Cfa charter brochure


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Cfa charter brochure

  1. 1. CHARTER
  2. 2. The CFA® Charter is a globallyrecognized, graduate-levelinvestment credential.Earning it demonstrates acommitment to professionalethics and expertise with thebroad range of skills neededfor competitive careers in theinvestment profession.To earn the CFA Charter youmust complete the CFA Program.
  3. 3. TABLE OF CONTENTS What is the CFA charter? 4 Who earns the CFA charter? 6 What will I learn? 14 What is the CFA Program like? 22 What is it like to be a CFA charterholder? 30 How do I get started? 34 I wanted a credentialthat represented a realglobal standard that’sinternationallyrecognized. Nina de Martinis-Majstorovic, CFA Paris, FRANCE 3
  4. 4. what is the cfa charter? Since it was first introduced in 1963, the Chartered The Program is organized into three levels, each Financial Analyst® designation, or CFA charter, has culminating in a six-hour exam. CFA Program become the most respected and recognized invest- candidates report dedicating in excess of 300 hours ment credential in the world. of study per level. Completing the entire Program is The CFA charter is the future. a significant challenge that takes most candidates And if I am committed to be Earning the CFA charter demonstrates mastery of between two and five years. the skills most needed for investment analysis and part of this industry, then decision making in today’s fast-evolving global To ensure that the Program maintains a focus on the financial industry. That’s why employers and clients global investment management profession from the it’s something I should have. around the world are increasingly seeking out standpoint of practitioners, practicing CFA charter- Ashley Khoo, CFA CFA charterholders—often making the charter a holders from around the world are involved at every Hong Kong SAR prerequisite for employment. stage of curriculum development, exam develop- ment, exam grading, and even the setting of the To earn the CFA charter you must have four years minimum passing scores. of qualifying investment work experience; you must become a member of CFA Institute (the global How well known association of investment professionals that adminis- is the CFA charter? ters the CFA charter), pledging to adhere to the CFA Institute Code of Ethics and Standards of Professional • There are currently more than 90,000 CFA Conduct on an annual basis; you must apply for charterholders working in over 135 countries membership to a local CFA member society; and you around the world. must complete the CFA Program. • Regulatory bodies in 19 countries recognize the CFA charter as a proxy for meeting certain The CFA Program is a globally recognized, graduate- licensing requirements. level curriculum that provides you with a strongAshley has worked in foundation of the real-world investment analysis • More than 125 distinguished colleges andboth New York and universities around the world haveHong Kong and and portfolio management skills and practical incorporated a majority of the CFA Programmentors students knowledge you need in today’s investment industry. curriculum into their own courses, including thewho are interested It also emphasizes the highest ethical and profes-in the CFA Program. University of Oxford’s Saïd Business School; sional standards. New York University; INSEAD; Peking Univer- sity; and Nanyang Technological University.4
  5. 5. who earns the cfa charter? Mexico City, MEXICO
  6. 6. who earns the cfa charter? career changers Our industry has so Many non-investment professionals, such as many different types attorneys and accountants, choose to earn the CFA charter to gain broader professional exper- of products, and the tise. If you are developing an additional area of proficiency or if you are seeking to make a career CFA Program covers change into the investment profession, complet- every single different ing the CFA Program is a cost-effective way to gain the skills you need for success in today’s area. Ken Luce, CFA global investment profession and to signal the Toronto, CANADA seriousness of your intentions. investment students professionals If you are a student planning to enter the finance The CFA Program curriculum is designed to or investment profession, there is no better way complement your experience with a broad range to signal your commitment and your ability to of skills determined to be most relevant by perform at a high level than by enrolling in the investment practitioners and employers. Acquiring CFA Program, learning the skills you will need to this additional knowledge will enhance your pro- succeed in the investment industry, and earning fessional abilities and will increase your standing the CFA charter. with colleagues, clients, and your employer. Earning the CFA charter helped Ken find a job even during a tough job market.Ken Luce, CFAToronto, CANADA 9
  7. 7. CFA Institute and the charter give you an edge in getting the job and then excelling in your job. Rana Atallah, CFA Kuwait City, KUWAIT Rana Atallah, CFA How does the CFA Among these many specialties in the investment Kuwait City, KUWAIT Program compare profession, CFA charterholders hold the follow- ing types of positions in more than 130 countries with an MBA program? around the world: The CFA Program focuses specifically on invest- ment knowledge; most MBA programs cover a broad range of topics. The self-study nature of the CFA Program also enables many candidates to continue working full time while enrolled in 22% Portfolio Managers the Program. Many professionals find that the CFA charter and an MBA complement each other. 14% Research Analysts 7% Chief Executives What jobs does the 5% Consultants CFa Charter prepare 5% Risk Managers me for? 4% Corporate Financial Analysts 4% Financial AdvisersWith growing demand The CFA Program equips you with the practical 4% Investment Banking Analysts/Bankersfor the charter, Rana 4% Relationship Managers, and fundamental knowledge you need for a wide Sales & Marketingknows that the hardsacrifices she made variety of career choices in the investment profes-to earn the charter sion. CFA charterholders find that earning the CFAwere all worth charter provides them with a passport for workingit in the end. within numerous investment specialties and mar- kets across the globe. It also better equips them to 30% Other (ex. traders, auditors, brokers) change specialties as their careers evolve. Source: Self-reported employment data as of 1 August 2011. Percentages may not add to 100% due to rounding.10
  8. 8. The CFA Program is different. The knowledge I got from the CFA Program is far more job related than the theoretical knowledge you get from school. Pan Jiang, CFA Shanghai, CHINA Why do employers who Employs and clients value CFA charterholders? CFA charterholders? Earning the CFA charter demonstrates your fluency with the skills you need to make sound investment decisions, as well as your understand- 23% Investment company; mutual fund ing of professional and ethical responsibilities. As the global marketplace becomes increasingly Private-client wealth-management 16% services; family office; trust company competitive, employers recognize the CFA charter as a reliable way to differentiate the most qualified job applicants and the most committed Broker-dealer; investment banking; employees. As a result, employers are increas- 16% sell-side research ingly seeking those who have earned the Institutional investment management services; CFA credential, often listing it as a requirement 10% corporate plan sponsor; corporate treasury Jiang volunteers as in job advertisements. 8% Consulting firm a mentor for the CFA 3% Educational institution Institute Research 3% Not applicable (retired, unemployed, etc.) Challenge, an annual 2% Public plan sponsor; public fund global competition for 2% Regulatory agency; government university students. 1% Foundation/endowmentPan Jiang, CFA 17% OtherShanghai, CHINA Source: June 2011 Practice Analysis Survey of CFA Institute Members. Percentages may not add to 100% due to rounding. 13
  9. 9. What will I learn? Sydney, AUSTRALIA
  10. 10. What will I learn? practical, LEVEL I –TOOLS real-world skills • Tools and concepts that apply to investment The CFA curriculum, in general, valuation and portfolio management The CFA Program curriculum is firmly grounded • Basic concepts regarding asset classes, is the best I have seen in trying in the enduring knowledge and skills you will use every day in the investment profession. It is also securities, and markets to dig into economic reality. designed to evolve each year to include new tools, • CFA Institute Code of Ethics and Standards Zouheir Tamim-Jarkas, CFA ideas, and concepts to reflect the dynamic and of Professional Conduct Abu Dhabi, UNITED ARAB EMIRATES complex nature of the global investment profession. LEVEL II –ASSET VALUATION The curriculum provides a comprehensive frame- • Application of tools and concepts of work of knowledge for investment decision making. investment valuation This framework contains concepts that you will • Industry and company analysis use at all stages of your career and in many areas of specialization. You can view samples of the • Analysis of investment vehicles CFA Program curriculum, study sessions, and and instruments sample exam questions at • CFA Institute Code of Ethics and cfaprogram/courseofstudy. Standards of Professional Conduct What does each LEVEL III –PORTFOLIO MANAGEMENT exam level cover? • Management of institutional and individual portfolios At Level I, you will be asked basic knowledge and comprehension questions focusing on asset • Management of specific asset valuation. Some questions will require that you class portfoliosZouheir instructs new perform analysis. Level II further emphasizes • CFA Institute Code of Ethics andemployees at his firm analysis along with application, while Level III Standards of Professional Conductthrough Level I of the focuses on synthesizing basic knowledge withCFA exam. His studentsachieve a near-perfect evaluation tools and analytical methods forpass rate. effective portfolio management.16
  11. 11. Who creates the curriculum?Practice Analysis The CFA Program curriculum is founded on an curriculum topic breakdownLondon, UNITED KINGDOM extensive and ongoing global practice-analysis by exam level PORTFOLIO MANAGEMENT AND WEALTH PLANNING process that relies on input, discussions, surveys, EQUITY INVESTMENTS 10% FINANCIAL REPORTING AND ANALYSIS and review from thousands of active practitioners FIXED-INCOME INVESTMENTS and CFA charterholders. ETHICAL AND PROFESSIONAL STANDARDS DERIVATIVES Administered by CFA Institute, this process ALTERNATIVE INVESTMENTS leverages the broad expertise and specialized QUANTITATIVE METHODS knowledge of our global membership as well as CORPORATE FINANCE panels of industry experts and employers. The ECONOMICS body of knowledge that results from this process 20% directly informs the content within 10 general Level I topic areas of the CFA Program curriculum and is Level II Level III tested in the CFA Program examinations. For further information on the practice-analysis process and curriculum development, please visit curriculum. 70% 30% 60% 40% 50% 19
  12. 12. CURRICULUM TOPICS ETHICAL AND PROFESSIONAL STANDARDS FINANCIAL REPORTING AND ANALYSIS EQUITY INVESTMENTS ALTERNATIVE INVESTMENTS Professional Standards of Practice Financial Reporting System (IFRS and GAAP) Types of Equity Securities and Types of Alternative Investments and Ethical Practices Principal Financial Statements Their Characteristics Their Characteristics Financial Reporting Quality Equity Markets: Characteristics, Institutions, Real Estate QUANTITATIVE METHODS Analysis of Inventories and Benchmarks Private Equity/Venture Capital Time Value of Money Analysis of Long-Lived Assets Fundamental Analysis (Sector, Industry, Company) Hedge Funds Probability Analysis of Taxes and the Valuation of Individual Equity Securities Closely-Held Companies and Probability Distributions and Analysis of Debt Equity Market Valuation and Return Analysis Inactively Traded Securities Descriptive Statistics Analysis of Off-Balance-Sheet Assets Special Applications of Fundamental Analysis Distressed Securities/Bankruptcies Sampling and Estimation and Liabilities (Residual Earnings) Commodities Hypothesis Testing Analysis of Pensions, Stock Compensation, Equity of Hybrid Investment Vehicles Tangible Assets with Low Liquidity Correlation Analysis and Regression and Other Employee Benefits Time Series Analysis Analysis of Inter-Corporate Investments FIXED INCOME PORTFOLIO MANAGEMENT Simulation Analysis Analysis of Business Combinations Types of Fixed-Income Securities AND WEALTH PLANNING Technical Analysis Analysis of Global Operations and Their Characteristics Portfolio Concepts Ratio and Financial Analysis Fixed-Income Markets: Characteristics, Management of Individual/ ECONOMICS Institutions, and Benchmarks Family Investor Portfolios Market Forces of Supply and Demand CORPORATE FINANCE Fixed-Income Valuation (Sector, Industry, Management of Institutional Investor Portfolios The Firm and Industry Organization Corporate Governance Company) and Return Analysis Pension Plans and Employee Benefit Funds Measuring National Income and Growth Dividend Policy Term Structure Determination and Yield Spreads Investment Manager Selection Business Cycles Capital Investment Decisions Analysis of Interest Rate Risk Other Institutional Investors The Monetary System Business and Financial Risk Analysis of Credit Risk Mutual Funds, Pooled Funds, and ETFs Inflation Long-Term Financial Policy Valuing Bonds with Embedded Options Economic Analysis and Setting Capital International Trade and Capital Flows Short-Term Financial Policy Structured Products Market Expectations Currency Exchange Rates Mergers and Acquisitions and Tax Efficiency Monetary and Fiscal Policy Corporate Restructuring DERIVATIVES Asset Allocation (including Currency Overlay) Roger Urwin Economic Growth and Development Types of Derivative Instruments and Portfolio Construction and Revision Practice Analysis Effects of Government Regulation Their Characteristics Equity Portfolio Management Strategies London, UNITED KINGDOM Impact of Economic Factors on Forward Markets and Instruments Fixed-Income Portfolio Management Strategies Investment Markets Futures Markets and Instruments Alternative Investment Management Strategies Options Markets and Instruments Risk Management Swaps Markets and Instruments Execution of Portfolio Decisions (Trading) Credit Derivatives Markets and Instruments Performance Evaluation Presentation of Performance Results20
  13. 13. what is the CFA program like? London, UNITED KINGDOM
  14. 14. what is the CFA program like?I found that the CFA Program The Program is organized into three levels, each Nevertheless, completing the Program is anwas the most difficult thing I culminating in a six-hour exam held in more than experience that requires significant personalhave ever done in my life. But 180 locations around the world. Level I exams sacrifice. Successful CFA Program candidates will are held in June and December. Levels II and III tell you to be fully prepared for a sustained, long-I decided I’m not going to quit; are held in June. The entire CFA Program can be term commitment. They often report dedicating inI’m going to do this. accomplished in as few as two years, but many candidates schedule their exams around work excess of 300 hours of study per level. Depending on your circumstances and academic background, Ana Cecilia Reyes Esparza, CFA and family commitments. You may take as long you may need substantially more time for Mexico City, MEXICO as you need to complete the CFA Program. Your appropriate exam preparation. exam results never expire, and we don’t limit the number of times you can sit for each exam level. Once you enroll in the CFA Program and register for an exam, CFA Institute will contact you via e- What is it like to be mail at regular intervals to remind you of important exam and registration dates, testing policies, a candidate for the updated news, and helpful study resources. Many CFA program? CFA candidates form study groups with others The CFA Program is designed for self-study, in their area through their college or through distance learning, but you can also enroll in local CFA Institute member societies, and some preparatory classes. This means that you won’t enroll in formal preparatory courses. For a list of have to leave your current position or educational providers that follow the CFA Program interrupt another academic program while guidelines, please visit enrolled in the CFA Program. partners/examprep. For more information on CFA member societies and to learn about opportunities for candidates at the society closest to you, please visit Ana Cecilia, the first woman charterholder in Mexico, works with local regulators and investment banks to raise awareness of the CFA designation. 25
  15. 15. How is the What is the format How are the curriculum organized? for the exams? exams graded? The curriculum is organized into multiple study Each level of the exams is six hours long and is After the examinations, multiple-choice and It’s very important that the sessions to help candidates navigate the divided into morning and afternoon sessions. The item-set portions of the Levels I, II, and III ex- material. Each study session includes assigned Level I examination consists of 240 multiple-choice aminations are machine graded. The constructed people advising clients have a readings, learning outcome statements (LOS), questions. The Level II examination contains 20 responses from Level III are hand graded by comprehensive understanding and problem sets that demonstrate practical “mini-cases” or vignettes that describe investment hundreds of volunteer CFA charterholders. Their application and reinforce the concepts presented challenges practitioners are likely to encounter. involvement is one of many rigorous steps in the of the issues relevant to wealth in the readings. Readings are drawn from text- Each item-set contains six questions based on the CFA Program exam administration and grading management. Our goal is to have book chapters, professional journal articles, vignette. The Level III exams contain constructed process designed to ensure that each candidate CFA Program-commissioned content, case studies, response (essay) questions in the morning receives fair and consistent evaluation. the investment department run and selected analyst research reports. session and 10 item-sets in the afternoon session. solely by CFA charterholders. The LOS and the recommended study schedule New exam questions are written every year. John C. DeMoss, CFA are intended to help you plan your preparation They undergo an intense process of refinement Chattanooga, Tennessee, UNITED STATES and ensure you have adequate time for review and review by a group of independent experts, before each exam. CFA Institute staff, academics, and practitio- ners—all of whom hold the CFA charter. This How do I access the CFA group is recruited based on their geographic Program curriculum? diversity and expertise in different areas of investment practice and the CFA curriculum. The complete CFA Program curriculum is included in the cost of the registration and will be provided In order to ensure fairness and global consistency directly to you after you register for each exam. in administering the exam questions and in gradingJohn expanded his candidate responses, we offer the exams in onlyinvestment management If you prefer, you can elect to access the cur- one language—English. CFA Institute administersfirm in 2009 and riculum online or download the materials to yourdonates 50 percent of the exams throughout the world. Learn more aboutthe profits to charity. personal computer in addition to or as an alterna- the CFA exam format at tive to the hard-copy printed version. Curriculum cfaprogram/exams. samples, study sessions, and sample exams are also available online for all candidates.26
  16. 16. How are passing roadmap to scores determined? the CFA charterEarning the CFA designation After grading is concluded, CFA charterholders Bachelor’s degree or equivalent/in final year of on the CFA Institute Board of Governors convenemakes you part of a coveted to set the minimum passing score (MPS) for that bachelor’s degree programcircle of finance professionals. exam. To determine a consistent competency Enrollment standard across years and ensure the greatest Saurav Mishra, CFA objectivity in setting the MPS, the Board relies Level I Exam Mumbai, INDIA heavily on data from workshops conducted with (June or December) a geographically diverse group of charterholders in a widely accepted psychometric process called Level II Exam (June) “standard setting.” Level III Exam Standard setters calibrate the exam questions’ (June) relative difficulty by judging how a competent investment practitioner (adjusted for exam level) • 4 years of relevant work experience would answer each question. Standard setters (accumulated before, during, or after exam) evaluate each question on an exam and make • Professional Conduct Statement their judgments in two rounds: once before see- • Join CFA Institute and apply for society membership ing actual candidate exam performance statistics, • Member dues and once again after briefly viewing the statis- • CFA Institute member in good standing tics. The combined results are used by the Board of Governors to help set the MPS. Earn CFA Charter For further information on exam development, Saurav serves as a grading, and standard setting, please visit www. director of the CFA member society in India and helps to find and promote educational You can view exam question samples for each resources and speakers level online at relevant to the work of fellow Indian charter- courseofstudy/samples. holders. 29
  17. 17. Hong Kong SARWhat is it like to be a CFA Charterholder?
  18. 18. What is it like to be a CFA Charterholder? After earning the CFA charter, you join a global community of more than 100,000 investment Sharing investment professionals who have set themselves apart for their commitment to the highest ethical and ideas with charter- professional standards and their dedication to serve the interests of investors and society holders from other throughout their careers. countries is often This community is a true meritocracy based easier than in your not on wealth or geography but on the per- own market because sonal commitment to master a rigorous body of knowledge. It represents a globally diverse range competition isn’t such of people from a variety of backgrounds who have demonstrated their ability to excel in the a concern. Olivia Engel, CFA investment profession. Membership in this select Sydney, Australia group offers you continuing education resources; opportunities to demonstrate your leadership and expertise; an array of career-enhancing programs; CFA Institute also provides members access to: and access to a global network of fellow invest- ment professionals with whom you can share • Locally relevant educational and ideas throughout your career. networking events • CFA Institute conferences held around Through regional offices and a network of more the world than 135 local member-organized CFA societies around the world, CFA Institute advocates for • Publications and research developed byOlivia has attended 7 of investment professionals and market fairness CFA Institute and its partners focused on Olivia Engel, CFAthe last 10 CFA Institute the investment practitioner Sydney, AUSTRALIAannual conferences and with regulatory bodies around the currently a member of • Podcasts, webcasts, and article abstractsthe CFA Institute Annual on timely topics prepared by thought-Conference Committee. leaders and academic experts from around the world • A personalized website with educational, networking, and career resources32
  19. 19. HOW DO I GET STARTED? New York, New York, UNITED STATES
  20. 20. How do I get started? If you’re ready to earn the most respected investment credential in the world, then enroll Early in my career, my boss told in the CFA Program and register for the Level I me if you want to be successful, exam today. you’d better think about earning the CFA charter. For application forms, a list of upcoming Dr. Bruce Wonil Lee, CFA exam locations and dates, and scholarship Seoul, SOUTH KOREA opportunities, please visit Find out more about the charterholders profiled in this brochure at
  21. 21. “Among the countless finance degrees aroundthe world, the Chartered Financial Analystqualification has become the gold standard.” Financial Times 13 August 2010Charlottesville London560 Ray C. Hunt Drive 7th FloorCharlottesville, Virginia 22903-2981 131 Finsbury PavementUSA London EC2A 1NT800-247-8132 Phone (USA and CANADA) UNITED KINGDOM+1-434-951-5499 Phone (outside USA and CANADA) Brussels CNew York Square de Meeûs 38/40477 Madison Avenue 1000 Brussels, BELGIUM21st floorNew York, New York 10022 Buenos AiresUSA Lola Mora, N° 421, Office N° 1701 Madero Harbour Buildinghong kong City of Buenos Aires, Argentina C1107BCASuite 4905-08One Exchange Square8 Connaught Place, CentralHong Kong SAR Cover: Shanghai, CHINA©2012 CFA Institute