THE CFA SOCIETY, THE CFA & THE RESEARCH CHALLENGE Presented by NOTE TO SPEAKER: Introduce your society/chapter. ABOUT THE SECURITY ANALYSTS OF SAN FRANCISCO (SASF) The SASF is a non-profit, professional organization serving the Bay Area financial community. In March 1929, twenty "financial statisticians" in S.F. organized a professional society for the purposes of promoting friendship and acquiring information about companies. SASF since has grown to be one of the largest local societies in the Association for Investment Management and Research (CFA Institute®) currently having over 1600 members working for banks, insurance companies, investment counselors, brokers, public agencies, universities and corporations. A member society of

What we will discuss Introduction to Investment Research Challenge CFA San Francisco The CFA Institute The CFA Designation The CFA Exam Investment Research Challenge What it is / Key Dates What you learn How you can get involved Questions Introduce CFA Institute: Founded in 1990. Has over 49,000 members and more than 100 societies/ chapters worldwide. Mission is to advance the interests of the global investment community by establishing and marinating the highest standards of professional excellence and integrity. Administers the Chartered Financial Analyst Program (CFA)--a globally recognized standard for measuring the competence and integrity of financial analysts. Its curriculum develops and reinforces a fundamental knowledge of investment principles. Three levels of examination measure a candidate's ability to apply these principles at a professional level. The CFA exam is administered annually in more than 70 nations worldwide. Over 85,000 candidates from around the globe enrolled for the 2001 June CFA exams. Other benefits include membership, access to timely conferences and publications, network of societies and chapters. Introduce collateral material (books, brochures, bios, etc.)—especially if it comes from CFA Institute or your society directly. When discussing any CFA Institute publications, you might wish to refer to sections/chapters that are particularly relevant to areas of this presentation.

Who’s Who CFA Society of San Francisco www.cfa-sf.org Membership consists of local CFA charterholders Offer CFA Review programs, Levels I – III Sponsors meetings between analysts & companies CFA Institute www.cfainstitute.org Administers CFA® exams, Levels I – III Awards CFA® charter to successful candidates Introduce CFA Institute: Founded in 1990. Has over 49,000 members and more than 100 societies/ chapters worldwide. Mission is to advance the interests of the global investment community by establishing and marinating the highest standards of professional excellence and integrity. Administers the Chartered Financial Analyst Program (CFA)--a globally recognized standard for measuring the competence and integrity of financial analysts. Its curriculum develops and reinforces a fundamental knowledge of investment principles. Three levels of examination measure a candidate's ability to apply these principles at a professional level. The CFA exam is administered annually in more than 70 nations worldwide. Over 85,000 candidates from around the globe enrolled for the 2001 June CFA exams. Other benefits include membership, access to timely conferences and publications, network of societies and chapters. Introduce collateral material (books, brochures, bios, etc.)—especially if it comes from CFA Institute or your society directly. When discussing any CFA Institute publications, you might wish to refer to sections/chapters that are particularly relevant to areas of this presentation.

CFA Society of San Francisco CFASF is a non-profit, professional organization serving the Bay Area financial community since March 1929. CFASF is one of the largest local societies in CFA Institute. Currently has 3,200+ members working for banks, insurance companies, investment counselors, brokers, public agencies, universities and corporations. CFASF offers several services to its members and candidates. Largest & most comprehensive CFA® Review program at all three levels in the Bay Area. Regular meetings between analysts and companies Continuing education programs, Job listings Charity events.

CFASF Student Members Benefits of Membership Include: Access to Members Only section of CFASF's website, featuring online member directory, career resources and more. Discounted registration fees for professional development programs. Opportunities to volunteer. Student Membership Requirements: Sponsorship by two Regular CFASF members, plus a professor’s confirmation of student status. Dues are $100 per year. Note: Students are members of CFA Society of San Francisco; they are not members of CFA Institute.

CFA Society of San Francisco Links Home Page: www.cfa-sf.org Candidate Overview Page: (general information) www.cfa-sf.org/cfmfiles/asp/cfainfo.asp Review Course Information and Registration: www.cfa-sf.org/cfmfiles/cal/eventlist1.cfm?t=e Study Groups: www.cfa-sf.org.org/cfmfiles/asp/studygrp.asp Scholarship/Fellowship Application: http://www. cfa-sf.org.org/cfmfiles/asp/scholarship.asp Email: dave@cfa-sf.org Phone: 415.814.7906

CFA Institute Founded in 1990, predecessors date to 1947. Has over 120,000 charter holders with 135 societies/chapters worldwide. www.cfainstitute.org Mission is to advance the interests of the global investment community by establishing and maintaining the highest standards of professional excellence and integrity. Administers the Chartered Financial Analyst Program (CFA®). Curriculum develops & reinforces knowledge of investment principles. Three levels of examination measure candidate ability. CFA® exam is given annually in more than 168 nations worldwide. 118,000 candidates from 162 countries took the June 2014 exams. Other benefits include membership, access to timely conferences and publications, network of societies and chapters.

CFA Institute Website Links Course of Study [Main page for many ‘need-to-know’ items] www.cfainstitute.org/cfaprogram/courseofstudy/Pages/index.aspx Registration for CFA Exam www.cfainstitute.org/CFAPROGRAM/PROCESS/Pages/index.aspx Study Guides (Required readings & LOSs): www.cfainstitute.org/cfaprogram/courseofstudy/Pages/study_sessions.aspx CFA Institute Online Sample & Mock Exams: www.cfainstitute.org/programs/cfaprogram/courseofstudy/Pages/sample_and_mock_exams.aspx 8 8

The CFA® Designation Administered by NOTE TO SPEAKER: Introduce your society/chapter. ABOUT THE SECURITY ANALYSTS OF SAN FRANCISCO (SASF) The SASF is a non-profit, professional organization serving the Bay Area financial community. In March 1929, twenty "financial statisticians" in S.F. organized a professional society for the purposes of promoting friendship and acquiring information about companies. SASF since has grown to be one of the largest local societies in the Association for Investment Management and Research (CFA Institute®) currently having over 1600 members working for banks, insurance companies, investment counselors, brokers, public agencies, universities and corporations. © 2000 Association for Investment Management and Research

CFA® Charterholder Job Functions

Ethical & Professional Standards - What is the CFA Program? Three Levels & Three Exams Level I Knowledge & Comprehension of Fundamental Investment Tools and Concepts Level II Application & Analysis focused on Asset Valuation Level III Synthesis & Evaluation of Client Needs and Portfolio Management Issues Ethical & Professional Standards - 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, focuses primarily on asset valuation while Level III, emphasizes portfolio management. The Level II and III examinations have a format that is 50% essay and 50% item set. The Study Program at Levels II and III builds on what was learned at prior levels. The competence level rises for each of the examinations. At Level I emphasis is on basic skill and knowledge. Levels II and III involve higher order learning skills, such as analysis and synthesis. In keeping with CFA Institute’s mission, Ethical and Professional Standards are emphasized at every level.

The CFA® Course of Study Three Levels – Topic Areas Actual exam weights may vary slightly from year to year. Note that some topics are combined for testing purposes.

The CFA® Examinations Exam Format Level I: 100% Individual Multiple Choice Questions Exam: 240 questions over 360 minutes Average 1.5 minute per question Level II: 100% Item Set Information Vignette & related multiple choice questions. 20 item sets with 6 questions each. Each question averages 3 minutes long. Level III: 50% Item Set / 50% Constructed Answer Constructed answer = discussion-type or problem-solving 10-18 constructed answer questions worth 180 points .

Benefits of the CFA® Program International Recognition Employers and media around the world praise the CFA designation Credibility Clients & colleagues regard you with a presumption of expertise Respect Your efforts connect you with the prestige of existing charterholders Competitive Advantage Employers & clients require professionals who demonstrate competence in implementing international investment strategies Knowledge with a Global Perspective Practice analysis is conducted every five years to determine a globally relevant, broad-based curriculum. Connections 92,000+ charterholders & 144,000+ candidates around the world who are active investment professionals with senior responsibility The job listings in local newspapers and on the Internet display 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.

The CFA Institute research challenge Craig Ayers, CFA, Bill King, CFA Dave Bolt, CFASF Education Director September 22, 2014 [Presenter’s Note: Welcome to the Professor’s Presentation, which you can use to introduce your students to the CFA Program and to CFA Institute. If you have any questions, please don’t hesitate to contact us at university@cfainstitute.org.] Hello, I’m _______. Thank you for having me here. It’s my hope that after today you’ll have a better understanding of the CFA charter and what an important role it can play in your future.

2013 research challenge As part of the local level of the CFA Institute Research Challenge, you are automatically part of a global network of nearly 10,000 undergraduate and graduate students. One of the great aspects of this program is its global reach. The investment industry may seem large due to its globality, however it really isn’t. You are on the right path to integrating with the future leaders of the industry.

The Investment research challenge WHAT IS IT? FIRST SHOW, THEN TELL… A new student experience video featuring the three Global Finalist teams: https://www.youtube.com/watch?v=6POIAHu8flo&index=1&list=UUHwkW7lTTzf 19xg5R4gfwVw RESEARCH CHALLENGE PROMO VIDEO CFA CHALLENGE CHANNEL The CFA charter is a globally recognized graduate-level credential that bridges academic theory, current industry practice, and ethical and professional standards to give you a strong foundation of advanced investment analysis and real-world portfolio management skills. It is held by more than 100,000 investment professionals working in more than 130 countries, and is increasingly recognized as comparable to a variety of degrees, credentials, and licenses around the world. For example, the United Kingdom National Academic Recognition Information Centre benchmarked the CFA Program as comparable to a master’s degree. Additionally, today more than 180 universities around the world incorporate the CFA curriculum into their degree programs.

What is the cfa institute research challenge? How is it organized? Worldwide intercollegiate competition between teams of students Organized by local CFA Institute volunteers – usually through CFA member societies At least 4 teams of 3-5 students participate A local-level Research Challenge is a local, intercollegiate competition sponsored by CFA Institute volunteers – usually through one of CFA Institute’s 130+ member societies. Local competitions invite at least four different universities, each sponsoring a team of 3 to 5 students, to participate. This competition is unique because it promotes best practices, research skills, analysis, report writing, and presentation skills in action. What also makes it unique is what it is NOT. The competition is not based on the performance of a particular stock or portfolio and therefore doesn’t promote short-termism. It does promote how to conduct research ethically, how to analyze the relevant data and develop a recommendation and how to present and defend that recommendation in a professional manner.

The Investment research challenge WHAT DO YOU LEARN? Working with Investor Relations. Conducting Company Specific Research. Building and defending an investment hypothesis. Producing a comprehensive written report. Summarizing your findings in a 10 minute presentation. Presenting to a panel of portfolio managers in a board room setting. The experience of being an equity analyst. The CFA charter is a globally recognized graduate-level credential that bridges academic theory, current industry practice, and ethical and professional standards to give you a strong foundation of advanced investment analysis and real-world portfolio management skills. It is held by more than 100,000 investment professionals working in more than 130 countries, and is increasingly recognized as comparable to a variety of degrees, credentials, and licenses around the world. For example, the United Kingdom National Academic Recognition Information Centre benchmarked the CFA Program as comparable to a master’s degree. Additionally, today more than 180 universities around the world incorporate the CFA curriculum into their degree programs.

Sample report The Written Report must: be no longer than ten (10) pages (not including the front and back covers provided by CFA Institute) on A4 sized paper (8.5”x11”), although you may include an appendix of infinite length; include the following information: Company name Exchange Ticker symbol Sector Industry Recommendation (buy/sell/hold) Current price (as of __date) Target price (% increase/decrease) contain only publicly available information; be the original work of the team members; be prepared from the perspective of an independent research analyst; be submitted to the local-level host by the deadline established by the host; include the front and back covers provided by CFA Institute (teams must fill in the information indicated in highlighted text and may not alter any other part of the covers, including the CFA Institute logo); and contain (but is not limited to*) the following sections: Business Description Industry Overview and Competitive Positioning Investment Summary Valuation Financial Analysis Investment Risks   *You may also include other headings that cover important information not otherwise covered in the sections listed above.

90+ LOCAL LEVEL CHALLENGES 2013 tournament diagram Global Final AP Regional ~20 Teams EMEA Regional ~25 Teams Americas Regional ~48 Teams Advancing through the stages of competition starts at the local level depicted at the bottom of this diagram. Each local challenge produces one winner; CFA Institute sponsors the airfare and lodging of that team as they compete in the regional round of competition. This year, the regional competitions will be held in: EMEA – Milan, Italy, April 2014 Asia-Pacific – Bangkok, Thailand, April 2014 Americas – Denver, Colorado, USA, March 2014 The regional rounds produce one winner; again, CFA Institute sponsors the airfare and lodging for the regional winner as they compete in the Global Final. The Global Final will also be held in Bangkok, Thailand the day after the Asia Pacific Regional Final. 90+ LOCAL LEVEL CHALLENGES

Sample tournament results (2012)

Benefits for students Best practices in research and report writing Real-life learning experience as an Equity Analyst Access and exposure to leading industry professionals Professional report and experience to use on resume/CV and job interviews Experience presenting to top financial professionals Individual and team prizes Opportunity for travel Potential for media exposure Network of over 10,000 students and 2,200 volunteers worldwide One of the benefits of participation in the CFA Institute Research Challenge is public recognition. There is great potential to generate awareness when a team wins locally, regionally, and globally. Other great benefits include: Learning best practices in research report writing and presentation skills from a professional mentor Access to a network of top industry professionals Concrete experience and example of your work to provide potential employers – this is a great experience to list on a resume Prizes for the winning teams Travel to the regional competition for local winners (travel and lodging provided by CFA Institute) Travel to the global competition for regional winners (travel and lodging provided by CFA Institute) Media exposure Access to a network of 10,000+ students and 2,200+ volunteers worldwide

The Investment research challenge Key DATES (tentative) October 17, 2014 Kick off meeting at CFA-SF offices in San Francisco November 7, 2014 Educational Session/ Factset Presentation At CFA-SF offices in San Francisco December 12, 2014 Team Sign Up Deadline RSVP for Company Presentation December 17, 2014 Company Presentation February 2 (10:00 pm), 2015 Written Reports Due February 12 (Thursday), 2015 Presentations from Students at location TBA The CFA charter is a globally recognized graduate-level credential that bridges academic theory, current industry practice, and ethical and professional standards to give you a strong foundation of advanced investment analysis and real-world portfolio management skills. It is held by more than 100,000 investment professionals working in more than 130 countries, and is increasingly recognized as comparable to a variety of degrees, credentials, and licenses around the world. For example, the United Kingdom National Academic Recognition Information Centre benchmarked the CFA Program as comparable to a master’s degree. Additionally, today more than 180 universities around the world incorporate the CFA curriculum into their degree programs.

The Investment research challenge HOW DO YOU SIGN UP? It all starts at the local level. Because we rely on volunteers all around the world to organize and host the local level competitions, getting involved can be a bit confusing. Follow your path to the right. The CFA charter is a globally recognized graduate-level credential that bridges academic theory, current industry practice, and ethical and professional standards to give you a strong foundation of advanced investment analysis and real-world portfolio management skills. It is held by more than 100,000 investment professionals working in more than 130 countries, and is increasingly recognized as comparable to a variety of degrees, credentials, and licenses around the world. For example, the United Kingdom National Academic Recognition Information Centre benchmarked the CFA Program as comparable to a master’s degree. Additionally, today more than 180 universities around the world incorporate the CFA curriculum into their degree programs.

The Investment research challenge LINKS / RESOURCES EDUCATIONAL RESOURCES OFFICIAL RULES CFA SF RESEARCH CHALLENGE LINKEDIN GROUP FACTSET The CFA charter is a globally recognized graduate-level credential that bridges academic theory, current industry practice, and ethical and professional standards to give you a strong foundation of advanced investment analysis and real-world portfolio management skills. It is held by more than 100,000 investment professionals working in more than 130 countries, and is increasingly recognized as comparable to a variety of degrees, credentials, and licenses around the world. For example, the United Kingdom National Academic Recognition Information Centre benchmarked the CFA Program as comparable to a master’s degree. Additionally, today more than 180 universities around the world incorporate the CFA curriculum into their degree programs.

UNIVERSITY OUTREACH GOING FORWARD CFA needs a better way to keep in touch with students and universities. Putting together a University Council Consisting of Craig Ayers, Matt Zuck (Co-chairs of University Outreach) And student representatives of local universities. Benefits: networking, resources, resume. Obligation: help us coordinate activities at your university, offer feedback, hand the job off to a successor next year. The CFA charter is a globally recognized graduate-level credential that bridges academic theory, current industry practice, and ethical and professional standards to give you a strong foundation of advanced investment analysis and real-world portfolio management skills. It is held by more than 100,000 investment professionals working in more than 130 countries, and is increasingly recognized as comparable to a variety of degrees, credentials, and licenses around the world. For example, the United Kingdom National Academic Recognition Information Centre benchmarked the CFA Program as comparable to a master’s degree. Additionally, today more than 180 universities around the world incorporate the CFA curriculum into their degree programs.

What we DISCUSSED Introduction to Investment Research Challenge CFA San Francisco The CFA Institute The CFA Designation The CFA Exam Investment Research Challenge What it is What you learn How you can get involved University Council Student Membership Compete in the Research Challenge Questions Introduce CFA Institute: Founded in 1990. Has over 49,000 members and more than 100 societies/ chapters worldwide. Mission is to advance the interests of the global investment community by establishing and marinating the highest standards of professional excellence and integrity. Administers the Chartered Financial Analyst Program (CFA)--a globally recognized standard for measuring the competence and integrity of financial analysts. Its curriculum develops and reinforces a fundamental knowledge of investment principles. Three levels of examination measure a candidate's ability to apply these principles at a professional level. The CFA exam is administered annually in more than 70 nations worldwide. Over 85,000 candidates from around the globe enrolled for the 2001 June CFA exams. Other benefits include membership, access to timely conferences and publications, network of societies and chapters. Introduce collateral material (books, brochures, bios, etc.)—especially if it comes from CFA Institute or your society directly. When discussing any CFA Institute publications, you might wish to refer to sections/chapters that are particularly relevant to areas of this presentation.