Slide #1.

The CFA® Program Philip J. Young, Ph.D., CFA ----College of Business & Public Affairs Career Day March 2005 CFA Institute
More slides like this


Slide #2.

The CFA® Program A self-study, distance learning-based program that takes a generalist approach to security analysis and portfolio management and emphasizes the highest ethical and professional standards. CFA Institute
More slides like this


Slide #3.

Member and Candidate Growth Note: CFA Candidates as of 15 September 2004 CFA Institute
More slides like this


Slide #4.

The CFA Charter Growing Non-US Numbers . Other = Latin America, Africa, & Middle East CFA Institute
More slides like this


Slide #5.

The CFA® Program CCC COE CURRICULUM EXAMINATIONS BODY OF KNOWLEDGE JOB ANALYSIS GRADING Practitioners at every step of the process CFA Institute MINIMUM PASSING SCORE (MPS)
More slides like this


Slide #6.

Job Analysis CCC COE CURRICULUM EXAMINATIONS BODY OF KNOWLEDGE JOB ANALYSIS GRADING Practitioners at every step of the process CFA Institute MINIMUM PASSING SCORE (MPS)
More slides like this


Slide #7.

Job Analysis  Determines topics taught in the CFA Program  Conducted every five years: next in 2005-2006  Involves investment practitioners worldwide: Regional Expert Panels and member surveys  What knowledge and skills are expected of a candidate for an entry-level position? CFA Institute
More slides like this


Slide #8.

Body of Knowledge CCC COE CURRICULUM EXAMINATIONS BODY OF KNOWLEDGE JOB ANALYSIS GRADING Practitioners at every step of the process CFA Institute MINIMUM PASSING SCORE (MPS)
More slides like this


Slide #9.

Body of Knowledge • • • • • • • • • • Ethical and Professional Standards Quantitative Methods Economics Financial Statement Analysis Corporate Finance Analysis of Equity Investments Analysis of Debt Investments Analysis of Derivatives Analysis of Alternative Investments Portfolio Management CFA Institute Investment Tools Asset Valuation
More slides like this


Slide #10.

Curriculum CCC COE CURRICULUM EXAMINATIONS BODY OF KNOWLEDGE JOB ANALYSIS GRADING Practitioners at every step of the process CFA Institute MINIMUM PASSING SCORE (MPS)
More slides like this


Slide #11.

Curriculum Developed by Candidate Curriculum Committee CCC); over 130 people involved world wide; extensive review; each level consists of 18 study sessions in CFA Institute-produced study guides Exam Topic Focus Learning Focus I Tools, Inputs, and Professional Standards Knowledge and Comprehension II Asset Valuation and Related Professional Standards Analysis and Application III Portfolio Management Synthesis and and Related Professional Standards Evaluation CFA Institute
More slides like this


Slide #12.

Curriculum  Readings are drawn from a variety of materials, both CFA Institute-developed and other  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 a proxy for examination questions, but ARE the best guide for candidate study CFA Institute
More slides like this


Slide #13.

Curriculum 2003 Exam 2004 Exam CFA Institute 2005 Exam
More slides like this


Slide #14.

Study Requirements Estimated minimum study time required per Level  Level I – 15 hrs per week for 18 weeks  Level II – 15 hrs per week for 18 weeks  Level III – 15 hrs per week for 18 weeks Suggest one week of study per study session through late April to allow the final month for review. CFA Institute
More slides like this


Slide #15.

Examinations CCC COE CURRICULUM EXAMINATIONS BODY OF KNOWLEDGE JOB ANALYSIS GRADING Practitioners at every step of the process CFA Institute MINIMUM PASSING SCORE (MPS)
More slides like this


Slide #16.

Examinations Based on assigned readings and LOS; over 50 people involved; each exam is six hours in length Exam Format Development and Review I 100% multiple Choice • Written by professional staff and consultants • Internal and external review II III 100% item set • Written by Council of Examiners 50% item set (COE) 50% essay • Internal and external review, including global CFA Institute
More slides like this


Slide #17.

Examinations 2005 Examination dates  Level I, II & III June 4 June 5 - Eastern Asia & Oceania  Level I only December 3 December 4 - Eastern Asia & Oceania CFA Institute
More slides like this


Slide #18.

Grading CCC COE CURRICULUM EXAMINATIONS GRADING BODY OF KNOWLEDGE JOB ANALYSIS Practitioners at every step of the process CFA Institute MINIMUM PASSING SCORE (MPS)
More slides like this


Slide #19.

Grading Guiding philosophy – fairness and consistency Exam I & II III Grading Process • Machine graded; extensive sampling • Item Sets – Machine graded; extensive sampling • Essays – Graded by teams of charterholders; structured and detailed process; about 350 graders in 2005; grading for content and knowledge, NOT language or style CFA Institute
More slides like this


Slide #20.

Minimum Passing Score CCC COE CURRICULUM EXAMINATIONS BODY OF KNOWLEDGE JOB ANALYSIS GRADING Practitioners at every step of the process CFA Institute MINIMUM PASSING SCORE (MPS)
More slides like this


Slide #21.

Minimum Passing Score  MPS for each level established by CFA Institute Board of Governors  Multiple inputs (standard setting, candidate performance statistics, quality of candidate responses, etc.) used to set the MPS  Passing rate for each level is a residual determined by each level’s MPS CFA Institute
More slides like this


Slide #22.

Candidate Performance Candidates 2004 (June + December) Level I = 43,777 Level II = 23,896 Level III = 13,452 Pass Rates 1963 - 2004 Pass Rates 2004 100% 100% 80% 60% 40% 64% 35% 80% 60% 32% 20% 0% 0% Level ll CFA Institute 50% 52% Level I Level II 40% 20% Level I 68% Level III Level III
More slides like this


Slide #23.

Declining Pass Rates – Why?  Decline in candidate preparation – 57% of Level I candidates studied < 200 hours  Fewer candidates indicate they are using the assigned curriculum – nearly 75% of candidates relied mainly on review courses or study notes and only 29% of Level I candidates purchased some or all of the assigned readings  Prep courses and study notes should be used as a supplement, not a substitute for the assigned readings CFA Institute
More slides like this


Slide #24.

Candidate Progress For every 100 candidates that entered the CFA Program: In 1985 In 1996 27 candidates had earned their charters within 5 years 22 candidates had earned their charters within 5 years Successful candidates average 4 years in the program. CFA Institute
More slides like this


Slide #25.

The CFA® Program CCC COE CURRICULUM EXAMINATIONS GRADING BODY OF KNOWLEDGE JOB ANALYSIS Practitioners at every step of the process CFA Institute MINIMUM PASSING SCORE (MPS)
More slides like this


Slide #26.

CFA® Charter Benefits  Knowledge across core areas of the investment industry  Respect and credibility in the investment community  Career opportunities in a competitive environment  Accepted global and portable standard of competence and integrity CFA Institute
More slides like this


Slide #27.

Earning Power - The CFA Premium The CFA Premium: US$40,000 $203,000 $163,00 0 Median Total Compensation for CFA Institute members with 10+ years experience Source: 2003 Compensation Survey CFA Institute
More slides like this


Slide #28.

Career Opportunities CFA Institute
More slides like this


Slide #29.

CFA® Charter Requirements  Sequentially pass Level I, II, and III exams  Have 4 years of professional experience  Provide professional references (Level III)  Submit professional conduct statement  Apply for membership in CFA Institute and a local analysts’ society CFA Institute
More slides like this


Slide #30.

Online Registration Candidates may now register online at www.cfainstitute.org/cfaprogram CFA Institute
More slides like this


Slide #31.

CFA® Program Costs Estimated Basic Costs for Level I (all amounts USD) •Registration Fee to Enter CFA® Program •Enrollment Fee for Level I Examination Required Fees $375 $360 $735* •Study Materials for Level I: Study Guide CFA Institute Publications Primary Textbooks Free $268 $427** Approximate Total Costs for Level I $1,430 *Assumes Registration and Enrollment received by 15 September 2004 **Sharing textbooks can reduce costs CFA Institute
More slides like this


Slide #32.

2005 Registration Deadlines May/June administration Received by 15 September 2004 15 February 2005 15 March 2005 Required Fees* $735 $815 $1,120 Final Deadline: All forms must be received by CFA Institute on or before 15 March 2005 *Includes registration fee that candidates pay only when first entering the CFA Program CFA Institute
More slides like this


Slide #33.

The CFA® Program CFA Institute
More slides like this


Slide #34.

The CFA® Program www.cfainstitute.org Click on “CFA® Program” Information Central CFA Institute 560 Ray C Hunt Drive PO Box 3668 Charlottesville, VA 22903 USA Telephone: Fax: E-mail: (434) 951-5499 800-247-8132 (434) 951-5265 [email protected] CFA Institute
More slides like this