View
233
Download
1
Tags:
Embed Size (px)
Citation preview
CFA Institute
The CFA® Program
Philip J. Young, Ph.D., CFA
-----
College of Business & Public Affairs
Career Day
March 2005
CFA Institute
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
Member and Candidate Growth
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004
Member Candidate
Note: CFA Candidates as of 15 September 2004
CFA Institute
The CFA CharterGrowing Non-US Numbers
.
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
50000
1993 1998 2001 2004
Asia
Canada
Europe
Other
Other = Latin America, Africa, & Middle East
CFA Institute
The CFA® Program
EXAMINATIONSCURRICULUM
BODY OF KNOWLEDGE
JOB ANALYSIS
GRADING
MINIMUM PASSINGSCORE (MPS)
CCC COE
Practitioners at every step of the process
CFA Institute
Job Analysis
EXAMINATIONSCURRICULUM
BODY OF KNOWLEDGE
JOB ANALYSIS
GRADING
MINIMUM PASSINGSCORE (MPS)
CCC COE
Practitioners at every step of the process
CFA Institute
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
Body of Knowledge
EXAMINATIONSCURRICULUM
BODY OF KNOWLEDGE
JOB ANALYSIS
GRADING
MINIMUM PASSINGSCORE (MPS)
CCC COE
Practitioners at every step of the process
CFA Institute
Body of Knowledge
• Portfolio Management
InvestmentTools
Asset Valuation
• 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
CFA Institute
Curriculum
EXAMINATIONSCURRICULUM
BODY OF KNOWLEDGE
JOB ANALYSIS
GRADING
MINIMUM PASSINGSCORE (MPS)
CCC COE
Practitioners at every step of the process
CFA Institute
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
and Related Professional Standards
Synthesis and
Evaluation
CFA Institute
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
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
Examinations
EXAMINATIONSCURRICULUM
BODY OF KNOWLEDGE
JOB ANALYSIS
GRADING
MINIMUM PASSINGSCORE (MPS)
CCC COE
Practitioners at every step of the process
CFA Institute
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 100% item set • Written by Council of Examiners (COE)
• Internal and external review, including global
III 50% item set50% essay
CFA Institute
Examinations
Level I onlyDecember 3December 4 - Eastern Asia & Oceania
2005 Examination dates
Level I, II & IIIJune 4June 5 - Eastern Asia & Oceania
CFA Institute
Grading
EXAMINATIONSCURRICULUM
BODY OF KNOWLEDGE
JOB ANALYSIS
GRADING
MINIMUM PASSINGSCORE (MPS)
CCC COE
Practitioners at every step of the process
CFA Institute
Grading
Exam Grading Process
I & II • Machine graded; extensive sampling
III
• 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
Guiding philosophy – fairness and consistency
CFA Institute
Minimum Passing Score
EXAMINATIONSCURRICULUM
BODY OF KNOWLEDGE
JOB ANALYSIS
GRADING
MINIMUM PASSINGSCORE (MPS)
CCC COE
Practitioners at every step of the process
CFA Institute
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
Candidate Performance
Candidates 2004 (June + December)
Level I = 43,777
Level II = 23,896
Level III = 13,452
50% 52%68%
0%
20%
40%
60%
80%
100%
Level I
Level II
LevelIII
Pass Rates1963 - 2004
35% 32%
64%
0%
20%
40%
60%
80%
100%
Level I
Level ll
Level III
Pass Rates2004
CFA Institute
Declining Pass Rates – Why?Decline in candidate preparation – 57% of Level I
candidates studied < 200 hoursFewer 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
Candidate Progress
For every 100 candidates that entered the CFA Program:
In 1985
27 candidates had earned their charters
within 5 years
In 1996
22 candidates had earned their charters
within 5 years
Successful candidates average 4 years in the program.
CFA Institute
The CFA® Program
EXAMINATIONSCURRICULUM
BODY OF KNOWLEDGE
JOB ANALYSIS
GRADING
MINIMUM PASSINGSCORE (MPS)
CCC COE
Practitioners at every step of the process
CFA Institute
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
Earning Power - The CFA PremiumThe CFA Premium: US$40,000
Non-Charterholders
CFACharterholders
Median Total Compensation for CFA Institutemembers with 10+ years experienceSource: 2003 Compensation Survey
$163,000
$203,000
CFA Institute
Career OpportunitiesWHO HIRES CFA CHARTERHOLDERS?
14%
26%
14%18%
28%
Broker-Dealers/ InvestmentBanksCommercial Banks/ TrustCompaniesInvestment Companies/Mutual FundsInvestment ManagementCounseling FirmsOther
CFA Institute
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
Online Registration
Candidates may now register online at www.cfainstitute.org/cfaprogram
CFA Institute
Estimated Basic Costs for Level I (all amounts USD)
*Assumes Registration and Enrollment received by 15 September 2004**Sharing textbooks can reduce costs
CFA® Program Costs
•Registration Fee to Enter CFA® Program $375•Enrollment Fee for Level I Examination $360
Required Fees $735*
•Study Materials for Level I:Study Guide Free
CFA Institute Publications $268 Primary Textbooks $427**
Approximate Total Costs for Level I $1,430
CFA Institute
2005 Registration Deadlines
Received by Required Fees*15 September 2004 $73515 February 2005 $81515 March 2005 $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
May/June administration
CFA Institute
The CFA® ProgramInformation Central
CFA Institute560 Ray C Hunt DrivePO Box 3668Charlottesville, VA 22903USA
Telephone: (434) 951-5499800-247-8132
Fax: (434) 951-5265E-mail: [email protected]
Click on “CFA® Program”
www.cfainstitute.org