The CFA Program The CFA Society of Cyprus UNIVERSITY OF CYPRUS 25 April 2012

The CFA Program │ 2 “Though the finance industry absorbs many with Masters degrees in Business Administration and finance degrees, the Chartered Financial Analyst qualification, pursued part-time by those already hired, has become the industry’s benchmark.” Financial Times, 2009

“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… explosive growth has made it, in effect, global currency.” -The Economist, 2005 The CFA Program │ 3

Nikkei Financial Daily “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.” Nikkei Financial Daily, 2004 The CFA Program │ 4

The CFA Program │ 5 Employment of CFA Institute Members

The Chartered Financial Analyst (CFA) designation required CFA is a plus London, UK The Chartered Financial Analyst (CFA) designation strongly preferred Job Ads Around the World The CFA Program │ 6

Pensions and Investments Online Job Ads Shown in One Day The CFA Program │ 7

■ A self-study curriculum with three levels of examinations ■ Practical, relevant education based on a practitioner-driven global body of investment knowledge ■ Ethical and professional standards emphasized at every level ■ Exam locations worldwide What is the CFA Program? The CFA Program │ 8

Initial CFA ® Charter Requirements ■ Pass Level I, II, and III exams ■ Complete at least four years of professional work experience ■ Provide professional references (Level III) ■ Submit professional conduct statement ■ Apply for CFA Institute & local society membership The CFA Program │ 9

A Practice Driven Process The CFA Program│ 10

CFA Program Candidate Body of Knowledge ™ The CFA Program │ 11

Exam Format & Sample Question Multiple Choice Item Set (Objective) Constructed Response (Essay) Level I ● 100% Level II ● 100% Level III ● 50% ● 50% The CFA Program │12 Q: An investor is evaluating a 7-year 4% coupon bond with a par value of $100.00, and a current market price of $99.19, callable at the end of year 2 at a price of $ The yield to first call on a bond-equivalent basis for this bond is closest to: A. 4.00% B. 4.42% C. 5.40%

The CFA Program is a Rigorous Undertaking The CFA Program │ 13

The CFA Program │ 14 ■ Commits years to study – well over 750 hours ■ Masters more than 7,000 pages of material ■ Answers 18 hours of exam questions ■ Devotes several hundred hours away from family and personal life A New CFA Charterholder…

The CFA Program │ 15 ■ Recognition ■ Strong international network of local societies (135) and members (109,748) ■ Lifelong learning opportunities through publications, conferences, and local society events Benefits of Earning the CFA ® Charter

CFA Institute Mission Education Professional Excellence Ethics CFA Institute To lead the investment profession globally by setting the highest standards of ethics, education, and professional excellence. To lead the investment profession globally by setting the highest standards of ethics, education, and professional excellence. The CFA Program │ 16

Education Professional Excellence Ethics CFA Institute ■ Administrator of the CFA Program − the global standard for investment professionals ■ Committed to lifelong learning; working to provide value after the designation has been earned ■ Administrator of the CFA Program − the global standard for investment professionals ■ Committed to lifelong learning; working to provide value after the designation has been earned The CFA Program │ 17

Education Professional Excellence Ethics CFA Institute A leading voice on issues of fairness, efficiency, and investor protection for global capital markets through the CFA Institute Standards and Financial Market Integrity Division A leading voice on issues of fairness, efficiency, and investor protection for global capital markets through the CFA Institute Standards and Financial Market Integrity Division The CFA Program │ 18

Education Professional Excellence Ethics CFA Institute ■ A member organization with more than 100,000 member investment professionals in over 130 countries ■ Administrator of the CFA Institute Code of Ethics and Standards of Professional Conduct ■ A member organization with more than 100,000 member investment professionals in over 130 countries ■ Administrator of the CFA Institute Code of Ethics and Standards of Professional Conduct The CFA Program │ 19

Total CFA Registrations & Members The CFA Program │ 20

Geographic Profile of Members Americas Europe, Middle East, Africa Europe, Middle East, Africa Asia Pacific 19% The CFA Program │ 21 66% 15%

Visit our website for program costs, deadlines, and information The CFA Program │ 22

Mission Statement To promote the highest ethical standards in the Cyprus investment community, to enhance the awareness of the CFA Program, to support CFA candidates, and to serve and bring increasing value to the society's members through continuing education and investment professional networks. The CFA Program │ 23 CFA SOCIETY OF CYPRUS

The CFA Society of Cyprus - Vision The CFA Society of Cyprus is established as the premier society for investment professionals, representing a vibrant financial services community, committed to the highest standards of professionalism and ethical behavior. This is demonstrable through: –The promotion and provision of high-quality continuing education opportunities –Regular representation of the views of the membership on regulatory matters, together with contributions to the development of financial regulations for the Cypriot investment industry –The provision of support to CFA candidates –Healthy growth in membership The CFA designation is the gold standard required by employers and investors in Cyprus The CFA Program │ 24

CFA Society of Cyprus - Overview Membership Regular: 89 Affiliate: 6 Total: 95  Dues: $70 / year Established 2004 Programming 4 – 5 per annum:  Charter Awards Ceremony  1-2 social events  Inv. & Wealth Mgmt Conference  Forecasting Event Universities / Employers  Targeted employer outreach  Relationships with colleges and universities  Program presentations Candidates/ Education Exemptions: Ministry of Finance Public Awareness / Advocacy  PR – good relations with financial media Operations / IT  7 board members  Includes 4 officers (President, VP, Secretary, Treasurer)  Website:  The CFA Program │ 25

Cyprus Membership* Total members: 95 Total charterholders: candidates completed Level III in Registered candidates for 2012 exams: –82 Level I –33 Level II –25 Level III The CFA Program │ 26 Average annual growth of around 15% during last 10 years

Cyprus Membership* The CFA Program │ 27

Our website – Provides updates on all society’s activities and events. Provides information on the CFA Program and the CFA Institute. Has a Jobs section where suitable roles for CFA charterholders/candidates will be listed. The CFA Program │ 28

CFA SOCIETY OF CYPRUS BOARD MEMBERS Demetris Nicolaou, CFA – President Finance Director, D. Nicolaou Group Konstantinos Sofokleous, CFA – Vice President Fund Manager, EuroLife Ltd, Bank of Cyprus Group Panayiotis Chrysostomou, CFA – Secretary Fund Manager, CISCO Ltd, Bank of Cyprus Group Emilia Zachariou, CFA – Treasurer Manager Banking Services, Eurobank EFG Cyprus Constantinos Papanastasiou, CFA – Member (Past President) Head of Investment Banking, CISCO Ltd, Bank of Cyprus Group Demetris Staphylaris, CFA – Member Central Bank of Cyprus Konstantinos Leonida, CFA – Member Fixed Income Portfolio Management, Bank of Cyprus Group Treasury The CFA Program │ 29

The CFA Society of Cyprus QUESTIONS AND ANSWERS The CFA Program │ 30