The CFA Program is a global graduate level self-study program that combines a broad based curriculum with professional conduct requirements to prepare candidates for a wide range of investment specialties. The program’s breadth and depth builds a fundamental knowledge of global investment principles that apply in every market all over the world.
Anchored by a practice-based curriculum, the CFA Program is based on the knowledge identified by professionals as essential to the investment decision-making process. This Candidate Body of Knowledge™ covers 10 general topic areas ranging from equity and fixed-income analysis to portfolio management to corporate finance.
The CFA Program curriculum is delivered in a candidate-friendly, integrated format and is organized into study sessions to help candidates schedule their preparation time. Each study session includes readings, learning outcome statements, and problem sets to demonstrate the practical application of one’s knowledge.
Preparation for the CFA examinations is a substantial commitment of time and energy. A major benefit of the CFA Program is its self-study curriculum, which allows busy investment professionals to earn the gold standard designation without leaving their current jobs. Most candidates continue in their full-time investment careers while enrolled in the CFA Program, enabling them to keep up with their salary and career opportunities.
Extended Benefits
The initiatives in which CFA Institute is involved are representative of the organization’s core values: professional excellence, integrity, strength of community and cooperation, and volunteer service. CFA Institute and society membership enhance the value of the CFA charter by providing a resource for continuing education, a global network of investment professionals, and an array of career enhancing programs that match the needs of one’s progressing career.
Worldwide Recognition and Acceptance
Employers and media around the world acclaim the CFA designation as the standard of professional excellence. Because the program’s rigorous curriculum emphasizes principles common to every market, employers and clients recognize that professionals with the CFA designation have a thoroughly global investment perspective and a profound understanding of the global marketplace. With such widespread recognition, CFA charterholders earn a significant competitive advantage for international employment.
The CFA charter is recognized around the world as a measure of competence, integrity, and passion; and employers are willing to pay a premium to investment professionals who have earned this designation. Many employers stipulate the CFA charter as a requirement for investment-related positions and/or for advancement to more senior positions. The CFA charter also is held in high regard by the regulatory community.
CFA Charter holders play leading roles in:
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- Broker-dealer/investment banks
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- Research and academic institutions
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Commitment to Ethical Behavior
Because ethical dilemmas surface in all varieties in the investment business, the CFA Program heavily emphasizes the application of ethics in professional practice. Being a CFA candidate or a CFA charterholder carries with it a requirement to adhere to the investment professions’ most stringent Code of Ethics and Standards of Professional Conduct. The CFA charter represents a lifetime commitment to ethical behavior, a commitment that helps to create the charter’s recognition and appreciation among clients, employers.
Sllybus Contents
The CFA Program’s curriculum reflects a body of knowledge that is grounded in practice and maintains current relevance through a regular, extensive survey of practicing CFA charter holders. This Candidate Body of Knowledge consists of 10 general topic areas that provide a framework for making investment decisions.
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ETHICAL AND PROFESSIONAL STANDARDS Professional Standards of Practice
Ethical Practices
QUANTITATIVE METHODS
Time Value of Money
Probability
Probability Distributions and Descriptive Statistics
Sampling and Estimation
Hypothesis Testing
Correlation Analysis and Regression
Time Series Analysis
Simulation Analysis
Technical Analysis
ECONOMICS
Market Forces of Supply and Demand
The Firm and Industry Organization
Measuring National Income and Growth
Business Cycles
The Monetary System
Inflation
International Trade and Capital Flows
Currency Exchange Rates
Monetary and Fiscal Policy
Economic Growth and Development
Effects of Government Regulation
Impact of Economic Factors on Investment Markets
FINANCIAL REPORTING AND ANALYSIS
Financial Reporting System (IFRS and GAAP)
Principal Financial Statements
Financial Reporting Quality
Analysis of Inventories
Analysis of Long-Lived Assets
Analysis of Taxes
Analysis of Debt
Analysis of Off-Balance-Sheet Assets and Liabilities
Analysis of Pensions, Stock Compensation,
and Other Employee Benefits
Analysis of Inter-Corporate Investments
Analysis of Business Combinations
Analysis of Global Operations
Ratio and Financial Analysis |
CORPORATE FINANCE
Corporate Governance
Dividend Policy
Capital Investment Decisions
Business and Financial Risk
Long-Term Financial Policy
Short-Term Financial Policy
Mergers and Acquisitions and Corporate Restructuring
EQUITY INVESTMENTS
Types of Equity Securities and Their Characteristics
Equity Markets: Characteristics, Institutions,
and Benchmarks
Fundamental Analysis (Sector, Industry, Company)
and the Valuation of Individual Equity Securities
Equity Market Valuation and Return Analysis
Special Applications of Fundamental Analysis
(Residual Earnings)
Equity of Hybrid Investment Vehicles
FIXED INCOME
Types of Fixed-Income Securities
and Their Characteristics
Fixed-Income Markets:
Characteristics, Institutions, and Benchmarks
Fixed-Income Valuation (Sector, Industry, Company)
and Return Analysis
Term Structure Determination and Yield Spreads
Analysis of Interest Rate Risk
Analysis of Credit Risk
Valuing Bonds with Embedded Options
Structured Products
DERIVATIVES
Types of Derivative Instruments
and Their Characteristics
Forward Markets and Instruments
Futures Markets and Instruments
Options Markets and Instruments
Swaps Markets and Instruments
Credit Derivatives Markets and Instruments
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ALTERNATIVE INVESTMENTS
Types of Alternative Investments
and Their Characteristics
Real Estate
Private Equity/Venture Capital
Hedge Funds
Closely-Held Companies
and Inactively Traded Securities
Distressed Securities/Bankruptcies
Commodities
Tangible Assets with Low Liquidity
PORTFOLIO MANAGEMENT
AND WEALTH PLANNING
Portfolio Concepts
Management of Individual/
Family Investor Portfolios
Management of Institutional Investor Portfolios
Pension Plans, Employee Benefit Funds
Investment Manager Selection
Other Institutional Investors
Mutual Funds, Pooled Funds, and ETFs
Economic Analysis
and Setting Capital Market Expectations
Tax Efficiency
Asset Allocation (including Currency Overlay)
Portfolio Construction and Revision
Equity Portfolio Management Strategies
Fixed Income Portfolio Management Strategies
Alternative Investment Management Strategies
Risk Management
Execution of Portfolio Decisions (Trading)
Performance Evaluation
Presentation of Performance Results |
Examination Topics
At Level I, candidates are asked basic knowledge and comprehension questions and must perform some analysis. At Level II, the emphasis is on analysis and application, while Level III focuses on synthesis and integration.
LEVEL I
- Tools and concepts that apply to investment
- Valuation and portfolio management
- Basic concepts regarding securities and markets
- CFA Institute Code of Ethics and Standards of Professional Conduct
LEVEL I I
- Asset valuation
- Application of tools and concepts of investment valuation
- Industry and company analysis
- CFA Institute Code of Ethics and Standards of Professional Conduct
LEVEL I I I
- Management of institutional and individual portfolios
- Management of specific asset class portfolios
- CFA Institute Code of Ethics and Standards of Professional Conduct
Examination Structure & Format
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CFA Programme is divided in three levels. Level I exams are held in June and December. Level II and III exams are only held in June.
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One has to pass one exam to move on to the next one. If one fails a level, it can be retaken. There is no limit to the number of times you can take an exam.
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Each exam includes morning and afternoon sessions. The Level I questions are all multiple choice. The Level II questions are all item set (or “mini case”) questions. The Level III exams contain essay questions in the morning session and item set questions in the afternoon session.
Careers
This qualification will help you to excell in the areas of Mutual Fund Industry, Investment Industry, Treasury Management, Corporate Financial Planning, Investments Banks, Insurance Companies, and Pension Funds and careers in regulators like State Bank of Pakistan and Securities & Exchange Commission of Pakistan.