CFA Program and CFA Society Italy - Politecnico di Milano · management teams select equities ... the global level by CFA ... can take advantage from a wide range of benefits both

CFA Program®

and

CFA Society Italy

Milan, 20th January 2014

Content

INTRODUCTION: CFA INSTITUTE AND THE CFA PROGRAM

A CAREER IN …

CFA SOCIETY ITALY

HOW TO BECOME A CHARTERHOLDER AND A MEMBER

INTRODUCTION: CFA INSTITUTE AND THE CFA PROGRAM

CFA Institute:

based on the

ideas of the

Father of

financial analysis

CFA Institute members

• 100.000 professionals

skilled people operating around the world committed to

continue education.

• 100.000 professionals

who believe that ethics is not abstract value but a concrete

way to protect the integrity of the markets incrementing

investor confidence.

• 100.000 professionals

who enjoy a unique viewpoint on evolving trends and engage

in analysis of new scenarios to protect the interests of

investors.

CFA Charter: values

• Global

It certifies worldwide the real expertise on the world financial

markets

• Rigorous

The high quality standards required for passing the

certification exams are universally recognized

• Ethics

Ethics is studied and practiced: the lack of adherence to

shared ethical principles imply the cancellation of the

certification

CFA Program and CFA Designation

What do they say about it?

“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,

in effect, global currency.”

The Economist

Feb. 26-Mar. 4, 2005

The CFA Program and CFA Charter

Three exams, taken sequentially across 3-4 years - The most

rigorous in the investment profession

Self-study curriculum

Grounded in ethics -10% of curriculum focuses on ethics - members

and candidates must sign annual ethics statement

Four years work experience in the investment profession before

gaining the CFA charter

CFA charter provides strong foundation for a variety of career

choices in the investment profession.

Employers and media around the world recognize the CFA charter as

the standard of professional excellence.

With such widespread recognition, CFA charterholders earn a

significant competitive advantage for international employment.

The CFA Program and CFA Charter

CURRICULUM TOPIC BREAKDOWN

BY EXAM LEVEL

The CFA Program and CFA Charter

Learning Tied to Current Practice

• Practice Analysis determines topics taught in the CFA

Program

• Conducted every five years: currently in 2005-2006

• Involves investment practitioners worldwide: Regional Expert

Panels and member surveys

• “What knowledge and skills are needed by an investment

professionals?”

• CBOK, curriculum, LOS and exams all based on what

practitioners need to know

CFA Body of Knowledge™

• Ethical and Professional Standards

• Quantitative Methods

• Economics

• Financial Statement Analysis

• Corporate Finance

• Analysis of Equity Investments

• Analysis of Debt Investments

• Analysis of Derivatives

• Analysis fo alternative Investments

• Portfolio Management

Investment Tools

Asset Valuation

13

• Six volumes at each level represents the entire curriculum.

• Each study session is designed for flexible, self-directed study

• Each reading has learning outcome statements (LOS)

• “Discuss the rationales for, and the possible drawbacks to, the use of price to earnings (P/E), price to book value (P/BV), price to sales (P/S), and price to cash flow (P/CF) in equity valuation.”

CFA Program – Custom curriculum

The importance of Ethics

All too often, the public view is that the financial

services industry has failed to do the right thing …

The challenge is to translate the aims and objectives of millions of

individual participants in the industry to deliver an end result with

which all concerned – participants, customers, governments, etc. –

are satisfied.

What do ethics actually mean in the

context of the financial industry?

It is a fundamental requirement of the

investment profession.

Ethics protects the integrity of the capital markets.

Ethics Increases investor confidence in global capital markets.

Ethical practices instil a public trust in the fairness of markets,

allowing them to function efficiently

What more needs to be done to bring

ethics to the front of the debate?

CFA Institute will continue to reinforce the value of sustaining sound

ethics in the profession through education, codes and standards,

letters and public commentary and policy research

It is CFA Institute mandate to keep ethics at front of mind for

investment professionals, regulators, and firms across the globe

CFA Institute Code of Ethics

High ethical standards are critical to maintaining the public’s trust in global

financial markets and in the investment profession.

The more than 100,000 members of CFA Institute – of whom 93,000 across

137 countries hold the respected CFA© designation – adhere to the CFA

Institute Code of Ethics and Standards of Professional Conduct (“Code

and Standards”)

Self regulation and enforcement of these fundamental professional

standards has served as a model for measuring and promoting the ethics of

investment professionals around the world

A CAREER IN …

What will you do next? A career in…

INVESTMENT MANAGEMENT

Institutional Investment Management

Retail Investment Management

Private Client/Wealth Management

Hedge Funds

Private Equity

Risk Management

Performance Measurement

Client Relationship Management

Portfolio Administration

Asset Allocation

Trading

Equity Research

Fixed Income Research

BANKING

Corporate Finance – M&A

Fixed Income

Equity – Cash /Derivatives

Prime Brokerage

Foreign Exchange

Commodities

Research

Funding and Finance

Sales and Trading

Origination - Debt and Equity Capital

Markets

Key Competences

the Market is looking for

ANALYTICAL SKILLS

Corporate Finance

Economics

Financial Reporting

Quantitative Methods

Derivatives

Equity Investments

Fixed Income

People who hire say:

• “We look for strong academics, but candidates really need to stand head

and shoulders above their counterparts. They have to have a good

understanding of the economics of the business and they have to be very

commercial. Confidence is also extremely important.”

• “One important trend is globalisation. People with local knowledge for

certain types of asset classes and strategies have an advantage.

Candidates who are willing to be flexible about their location will have

greater opportunities.”

People who hire say:

• “For people entering the industry now therefore, things will look very

different than they did a decade ago. For the most part, new entrants will

need to develop specialist knowledge very quickly, and they will have to

succeed in a global marketplace with competition from all fronts.”

• At the same time however, some observers believe that now is the best

time to enter the industry: “Those who begin their careers now are going to

have a very clear idea about what life was like in today’s harsh environment.

Wrestling with the bear now, therefore, may be as much of an opportunity

as it will be a challenge.”

Types of Positions that Benefit

from a CFA Charter

• The CFA charter provides you with a strong foundation for a variety of career

choices in the investment profession.

• Employers and media around the world recognize the CFA charter as the

standard of professional excellence. And with such widespread

recognition, CFA charterholders earn a significant competitive advantage for

international employment.

The CFA Program and CFA Charter

WHAT JOBS DOES THE CFA

CHARTER PREPARE YOU FOR?

WHO EMPLOYS

CFA CHARTERHOLDERS?

Mapping Careers in the Investment Profession

Example Careers

Required Skills:

• Strong Analytical Background,

i.e. master mathematical and

statistical concepts

• Ability to interpret annual

reports, i.e. good accounting

knowledge

• Soft skills: good

communication skills

Example Careers

Required Skills:

• Strong Analytical Background,

i.e. master mathematical and

statistical concepts and good

programming abilities

• Ability to interpret dynamics in

economics

• Soft skills: ability in summarize

information and perspectives

into a final assessment

Example Careers

Required Skills:

• Strong Analytical Background,

i.e. master mathematical and

statistical concepts and good

programming abilities

• Ability to interpret corporate

variables and industries

dynamics

• Soft skills: ability in summarize

information and good

communication skills

CFA SOCIETY ITALY

CFA Society Italy – Fast Facts

• Established in 1999 as not-for-profit organization of investment professionals

who agrees to abide by the Code of Ethics and Standards of Professional Conduct

promoted by CFA Institute

• Promotes the highest ethical and professional standards within the Italian

investment industry and encourages professional development through the CFA

Program and the CIPM Program

• Network of 390+ members employed by the major companies within investment

industry (asset management, private banks, insurance)

• Affiliated with CFA Institute, the global, not-for-profit association of investment

professionals that leads the investment industry by setting the highest standards of

ethics, education, and professional excellence.

• Network of 137 Societies worldwide offers exchange of ideas and professional

experience with peers throughout the globe and on a European level.

CFA Society Italy: our commitment

Reference point

for Charterholders

operating in Italy

Promoter of

CFA Institute

values

Events on

financial markets

topics, networking.

newsletter

Events on

financial markets

topics,

newsletter

Support to

candidates during

the course of

studies

Candidate

briefings, Exam

focus, Mock

Exam, Courses

CFA Society Italy: Our Major Activities

We offer an ongoing series of events for investment practitioners

and a wide range of educational opportunities throughout the year

• Focus on industry - market analysis and development perspectives, updates on

regulatory issues in partnership with some of the main investment businesses

• Forecast Event – annual forecast on markets with the most famous speakers

• CFA Award Dinner – celebration of the new CFA Charterholders and networking

among society members, investment professionals and the media

• Career Events – outlook on professional identity in time of change and soft skills

workshops

• Jobline – exclusive access for CFA Candidates and senior professionals members

• Connections with Italian business colleges – Research Challenge, Fund

Management Challenge

Research Challenge

• Courses - Corsi di Laurea Magistrale in Scienze dell’Economia, Scienze Economico-

Aziendali, Ingegneria Gestionale and similar courses

• Topics – The competition simulates real market conditions in which student analyst

teams write and present their recommendation report on a stock listed on the Italian

Stock Exchange, as Equity sell-side analysts do. Students, supported by a mentor,

learn to apply analytical techniques, using leading industry tools and software, such

as Bloomberg.

• Networking opportunity – The Italian contest is a major opportunity for university

students to meet senior professionals and head hunters.

• Deadline – October 2013

For more information: [email protected]

Fund Management Challenge

• Courses – The Fund Management Challenge is an annual competition for university

students in Italy completing a Master’s degree.

• Topics – The competition simulates real market conditions in which student

management teams select equities to build a successful investment fund. Students

learn the importance of ethical behavior, while applying legal frameworks, portfolio

management techniques and using leading industry tools and software such as

FactSet.

• Awards – Competition winners will be able to choose between a monetary prize or

tax-free CFA Level I scholarships.

• Deadline – December 2013

For more information: [email protected]

HOW TO BECOME A CHARTERHOLDER AND A MEMBER

How to become a CFA Charterhoder

• 4 years of professional experience

• 3 exams, which requires the knowledge of a

rigorous theoretical basis and the ability to solve

practical cases based on the most modern reality

of financial markets around the world.

• Becoming part of 2 networks, at the local level

and at the international stage

• Adhering to 1 rigorous Code of Ethics, that in

the event of inappropriate behavior foresee

sanctions from the Association

4 3

2 1

CFA Society Italy is the Association that gathers the Italian

Professionals who have earned the

Chartered Financial Analyst ® (CFA) designation

and, in Italy, it represents CFA Institute,

the leading Association in the financial world.

CFA Society Italy at a glance

C F A S I Charter Financial Analyst Society Italy

Focusing on

the

peculiarities

of our country

In compliance with projects defined at

the global level by CFA Institute, the

most prestigious association of

professionals in the financial world

Not-for-profit

association

CFA Society Italy: Membership

We offer three types of membership

• Regular membership – CFA Charterholders and senior professionals who

can take advantage from a wide range of benefits both from CFA Institute

and from CFA Society Italy

• Affiliate membership – junior professionals who can take advantage from

a wide range of benefits both from CFA Institute and from CFA Society Italy

• Junior membership – CFA Candidates who can take advantage from a

wide range of benefits from CFA Society Italy, particularly focused on

supporting them in achieving the CFA certification

• For more information [email protected]

Contact us

For any kind of information write to [email protected]

Subscribe to our by-monthly newsletter from our website

homepage www.cfasocietyitaly.it

Thank you!

CFA Society Italy