THE CFA SOCIETY, THE CFA & THE RESEARCH CHALLENGE

A member society of

Presented by

What we will discuss

• Introduction to– CFA San Francisco– The CFA Institute– The CFA Designation– The CFA Exam

• Investment Research Challenge– What it is / Key Dates– What you learn

• How you can get involved

• Questions

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Who’s Who

• CFA Society of San Francisco www.cfa-sf.org– Membership consists of local CFA charterholders– Offer CFA Review programs, Levels I – III– Sponsors meetings between analysts & companies

• CFA Institute www.cfainstitute.org

– Administers CFA® exams, Levels I – III– Awards CFA® charter to successful candidates

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CFA Society of San Francisco

• CFASF is a non-profit, professional organization serving the Bay Area financial community since March 1929.

• CFASF is one of the largest local societies in CFA Institute.– Currently has 3,200+ members working for banks, insurance

companies, investment counselors, brokers, public agencies, universities and corporations.

• CFASF offers several services to its members and candidates.1. Largest & most comprehensive CFA® Review program at all three

levels in the Bay Area.2. Regular meetings between analysts and companies3. Continuing education programs,4. Job listings5. Charity events.

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CFASF Student Members

• Benefits of Membership Include:– Access to Members Only section of CFASF's website, featuring

online member directory, career resources and more.– Discounted registration fees for professional development

programs.– Opportunities to volunteer.

• Student Membership Requirements: – Sponsorship by two Regular CFASF members, plus a

professor’s confirmation of student status. – Dues are $100 per year.

• Note: Students are members of CFA Society of San Francisco; they are not members of CFA Institute.

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CFA Society of San Francisco Links

• Home Page: www.cfa-sf.org

• Candidate Overview Page: (general information) www.cfa-sf.org/cfmfiles/asp/cfainfo.asp

• Review Course Information and Registration: www.cfa-sf.org/cfmfiles/cal/eventlist1.cfm?t=e

• Study Groups: www.cfa-sf.org.org/cfmfiles/asp/studygrp.asp

• Scholarship/Fellowship Application: http://www. cfa-sf.org.org/cfmfiles/asp/scholarship.asp

Email: dave@cfa-sf.org Phone: 415.814.7906

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CFA Institute

• Founded in 1990, predecessors date to 1947. Has over 120,000 charter holders with 135 societies/chapters worldwide. www.cfainstitute.org

• Mission is to advance the interests of the global investment community by establishing and maintaining the highest standards of professional excellence and integrity.

• Administers the Chartered Financial Analyst Program (CFA®). – Curriculum develops & reinforces knowledge of investment principles. – Three levels of examination measure candidate ability. – CFA® exam is given annually in more than 168 nations worldwide.– 118,000 candidates from 162 countries took the June 2014 exams.

• Other benefits include membership, access to timely conferences and publications, network of societies and chapters.

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CFA Institute Website Links

• Course of Study [Main page for many ‘need-to-know’ items]

www.cfainstitute.org/cfaprogram/courseofstudy/Pages/index.aspx

• Registration for CFA Exam www.cfainstitute.org/CFAPROGRAM/PROCESS/Pages/index.aspx

• Study Guides (Required readings & LOSs):

www.cfainstitute.org/cfaprogram/courseofstudy/Pages/study_sessions.aspx

• CFA Institute Online Sample & Mock Exams: www.cfainstitute.org/programs/cfaprogram/courseofstudy/Pages/sample_and_mock_exams.aspx

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The CFA® Designation

Administered by

© 2000 Association for Investment Management and Research

CFA® Charterholder Job Functions

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Level IKnowledge & Comprehension of Fundamental Investment Tools and Concepts

Level II Application & Analysis focused on Asset Valuation

Level III Synthesis & Evaluation of Client Needs and Portfolio Management Issues

Ethical & Professional Standards -

Emphasized at every Level

What is the CFA Program?Three Levels & Three Exams

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Topic Area Weights for the CFA Exam

Topic Area Level I Level II Level IIIEthical and Professional Standards (total) 15 10 10

Quantitative Methods 12 5-10 0

Economics 10 5-10 0Financial Reporting and Analysis 20 15-25 0

Corporate Finance 8 5-15 0

Investment Tools (total) 50 30-60 0

Equity Investments 10 20-30 5-15

Fixed Income 12 5-15 10-20

Derivatives 5 5-15 5-15

Alternative Investments 3 5-15 5-15

Asset Classes (total) 30 35-75 35-45

Portfolio Management and Wealth Planning (total) 5 5-15 45-55

Total 100 100 100

The CFA® Course of StudyThree Levels – Topic Areas

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Actual exam weights may vary slightly from year to year.

Note that some topics are combined for testing purposes.

The CFA® ExaminationsExam Format

• Level I: 100% Individual Multiple Choice Questions• Exam: 240 questions over 360 minutes

• Average 1.5 minute per question

• Level II: 100% Item Set• Information Vignette & related multiple choice questions.• 20 item sets with 6 questions each. Each question

averages 3 minutes long.

• Level III: 50% Item Set / 50% Constructed Answer• Constructed answer = discussion-type or problem-solving• 10-18 constructed answer questions worth 180 points .

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International Recognition– Employers and media around the world praise the CFA designation

Credibility– Clients & colleagues regard you with a presumption of expertise

Respect– Your efforts connect you with the prestige of existing charterholders

Competitive Advantage– Employers & clients require professionals who demonstrate competence

in implementing international investment strategies Knowledge with a Global Perspective

– Practice analysis is conducted every five years to determine a globally relevant, broad-based curriculum.

Connections– 92,000+ charterholders & 144,000+ candidates around the world who

are active investment professionals with senior responsibility

Benefits of the CFA® Program

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THE CFA INSTITUTE RESEARCH CHALLENGE

Craig Ayers, CFA, Bill King, CFADave Bolt, CFASF Education Director

September 22, 2014

2013 RESEARCH CHALLENGE

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THE INVESTMENT RESEARCH CHALLENGEWHAT IS IT?

FIRST SHOW, THEN TELL…

A new student experience video featuring the three Global Finalist teams: https://www.youtube.com/watch?v=6POIAHu8flo&index=1&list=UUHwkW7lTTzf19xg5R4gfwVw

RESEARCH CHALLENGE PROMO VIDEO

CFA CHALLENGE CHANNEL

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

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THE INVESTMENT RESEARCH CHALLENGEWHAT DO YOU LEARN?

- Working with Investor Relations.

- Conducting Company Specific Research.

- Building and defending an investment hypothesis.

- Producing a comprehensive written report.

- Summarizing your findings in a 10 minute presentation.

- Presenting to a panel of portfolio managers in a board room setting.

- The experience of being an equity analyst.

SAMPLE REPORT

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2013 TOURNAMENT DIAGRAM

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90+ LOCAL LEVEL CHALLENGES

APRegional

~20 Teams

EMEARegional

~25 Teams

AmericasRegional

~48 Teams

Global Final

SAMPLE TOURNAMENT RESULTS (2012)

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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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THE INVESTMENT RESEARCH CHALLENGEKEY DATES (TENTATIVE)

October 17, 2014Kick off meeting at CFA-SF offices in San Francisco

November 7, 2014Educational Session/ Factset PresentationAt CFA-SF offices in San Francisco

December 12, 2014Team Sign Up DeadlineRSVP for Company Presentation

December 17, 2014Company Presentation

February 2 (10:00 pm), 2015Written Reports Due

February 12 (Thursday), 2015Presentations from Students at location TBA

THE INVESTMENT RESEARCH CHALLENGEHOW DO YOU SIGN UP?

It all starts at the local level.

Because we rely on volunteers all around the world to organize and host the local level competitions, getting involved can be a bit confusing.

Follow your path to the right.

THE INVESTMENT RESEARCH CHALLENGELINKS / RESOURCES

- EDUCATIONAL RESOURCES

- OFFICIAL RULES

- CFA SF RESEARCH CHALLENGE LINKEDIN GROUP

- FACTSET

UNIVERSITY OUTREACHGOING FORWARD

- CFA needs a better way to keep in touch with students and universities.

- Putting together a University Council

- Consisting of Craig Ayers, Matt Zuck (Co-chairs of University Outreach)

- And student representatives of local universities.

- Benefits:

- networking, resources, resume.

- Obligation:

- help us coordinate activities at your university,

- offer feedback,

- hand the job off to a successor next year.

WHAT WE DISCUSSED• Introduction to

- CFA San Francisco

- The CFA Institute

- The CFA Designation

- The CFA Exam

• Investment Research Challenge- What it is- What you learn

How you can get involved- UNIVERSITY COUNCIL- STUDENT MEMBERSHIP- COMPETE IN THE RESEARCH CHALLENGE

• Questions

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