Kick-off meeting 2011-12 Challenge/2012/Resear… · December 7 (11:00) Company Presentation January 9 1st Draft Due to Mentor January 30 Final Report Due Interim Report Grading Feb

Kick-off meeting 2011-12

14 November 2011

Hellenic CFA Society Information

2011 Global Champions Politecnico di Milano – Milan, Italy

What is the CFA Institute

Research Challenge?

• Worldwide University competition

between teams of students

• Organized by local CFA societies

• Analysis of a publicly traded

company

• Interview company management

• Mentoring by a CFA charterholder

• Research report writing

• Presentation of research

2011 Research Challenge Network

• 2500 Students

• 546 Universities

• 1200 Industry

Volunteers

• 102 Local CFA

Societies

2012 Tournament Diagram

91 LOCAL LEVEL CHALLENGES

Asia-Pacific Regional

19 Teams

EMEA Regional

25 Teams

Americas Regional

47 Teams

New York Regional

20 Teams

Global Finals

2011 Tournament Results

Participating Teams University Faculty Advisor Mentor

ALBA Dr N Tessaromatis Petros Georgilas, CFA

Business School/MSc in Finance Dr S. Zarkos

AUEB Dr D. Giamouridis Alex Boulougouris, CFA

Dept of Accounting and Finance Dr S. Anagnostopoulou

IHU Dr S. Leventis Panagiotis Kladis, CFA

Graduate School /MSc in Finance Dr A. Dasilas

UOA Dr.S. Thomadakis Dr N. Milonas

Maria Kioulafa, CFA

Dept of Economics Dr A. Christopoulos

UOM Dr Y. Lazarides Dimitris Karydas, CFA

Dept of Accounting and Finance Dr S. Papadopoulos

UNIPI Dr A. Merikas Nikos Koskoletos, CFA

Dept of Maritime Studies Dr G. Paroikakis

Timeline

Today Kick-Off

Next 10 days Preliminary Research

Question Development

December 7 (11:00) Company Presentation

January 9 1st Draft Due to Mentor

January 30 Final Report Due

Interim Report Grading

Feb 9 Local Competition Final

March 7 EMEA Region Final (London, UK)

April 12 Global Final (New York, USA)

Rules Overview

• Teams of 3-5 students

• Only 1 team per University

• Enrolled in school at time

of kick off meeting

• Original work of students

• No contact with company

outside of organized events

• No purchased or

professional research

reports may be used

• Mentors and faculty may

NOT contact the company

• Mentors and faculty may

NOT provide inside

information or company

reports

• Students, Mentors, and

Faculty all agree to the

CFA Institute Code of

Ethics and Standards of

Professional Conduct

Advisor and Mentor Involvement

Faculty Advisor

• Insight and guidance on

research methods and tools

as taught in academia

• 10 hours of productive time

maximum

• Access to faculty for other

projects unrelated to the

Research Challenge is

permitted

• All work must be the original

work of the students

Industry Mentor

• Insight and guidance on

industry practice

• 6 hours of productive time

maximum

• Face to face or virtual

• Company management

question development

• Review first draft of research

report

• Presentation development

assistance

Online Ethics Case Study

Ethical Standards for Investment Professionals: An Interactive Case-Based Course

Sample Report

Report Scoring

Section

Investment Summary

Valuation

Business Description

Other Headings

Industry Overview & Competitive Positioning

Financial Analysis

Investment Risks

Total

Maximum

20

20

5

5

15

20

15

100

Presentation Scoring

Section

Argument

Questions

Financial, Valuation & other Analysis

Team Involvement

Poise

Materials

Total

Maximum

25

25

20

15

10

5

100

Subject Company

• Coca Cola Hellenic Bottling Co http://www.coca-colahellenic.com (bloom: EEEK GA)

• Company Profile Coca-Cola Hellenic Bottling Company S.A. produces, Sells and distributes soft drinks, fruit juices, and mineral water. The company produces all kinds of Coca-Cola brand name products such as Coke, diet Coke, Sprite, diet Sprite, and Fanta. Coca-Cola Hellenic manufactures and distributes in 26 countries worldwide.

• Management George David, Chairman Robert Murrey, CFO Jan S Gustavsson, Dir of Strategy Oya Gur, Dir of Investor Relations

Interacting with Coca Cola Hellenic

• Designated Officers ONLY

• Organized Meetings ONLY

• Industry Mentor or Faculty Advisor must be present for ALL student-company interactions

• Students may contact company suppliers, customers, vendors, etc.

Questions

The Student Benefits and Experience

Benefits for Students

• Learn best practices in research and report writing

• Real-life learning experience as a Sell-Side Equity

Analyst

• Gain access and exposure to leading industry

professionals

• Professional report and experience can be featured

on resume/CV and on job interviews

• Experience presenting to top financial professionals

• Individual and team prizes

• Opportunity for travel (all expenses paid)

• Potential for media exposure

• Join a network of over 5000 students & 2000

volunteers worldwide

The Student Experience

– “Candid feedback from mentors, graders, and judges helped me to understand the industry”

– “It was a thrill to open the NYSE!”

– “It was an honor to win US$10,000 for my university”

– Understanding : “opportunity favors the prepared mind”

– “My sell-side research report opened doors to a fantastic internship”

– “I was offered a job in the investment industry where jobs are difficult to find.”

Media Exposure

Student Testimonial

“I found the Research challenge to be an invaluable, real-life prep for job interviews. I interviewed with an equity research firm while working on the report and the interviewers were amazed at my level of exposure as a student. I was extended an offer, based without a doubt, on my participation in the Challenge. I highly recommend the Research Challenge to students who are interested in a career in finance.”

– Steve Catera, Rutgers University, 2009 Research Challenge Participant

2012 Timeline

Asia-Pacific Regional Final Hong Kong, Week of February 28, 2012

EMEA Regional Final London, Week of March 5, 2012

Americas Regional Final New York City, Week of April 9, 2012

CFA Institute Research Challenge Global Final New York City, Week of April 9, 2012

Questions

Page

25

Ethical Decision Making

CFA Institute Mission Statement

11/19/2011 Ethical Decision Making

To lead the investment profession globally by

setting the highest standards of ethics,

education, and professional excellence.

Why Ethics Matters

11/19/2011 Ethical Decision Making

Code of Ethics

11/19/2011 Ethical Decision Making

Ethics

Integrity

Competence

Professionalism

Diligence Respect

Independent judgment

Reasonable

care

Law vs. Ethics

11/19/2011 Ethical Decision Making

Law: a clearly defined set of enforceable rules that applies to

everyone. It represents a minimum level of expected conduct that everyone must

observe.

Ethics: guidelines that address situations not covered by the

law (relations with competitors, interpersonal relations at work)

and also contribute to the creation of laws.

“Buffett Test”

11/19/2011 Ethical Decision Making

Warren E. Buffett, CEO of Berkshire Hathaway Inc.

I want employees to ask themselves whether they are

willing to have any contemplated act appear the next

day on the front page of their local paper—to be read

by their spouses, children and friends—with the

reporting done by an informed and critical reporter.

Ethics in the CFA Institute Research Challenge (1/2)

How does this apply to my participation in the CFA Institute Research Challenge?

All participants must adhere to the Code of Ethics and Standards of Professional Conduct, with emphasis on the Standards outlined in the next slide:

11/19/2011 Ethical Decision Making

Ethics in the CFA Institute Research Challenge (2/2)

–Standard I.B (Independence and Objectivity)

–Standard I.C (Misrepresentation)

–Standard II.A (Material Nonpublic Information)

–Standard II.B (Market Manipulation)

–Standard V.A (Diligence and Reasonable Basis)

–Standard V.B (Communication with Clients and Prospective Clients)

11/19/2011 Ethical Decision Making

Questions

CFA Institute Research Challenge Team

Brian Stype – Manager

Amanda Quinn – Program Coordinator

Amy Strunk – Administrator

• www.researchchallenge.org

• email: [email protected]