Pagina2004-2005 CFA Program 1

pagina2004-2005 CFA Program
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TRES LOGOS, UN SOLO OBJETIVO.
1.- CFA Institute 2.- CFA Spain 3.- CFA Program
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1.- CFA Institute
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1.- CFA Institute

1.1.- What is the CFA Institute 1.2.- Mission and core values 1.3.- The CFA Charter 1.4.- Members, Candidates and Local Societies 1.5.- Members Benefits 1.6.- CFA Institute Publications
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1.1- The CFA Institute
What is CFA Institute?

Global nonprofit association with more than 70,000 investmentprofessional constituents from 135 nations around the world. Headquartered in Charlottesville, USA also maintains offices in New York, London & Hong Kong. CFA Institute and 130 local CFA Institute societies provide ongoing career development for members through continuing education, advocacy, and professional conduct programs.
CFA Institute sets industry standards for knowledge, professionalism & integrity through the (Chartered Financial Analyst) CFA Program.
Ethical and professional standards the CFA Institute Code of Ethics and GIPS (Global Investment Performance Standards) foster high levels of integrity and transparency within the investment management process.
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1.2- The CFA Institute
Mission and Core Values
CFA Institute Mission:
To lead the investment profession globally by setting the highest standards of ethics, education, and professional excellence
Excellence
CFA Institute Core values
Integrity Strength of Community and Cooperation Volunteer Service
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1.3.- The CFA charter
The Chartered Financial Analyst (CFA)

CFA Institute sponsors the Chartered Financial Analyst (CFA ) Program. Growth in world financial markets has created an unprecedented demand for investment practitioners. This demand has clearly established the importance of a globally accepted standard with which employers and investors can validate the knowledge, integrity, and professionalism of investment managers and financial analysts.
That standard is the Chartered Financial Analyst (CFA) Program.

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1.4.- Members, Candidates and Local Societies
Location of Members and CFA Candidates

74,665* Members as of December 2004
Members-Candidates
Canada 9,670 6,016
Europe 9,189 9,021
China Mainland 311 6,016
United States 45,379 23,001
Asia 255 1,923
Latin America 721 1,052
Africa & Middle East 1,351 2,661
Pacific Asia 7,789 12,943
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1.4.- Members, Candidates and Local Societies
CFA Institute Member Societies

131 Member Societies as of December 2004
Canada 12 Societies Asia Pacific 13 Societies United States 69 Societies Europe 21 Societies
Middle East 7 Societies Central & South America 7 Societies
Africa 1 Society
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1.5.- Members Benefits
Core Member Benefits

CFA Institute Publications Professional Development Program Advocacy Efforts Professional Conduct Performance Presentation Standards JobLine Member Insurance Program Membership Communication Public Awareness Program
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1.5.- Members Commitments
Member Commitments
1.- Education Voluntary commitment to professional development 2.- Ethics Strict adherence to a high standard of ethics and professional conduct 3.- Advocacy Commitment to fair presentation of investment performance, full corporate financial disclosure, and interaction with regulatory and standard-setting authorities
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1.6.- CFA Institute Publications
CFA Institute Publications
CFA Magazine (January 2003 - present online)
Financial Analysts Journal (1999 - present online)
Research Foundation Publications

(2000 - present online)
Also available: CFA Refresher Readings & Special collections
CFA Institute Conference Proceedings (2000 - present online )
The CFA Digest TM

(1997 - present online)
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2.- CFA Spain
www.cfaspain.org
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2.- CFA Spain

2.1.- What is CFA Spain? 2.2.- Sponsors 2.3.- How to become a member 2.4.- Membership Meaning 2.5.- Membership Benefits 2.6.- Activities
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2.1.- CFA Spain
What is CFA Spain?

CFA Spain, a non-profit organization, was created in 1977 by Spanish CFAs for the following purposes: Promotion of financial analysis and investment management; Support of ethical and professional standards among local community; Promotion and enhancement of communication among investment professionals within the Spanish community; Promotion of the CFA professional designation in Spain. Development of continuing education programs. CFA Spain is a member of CFA Institute and as such adheres to the CFA Institute articles and bylaws. It participates and is represented directly and/or indirectly by various academic and management committees of the CFA Institute.
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2.2.- CFA Spain
Sponsors
Initial Sponsors Since its beginnings, CFA Spain was able to rely on the support and sponsorship of many prestigious national and international financial entities, which made our development possible. Our Founders are: - ABN Amro - Bancoval Grupo Dexia - Barclays - Bolsa de Bilbao - Credit Suisse First Boston - Invercaixa -Societ Generale
- Alpha Corporate - Banesto Bolsa - Fortis Bank - Citigroup - Deutsche Bank - Merrill Lynch
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2.3.- CFA Spain
How to become a member

Two types of membership: Regular
Bachelor degree or equivalent education/ work experience pass level I of the CFA exam have 4 years acceptable work experience in the investment-decision making process or passed self-administered standards of professional practice examination adhere and sign members agreement and professional conduct statement have 4 years acceptable work experience in the investment-decision making process
Affiliate Adhere and sign members agreement and professional conduct statement Both types of membership require 2 sponsors: CFA charterholder. Applicant supervisor.
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2.4.- CFA Spain
Being a member of CFA Spain means:

Be informed and attend events organized by CFA Spain and CFA Institute. Obtain special prices / discount for conferences, events, seminars organized by CFA Spain. Access to the Spanish Financial Community by interacting with other professionals. The possibility of involvement in the development of the CFA community in Spain. Receive CFA Spain and CFA Institute publications.
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2.5.- CFA Spain
What does CFA Spain offer

Independence: society members belong to different financial institutions and their common purpose is to provide the financial sector with new principles. The organization depends only on its members. Ethics: high ethical and professional standards have to be followed by all the members and CFAs Internationalization: belonging to an association with international presence and prestige, offers its members the chance to be informed and take advantage of new ideas, tendencies and knowledge. Continuing Education: one of CFA Spains main purposes is to enhance continuing education by offering different types of support to the Spanish financial community.
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2.5.- CFA Spain
Our activities
Presentation of the CFA designation at universities, financial institutions and the Stock Exchange. Seminars: EVA, European Sectors, High Yield Bonds. Optimization Black-Litterman model. Conferences: Behavioural Finance, IPO Valuation, Corporate Valuation. Sponsorship of the SIPC committe. Review courses CFA Level I & II. Exam practice (on-line tool & Simulated exam). Networking: Award Dinner, Annual Dinner, cocktails. Sponsorships for the CFA exam.
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2.5.- CFA Spain
Volunteer Service
The principal characteristic that has allowed CFA Spain to become a thriving institution is the spirit of volunteerism. The success of CFA Spain is the result of the willingness of member volunteers to give their time to serve the greater good of the investment community.
Member volunteers are key players in virtually all CFA Spain projects and initiatives. It is members willingness to serve as local advocates and ambassadors for the CFA Institute that has allowed the organization to set the highest standards of education, integrity, and professional excellence. Contact CFA Spain www.cfaspain.org for more information.
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3.- 2005 CFA PROGRAM
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3.- 2005 CFA PROGRAM

3.1.- What is the CFA Program 3.2.- The CFA Course of Study 3.3.- The CFA Examinations 3.4.- Global Passport: The CFA Charter 3.5.- Benefits of the CFA Program 3.6.- Registering for the CFA Program 3.7.- Scholarships for the CFA Program 3.8.- CFA Charter Requirements
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3.1.-What is the CFA Program?
Respect and credibility
Built on a broad-based Body of Knowledge, the CFA Program is intended to supplement the education and work experience of investment professionals. The study curriculum covers the fundamentals of financial analysis and investment decision making.
No other designation within the investment management profession carries as much prestige as the CFA charter.
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3.1.-What is the CFA Program?
Three Levels and Three Exams

Ethical and professional standards are emphasized at every level. 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. Study Sessions are built on Learning Outcome Statements (LOS): The candidate should be able to.
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3.1.- What is the CFA Program?
CFA Body of Knowledge

The Body of Knowledge includes the 10 general topic areas: 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
Ethics
Investment Tools
Asset Valuation
Portf. Mgmt.
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Rigorous Self-Study Program

The CFA Course of Study: Three Levels Topic Areas
5% 15% 10% 40% 50% 50% 35% 10% 5%
30%
40% 10%
Level I
Level II
Investment Tools Asset Valuation Portfolio Management Ethics & Professional Standards
Level III
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Practical, Relevant Education

The CFA Program is relevant because the Body of Knowledge is based on the continual feedback from investment professionals & academics. The entire process begins with a detailed analysis performed every five years (next in 2005-06) in which professionals participate to develop a list of core topics: the CFA Candidate Body of Knowledge (CBOK).
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3.2.- The CFA Course of Study
2005 Level I Primary Textbooks

Standards of Practice Handbook
(AIMR, 1999)
Quantitative Methods for Investment Analysis

Defusco, McLeavey, Pinto, & Runkle (CFA Institute, 2004)
Economics: Private and Public Choice

Gwartney, Stroup, Sobel, & Macpherson (South-Western, 2003)
The Analysis and Use of Financial Statements

White, Sondhi, & Fried (Wiley, 2003)
Fundamentals of Financial Management

Brigham & Houston (Dryden, 1998)
Investment Analysis and Portfolio Management

Reilly & Brown (South-Western, 2003)
Fixed Income Analysis for the CFA Program

Fabozzi (Frank J. Fabozzi Assoc., 2004)
Analysis of Derivatives for the CFA Program

Chance (AIMR, 2003)
International Investments
Solnik & McLeavey (Addison Wesley, 2003)
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3.3.- The CFA Examinations
2005 Exam Format

All exams are 360 minutes = 360 points
Multiple Choice Level I Level II* Level III Item Set (Objective) Constructed Response
100% 100% 50% 50%
Item sets are comprised of a case followed by six multiple choice questions each related to the case. They allow candidates to demonstrate a deeper understanding of the material than traditional questions.
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Exam Centers Outside the United States

Argentina Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belgium Bermuda Brazil Bulgaria Canada Alberta British Columbia Manitoba New Brunswick Newfoundland Northern Territory Nova Scotia
Ontario Quebec Saskatchewan Cayman Islands China Chile Croatia Cyprus Czech Republic Denmark Egypt Finland France Germany Ghana Greece Hong Kong Hungary Iceland India
Indonesia Ireland Israel Italy Jamaica Japan Jordan Kazakhstan Kenya Korea Kuwait Latvia Lebanon Lithuania Luxembourg Macedonia Malaysia Malta Mauritius Mexico
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Netherlands New Zealand Oman Pakistan Panama Peru Philippines Poland Portugal Puerto Rico Romania Russia Saudi Arabia Scotland Singapore South Africa
Taiwan Thailand Trinidad Turkey Ukraine United Arab Emirates United Kingdom Venezuela Vietnam Zimbabwe
Spain
Sri Lanka Sweden Switzerland
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Historic Pass Rates

Pass Rates: 2004
100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0%
I II III
Pass Rates: 1963-2004

100% 90% 80%
68%
64%
70% 60% 50%

50% 52%
35%
32%
40% 30% 20% 10% 0%
II
III
These pass rates are based on those candidates who actually took the exams and do not include candidates who fail to sit for the exams. Typically about 20-25% of enrolled candidates dont show up on exam day.
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Graded with Great Care

Level I: Machine graded.
Level II&III: Item set portion machine graded, Essay and problem portion graded by teams of CFA charterholders (more than 350 in 2005). MPS (minimum Passing Score). Established by Board of governors (20+ people involved) Multiple inputs used to set MPS( standard setting, candidate performance statistics, etc.). Passing rate for each level is a residual determined by each levels MPS.
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3.4.- Global Passport: The CFA Charter
Members and Candidates Locations

74,665 Members; 62,633 Candidates and 131 societies*
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 Pacific Asia Members: 6,608 Candidates: 29,777
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* as of December 2004
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3.4.- Global Passport: The CFA Charter
Growing Non-US Numbers

45,000 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
Asia Canada Europe Other
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3.5.- Benefits of the CFA Program
Diverse Career Opportunities

When hiring, promoting and assigning additional responsibility, a large number of employers use the CFA charter as a benchmark for measuring capability and professionalism.
Mutual Funds / Investment Companies Brokerage / Investment Banks Investment Management Counselors Commercial Banks / Trust Companies Consulting Firms Insurance Companies Other
25% 19% 14% 13% 6% 5% 18%
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Respect and Credibility

Registering for the CFA puts you in the company of more than 100.000 investment professionals around the world. Successful completion of the program provides you with access to the programs and services of the CFA institute and CFA Spain. 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
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Opportunity Top 22 Employers

More and more institutions now recognize the value of the CFA program, providing CFA holders with a clear advantage when competing for promotions and other career opportunities.
Bank of America Barclays CIBC World Markets Citigroup Credit Suisse Deutsche Bank Fidelity Investments Goldman Sachs ING Group N.V. J.P. Morgan Chase Lehman Brothers Mellon Financial Corp. Merrill Lynch & Co. Morgan Stanley Northern Trust Corp. PricewaterhouseCoopers Prudential Financial Putnam Investments RBC Financial Group State Street UBS AG Wellington Management
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3.6.- Registering for the CFA Program
Three Ways to Register

Register online at: www.cfainstitute.org Register by mail Contact CFA Spain www.cfaspain.org for more information on registration and enrollment package.
All three levels of CFA examination are offered in June at more than 270 sites around the world. A second administration of the level I examination is offered at a limited number of sites in December. (Level II in the near future)
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Basic Entrance Requirements

Bachelors degree or the equivalent. Undergraduate students must expect to receive a bachelors degree no later than 31 December of the exam year to enter the program. Complete the registration and enrollment form and pay the required fees. Be prepared to take the examinations in English.
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Bachelors Degree Requirement

Candidates Highest Degree
2% 1%
31%
Bachelors Masters Doctorate Law
66%
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1st Year Program Costs 2005

Approximate Costs for New Level I Candidates Registration fee to enter CFA Program Enrollment fee for Level I examination Study materials for Level I: Study Guide CFA Institute publications Primary textbooks Approximate Total Costs for Level I
US $375 US $360 Free US $268 US $427 US$1,430
*Registration & Enrollment by 1st fee deadline.

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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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3.7.- Scholarships for the CFA Program
Three Scholarship Programs
Student Scholarships For New Level I Only* Faculty Scholarships Available for Any Level* Society Scholarships Available for Any Level*
Registration fees waived:candidate pays $150 for enrollment.

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3.8.- CFA Charter Requirements
YOU MUST Sequentially pass Level I, II, and III exams Have four years of acceptable work experience Provide professional references (Level III) Submit professional conduct statement Join CFA Institute and Apply for membership for CFA Spain.
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3.8.-Connecting with a Local Society
Candidates can benefit by joining CFA Institute and a local society as soon as they complete the Level I exam. Access to the network provided by the membership and ongoing continuing education opportunities can be a critical element in career enhancement.
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Chartered Financial Analyst

A Symbol of Integrity and Professional Excellence
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pagina2004-2005 CFA Program

TRES LOGOS, UN SOLO OBJETIVO.

1.- CFA Institute 2.- CFA Spain 3.- CFA Program