career development cfa austria 02 06 2008. page 2 sponsored by: 2008 cfa ® program

Career DevelopmentCFA Austria

02 06 2008

Sponsored by:

2008 CFA® PROGRAM

Mission Statement

To lead the investment profession globally by setting the highest

standards of ethics, education, and professional excellence.

CFA Austria

www.cfaaustria.org

CFA Austria currently has 189 members

CFA charterholders 89 %

NON-CFA charterholders 11 %

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 %

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.

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.

Frontier (emerging)

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Bodies of Investment Knowledge

GBIK

CandidateBOK

Frontier (emerging)

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CandidateBOK

PWMBOK

CIPMBOK

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

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

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.

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.

Educational Content Committee Structure

Research FoundationBoard of Trustees

Education AdvisoryCommittee

ConferencesAnnual Conf. Comm.

FAS Board

PublicationsCFA Digest Ed. Board

FAJ Ed. BoardFAJ Advisory Council Private Wealth

Advisory Committee

Global Body of Investment Knowledge & Practice Analysis

Working Body

Candidates Universities

Members Societies

EXAMINATIONS

CURRICULUM

BODY OF KNOWLEDGE

PRACTICE ANALYSIS

GRADING

EAC

COE

Practitioners at every step of the process

STANDARD SETTING

MINIMUM PASSINGSCORE (MPS)

What is the CFA Program?Practical, Relevant Education

Global Passport: The CFA CharterMembers’ Locations

94,975 Members and 135 Societies Worldwide*

United States & CanadaMembers: 65,033

EuropeMembers: 13,359

Asia & Mainland ChinaMembers: 2,050

Latin AmericaMembers: 1,056

Pacific AsiaMembers: 11,267

Africa & Middle EastMembers: 2,199

* As of 1 April 2008

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

High Regard for the Charter: Financial Times

Financial Times, 18 June 2007Financial 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.

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

“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

High Regard for the Charter: L’Agefi

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

Benefits of the CFA ProgramKnowledge

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

Benefits of the CFA ProgramRespect and Credibility

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%

Benefits of the CFA ProgramDiverse Career Opportunities

Benefits of the CFA ProgramEmployers 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

High Regard for the Charter: Job Postings

CFA charterholders or candidates in the CFA

program are to be favored

Switzerland

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.

High Regard for the Charter: Job Postings

The CFA Course of StudyCFA Body of Knowledge™

• Ethical and Professional Standards

• Quantitative Methods • Economics • Financial Reporting and Analysis • Corporate Finance

• Equity Investments • Fixed Income • Derivatives • Alternative Investments

• Portfolio Management and Wealth Planning

Investment Tools

Asset Classes and Valuation

The CFA Course of StudyThree 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.

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.

Candidate Enrollments(for June 2007 and December 2007 exams)

U.S.49,622

Europe23,606

Canada12,780

Singapore6,272

U.K.9,580

P.R. China12,926

Hong Kong10,867

Korea6,094

Taiwan3,414

Australia3,339

Latin America

2,587

Middle East & Africa

8,241

• 32% non-U.S.• 78% Male• Age 31

• 68% non-U.S.• 74% Male• Age 30

June 1993 June 2007

Candidate Makeup

Preparation for the CFA ExamsValuable Learning Experience

The CFA Examinations2008 Exam Format

Multiple Choice Item Set (Objective)

Constructed Response

Level I ●100%

Level II ●100%

Level III ●50%

●50%

The CFA ExaminationsGraded with Great Care

• 291 CFA charterholders from 37 countries in 2007

• Teams of practitioners

• Rigorous and thorough process

• Consistency and fairness across all papers

2007 Exam Results

June 2007More 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 2007More than 37,000 candidates sat for Level I in December with a pass rate of 39%

Combined Pass Rates: 1963 - 2007

0%

20%

40%

60%

80%

100%

1963 1967 1971 1975 1979 1983 1987 1991 1995 1999 2003 2007

Year

Pe

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Pa

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CFA ProgramHistorical Combined Pass Rates

• 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

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.

Custom Curriculum

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

Registering for the CFA ProgramCFA 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

Connecting with a Local Society

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

Standards of Professional Conduct:

Professionalism Integrity of the capital markets Duties to clients Duties to employers Investment analysis and recommendations Conflicts of interest

More Information About the CFA Programwww.cfainstitute.org

Europe

One Canada Square, 10th FloorCanary Wharf London E14 5ABUnited Kingdom

Phone: 44-20-7531-0751 Fax: 44-20-7531-0767

E-mail: [email protected]

Contact Information

Dennis W. McLeavey, D.B.A., CFACFA InstituteHead, EducationEurope, Middle East and AfricaOne Canada Square, 10th FloorLondon E14 5ABUnited Kingdom +44 (0)20 7531 0756 tel+44 (0)20 7531 0767 faxEmail: [email protected]

career development cfa austria 02 06 2008. page 2 sponsored by: 2008 cfa ® program

Documents

investment professional

cfa program

investment practitioners

practice analysis process2006

results of practice

noncfa charterholders

cfa curriculum development

cfa institute dev