CFA South Africa The CFA Program and Charter Study methods the exams and some tips Warwick Langebrink CA SA CFA by phb71255

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									                          CFA South Africa




                The CFA Program and Charter
           Study methods, the exams and some tips
              Warwick Langebrink CA(SA), CFA




2005 CFA Programme
                     TM    www.cfa.ac.za
                           www.cfainstitute.org
                                                     TM
                          CFA Program


    Administered by:

                          CFA Institute          ®




2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
   BENEFITS of the CFA Program

   Respect & Credibility
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




2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
   Where do AIMR Members Work?




2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
   The CFA Course of Study
                                                               TM
   CFA Body of Knowledge


Ethical & Professional                      Analysis of Equity Investments
  Standards                                  Analysis of Derivatives
Quantitative Methods                        Analysis of Alternative
Economics                                     Investments
Financial Statement Analysis                Portfolio Management
Corporate Finance                           Performance Measurement &
Analysis of Debt Investments                  Portfolio Attribution Analysis




2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
    The CFA Course of Study
                                                  TM
    CFA Body of Knowledge
2004 Formats and Weights

5% 12 q Portfolio Management

30% 72 q Asset Valuation

28% 67 q Financial Statement Analysis

12% 29 q Quantitative Methods

10% 24 q Economics

15% 36 q Ethics

 2005 CFA Programme
                      TM   www.cfa.ac.za
                           www.cfainstitute.org
  PREPARATION for the CFA Exams

  Comprehensive Readings
          Level I Primary Textbooks
          (pse check study guide for latest Textbooks)
  •   2005 CFA Level I Candidate Readings
  •   Standards of Practice Handbook
  •   Quantitative Methods for Investment Analysis
  •   Economics: Private and Public Choice
  •   The Analysis and Use of Financial Statements
  •   Investment Analysis and Portfolio Management
  •   Fundamentals of Financial Management
  •   International Investments
  •   Fixed Income Analysis for the CFA      Program
  •   Analysis of Derivatives for the CFA Program

2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
                             Difficulty
250 quality hours per level
Requires logical thought process / memory recall
Not too quantitative

Level I multiple choice
Levels II and III – Multiple Choice and Essays 50:50
 split

Questions come directly from Body of Knowledge and
 the LOS (Learning Outcome Statements)


2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
       CFA Charter Requirements

  Sequentially pass Level I, II, & III exams.
  Have 4 years of professional experience.
  Provide professional references (Level III).
  Apply for membership CFA Institute & CFA
  South Africa societies.
  Submit professional conduct statement.
2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
     Employment History Description
     of Duties / References


Remember to complete Address Sticker (used to
 send Study Guide to candidate)

Incomplete applications rejected

Keep a copy of your Registration

Business Card
2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
                Society Membership

   Continuing Education Resource.
   Standards of Professional Conduct.
   Advocacy.
   Public Awareness.
   Networking/Career Opportunity.

2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
 REGISTERING for the CFA Program

 Costs for Program

          Estimated Costs for Level I
Registration Fee to Enter CFA Program            US$375*
Enrollment Fee for Level I Examination           US$360*
Study Materials for Level I:
       Study Guide                            Free
       Required Readings & Textbooks         US$731
       Supplemental Material                 US$158
Approximate Total Costs for Level I          US$1,624
                                            (ZAR 9,744)
*Registration & Enrollment for Dec 2005 Exam by 15 March 2005
Delivery costs of textbooks, etc. are not included

2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
      Early Registration is essential …
            for June 2005 exams
Received by                     15 Sep           14 Feb.   13 Mar.
AIMR (date)                       2004             2005      2005

Registration                      $375            $375      $450

Enrolment +                       $360            $440      $670
Surcharge

Total                             $735            $815     $1 120

2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
          Information & Registration
                   Package



  Bachelors Degree
  Fees (pay by credit card)
  Description of duties must include "investment
   decision making process"
  Professional Conduct - (tick correct boxes)



2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
           Calendar – June Exam
15 july Study Guides available and mailed to applicants and
Textbooks available for purchase from book distributor

15 September Initial deadline
15 December Second deadline
15 March Final deadline

April Examination Admission tickets distributed

4 June Examination Day
Late July Exam results



2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
    Calendar – December Exam
September Study Guides available and mailed to applicants
and Textbooks available for purchase from book distributor

2 January Registration & Enrollment opens

15 March Initial deadline
15 June Second deadline
15 September Final deadline

October 2004 Examination Admission tickets distributed

4 December 2004 Examination Day


2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
                   Earnings Potential

l   The 2004 median total compensation for CFA investment
l   management professionals with more than 10 years of
    experience is approximately US$190,000, which includes a
    median base salary of US$131,000, an anticipated cash
l   bonus of US$48,000 and non-cash compensation, usually in the
    form of stock options, of US$15,000.

l   Additionally, the top 10% of investment managers surveyed with
    more than ten years of experience expect to earn approximately
    US$596,000, with many earning into seven figures.


    2005 CFA Programme
                         TM   www.cfa.ac.za
                              www.cfainstitute.org
           Earnings Potential

  l   2004 Reynolds survey of 57000 US and Canadian
      CFA’s
  l   Northeast United States enjoy median
      compensation 25 percent greater than the U.S. and
      Canadian average,
  l   Chartered Financial Analyst (CFA) designation is 22
      percent higher than colleagues in equal grades.
  l   AIMR members in the
  l   United Kingdom and United States out earn their
      peers by a wide margin
2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
    Popularity of CFA Program

In 2004, 3,000 candidates were registered to take
 the CFA exams in Cape Town and Johannesburg

(1995, 178 candidates – over 10 fold increase in 5
 years)

The 2004 exams were given simultaneously at 200
 test sites in 75 countries



2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
   Financial Analysts Society of
   SA:

  106th member society
  will promote the interests of CFA candidates and
   qualified CFA charterholders in South Africa.
  strategic networking and continuing education
   through conferences and society events




2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
                 Study Methods (1)
250 hours per annum. Start early, study whenever you can.

Before January 2 past exams & solutions (make notes) – Start
 Early

If you get more than 70% for any section, leave it & concentrate on
 the areas you do not know

Jan - March: 45 mins early mornings, 3 times during the week &
 2 hrs on weekends (Fri & Sun nights)

April - mid May: increase hours. Summarise all notes by mid-May

Mid-May to exam date - do (at least 2) past exams under exam
 conditions
2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
                          Study Methods (2)
Do Not let CFA become a millstone around your neck

Body of Knowledge is
     high volume
     not conceptually difficult

Do not overestimate your ability.

Learn to use your calculator

New concepts may need to be covered 6 times to master the
 topic.

Summarise notes and use different colour for each of 6 versions.
2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
                          Study Methods (3)
Time Pressure Test. For mock exams: Stopwatch with splits.
 (Stopwatches not allowed in exam)

For Essays in Levels 2 and 3 (50% MCQ):

   Neat Handwriting
   For a 5 mark question:
     write 5 short sentences, (no more than 5)
     Leave a line between each sentence.
     The examiner can then clearly and quickly digest your
      response.

   Diligence will pay dividends. Overconfidence may be your
    downfall
2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
                          Study Methods (4)
   • Morning session 120 questions – 1½ minutes each
   • Old questions are NOT available

   • Afternoon session 120 questions – 1½ minutes each
   • Old questions are NOT available

   • Don’t spot

   • Taper off the day before, visit the test centre

   • NB Don’t use previous year’s notes. Notes are updated every
     year. Reconciling old vs new notes to save R2000 isn't worth
     your time cost.

2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
                              Calculators


  Texas Instruments BAII Plus

  Hewlett Packard 12C




2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
                                  The Exam
• Get there early
• Ticket, ID, pens, pencils with fresh erasers, and calculator
• Personal items
• Read each question carefully
• Start out with something easy
• Watch the time
• Dont leave anything blank
• Be neat and organized
• Use the restroom
• Eat lunch!
• Expect the unexpected Stay calm


2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
                                  The Exam
• Candidate Bulletin

• What can I take to the exam center?

• ID Policy ID and picture – one current document Passport

• GAAP applies unless otherwise stated

• Calculator policy

• Pass Rate 2004 = 34% (of those that sat the exam)


2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
             Contacting CFA Institute

www.cfa.ac.za www.cfainstitute.org
      .                                           Download Information &
 560 Ray C. Hunt Drive                            Registration package (post
 P. O. Box 3668                                   takes 2 weeks) / Online
 Charlottesville, VA 22903-0668                   Validation
 USA

 Telephone:       (434) 951-5499
                  (800) 247-8132                  New York Society of Investment
 Fax:             (434) 951-5262                  Analysts :
 E-mail:                                          www.nyssa.org/educate/discus/
           info@cfainstitute.org                  board.html

 2005 CFA Programme
                      TM   www.cfa.ac.za
                           www.cfainstitute.org
           Schweser Review Course
High Quality CD-Rom video sessions

21 Evening sessions of 3hrs each (with a break in between 17h30
 to 20h00)

Schweser’s expert leading international lecturers


(not a substitute for study)




2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
           Schweser Review Course

• Levels I, II and III
• Schweser CD-ROM based
• Expert lecturers
• Video workbook
• Limited class size
• Student interaction



2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
           Schweser Review Course

• 17H30 to 20H00 twice weekly
• Starting mid February 2005
• Ending early May 2004
• Johannesburg and Cape Town
• Venues still to be announced




2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
              Schweser Review Course

      Level Venue                                Weekdays
         I     Still to be                       Monday and
               announced                         Wednesday
        II     Still to be                       Tuesday and
               announced                         Thursday
        III    Still to be                       Monday and
               announced                         Wednesday



2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
           Schweser Review Course
• Review Courses                                 R2,000
• Schweser study notes                           R1,900
• Both (Review Course & Notes)                   R3,400




2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
           Schweser Review Course
Employers can claim back up to 65% from
Skills Development Levy

• Submit workplace skills plan 15%
• Implementation of training 45%
• Discretionary amount        5%




2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
           Schweser Review Course
  Contact Joanne at


  info@investmentwise.co.za

  Tel: (021) 422 2701

  www.investmentwise.co.za

2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org
                                         FAQ’s
 Where can I get the books? Contact Ann Marie Wood: info@cfa.ac.za or Joanne Millar
  :info@investmentwise.co.za Tel: (021) 422 2701 www.investmentwise.co.za

 Where can I get the calculator? Sandton Stationary and Print - Sandton City

 As an MBA/ Honours - do I get exemptions ? No

 Can I write part of the exam in SA and the rest in another country? Yes

 What is minimum tertiary requirements ? Bachelors degree (if in doubt they query with
  info@cfainstitute.org)

 What is the work experience requirement? 4 years in the Investment Decision Making Process (if in doubt
  they query with info@cfainstitute.org)

 Can I have a break between writing the 3 levels? Yes

 Can I become a member of the local society without becoming a member of CFA Institute? No - Please
  refer CFA Membership Instructions, Sponsor Information and Forms




2005 CFA Programme
                       TM       www.cfa.ac.za
                                www.cfainstitute.org
                                         FAQ’s
      When and how can I become a member of the local society (CFA South Africa)? - after
       completion of level 1 and registration for level you can apply to CFA Institute as an Affiliate
       member . By completing CFA Inst application form and inserting the code JB under the
       local society section - forwarding this to CFA Institute who will bill you and confirm
       acceptance (can take up to 6 weeks) Please refer CFA Membership Instructions, Sponsor
       Information and Forms

      What is a sponsor form? - you will need 2 CFA sponsors to become a member of US and
       SA Societies. - Please refer CFA Membership Instructions, Sponsor Information and Forms

      How would I then become a REGULAR member?. If you are already an AFFILIATE
       member, have completed and passed 3 levels and 48 months relevant work experience you
       would complete a STATUS CHANGE form (on the site) and submit to CFA Institute Please
       refer CFA Membership Instructions, Sponsor Information and Forms




2005 CFA Programme
                     TM       www.cfa.ac.za
                              www.cfainstitute.org
                          Conclusion
low cost / risk

high benefit

good entrée into international markets

practical

relevant

most beneficial part time financial qualification
2005 CFA Programme
                     TM   www.cfa.ac.za
                          www.cfainstitute.org

								
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