Chartered Financial Analyst (CFA) Program

April Tan, CFA President, CFA Philippines

The Chartered Financial Analyst Program

The gold standard among investment analysis designations - Economist

CFA Institute

The Chartered Financial Analyst Program

Competence

CFA
Passion Integrity

CFA Institute

The Chartered Financial Analyst Program

Competence
CFA exam covers 10 general topic areas essential to the investment decision-making process

CFA Institute

The CFA Course of Study

CFA Body of Knowledge

Ethical and Professional Standards

Quantitative Methods Economics Financial Statement Analysis Corporate Finance Equity Investments Debt Investments Derivatives Alternative Investments
Investment Tools

Asset Valuation

Portfolio Management and Performance Presentation

CFA Institute

The CFA Program

Practical, Relevant Education

Practitioners at every step of the process

CFA Institute

The Chartered Financial Analyst Program

Passion
-Substantial commitment - Hours of study: 800-900 hours - Cost: $2,200 to $3,300

CFA Institute

Fee Schedule
June 2010 Examination Registration Fee (one-time) Exam Fee: Total Cost: 23 Sept 09 US$390 US$620 US$1,020 17 Feb 10 US$390 US$710 US$1,110 17 Mar 10 US$465 US$955 US$1,435

Total Cost is inclusive of study materials (6 Books) Level 1 Exams are also offered in December

www.cfainstitute.org
CFA Institute

The Chartered Financial Analyst Program

Integrity
-Focus on ethical and professional standards -CFA charter can be revoked due to unethical behavior

CFA Institute

Benefits of the CFA Charter

Credibility Competitive advantage Connections Life long learning

Higher Earning Power

CFA Institute

Benefits of the CFA Charter

Earning Power The CFA Premium
The CFA Premium: US$48,000
$248,000

Median Total Compensation for CFA Institute members with 10+ years experience Source: 2005 Compensation Survey
$200,000

NonCharterholders

CFA Charterholders
CFA Institute

Benefits of the Charter

CFA vs. MBA*
$236,510 vs. $200,000 (18% premium) $255,000 (combined CFA and MBA)

CFA vs. no CFA designation**

$180,000 vs. $116,850 (54% premium)
*2005 Compensation Survey median salary for those with 10 or more years of work experience **2005 Compensation Survey median salary regardless of levels of work experience

CFA Institute

Benefits of the Charter

Anecdotal evidence locally

Pay increase for exam passers Strong hiring interest Companies encouraging employees to take the program

CFA Institute

CFA Program & the Local Society

CFA Program & the Local Society

Increasing CFA Charterholders in the Philippines

Creating awareness Providing scholarships Providing review classes

CFA Institute

Creating Awareness

Target Groups
Regulators Companies Universities

CFA Institute

Scholarship Programs
Faculty Scholarships

Awarded to full-time faculty directly by CFA Institute Available for any level

Student Scholarships
Awarded by CFA charterholder full-time faculty members 5 students/faculty, max of 10/university Available for new Level I only

CFA Institute

Scholarship Programs
Society Scholarships
Awarded to qualified candidates by CFA Philippines 10 per fiscal year Available for any level

CFA Institute

Scholarship Amount (2009)

Approximate Costs for New Level I Candidates Registration fee Exam fee & study materials Approximate Total Costs for Level I

US $390 US $600 US $990

*Registration fees waived candidate pays only US$220 for the enrollment

CFA Institute

Society Scholarship Criteria

Criteria
Ability to Pass Financial Need Strong Career Path Willingness to Give Back

CFA Institute

Society Scholarship Requirements Requirements

Completed application form Copy of official undergraduate transcript of grades Income tax return (ITR) Updated resume CFA Exam Results (for Level 2 & 3 applicants) Interview

CFA Institute

CFA Review Class

Improving pass rate Starting review class for Level 1 When: February 15- May 22 Mondays and Wednesdays 6:00 9:00 PM Where: Ateneo Professional Schools

CFA Institute

For more information about the CFA Program: CFA Philippines 22/F Taipan Place Bldg. F. Ortigas, Jr. Road (Formerly Emerald Ave.) Ortigas Center, Pasig City Philippines 1605 T: +63 (2) 3971010 F: +63 (2) 3971011 secretariat@cfaphilippines.org www.cfaphilippines.org
www.cfainstitute.org
CFA Institute

Career Opportunities (Local)

1. 2. 3. 4. 5. Investment/Brokerage Houses Trust & Mutual Fund Industry Bank Treasury Regulatory Institutions Financial Advisory Groups Risk Management Departments of Publicly Listed or Multinational Firms

CFA Institute

Investment/Brokerage Houses
WHAT THEY DO
Perform Valuation (e.g. IPO, M&A) Perform Investment Analysis (Research Reports) Spencer Yap, CFA President, BPI Securities April Lee-Tan Head of Research, Citiseconline Gio de la Rosa, CFA Analyst, Deutsche Regis Denis Du, CFA Associate Director, ATRKimEng Jun Villaluz, CFA BPI Capital Sheryll Verano, CFA AO Capital
CFA Institute

EXAMPLES

Trust & Mutual Fund Industry

WHAT THEY DO
Manage Pension Funds for Institutional Investors Manage UITF & Mutual Funds for Retail Investors Mike Garcia, CFA Head of Trust, Unionbank
- Offers additional ~PHP100K/annum compensation for every level you pass

EXAMPLES

Trust/UITF ING, MIB, MBTC, BPI, BDO Mutual Fund SunLife, Philam Asset Management

CFA Institute

Bank Treasury
WHAT THEY DO
Manage FX/Bond Transactions Develop & Manage Derivative (e.g. Futures, Swaps, Options) Products Toto Tansingco, CFA Treasurer, Metrobank
- Sponsors Employees on a Case-to-case Basis

EXAMPLES

Lester Castolo, CFA Treasurer, MIB

- Strong Supporter of CFA Program, Sponsors employees for the CFA Program

Corrie Purisima, CFA VP, HSBC

CFA Institute

Regulatory Bodies
WHAT THEY DO
Opportunity to influence policy & mandate best practices among banking institutions Audit Derivative & Fixed Income activities of Banking Institutions Manage the Treasury Position of the Central Bank Mary Jane Chiong, CFA Head, Capital Market Specialist Group, BSP Alphew Cheng, CFA OIC, Treasury Head, BSP
- Sponsors all employees who want to take it, will have 5 CFA Charterholders by late 2007.
CFA Institute

EXAMPLES

Other Employers
Asian Development Bank* BPI Securities Citibank HSBC LandBank* Standard Chartered ING*

*Known to sponsor employees

CFA Institute

Regional Opportunities
Hong Kong - The CFA designation is recognized by the HK Securities and Futures Commission as fulfillment of education requirements for investment advisors. Thailand - The passage of the CFA Level I exam is a sufficient requirement for a fund manager license. Australia - The CFA program is recognized on the list of approved courses to fulfill the education requirements for licensing as investment advisors. Sri Lanka - The CFA designation is recognized by the Securities and Exchange Commission of Sri Lanka as an accepted educational qualification for fund manager license.
CFA Institute

Global Opportunities
Most common occupations of CFA Charterholders: CEO/Principal Chief Investment Officer Equity Analyst Fixed Income Analyst Investment Banker Investment Counselor Investment Firm Manager Portfolio Manager Portfolio Strategist Sales/Marketing Professional

CFA Institute

Global Pass Rates

2000 2001 2002 2003 2004 2005 2006 2007

Level 1 52% 49% 44% 42% 34% 36% 40% 40%

Level 2 54% 46% 47% 47% 32% 56% 48% 40%

Level 3 65% 82% 58% 68% 64% 55% 76% 50%

CFA Institute

Registering for the CFA Program

Entrance Requirements

Have a bachelors degree, or Be in the final year of your bachelors degree program, or Have 4 years of qualified, professional work experience, or Have a combination of work and college experience that totals at least 4 years.

CFA Institute

Registering for the CFA Program

CFA Charter Requirements

Sequentially pass Level I, II, and III exams Have four years of acceptable work experience Provide professional references (Level III) Join CFA Institute as a member and apply for membership in a local CFA Institute society Submit professional conduct statement

CFA Institute