Chartered Financial Analyst (CFA) Program

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					Chartered Financial Analyst
      (CFA) Program

    Ernesto D. Francisco, Jr, CFA
         For Mark Yu, CFA
     President, CFA Philippines
         Chairman, JFINEX

           Dec. 15, 2007
              Overview


   Benefits of the Charter
   CFA Program
   Career Opportunities
   Course Providers
   Scholarship
   Local Society




                              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




       Non-              CFA
   Charterholders   Charterholders


                                                                       CFA Institute
                            Benefits of the Charter


 CFA vs. CPA
         The CFA Charter is recognized GLOBALLY
 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
Testimonials
Program Prestige




       www.cfainstitute.org
                              CFA Institute
“Whereas there are tens of thousands of finance
 degrees available around the world, ranging from
 the excellent to the worthless, there is only one
 CFA, managed and examined by an American
 association of financial professionals, the CFA
 Institute. It used to be just an American
 qualification. But explosive growth has made
 it… GLOBAL CURRENCY.”

-- The Economist, Feb. 26-Mar 4, 2005


                                           CFA Institute
                 Benefits of the CFA Charter
                 Opens doors

                      “Becoming a CFA is now a passport for
                      excellence and international mobility.”
                      ---Financial Times, 21 June 2004




“The Chartered Financial Analyst
(CFA) qualification is highly rated
in financial circles around the
world. In many countries it is
ESSENTIAL for people working for
financial institutions to obtain the
license.”
---Nikkei Financial Daily, 20 July 2004                  CFA Institute
Career Opportunities
             Career Opportunities (Local)

1.   Investment/Brokerage Houses
2.   Trust & Mutual Fund Industry
3.   Bank Treasury
4.   Regulatory Institutions
5.   Financial Advisory Groups of Big 4
6.   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)
•   EXAMPLES
    •   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
              Trust & Mutual Fund Industry

•   WHAT THEY DO
    •   Manage Pension Funds for Institutional Investors
    •   Manage UITF & Mutual Funds for Retail Investors
•   EXAMPLES
    •   Mike Garcia, CFA – Head of Trust, Unionbank
        - Offers additional ~PHP100K/annum compensation for
          every level you pass
    •   Trust/UITF – ING, MIB, MBTC, BPI, BDO
    •   Mutual Fund – SunLife, Philam Asset
        Management


                                                     CFA Institute
              Trust Industry Update

Trust Officers Association of the Philippines
  On Feb. 23, 2007 – Issued directive to employ a practitioner who
  has passed at least the CFA Level 1 exam within the trust
  departments to be involved in the investment function of the UITF
  portfolios




                                                           CFA Institute
              Bank Treasury

•   WHAT THEY DO
    •   Manage FX/Bond Transactions
    •   Develop & Manage Derivative (e.g. Futures,
        Swaps, Options) Products
•   EXAMPLES
    •   Toto Tansingco, CFA – Treasurer, Metrobank
        - Sponsors Employees on a Case-to-case Basis
    •   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
•   EXAMPLES
    •   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
              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               • Investment Counselor
• Chief Investment Officer    • Investment Firm Manager
• Equity Analyst              • Portfolio Manager
• Fixed Income Analyst        • Portfolio Strategist
• Investment Banker           • Sales/Marketing Professional




                                                               CFA Institute
CFA Program
Sponsored by:




                CFA Institute
To lead the investment profession
   globally by setting the highest
standards of ethics, education, and
      professional excellence.

                                 CFA Institute
Global Passport: The CFA Charter
Members’ and Candidates’ Locations



                                     Europe                                        Asia & Mainland China
United States & Canada               Members: 10,992                               Members: 987
Members: 59,576                      Candidates: 14,535                            Candidates: 11,821
Candidates: 43,058




            Latin America
            Members: 869
            Candidates: 1,737
                                          Africa & Middle East
                                          Members: 1,658                   Pacific Asia
                                          Candidates: 4,776                Members: 8,793
                                                                           Candidates: 21,035


•Member count as of 1 June 2006
•CFA Candidates enrolled for the June 2006 and December 2006 Exams (as of 1 June 2006)       CFA Institute
             What is the CFA Program?
             Three Levels and Three Exams


Level I – Knowledge and comprehension of fundamental
investment tools and concepts
Level II – Application and analysis focused on
asset valuation
Level III – Synthesis and evaluation of client needs and
portfolio management issues
Ethical and professional standards are emphasized at
every level.




                                                       CFA Institute
             The CFA Course of Study
             CFA Body of Knowledge™


• Ethical and Professional Standards
• Quantitative Methods
• Economics
                                           Investment Tools
• Financial Statement Analysis
• Corporate Finance
• Analysis of Equity Investments
• Analysis of Debt Investments
                                           Asset Valuation
• Analysis of Derivatives
• Analysis of Alternative Investments
• Portfolio Management and Performance Presentation

                                                  CFA Institute
                  The CFA Course of Study
                  Three Levels – Topic Areas


Approximate Percentage Breakdown

       5%                             10%                        5%
15%                           10%
                                                 40%
                                                                                 35%
                                                       50%
                       50%


                                40%
30%
                                                                     10%
      Level I                         Level II               Level III

   Investment Tools
   Asset Valuation
   Portfolio Management
   Ethics & Professional Standards

                                                                 CFA Institute
What is the CFA Program?
Practical, Relevant Education

 Practitioners at every step of the process




                                              CFA Institute
          The CFA Examinations
          2008 Exam Format

                 Multiple    Item Set     Constructed
                 Choice     (Objective)    Response


Level I            ●
                   100%




Level II*                        ●
                                 100%




Level III                        ●            ●
                                 50%          50%




                                                        CFA Institute
       Global Pass Rates



        Level 1   Level 2   Level 3
2000    52%       54%       65%
2001    49%       46%       82%
2002    44%       47%       58%
2003    42%       47%       68%
2004    34%       32%       64%
2005    36%       56%       55%
2006    40%       48%       76%
2007    40%       40%       50%


                                      CFA Institute
             Registering for the CFA Program
             Three Ways to Register


• Register online at:
    www.cfainstitute.org
• Download forms from the CFA
    Institute website and register by mail
• Contact CFA Institute for a paper
    CFA exam registration and
    enrollment package




                                               CFA Institute
                            Fee Schedule

June 2008 Examination (June 8, 2008)
                 3 Oct 07    15 Feb 08    17 Mar 08
Registration     US$390      US$390       US$465
Fee (one-time)
Exam Fee:        US$600      US$688       US$930
Total Cost:      US$990      US$1,078     US$1,395

•Total Cost is Study Material Inclusive (6 Books)
•Location: Mandarin Oriental or Dusit Hotel
•Level 1 Exams are also offered in December


                                                www.cfainstitute.org
                                                    CFA Institute
               Registering for the CFA Program
               Entrance Requirements


• Have a bachelor’s (U.S. or comparable non-U.S. degree), or
• Be in the final year of your bachelor’s 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
Course Providers
              Course Providers

Asian Institute of Management
  Cost: PHP40,000
  CFAP Scholars receive a 50% discount on the cost
  Start Date: October 17, 2007 (for June 2008 Exam)
  No Course Offering for December 2007 Exam
  Contact Jerome Ferreria, CFA
  (jferreria2000@yahoo.com)
 De La Salle Graduate School of Business
  Cost: PHP25,000
  Contact Marc Bautista, CFA (marcbautista@gmail.com)
                                                www.cfainstitute.org
                                                   CFA Institute
Scholarship
                 Three Scholarship Programs


Student Scholarships – For New Level I Only*
   Awarded by CFA charterholder full-time faculty
   members
Faculty Scholarships – Available for Any Level*
   Awarded to full-time faculty directly by CFA Institute
Society Scholarships – Available for Any Level*
  Awarded to qualified candidates by local
  CFA Institute society



                                                      www.cfainstitute.org
                                                         CFA Institute
              Scholarship Amount (2008)


Approximate Costs for New Level I Candidates
  Registration fee                              US $390
  Exam fee & Study Materials                    US $600
  Approximate Total Costs for Level I           US $990

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




                                               www.cfainstitute.org
                                                  CFA Institute
               Society Scholarship Criteria


Criteria
  Ability to Pass
  Extra-Curricular
  Financial Need
Panel Interview conducted by members and
officers of the local society
At least 10 scholarships awarded each fiscal
year (Sep – Aug)


                                        www.cfainstitute.org
                                           CFA Institute
              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)
Those who qualify will undergo a panel interview. For
more information, please contact: Ernie Francisco, CFA
franciscoed@sss.gov.ph.


                                                 www.cfainstitute.org
                                                    CFA Institute
Local Society
              Local Society


Members: 92
Committees:
  Continuing Education – 3x/year
  Public Awareness
  Membership
  Advocacy
  Scholarship




                                    www.cfainstitute.org
                                       CFA Institute
                Questions


1.  What subjects/topics are included in the CFA exams?
2.  How much will it cost to take the exams?
3.  What companies offer incentives to CFAs?
4.  What career opportunities lie in store for CFAs?
5.  What are the qualifications needed in order to apply for
    the program?
6. Where and when are the exams held?
7. What if i pass one level and fail the next?
8. What are the benefits of being a CFA?
9. How many CFAs are there in the country?
10. Is the title recognized world-wide?


                                                       CFA Institute
For more information about the CFA Program:


                 CFA Philippines
              G/F Meridien Building
           29 Annapolis St. San Juan
         Metro Manila, Philippines 1500
              Tel: (65) 632-723-5272
         Email: info@cfap.cfasociety.org
       Website: www.membersocieties.org/manila

                   www.cfainstitute.org          CFA Institute
``The race is not to the swift or the battle to the strong,
        nor does food come to the wise
                or wealth to the brilliant
                       or favor to the learned;
                            but time and chance happen to them all."

                                                  Ecclesiastes 9:11
                                                            CFA Institute