1. Southwest US Research Challenge CFA Society Austin CFA Society Dallas Fort Worth CFA Society Houston CFA Society Louisiana CFA Society New Mexico CFA Society Oklahoma CFA Society San Antonio Now in it’s 10 th year!

2. Southwest US Research Challenge CFA Institute Research Challenge The CFAI-RC in a local intercollegiate competition sponsored by affiliate member societies of CFA Institute, is an education initiative in which leading industry professionals teach business and finance students how to research, write and and present a report recommending a “Buy”, “Sell”, or “Hold” position on a publicly traded company. Originated by NYSSA, with support from CFA Institute, the Challenge is now being replicated in Africa, Asia, Canada, Europe, Latin America, Middle East and the U. S.

3. Southwest US Research Challenge Purpose of Challenge Teaches best practices in research to the next generation of analysts. Provides experience in a real-world setting to complement students’ academic curriculum. Develops interest in securities analysis and the investment profession at top area business schools. Provides an opportunity for experienced professionals to give back.

4. Southwest US Research Challenge CFA Institute Research Challenge – LA/OK/TX - Process Educational Seminars webcasted to students Teams selected by universities participating Mentors introduced and subject company announced Company presentation Reports submitted and evaluated Finalist teams present to panel – winner selected

5. Southwest US Research Challenge Participants Benefits to the Society Key Components Challenge Timeline Next Steps

6. Southwest US Research Challenge PARTICIPATION Local CFA Societies –CFA Austin –CFA Dallas –CFA Houston –CFA Louisiana –CFA New Mexico –CFA Oklahoma –CFA San Antonio CFA Institute Core Schools: Baylor University Cameron University LSU Nicholls State U Oklahoma Christian U Rice SMU Stephen F. Austin St. Marys TCU Texas State Texas Wesleyan Texas Tech Tulane Tx A&M Texas A&M - Kingsville U of Central OK University of Dallas U of H U of New Mexico UNT UT - Arlington UT-Dallas UT-San Antonio West TX A&M

7. Southwest US Research Challenge Challenge Participants CFA SocietyFacultyStudentsIndustry Responsibilities Abide by CFA Institute guidelines and rules Liaise with university advisors and students Recruit volunteers – mentors, graders, judges Coordinate logistics together with staff Responsibilities Co-ordinate all on campus activities. Prepare recruiting session in the fall Select the teams Communicate as requested by IRC-TX Co-ordinators Responsibilities Co-ordinate all student campus activities. Attend the various presentations/webcasts Complete the research report/recommendation. Prepare presentation. Responsibilities Provide knowledge and Resources Co-ordinate Company wide activities Present to the teams and respond to team questions. Benefits Become an active Society volunteer Contribute in Challenge- related events Share expertise with next generation of investment professionals Network with other society volunteers Benefits Network with other universities Network with local CFA society members Free sharing of ideas with working Industry and other University staff Benefits Network with students at other universities Network with society members and learn about the CFA program Awards at local level Winning team given opportunity to complete regionally Benefits Easy give back to community Network with other Industry professional Have a active role in the Societies

8. Southwest US Research Challenge Benefits to the Society  Fulfills mission to educate investment professionals and investing public.  Promotes investment management best practices and ethical standards.  Increases number of professionals who volunteer at Society.  Attracts senior-level professionals who may not otherwise be active in Society.  Forges relationships with area business schools and students.

9. Southwest US Research Challenge Key Components Seminars Mentoring Company Presentation Written Reports Panel Presentations

10. Southwest US Research Challenge SEMINARS What: Investment professionals provide basic knowledge of components of securities research and analysis –Research Report Writing – Buy and Sell-side Perspectives –Ethics When: September - November Where: Web cast

11. Southwest US Research Challenge Challenge Timeline September – November  Universities select teams  Seminars at participating universities or via web cast  Mentors chosen and confirmed December - January  Teams submit questions for company – Company Presents  Kick-off meeting at which mentors are introduced and rules are discussed  Teams do written reports February  Final reports are submitted and graded  Finalist teams present recommendations at TIPS (held at a participating university)  Winning team(s) announced March  Winning team(s) of local LA-NM - OK-TX challenge competes regionally with other local Challenge winners across Canada, Latin American and the US.

12. Southwest US Research Challenge Annual Steps for Completion Secure funding support from CFA Institute Communicate with participating universities Update on: www.cfasocietiesoftexas.orgwww.cfasocietiesoftexas.org Provide Webcasts of seminars Company approached/announced Schedule Final oral competition with TIPS (Texas Investment Portfolio Symposium

13. Southwest US Research Challenge Annual Steps for Completion (pg 2) Kick Off with schools (24+) Assign mentors Select Graders Commitments on Judges/Panelists – 2 panels Solicit continued sponsors for Competition Work with winning team(s) on regional competition preparation

14. Southwest US Research Challenge Coordinators John Keeton, CFA CFA Society of San Antonio john.keeton@covenantmfo.com Sharon Criswell, CFA CFA Society of Austin sharon.criswell@yahoo.com

15. Southwest US Research Challenge The New York Society of Security Analysts (NYSSA) introduced the Investment Research Challenge in the 2002- 2003 academic year as a means to promote best practices in research among the next generation of analysts. The Challenge is an eight-month educational initiative in which leading industry professionals teach business and finance students how to research and report on a publicly traded company. The challenge is now trademarked, administered and managed by CFA Institute and is being offered globally with the involvement of tens of thousands of students from over 800 universities in more than 55 countries.