Sponsored by: 2008 CFA® PROGRAM Revised: 28 August 2006 What is CFA Institute? Global nonprofit association with more than 150,000 investment-professional constituents from 135 nations around the world. Headquartered in Charlottesville, VA, USA – CFA Institute also maintains regional offices in London & Hong Kong. CFA Institute sets industry standards for knowledge, professionalism, & integrity through the (Chartered Financial Analyst®) CFA® Program CFA Institute and 131 local CFA Institute societies provide ongoing career development for members through continuing education, advocacy, and professional conduct programs. Ethical and professional standards – the CFA Institute Code of Ethics and Standards of Professional Conduct, and GIPS® (Global Investment Performance Standards) – foster high levels of integrity and transparency within the investment management process. 2004-2005 CFA® Program

Mission Statement To lead the investment profession globally by setting the highest standards of ethics, education, and professional excellence. 2004-2005 CFA® Program

Benefits of the CFA Program Knowledge Built on a broad-based Body of Knowledge, the CFA Program is intended to supplement the education and work experience of investment professionals. The study curriculum covers the fundamentals of financial analysis and investment decision making. The CFA Program helps practitioners build the knowledge base required to make better investment decisions, and more viable candidates to assume senior positions with wider ranges of responsibility. 2004-2005 CFA® Program

Most common occupations of CFA charterholders Benefits of the CFA Program Respect and 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 No other designation within the investment management profession carries as much prestige as the CFA charter. The list of individuals who have completed the program reads like a Who’s Who of the global investment industry and includes CEOs and partners of the top investment firms, world renowned investment strategists, and leading academics. Achieving the CFA designation places a individual in select company. It carries with it the respect and credibility that will benefit the professional at every career stage. 2004-2005 CFA® Program

Benefits of the CFA Program Diverse Career Opportunities Mutual Funds / Investment Companies 26% Brokerage / Investment Banks 18% Investment Management Counselors 12% Commercial Banks / Trust Companies 15% Consulting Firms 7% Insurance Companies 5% Other 17% Traditional employment in large financial institutions continues to be a primary career track for many CFA candidates and charterholders. However, growing numbers of charterholders are working in non-financial corporations and consulting firms. 2004-2005 CFA® Program

TD Bank Financial Group Wachovia CIBC Barclays BMO Financial Group Benefits of the CFA Program Opportunity – Top 24 Employers UBS Citigroup JP Morgan Chase & Co Merrill Lynch RBC Bank of America Credit Suisse HSBC Morgan Stanley Goldman Sachs Deutsche Bank TD Bank Financial Group Wachovia CIBC Barclays BMO Financial Group Allianz AG FMR Corporation PricewaterhouseCoopers Lehman Brothers Mellon Financial ABN AMRO Bank The job listings in local newspapers and on the Internet contain a recurring requirement for investment–related positions: “CFA charter preferred or CFA candidate desired.” When hiring, promoting, and assigning additional responsibility, a large number of employers use the CFA charter as a benchmark for measuring capability and professionalism. Participation in the CFA Program is a clear signal to potential employers that a student or new employee is serious about a career in the investment profession. 2004-2005 CFA® Program

Industry’s High Regard for the Charter: U.S.A. U.S. Department of Labor Occupational Outlook Handbook recommends CFA certification for those pursuing careers as Financial Analysts and Personal Financial Advisors. See Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2006-07 Edition, Financial Analysts and Personal Financial Advisors , on the Internet at http://www.bls.gov/oco/ocos259.htm (visited April 18, 2006). 2004-2005 CFA® Program

High Regard for the Charter: Job Postings 2004-2005 CFA® Program

London, UK The Chartered Financial Analyst (CFA) designation required 2004-2005 CFA® Program

CFA certificate desirable. United Nations CFA certificate desirable. 2004-2005 CFA® Program

Abu Dhabi Investment Authority 2004-2005 CFA® Program

CFA charterholders or candidates in the CFA program are to be favored Switzerland Switzerland CFA charterholders or candidates in the CFA program are to be favored 2004-2005 CFA® Program

City of New York The Chartered Financial Analyst (CFA) designation is strongly preferred 2004-2005 CFA® Program

High Regard for the Charter: Media 2004-2005 CFA® Program

London (Ontario) Free Press Business Monthly 20 September 2004 “For an investment professional, procuring the coveted CFA Charter is like winning the grand slam in golf. The competition is fierce, the course is grueling, and the stress is like nothing you have ever experienced.” London (Ontario) Free Press Business Monthly 20 September 2004 2004-2005 CFA® Program

Nikkei Financial Daily Chartered Financial Analyst Qualification Gaining International Recognition – Emphasis on Ethics, Attention from Financial Community Growing Nikkei Financial Daily 20 July 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.” 2004-2005 CFA® Program

L’Agefi (France) CFA — The Global Passport 3 February 2006 L’Agefi (France) CFA — The Global Passport Excerpt: [translation] The number of candidates prepared for the CFA exam is increasing in France. The designation is already well known in New York and London in the financial services sector. “Passing the CFA facilitated my ability to grow in my career in risk management, which was one of my objectives in preparing to receive the charter,” said Manual Arrive, who is responsible for structured finance analysis at Fitch Ratings in London. There are between 800 and 1000 candidates in France who will take the exam on June 3, 2006 – a dramatic change from the 1990s when the qualification was relatively unknown in France. Rapid growth in CFA candidates is likewise occurring worldwide. 2004-2005 CFA® Program

22 May 2006 Financial Times Rise Of The Grueling Professional Exam The CFA for financial analysts is one of the fastest growing qualifications and increasingly seen as a rival to the MBA, says Phil Davis. Excerpt: As summer approaches in the northern hemisphere and thoughts turn to holidays and the World Cup, spare a thought for those sitting in exam rooms sweating over their future. Many are in full-time education but others are joining the growing band taking professional exams. One of the fastest-growing of these is the Chartered Financial Analyst (CFA) qualification that 84,000 people in 89 countries will be taking on June 3. 2004-2005 CFA® Program

Bloomberg CFA Test-Takers Seek Wall Street Success, Global Acceptance 2 June 2006 Bloomberg CFA Test-Takers Seek Wall Street Success, Global Acceptance Excerpt: Investment banks increasingly require CFA credentials for employees and job candidates. Goldman Sachs Group Inc. and Merrill Lynch & Co. are among the largest employers of chartered analysts, along with Bank of America Corp., Fidelity Investments and Northern Trust Corp. 2004-2005 CFA® Program

“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 2004-2005 CFA® Program

2004-2005 CFA® Program

92,988 Members and 135 Societies Worldwide* Global Passport: The CFA Charter Members’ Locations 92,988 Members and 135 Societies Worldwide* Europe Members: 13,103 Asia & Mainland China Members: 1,987 United States & Canada Members: 63,767 The CFA Program is growing around the world and transforming CFA Institute into a global organization. Currently the majority of CFA charterholders are living and working in North America, but the candidate population is much more diverse. More than half of all candidates in the CFA Program are outside the U.S., and we expect that within 10 years the majority of charterholders will be outside the U.S. Latin America Members: 1,036 Africa & Middle East Members: 2,112 Pacific Asia Members: 10,970 * as of January 2, 2008 2004-2005 CFA® Program

Candidate Enrollments (for June 2007 and December 2007 exams) U.K. 9,580 Canada 12,780 Korea 6,094 Europe 23,606 Hong Kong 10,867 U.S. 49,622 P.R. China 12,926 Taiwan 3,414 Middle East & Africa 8,241 Singapore 6,272 Latin America 2,587 Australia 3,339 2004-2005 CFA® Program

Candidate Makeup 68% Non-US 68% US 74% Male 78% Male Age 30 Age 31 June 1993 June 2007 68% Non-US 74% Male Age 30 68% US 78% Male Age 31 2004-2005 CFA® Program

What is the CFA Program? Rigorous Self-Study Program The CFA Program is a distance-learning program, based on a specific curriculum of reading assignments. The format of this self-study curriculum allows even the busiest investment professional to participate. The curriculum develops and reinforces a fundamental knowledge of investment principles. The three levels of examination verify a candidate’s ability to apply these principles across all areas of the investment decision making process, and the Program’s professional conduct requirements demand that both CFA candidates and charterholders answer to the highest standards of ethical responsibility. Graduate students (and undergraduates who will receive their bachelor’s degree by December of the exam year) are also encouraged to begin the CFA Program if they wish to pursue a career in investments. 2004-2005 CFA® Program

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. The CFA Program is divided into three levels, each culminating in an examination. Level I is offered twice each year (June & December). Levels II & III are offered only at the June administration. Candidates must pass each level sequentially. The candidate begins with Level I, an objective exam that focuses on Fundamental Concepts & Tools for Investment Valuation and Management. Level II, also an objective exam, focuses primarily on asset valuation while Level III, emphasizes portfolio management. The format of the Level III examination is 50% constructed response and 50% selected response (item set). The Study Program at Levels II and III builds on the knowledge learned at prior levels. The competence level rises for each of the examinations. At Level I emphasis is on basic knowledge and comprehension. Levels II and III involve higher order learning skills, such as analysis and synthesis. In keeping with the CFA Institute mission, Ethical and Professional Standards are emphasized at every level. 2004-2005 CFA® Program

Practitioners at every step of the process What is the CFA Program? Practical, Relevant Education Practitioners at every step of the process EAC COE The CFA Program is relevant to the investment profession because the Body of Knowledge is based on the continual feedback from practicing investment professionals & leading finance academics. The entire process begins with a detailed job analysis performed every five years in which thousands of analysts and portfolio managers participate to develop a list of core topics for the program, i.e., the CFA Candidate Body of Knowledge (CBOK®). The Education Advisory Committee (EAC) selects reading materials and drafts Learning Outcome Statements (LOS) for each reading to teach the topics in the CBOK. The Council of Examiners (COE) creates the examination for each level to test candidates’ mastery of the knowledge represented by the assigned readings. Each question is based on one or more Learning Outcome Statements. 2004-2005 CFA® Program

• Practice Analysis determines topics taught in the CFA Program What is the CFA Program? 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 professional?” • CBOK, curriculum, LOS and exams all based on what practitioners need to know The Practice Analysis is the foundation on which the CFA Program is built. It involves thousands of practitioners from around the globe in determining: “What does an entry level practitioner need to know?” Regional expert panels made up of charterholder practitioners identify the topics to be covered in the CFA Program. The results of the regional expert panels and the member surveys are used to determine the Candidate Body of Knowledge or CBOK. 2004-2005 CFA® Program

• Ethical and Professional Standards • Quantitative Methods The CFA Course of Study CFA Body of Knowledge™ • Ethical and Professional Standards • Quantitative Methods • Economics • Financial Reporting and Analysis • Corporate Finance • Equity Investments • Fixed Income • Derivatives • Alternative Investments • Portfolio Management and Wealth Planning Investment Tools The material covered in the CFA Program’s curriculum is designed to reflect a Body of Knowledge that keeps pace with the ever-changing dynamics of the global investment industry. The CFA Program focuses on the principles of investment analysis and management. The Body of Knowledge is a systematic way of setting a framework for making investment decisions. The Body of Knowledge includes the 10 general topic areas listed here. Each of these topic areas is broken into sub-topics and serves as the framework on which the entire program is constructed. CFA Institute publishes the CFA Program Study Guides that candidates receive upon enrolling in each level of the program. The study guides contain the reading assignments to teach the Body of Knowledge and on which the examinations are based. Asset Classes and Valuation 2004-2005 CFA® Program

Approximate Percentage Breakdown The CFA Course of Study Three Levels – Topic Areas Approximate Percentage Breakdown 50% 30% 15% 5% 10% 50% 40% 10% 10% 40% 40% The weightings for each Level shown here are approximate and may vary from year to year, but provide a clear idea of the emphasis at each Level. Because of the importance to the CFA Program, Ethics and Professional Standards are a significant component of each Level. The Level I curriculum and examination focuses on tools and concepts that apply to investment valuation and management. Level I also provides an overview of the processes of asset valuation and portfolio management. Reflecting the typical “business core” at many colleges and universities, this Level includes strong emphasis on financial statement analysis, economics, and quantitative methods. Level II deals primarily with asset valuation. Candidates must be able to apply a variety of valuation models in analyzing and valuing specific equity, debt, and alternative investments. Level III has a clear emphasis on portfolio management. Candidates are required to demonstrate the ability to determine investor objectives and constraints. In addition, applying investment policy and capital-markets expectations to the asset allocation decision-making process is a key focus. Level I Level II Level III Investment Tools Asset Valuation Portfolio Management Ethics & Professional Standards Percentages are average approximations of the actual topic weights for exam purposes, which have a range of target weights. Actual content of future exams may vary. 2004-2005 CFA® Program

Preparation for the CFA Exams Valuable Learning Experience The CFA Program is constructed to broaden and deepen the knowledge of the entire field of investment valuation and portfolio management. Many candidates hold highly specialized jobs and have professional experience in one or two disciplines. Thus, their knowledge and experience is limited in other areas of the Body of Knowledge. The candidates may need to develop some background knowledge of a particular topic before they begin studying the CFA curriculum in that area. For this reason, selected study sessions include preliminary readings that allow candidates to review and build an understanding of fundamental concepts before moving on to the more advanced coverage in the primary readings. 2004-2005 CFA® Program

● The CFA Examinations 2007 Exam Format Multiple Choice Item Set (Objective) Constructed Response Level I ● 100% Level II Level III 50% The exam formats have changed over the years. The program utilizes 100% multiple choice questions at Level I, 100% item sets at Level II, and a combination of essays/problems and items sets at Level III. Item sets are comprised of a case or vignette followed by six multiple choice questions each related to the case or vignette. They allow candidates to demonstrate a deeper understanding of the material than traditional multiple choice questions. 2004-2005 CFA® Program

• 291 CFA charterholders from 37 countries in 2007 The CFA Examinations Graded with Great Care • 291 CFA charterholders from 37 countries in 2007 • Teams of practitioners • Rigorous and thorough process • Consistency and fairness across all papers The number of candidates participating and the level of respect accorded CFA charterholders have both grown impressively. Likewise impressive is the large number of charterholders who give something back to the profession each year by serving as graders of the CFA examinations. In 2005, approximately 350 charterholders will travel to Charlottesville, Virginia, to work in the grading process. These charterholders are the key to a rigorous grading process which includes a comprehensive evaluation of every exam. Graders are assigned to teams with each team grading one question or part of a question across all the exams. Designed to provide every paper with a fair and equal review, the process holds each exam to a consistent standard. The entire process is supervised by the professional staff at CFA Institute and is reviewed annually by the CFA Institute Board of Governors. 2004-2005 CFA® Program

28,082 candidates from 146 countries sat 48 cities worldwide December 2006 Exam Exam results: Level I Candidates Enrolled: 41,808 28,082 candidates from 146 countries sat 48 cities worldwide 33% no-show rate Pass rate of 39% 2004-2005 CFA® Program

Over 70,000 candidates from 163 countries sat Cities worldwide June 2007 Exam Exam results Over 70,000 candidates from 163 countries sat Cities worldwide 26% no-show rate (compared to a 10-year average of 27%) Pass rates – 40% at Level I 40% at Level II 50% at Level III 2004-2005 CFA® Program

CFA Program Historical Combined Pass Rates

• Download forms from the CFA Institute website and register by mail 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 Candidates can register online or complete a paper application and submit it by mail to CFA Institute. The registration and enrollment package is available through the mail from CFA Institute or it can be downloaded/printed from the CFA Institute website. Candidates must complete the entire application form and enclose appropriate payment if they want to complete their enrollment on a timely basis. Early enrollment is encouraged because it allows the candidate a longer period for exam preparation. In addition, enrollment fees increase as the final deadline for registration approaches for each exam administration. 2004-2005 CFA® Program

• Sequentially pass Level I, II, and III exams 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 To earn the CFA designation, candidates must meet these requirements. Candidates may accumulate work experience while sitting for the exams and may take the exams without any prior work experience. Keys to appropriate work experience include spending a substantial portion of professional time working in the investment decision-making process and/or applying the various parts of investment knowledge in performing the job. No references are required to enter the program. References from employers, business associates, and/or professors are submitted after passing Level II. Prior to receiving a charter, candidates must become a member of CFA Institute and apply for membership in one of its affiliated societies. Candidates who have completed Level I are eligible for full membership in CFA Institute and in most societies. 2004-2005 CFA® Program

Registering for the CFA Program Connecting with a Local Society Local CFA Institute societies often invite candidates to their meetings and educational events. Non-members, particularly students and faculty from local universities, are generally welcomed. The caliber of the speakers and the educational value provided is typically very high. CFA Institute societies can also play an important role in candidates’ study efforts. Many local societies help to organize small study groups which can be a tremendous boost to any candidate’s preparation for the exams. Some societies also sponsor group preparation programs for candidates in their area including both extended study courses and short formal study seminars. Candidates can benefit by joining CFA Institute and a local society as soon as they complete the Level I exam. Access to the network provided by the membership and ongoing continuing education opportunities can be a critical element in career enhancement. CFA Institute and individual CFA Institute member societies are hard at work to: provide excellent continuing education opportunities, maintain professional standards, advocate on important regulatory matters, build public awareness of the CFA charter and CFA Institute, and encourage membership in CFA Institute and a local society which provide members with a global network of investment professionals and an array of career-enhancing programs. 2004-2005 CFA® Program

Approximate Costs for New Level I Candidates Registering for the CFA Program 1st Year Program Costs – June 2008 Approximate Costs for New Level I Candidates Registration fee to enter CFA Program US $390 Enrollment fee for Level I examination US $600 • Custom curriculum included! Approximate Total Costs for Level I US $990 *Registration & Enrollment by 1st fee deadline. * * In considering the costs for the CFA Program candidates should include: registration and enrollment fees, textbooks, and other readings. The cost of Level I is approximately $1,430. Assistance in meeting these costs can come from two sources: CFA Institute Scholarship Programs and employers. 2004-2005 CFA® Program

June 2008 Examinations (All Levels) Registering for the CFA Program Important Deadlines June 2008 Examinations (All Levels) September 26, 2007 Early Registration February 15, 2008 Second Deadline March 17, 2008 Final Deadline The deadlines for registering and enrolling in the CFA Program are shown here. Missed deadlines mean increased fees and, potentially, missing the exam altogether. Candidates enrolling early in the CFA Program also have a distinct advantage in exam preparation due to the extended length of study time. Enroll early and give yourself plenty of time to read and adequately prepare. 2004-2005 CFA® Program

Student Scholarships – For New Level I Only* Scholarships for the CFA Program Three Scholarship Programs Student Scholarships – For New Level I Only* Awarded by qualified CFA charterholder full-time faculty members Faculty Scholarships – Available for Any Level* Awarded to qualified full-time faculty directly by CFA Institute Society Scholarships – Available for Any Level* Awarded to qualified candidates by local CFA Institute society http://www.cfainstitute.org/university/overview.html * Registration fees waived – candidate pays US$220 in June 2008 (curriculum included beginning with June 2008 enrollment) CFA Institute offers three scholarship programs to reduce costs for the CFA Program. For each, registration fees are waived and the candidate pays only US$150 for enrollment. STUDENTS: CFA Institute offers student scholarships through qualified faculty. Students may NOT apply directly to CFA Institute for this program, but must be selected and sponsored by a qualified professor. Each professor is allocated five scholarships. The sponsoring professor must be full-time faculty and a CFA charterholder to participate. These scholarships apply to new Level I candidates ONLY. FACULTY: CFA Institute offers scholarships for full-time university faculty enrolling in the CFA Program. Professors may be enrolled at any of the three levels of the CFA Program. Professors wishing to participate in the scholarship program should apply directly to the CFA Institute Scholarship Office. SOCIETY: Local CFA Institute Societies actively support the CFA Program and many organize small study groups and local review courses to assist in candidate preparation. Each local society is currently allocated five scholarships and many offer additional scholarships or other kinds of financial support to candidates. Societies may choose to award their scholarships to candidates at any of the three levels of the CFA Program. Applications must be made directly to the local society. Nearly 1,400 scholarships were awarded in 2004. 2004-2005 CFA® Program

More Information About the CFA Program www.cfainstitute.org The Americas P.O. Box 3668 Phone: 800-247-8132 or 434-951-5499 560 Ray C. Hunt Drive Fax: 434-951-5262 Charlottesville, VA 22903 E-mail: info@cfainstitute.org USA Asia-Pacific Suite 3407 Phone: 852-2868-2700 or 852-8228-8820 Two Exchange Square Fax: 852-2868-9912 8 Connaught Place E-mail: infohk@cfainstitute.org Central Hong Kong, SAR Europe 10th Floor Phone: 44-20-7531-0751 One Canada Square Fax: 44-20-7531-0767 Canary Wharf E-mail: infoeu@cfainstitute.org London E14 5DY United Kingdom For more information you can contact Info Central at CFA Institute. Just log on to the CFA Institute website or call one of the regional offices. 2004-2005 CFA® Program

A Symbol of Integrity and Professional Excellence Chartered Financial Analyst® A Symbol of Integrity and Professional Excellence ® This brings my presentation to a close. Thank you for your attention. Are there any questions? 2004-2005 CFA® Program