accumulate work experience while sitting for the exams and may take the exams without any prior work experience. Keys to appropriate work experience include spending a substantial portion of professional time working in the investment decision-making process and/or applying the various parts of investment knowledge in performing the job. No references are required to enter the program. References from employers, business associates, and/or professors are submitted after passing Level II. Prior to receiving a charter, candidates must become a member of CFA Institute and apply for membership in one of its affiliated societies. Candidates who have completed Level I are eligible for full membership in CFA Institute and in most societies.

32. Course Providers

33. CFA Institute Course Providers

34. Scholarship

35. CFA Institute Three Scholarship Programs Student Scholarship (Full time = average of 6 units/semester), Can award up to a max of 5 students.Student Scholarship (Full time = average of 6 units/semester), Can award up to a max of 5 students.

36. CFA Institute Scholarship Amount (2008)

37. CFA Institute Society Scholarship Criteria

38. CFA Institute Requirements

39. Local Society

40. CFA Institute Local Society

41. CFA Institute Questions What subjects/topics are included in the CFA exams? How much will it cost to take the exams? What companies offer incentives to CFAs? What career opportunities lie in store for CFAs? What are the qualifications needed in order to apply for the program? Where and when are the exams held? What if i pass one level and fail the next? What are the benefits of being a CFA? How many CFAs are there in the country? Is the title recognized world-wide?

42. CFA Institute

43. CFA Institute