open day at MSU (16122017)

1. CFA® EXAMINATION
PREP COURSE
LOMONOSOV MOSCOW STATE UNIVERSITY (2017/2018)

2. DISCLAIMER
CFA Institute does not endorse, promote, review, or
warrant the accuracy of the preparatory sources
offered by Lomonosov Moscow State University or
verify or endorse the pass rates claimed by
Lomonosov Moscow State University.
CFA®, and Chartered Financial Analyst® are
trademarks owned by CFA Institute.
2

3. CONTENT PAGE
3
1. Introduction
2. Recognition of the CFA designation
3. Where do CFA charterholders and candidates work?
4. How do I get my CFA charter?
5. CFA charter vs Master’s
6. Why may I need preparation help?
7. What does Lomonosov MSU offer?

4. Introduction
4

5. 5
Source:
https://www.cfainstitute.org
WHAT IS CFA?
The Chartered Financial Analyst (CFA) Program is a professional credential
offered internationally by the American-based CFA Institute to investment
and financial professionals.
The program covers a broad range of topics relating to investment
management, financial analysis, stocks, bonds and derivatives, and
provides a generalist knowledge of other areas of finance.
A candidate who successfully completes the program and meets other
professional requirements is awarded the "CFA charter" and becomes a
"CFA charterholder“
According to the CFA Institute, fewer than 20% of candidates who begin the
program receive the CFA Charter.

6. 6
Establishment of the
Financial Analysts
Federation (FAF)
1959
19631947
Leadership of FAF
established
the Institute of Chartered
Financial Analysts to
administer the CFA
credentialing program
FIRST CFA
EXAM
1990
Merger of FAF and ICFA
Establishment of
the Association for
Investment Management
and Research (AIMR)
2004
AIMR changed its
name to CFA
Institute.
SOME HISTORY
Source:
https://www.cfainstitute.org

7. 7
70 years…
So, what is it like now?

8. 132,000+ Charterholders
8
170,000+ Candidates
145+ Countries
Source:
https://www.cfainstitute.org
Aren’t these big numbers?

9. 9
Source:
https://www.cfainstitute.org
CFA
INSTITUTE
CHINA
> 25 000
INDIA
> 10 000
US
> 30 000
RUSSIA
~ 1 000
EUROPE
> 15 000
CFA CHARTERHOLDERS REPRESENTATION
CANADA
> 7 000
LATAM
> 3 000
MIDDLE EAST&
AFRICA > 7 000

10. Recognition of the CFA designation
10

11. 11
Source:
https://www.cfainstitute.org
THE CFA DESIGNATION
More than 320 universities around the world incorporate the CFA
Program curriculum into their degree programs
Recognized by regulatory bodies in many countries as a proxy for
meeting certain licensing requirements
The UK National Academic Recognition Information Centre (UK
NARIC) has benchmarked the CFA Program and the CFA charter as
comparable to a Qualifications and Credit Framework (QCF)
Master's Level 7

12. 12
EDUCATIONAL RECOGNITION OF THE CFA PROGRAM WAIVERS AND EXEMPTIONS FROM
UNIVERSITY ENTRANCE EXAMS OR COURSES. JUST A FEW EXAMPLES…
Source:
https://www.cfainstitute.org
Successful CFA Level II candidates applying for admission to the Masters in
Finance (MiF) program may be granted an exemption from the requirement to
submit GMAT or GRE test scores during the admissions process.
CFA charterholders applying for admission to the Executive Master of Business
Administration (EMBA) program may be granted an exemption from the
requirement to submit GMAT or GRE test scores during the admissions process.
Master of Business Administration (MBA) candidates who have passed the CFA
Level III exam are granted an automatic waiver in two core courses: MBA 202
Financial Accounting and MBA 203 Finance. In place of the waived courses,
candidates must take elective courses to meet the 51-unit graduation
requirement.

13. 13
CERTIFICATION PROGRAMS GRANTING WAIVERS.
JUST A FEW EXAMPLES…
Source:
https://www.cfainstitute.org/ethics/recognition/
Many certification associations around the world recognize CFA
program and grant waivers from some of their continuing education
(CE) courses, exams, or work experience requirements.
For the whole list and more details, please, visit the website
www.cfainstitute.org/ethics/recognition

14. “
“…the Chartered Financial Analyst qualification…has
become the industry’s benchmark.”
“…a qualification considered worldwide as the gold
standard in investment management...”
© Financial Times
“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…explosive growth
has made it, in effect, global currency.”
© The Economist
14

15. 15
And this is only the
beginning…

16. 16

17. Where do CFA charterholders and
candidates work?
17

18. The global overview
18
• CFA candidates by work
experience
• Sectors with the highest
proportion of CFA-qualified
employees
• Top global companies that hire
charterholders
• CFA charterholder annual
compensation by country

19. 19
36%
20%
14%
14%
10%
6%
0% 5% 10% 15% 20% 25% 30% 35% 40%
<3y
3y-5y
5y-7y
7y-10y
10y-15y
>15y
CFA CANDIDATES BY WORK EXPERIENCE
Source:
http://www.efinancialcareers.com
SECTORS WITH THE HIGHEST PROPORTION OF CFA-QUALIFIED EMPLOYEES
20%
12%
10%
5%
4%
4%
2%
0% 5% 10% 15% 20% 25%
Asset Management and WP
Research
Investment Banking
Sales&Trading
Risk Management
Private Equity
Quantitative Analytics

20. 20
TOP GLOBAL COMPANIES THAT HIRE CHARTERHOLDERS
1 780
1 463
1 451
1 451
1 255
1 232
1 003

21. 21
$-
$50 000,00
$100 000,00
$150 000,00
$200 000,00
$250 000,00
Singapore Australia India Hong Kong Switzerland Germany United
Kingdom
Canada USA
Experienced
With minimal experience
Source:
http://www.wallstreetmojo.com/cfa-salary-compensation/
CFA CHARTERHOLDER ANNUAL
COMPENSATION BY COUNTRY

22. The local overview
• Industry breakdown in Russia
• Major employers of CFA
charterholders in Russia in 2016
• Major employers of CFA
candidates in Russia in 2016
22

23. 23
Source:
http://www.cfarussia.org/
INDUSTRY BREAKDOWN IN RUSSIA
44%
34%
9%
7%
3% 2% 1%
25%
46%
12% 11%
2% 3%
1%
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
Consulting FI Government Industries Holdings Rating
Agencies
Media
Candidates
Charterholders

24. 24
Source:
http://www.cfarussia.org/
31
16
15
14
13
8 8
7 7 7
6 6 6 6
5
0
5
10
15
20
25
30
35
MAJOR EMPLOYERS OF CFA CHARTERHOLDERS IN
RUSSIA IN 2016

25. 25
Source:
http://www.cfarussia.org/
MAJOR EMPLOYERS OF CFA CANDIDATES IN
RUSSIA IN 2016
70
59
44
34
30 28
21
15
12 11 11 10 10 10
0
10
20
30
40
50
60
70
80

26. How do I get my CFA charter?
26

27. 27
CFA®
Level I
EXAM
CFA®
Level II
EXAM
CFA®
Level III
EXAM
4+ YEARS
OF WORK
EXP.
YOUR WAY FROM THE ENROLLMENT TO THE DESIGNATION…
Enrollment requirements (ONE of the following):
- A bachelor's degree or equivalent
- Being a final year student of bachelor's degree program
- Work experience: 4 years of professional work experience (does not have to be investment related)
- A combination of professional work experience and education
The Level III exam consists of item set and
constructed response (essay) questions
Levels I, II, and III. The exams are offered annually — at test centers
around the world — in June. The Level I exam is also offered in December.
Source:
https://www.cfainstitute.org

28. 28
Source:
https://www.cfainstitute.org
CFA® EXAM TOPIC AREA WEIGHTS (%)
TOPIC
LEVELS AND WEIGHTS
I II III
Ethical and Professional Standards 15 10-15 10-15
Quantitative Methods 12 5-10 0
Economics 10 5-10 5-15
Financial Reporting and Analysis 20 15-20 0
Corporate Finance 7 5-15 0
Equity Investments 10 15-25 5-15
Fixed Income 10 10-20 10-20
Derivatives 5 5-15 5-15
Alternative Investments 4 5-10 5-15
Portfolio Management and Wealth Planning 7 5-10 40-55

29. 29
LEVEL I – KNOWLEDGE EXAMPLE
“Identify the relationship among a bond’s coupon rate, the yield required by the market,
and the bond’s price relative to par value (i.e., discount, premium, or equal to par).”
LEVEL II – APPLICATION EXAMPLE
“Evaluate whether mortgage-backed securities are under- or over-valued using option-
adjusted spread analysis.”
LEVEL III – SYNTHESIS EXAMPLE
“Explain the arguments for bond indexing and active bond investing and recommend a
bond investment strategy given the client’s investment objectives and beliefs.”
DIFFERENCES BETWEEN LEVELS
Source:
http://www.cfarussia.org/

30. CFA charter vs Master’s
30

31. 31
COMPARISON
CFA CHARTER MASTER’S
Total cost for entire 3 levels* $2 400+ UP TO $200 000
Duration 2 YEARS+ 1 - 2 YEARS
Networking INSIGNIFICANT SOMETIMES
Can be combined with a full-time job YES RARELY
International recognition YES RARELY
Membership dues ($275 annually) YES NO
* Assumes registration by the earliest deadline. Includes eBook curriculum and
supplemental study tools. Separate cost for printed curriculum.

32. 32
So it depends on a number of factors such as your budget, a
country of living and a bachelor’s degree you have got but, on
average, a CFA charter is far better than most Master’s degrees.
CONCLUSION

33. Why may I need preparation help?
33

34. 34
Source:
https://www.cfainstitute.org
AVERAGE AMOUNT OF TIME PREPARING FOR THE EXAM
SOME DIFFICULTIES
Overall, the chartered financial analyst designation is a daunting
challenge, and the odds of success from start to finish are slim;
less than 20% of those who begin this challenge reach the end.
LEVEL I
300
LEVEL II
328
LEVEL III
335
LEVEL I
43%
LEVEL II
47%
LEVEL III
54%
AVERAGE PASS RATES FOR THE EXAM

35. 35
CFA® Level I exam (the easiest one):
• 18 Study Sessions totaling more than 3500 pages
• More than a hundred formulas
• Six-hour exam
• 240 multiple choice questions (90s/question)
• Some hard concepts to grasp
• Professional terms in English
SOME DIFFICULTIES OF CFA® LEVEL I EXAM

36. What does Lomonosov MSU offer?
36

37. CFA® LEVEL I EXAM PREP COURSE (3 MARCH – 16 JUNE)
*THE OFFICIAL EXAM WILL BE HELD ON 23 JUNE
37
DISCOUNT SYSTEM
 COURSE REPEATITION IN CASE OF EXAM FAILURE (UP TO 90%)
 FRM® PART I&II EXAM PREP COURSES (UP TO 50%)
 CFA® LEVEL II EXAM PREP COURSE – COMING SOON (UP TO 50%)
 FULL COVERAGE (ALL 58 READINGS OF CFA® LOS 2018)
 CONVENIENT TIME (ON SATURDAYS* 11AM – 6PM)
 LESSONS IN RUSSIAN (ALL MATERIALS ARE IN ENGLISH)
 ONLINE SUPPORT AT SLACK
 ACCESS TO OUR TEST BASE AND LESSON MATERIALS
 STATEMENT OF ACCOMPLISHMENT FROM TOP UNIVERSITY
ONLY 85 000 RUBLES
*except for holidays and other non-working days

38. 38
OUR INSTRUCTORS
NAME
CURRENT EMPLOYER
ADDITIONAL INFORMATION
Vladimir Piterbarg, PhD, Professor
(Scientific Program Manager)
Lomonosov MSU, Head Researcher,
Head of Laboratory of Probability
Alexander Karpov, CFA
(Program Manager)
World Quant, Consultant,
HSE, Deputy Director
Sergey Kobelkov, PhD Lomonosov MSU, Researcher
Dmitry Alexandrovskiy, CFA Sberbank, Executive Director
Gregory Kessenikh, CFA, FRM Bankruptcy administrator
Andrew Dankin, CFA, FRM Murex, Manager
Yuriy Eremeev
T-plus, Project Manager
CFA Level III candidate
Michael Pavlenko
VTB Life Insurance, Deputy CFO
CFA Level III candidate

39. EMPLOYEES OF THESE COMPANIES
HAVE CHOSEN OUR CFA® LEVEL I PREP COURSE
39

40. 40
FORMULA OF THE COURSE
NORMAL
COMMON
SENSE
HARD
VERY
HARD
20%
55%
20%
5%
VERY SPECIFIC
QUESTIONS
IMPORTANT
KNOWLEDGE
ESSENTIAL
KNOWLEDGE
ENOUGH TO PASS
THE TEST BUT
REQUIRES A LOT OF
PRACTICE
NORMAL
COMMON
SENSE
EASIEST WAY TO
PASS
THOUSANDS
OF TESTS
THAT’S NOT OUR COURSE’S FORMULA
NORMAL
COMMON
SENSE
COMPREHENSIVE
COURSE
AND THIS ONE IS NOT EITHER
HARD
VERY
HARD
NORMAL
COMMON
SENSE
OUR COURSE
THAT IS OUR COURSE’S FORMULA
HARD
SOME
ONLINE
TESTS

41. 41
WHAT IS THE EDUCATIONAL
PROCESS LIKE?
I. LIVE
LESSONS
II. HOMEWORK
III. TESTS
(MOODLE)
IV. SLACK
DISCUSSION

42. 42
THERE IS NO SUCH THING
AS A CFA® LEVEL I MAGIC PILL

43. 43
THE END

44. PROGRAM MANAGER
Alexander Karpov, CFA
Phone number: +7-985-365-71-56
E-mail: a.karpov@master.math.msu.ru
ANY QUESTIONS?
FEEL FREE TO CONTACT US
THANK YOU FOR
YOUR ATTENTION
REGISTRATION
IS OFFCIALLY OPEN!
😉
CONTINUING EDUCATION UNIT
Phone number: +7 (495) 939-39-29
E-mail: do@master.math.msu.ru