Presentation on theme: "Chartered Financial Analyst (CFA) “Whereas there are tens of thousands of finance degrees available around the world, ranging from excellent to the worthless,"— Presentation transcript:
Chartered Financial Analyst (CFA) “Whereas there are tens of thousands of finance degrees available around the world, ranging from excellent to the worthless, there is only one CFA [designation].... It used to be just an American qualification. But explosive growth has made it, in effect, a global currency. ” The Economist
Statistics Over 93,000 investment professionals, including the world’s 79,000 CFA charterholders, in 134 countries: 85% are charterholders; 15% are noncharterholders. 30% work for Investment Companies/Mutual Funds 6% work for Hedge Funds/Fund of Hedge Funds 7% work for Commercial Retail or Mortgage Banks 4% work for Insurance Companies 2% work for Pensions and Foundations 11% work as Private Client Wealth Manager/Advisor 16% are employed by investment banks/broker dealers. 24% work for other organizations, such as consultancy, governmen t/regulatory, academic or research firms
The CFA ®Program Administered by CFA Institute Program was established in 1962 The accepted benchmark for technical excellence in the financial markets, due to: Relevance of the syllabus Rigor of the exam High standards of professionalism it demands Entry Requirement US Bachelor’s (or equivalent) degree or 4 years of qualified Work experience Final year of degree program Earn the credential Passing three sequential, six-hour exam ¾Working as an investment professional for a minimum of 4 years ¾Commit to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct
Exam Content The CFA Program includes a series of three exams that are offered in test centers around the world. These three exams — Level I, Level II, and Level III — must be passed sequentially as one of the requirements for earning a CFA charter the Level I exam asks you basic knowledge and comprehension questions focused on investment tools; some questions will require analysis. the Level II exam further emphasizes analysis along with applying your knowledge. the Level III exam focuses on synthesizing all of the concepts and analytical methods in a variety of applications for effective portfolio management and wealth planning.
Body of Knowledge Investment Tools Ethical and Professional Standards Quantitative Methods Economics Financial Statement Analysis Corporate Finance Asset Valuation Analysis of Equity Investments Analysis of Debt Investments Analysis of Derivatives Analysis of Alternative Investments Portfolio Management Portfolio Management and Performance Presentation
Curriculum The topic focus and learning focus differ at each level The curriculum at each level is organized into 18 study sessions Topic FocusLearning Focus Level 1 Investment Tools & Ethical Standards Knowledge Comprehension Level 2 Asset Valuation & Ethical StandardsApplication Analysis Level 3 Portfolio Management & Ethical StandardsSynthesis Evaluation
10 Topic Areas SSTopic# of Questions% 1Ethics3615% 2-3Quantitative Method2912% 4-6Economics2410% 7-10Financial Statement Analysis4820% 11Corporate Finance198% 12Portfolio Analysis125% 13-14Equity2410% 15-16Fixed Income Securities2912% 17Derivatives125% 18Alternative Investment73%