1 / 34

SO YOU WANNA BE A CFA  …

SO YOU WANNA BE A CFA  …. An Introduction to the CFA  Exam – Preparation, Time Commitment, and Benefits The Investment Analysts Society of Chicago October 30, 2001. AGENDA. Introduction & History – purpose & how it all started Structure & Requirements – what the program entails

medwin
Download Presentation

SO YOU WANNA BE A CFA  …

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SO YOU WANNA BE A CFA … An Introduction to the CFAExam – Preparation, Time Commitment, and Benefits The Investment Analysts Society of Chicago October 30, 2001

  2. AGENDA • Introduction & History – purpose & how it all started • Structure & Requirements – what the program entails • Preparation Involved – how much time & what involved • Topics Covered – what subjects are necessary to know • Demographics of Candidates – who are they? • Benefits of the CFA Designation – money, reputation, and continuing education • Careers & Salary Analysis – what the market is paying

  3. AGENDA • Introduction & History – purpose & how it all started • Structure & Requirements – what the program entails • Preparation Involved – how much time & what involved • Topics Covered – what subjects are necessary to know • Demographics of Candidates – who are they? • Benefits of the CFA Designation – money, reputation, and continuing education • Careers & Salary Analysis – what the market is paying

  4. INTRODUCTION & HISTORY • Purpose of the exam is to establish standards of competency and integrity. • Exam is designed to reinforce fundamental knowledge of investment principles. • Encompasses cutting-edge topics of today (if the topic is current, it will show up in the exam). • Focus on ethics & thus, upholding the highest standards of ethical responsibility. • Not an exam for a specialist, but supplements the specialist’s “general” knowledge

  5. INTRODUCTION & HISTORY • History – • Program first administered in June, 1963 • 268 security analysts emerged as first class of CFAs • Today – • As many as 80,000 candidates to register for the June, 2002 exam. • Nearly 400,000 CFA exams administered • More than 35,000 investment professionals have earned right to use the charter (to have the letters CFA after your name)

  6. AGENDA • Introduction & History – purpose & how it all started • Structure & Requirements – what the program entails • Preparation Involved – how much time & what involved • Topics Covered – what subjects are necessary to know • Demographics of Candidates – who are they? • Benefits of the CFA Designation – money, reputation, and continuing education • Careers & Salary Analysis – what the market is paying

  7. STRUCTURE OF PROGRAM • Divided into 3 Levels – Level I, II, and III • You may sit for 1 examination each year. • Exam usually offered either the last Saturday in May or first Saturday in June. • You must pass each level sequentially in order to take the next level. If you fail one level, then must re-take the exam the following year. • Minimum completion time is 3 years, maximum is 7 years.

  8. STRUCTURE OF PROGRAM • Level I – Multiple Choice • Level II – 50% Short Answer / 50% Essay • Level III – 50% Short Answer / 50% Essay • Self-Study Curriculum – • Pro – flexible enough for the busy professional. • Con – The exam is self-study.

  9. PASS RATES

  10. REQUIREMENTS OF DESIGNATION • Completion of all 3 Levels only one part to receiving the CFA Designation. • Must have at least 3 years of relevant work experience within investment analysis by the time you finish Level III. • Must have completed a Bachelors Degree in order to sit for the exam. • Must apply for membership in AIMR and an AIMR Member Society/Chapter. • And must meet professional conduct requirements (you have no crimes or skeletons in the closet)

  11. AGENDA • Introduction & History – purpose & how it all started • Structure & Requirements – what the program entails • Preparation Involved – how much time & what involved • Topics Covered – what subjects are necessary to know • Demographics of Candidates – who are they? • Benefits of the CFA Designation – money, reputation, and continuing education • Careers & Salary Analysis – what the market is paying

  12. PREPARATION • ON AVERAGE, each level of the Program calls for 250-300 hours of exam preparation. Can vary due to “self-study” nature of the exam. • Reading assignments compose the core of the study program and are the basis for the exam questions. • Reading assignments are from both textbooks other readings that are necessary for taking the exam. These must be purchased as part of the preparation for the exam.

  13. PREPARATION • Upon enrolling into the program, you will receive a comprehensive study guide detailing Learning Outcome Statements (LOS) – or specific subtopics that you are required to know for the exam. • The study guide is divided into study sessions that list the required readings and learning outcomes for each reading. • Textbooks and Readings are required purchases for the exam.

  14. PREPARATION • Review Courses, such as BeckerConviser / Stalla, are available to facilitate the learning process. • But they are not a substitute to preparing for the exam. • The best ingredients for successful preparation – • Mental focus & determination • Regular scheduled studying • Studying the assigned reading per LOS • And if it helps, taking review courses & getting involved in study groups.

  15. AGENDA • Introduction & History – purpose & how it all started • Structure & Requirements – what the program entails • Preparation Involved – how much time & what involved • Topics Covered – what subjects are necessary to know • Demographics of Candidates – who are they? • Benefits of the CFA Designation – money, reputation, and continuing education • Careers & Salary Analysis – what the market is paying

  16. TOPICS COVERED ON EXAM • The CFA Program’s Body of Knowledge includes – • Ethics & Professional Standards • Quantitative Methods • Economics • Financial Statement Analysis • Corporate Finance • Analysis of Debt Investments • Analysis of Equity Investments • Derivatives • Alternative Investments • Portfolio Management • Performance Measurement

  17. % BREAKDOWN OF COURSE STUDY

  18. CALCULATOR POLICY • Due to programming functions available for “formulas” – only 2 calculators are permitted to be used – • Texas Instruments BA II Plus • Hewlett Packard 12C • Proctors instructed to confiscate unauthorized calculators.

  19. AGENDA • Introduction & History – purpose & how it all started • Structure & Requirements – what the program entails • Preparation Involved – how much time & what involved • Topics Covered – what subjects are necessary to know • Demographics of Candidates – who are they? • Benefits of the CFA Designation – money, reputation, and continuing education • Careers & Salary Analysis – what the market is paying

  20. CFA CANDIDATEAGE PROFILE

  21. CFA CANDIDATEGEOGRAPHIC PROFILE

  22. CFA CANDIDATEGROWTH

  23. CFA CANDIDATEGLOBAL GROWTH

  24. CFA CANDIDATEEMPLOYMENT PROFILE

  25. AGENDA • Introduction & History – purpose & how it all started • Structure & Requirements – what the program entails • Preparation Involved – how much time & what involved • Topics Covered – what subjects are necessary to know • Demographics of Candidates – who are they? • Benefits of the CFA Designation – money, reputation, and continuing education • Careers & Salary Analysis – what the market is paying

  26. BENEFITS OF CFA DESIGNATION • Symbol of professional excellence, and as a result… • A primary qualification for senior level investment positions (and most analysts positions as well). • Frequently backed and financially sponsored by employers. • Global Acceptance – • In fact, in some parts of Asia, this is a way of keeping their financial system “clean” and “self-regulated” – something they have a hard time regulating themselves. • Membership into AIMR and local CFA Societies require the CFA. Bottom Line? Networking and Continuing Education access.

  27. THE IASC • The Investment Analysts Society of Chicago (IASC) – • Oldest CFA Society founded in 1925. • Also most prestigious with the history in finance that many of our members created.

  28. BENEFITS OF IASC MEMBERSHIP • Weekly luncheon meetings providing interesting speakers, networking, and most importantly, lunch… • Education & Career Development programs – new intellectual capital that can be used in practice. • Committee Involvement – there are several committees you can participate on to network and make a difference. • Jobs Listings – www.tiasc.org - and the site is also another way to network with the Society.

  29. AGENDA • Introduction & History – purpose & how it all started • Structure & Requirements – what the program entails • Preparation Involved – how much time & what involved • Topics Covered – what subjects are necessary to know • Demographics of Candidates – who are they? • Benefits of the CFA Designation – money, reputation, and continuing education • Careers & Salary Analysis – what the market is paying

  30. COMMON OCCUPATIONS OF CFAs • CEO / Principal • Chief Investment Officer • Equity Analyst • Fixed Income Analyst • Investment Banker • Investment Counselor • Investment Firm Manager • Portfolio Manager • Portfolio Strategist • Sales / Marketing Professional

  31. EMPLOYERSWITH LARGEST # OF CFAs • ABN Amro • American Express Financial • Bank of America • Bear, Stearns & Company • CIBC World Markets • Donaldson, Lufkin, & Jenrette • Chase J.P. Morgan • Lehman Brothers • Loomis, Sayles & Company • Merrill Lynch • Morgan Stanley Dean Witter • Nesbitt Burns • PaineWebber • Putnam Investment Management • RBC Dominion Securities • Salomon Smith Barney • Standish, Ayer & Wood, Inc. • State Street Global Advisors • UBS Asset Management • Wellington Management

  32. CAREER & MONEY BENEFITS • Definite correlation between high base salaries / bonuses with those individuals having the CFA and approximately 6 years of relevant experience. • Supported by 1999 study by HQ Search where 230 equity analysts and 60 mutual fund analysts working for 55 different Chicago-based investment companies, banks and consultants. • Also supported by 1999 Russell Reynolds national survey. • The CFA credential provides better career opportunities and not just in investment management. • Investment bankers, bankers and other financial managers value a CFA.

  33. CAREER & MONEY BENEFITS • Chicago as a financial hub – Growing money management industry base and thus, job prospects increasing – this is due to – • 1999 exodus of Chicago-based firms left numerous Chicagoans extremely wealthy from their sell-out provisions. • September 11 effect encouraging financial firms to diversify their locations.

  34. APPENDIX

More Related