CFA INSTITUTE RESEARCH CHALLENGE HOSTED BY CFA SOCIETY HARTFORDKICKOFF MEETING

October 30, 2014The Hartford Club

AGENDA• Welcome and Introduction: Kim DiPietro, CFA

Co-President - CFA Society Hartford

• Overview of CFA Charter : Raymond H. Bovich, CFAFirst VP – CFA Society Hartford

• Investment Research Challenge:• What is the Research Challenge?

• Participating Teams, Industry Mentors and Time Line

• Subject Company Introduction

• Rules, Roles and Responsibilities

• Subject Company

• Q&A

• Refreshments/Social Hour

: Raymond H. Bovich, CFAFirst Vice President – CFA Society Hartford

: Shankar Shivakumar, CFAChair - Local Level Research Challenge

: Raymond H. Bovich, CFAFirst Vice President– CFA Society Hartford

: Shankar Shivakumar, CFAChair – Local Level Research Challenge

: Dennis LangeDirector of Investor & Government Relations,Stanley Black & Decker, Inc.

CFA Society Hartford• Recently celebrated 60 year anniversary• Over 700 members• Offers expanded programming including:

• Two Investor Conferences per year• Annual Forecast Dinner drawing 500

attendees• Monthly speakers on diverse

investment topics• Social events in Hartford; New Haven;

Springfield and surrounding communities • Growing number of active volunteers –

new student members welcome!• 2013 – Hosted Local Investment Research

Challenge for first time

CFA Society Hartford Executive Board

• Co - Presidents - Kim L. DiPietro, CFA & Ned Steiger, CFA• Treasurer President Elect – Juliana B. Dalton, CFA • First Vice President (Education) - Raymond H. Bovich, CFA• Second Vice President (Programs) - John Fuller, CFA• Third Vice President (Membership & Advocacy) – Shannon Carbray, CFA• Past President - Karyn Cavanaugh, CFA

ASSOCIATION

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SPONSOR ACKNOWLEDGMENT

Kaplan Schweser: Regional Platinum Sponsor for the CFA Institute Research Challenge

CFA Institute:Brian Stype – Director, Research ChallengeAmanda Quinn – Program Administrator, Research Challenge

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The CFA Society Hartford gratefully acknowledges sponsorship and support from:

Overview of CFA Charter

Raymond H. Bovich, CFA First VP – CFA Society Hartford

THE CFA CHARTER

- Graduate-level investment credential- Held by more than 100,000 investment professionals

working in more than 130 countries- Recognized by regulatory bodies in many countries as a

proxy for meeting certain licensing requirements- More than 180 universities around the world incorporate

the CFA curriculum into their degree programs

GROWING DEMAND FOR THE CFA CHARTERCandidate exam registration

CFA INSTITUTE MEMBERS BY REGION

CFA PROGRAM CANDIDATES BY REGION

WHAT YOU LEARN AS A CFA CHARTERHOLDER

• Investment (equity and fixed income) analysis• Portfolio management• Wealth planning• Economic theory• Alternatives and derivatives• Performance measurement & evaluation• Risk management• Financial reporting• Quantitative methods

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WITH THE CFA CHARTER, YOU …

• Develop a comprehensive investment perspective• Gain fluency in practical investment analysis and

management skills• Earn credibility with industry peers• Become part of a global community of top industry

professionals• Gain the flexibility to work in any market• Are sought out by top industry employers• Demonstrate a commitment to ethics and professional

standards

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THE THREE LEVELS OF THE CFA EXAM

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EXAM SCHEDULES

June Heading 2

December

Level I

Level II

Level III

ENROLLMENT DETAILSThe Cost of CFA Program Levels I, II, and III

One-Time Initial Enrollment Fee US$440*

Exam Registration Fee US$680*

*Fees vary depending on the deadline by which enrollment and/or registration is completed and by the curriculum format that is chosen.

THE CFA EQUATIONSteps to earning the charter

WHAT CAN I DO WITH THE CFA CHARTER?Charterholder employment by sector

*Represents 82% of respondents. As of September 2012.

WHAT CAN I DO WITH THE CFA CHARTER?Charterholder employment by title

*As of September 2012

TOP GLOBAL EMPLOYERS OF CHARTERHOLDERS

*As of September 2012

EMPLOYERS SEEK OUT THE CFA CHARTER

“Enrollment in or completion of a CFA designation [program] would be an asset”-Investment Banking Analyst, Goldman Sachs, 2010

“You have, or are in the final year of [earning] , your CFA designation”-Equity Research Associate, Bank of America Merrill Lynch, 2010

“Completed [the CFA Program] or working towards CFA designation is advantageous”- Analyst, BlackRock, 2010

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* Listings from CFA Institute JobLine

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What is the Research Challenge?

Raymond H. Bovich, CFA First VP – CFA Society Hartford

WHAT IS THE CFA INSTITUTE RESEARCH CHALLENGE?• How is it organized?

- Worldwide intercollegiate competition between teams of students

- Organized by local CFA Institute volunteers – usually through CFA member societies

- At least 4 teams of 3-5 students participate

• What does it involve?- Analysis of a publicly-traded

company- Interviews with company

management- Mentoring by a CFA charter holder- Research report writing- Presentation of research

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2013 RESEARCH CHALLENGE NETWORK

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GLOBAL NETWORK OF THE WORLD’S TOP BUSINESS AND FINANCE STUDENTS

2014 TOURNAMENT DIAGRAM

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90+ LOCAL LEVEL CHALLENGES

APRegional

~20 Teams

EMEARegional

~25 Teams

AmericasRegional

~48 Teams

Global Final

BENEFITS FOR STUDENTS• Best practices in research and report

writing• Real-life learning experience as an

Equity Analyst• Access and exposure to leading

industry professionals• Professional report and experience to

use on resume/CV and job interviews• Experience presenting to top financial

professionals• Individual and team prizes• Opportunity for travel• Potential for media exposure• Network of over 10,000 students and

2,200 volunteers worldwide

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2012 TOURNAMENT RESULTS

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2013 GLOBAL CHAMPIONSWrocław University of Economics representing the CFA Society Poland

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Participating Teams, Industry Mentors and Time LineShankar Shivakumar, CFAChair - Local Level Research Challenge

PARTICIPATING TEAMSHARTFORD LOCAL COMPETITION

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University (# Team/s) State

Bryant University (1) Rhode Island

Providence College (2) Rhode Island

Trinity College (1) Connecticut

University of Connecticut (2) Connecticut

University of Hartford (1) Connecticut

Central Connecticut State University (1) Connecticut

University of New Haven (2) Connecticut

Industry Mentors

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Potential MentorsGail Bruhn, CFAJamie Rice, CFAPaul Musarra, CFALeslie Laub White, CFADale Sheldon, CFARodger Metzer, CFA

COMPETITION TIMELINE

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Timeline of EventsDate and Time Location Event

October 30, 20145:00 to 7:00 p.m.

Hartford Club Kick-Off Meeting

Early December 2014 (Exact date and time to be determined)

Telephone conference call or meeting at location to be determined

Investor Presentation by Target Company

12:00 PM January 26, 2015

E-mail correspondence (format to be determined)

Questions submitted to Target Company for responses via CFA Society Hartford

3:00 PMJanuary 30, 2015

E-mail response Response to questions from target company

February 12, 2015 E-mail correspondence (format to be determined)

Written papers due by 11:59 p.m.Papers must be e-mailed to jdalton@websterbank.com and shankarsanekal@gmail.com

March 5, 2015 Hartford location to be determined Final Verbal Presentation to Panel of JudgesAwards Ceremony

March 14, 2015 CFA Society Hartford sends notification CFA Institute deadline to receive names of winning local teams

April 15 to 16, 2015 Atlanta, Georgia Americas Regional Competition Winning team from Harford Competition receives an all-expense paid trip

April 17, 2015 Atlanta, Georgia Global Competition in AtlantaWinning teams form Americas Regional Competition attend

Subject Company Introduction

Raymond H. Bovich, CFAFirst Vice President – CFA Society Hartford

Dennis LangeDirector, Investor & Government Relations,Stanley Black & Decker, Inc.

• Founded in 1843 in New Britain, CT. • Stanley Black & Decker, an S&P 500 company, is a diversified global

provider of hand tools, power tools and related accessories, mechanical access solutions and electronic security solutions, engineered fastening systems, and more.

• Weblink: http://www.stanleyblackanddecker.com

The Board of Directors of CFA Society Hartford thanks Stanley Black and Decker for accepting our invitation to be the subject company and their support in providing invaluable experience for the students.

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Rules, Roles and Responsibilities Shankar Shivakumar, CFAChair- Local Level Research Challenge

RULES OVERVIEW• Each team consists of 3-5 students

(undergraduate or graduate)• Only two teams may represent each

university• Students must be enrolled in the

university they represent and registered for at least a part-time course load at the time of the kickoff meeting

• Reports and presentations must be the students’ original work

• Students may not have contact with the subject company outside of organized events

• Students may not enlist the help of any professionals other than the mentor or faculty advisor

• Mentors and faculty may NOT contact the company

• Mentors, faculty, and subject company may NOT provide material non-public information

• Written reports must conform to the guidelines set forth by CFA Institute and include the cover and back pages provided by CFA Institute

• Teams may not use props in their oral presentations

• Students, mentors, and faculty must all agree to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct

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ADVISOR AND MENTOR INVOLVEMENTFaculty Advisor• Insight and guidance on research

methods and tools as taught in academia

• 10 hours maximum of productive time

• Access to faculty for other projects unrelated to the Research Challenge is permitted

• All work must be the original work of the students

Industry Mentor• Insight and guidance on industry

practice• 6 hours maximum of productive time• Face to face or virtual• Company management question

development• Review first draft of research report• Presentation development

assistance

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INTERACTING WITH STANLEY BLACK AND DECKER, INC.• Designated officers ONLY• Organized communications ONLY• Industry mentor or faculty advisor

must be present for all student-subject company interactions

• Students may contact and survey company suppliers, customers, vendors, etc.

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ETHICS RESOURCES• Ethical Standards for Investment

Professionals: An Interactive Case-Based Course

• Ethics Course Module 2: Standard II—Integrity of Capital Markets

• Ethics Course Module 3: Standard III—Duties to Clients

• Ethics Course Module 6: Standard VI—Conflicts of Interest

• Ethics Course Module 7: Standard VII—Responsibilities as a CFA Institute Member or CFA Candidate

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SAMPLE REPORT

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REPORT SCORING

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PRESENTATION SCORING

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WHERE TO BEGIN• Visit the CFA Institute Research

Challenge website: www.cfainstitute.org/researchchallenge

• Register for the competition- Peruse educational materials

selected specifically for participants

- Watch videos of past presentations

- View past reports from winning teams

• Students MUST register on the CFA Institute website using the registration form provided by the local host.

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QUESTIONS?

CFA SOCIETY HARTFORDCONTACT INFORMATIONRaymond H. Bovich, CFA, First Vice President – CFA Society Hartford

E-Mail: raymond.bovich@snet.netTel: 860-227-4279

Shankar Shivakumar, CFA , Chair of Local Level CFA Research Challenge

E-Mail: shankarsanekal@gmail.comTel: 860-816-1962