The CFA Program
       For students at North Dakota State University

Much of the following are excerpts from the CFA Institutes' Factbook and Viewbook for the CFA program, which are available at https://www.cfainstitute.org. 

What is the Chartered Financial Analyst Charter? 

The CFA program is a graduate-level, self-study curriculum and examination program for investment professionals – especially securities analysts, money managers and investment advisers. Established in 1962, the CFA program sets the global standard for investment knowledge, standards and ethics. Earning the credential can serve as a “passport” for entry to or advancement within the profession or for work in other countries. It tells clients, employers and colleagues that the charterholder has mastered a rigorous curriculum covering a broad range of investment topics and is committed to the highest ethical standards in the profession.

(JRE:  many employers view a pass on the first CFA exam (level I) and a strong, positive indicator of an entry-level job candidates' ability)

Major requirements to earn CFA Charter
1. Earn a bachelor’s degree or equivalent. (You may take first exam prior to graduation.)
2. Pass three sequential, six-hour examinations over at least two years. (Level I is offered twice a year, in June and December. Levels II and III are offered once a year, in June.)
3. Work as an investment professional for at least four years. Work experience may be prior, concurrent or subsequent to exam completion.
4. Commit to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct (reaffirmed annually).
5. Maintain membership-in-good-standing with CFA Institute.


Where do CFA Charterholders work?
According to a survey by the CFA Institute, CFA Charterholders work in the following organizations (listed in order of frequency):  investment management firms, banks, securities broker/dealer, mutual fund organization, insurance companies, pension plan or endowment/foundation sponsor, hedge fund, pension/investment fund, consulting firm.  The following links have more career information (including salary ranges) on money management and investment banking and other fields. 

What about financial/retirement planning?
Note that CFA Charterholder's are not normally retirement planners for individuals, although they can be.  A professional certification program aimed at financial planning for individuals is the Certified Financial Planner (CFP).

How much to CFA Charterholders earn?
According to survey, median total compensation of CFA Charterholders in 2004 was $170,000.  For CFA Charterholders with 5+ years of experience, median total compensation was $200,000.  The top 10% of wage-earners among CFA Charterholders earned in excess of  $530,000. 

CFA^®   CANDIDATE BODY OF KNOWLEDGE^TM
The CFA Program’s curriculum is designed to reflect a Body of Knowledge^TM that keeps pace with the ever-changing dynamics of the global investment community. This Body of Knowledge, developed through an extensive survey of practicing CFA charterholders, consists of 10 general topic areas, which provide a framework for making investment decisions. Each level of the CFA Program has a different learning focus: Level I focuses on tools and concepts that apply to investment valuation and portfolio management, Level II on asset valuation and applying the tools and concepts from Level I, and Level III on applying the concepts learned at Levels I and II to the portfolio management process.

I. Ethical And Professional Standards
II. Quantitative Methods
III. Economics
IV. Financial Statement Analysis
V. Corporate Finance
VI. Analysis Of Equity Investments
VII. Analysis Of Debt Investments
VIII. Analysis Of Derivatives
IX. Analysis Of Alternative Investments
X. Portfolio Management

Is the CFA program program difficult? 
For most students, yes.  Global pass rates for the exam tend to hover around the following ranges:  Level I 35%;  Level II 45%;  Level III 55%.  
That does not include the large fraction of level I candidates who do not show up for the exam after registering, presumably after they determine they are not prepared.

Who are good candidates for taking (and passing) the first CFA exam (level I)?
Students with an interest and ability in finance, a high GPA (3.5), and extremely high grades in their finance, calculus and statistics courses. Students must be either full-time undergraduates in the their final year of study or graduate students (either part-time or full-time) at CSU.  You may be eligible for a student scholarship, which allows you to enroll and register for the first exam for $250 (a discount of $700-$1000 from the usual fees).  For more about the student scholarship, see me.

What courses should I take at NDSU to help prepare for the level I CFA Exam? 
You do not need a business/finance major to be well prepared for the CFA exam.  You will need, however, several courses in finance, statistics, accounting and calculus, and you should have earned high grades in these classes.   The courses in the Finance concentration with a option in Investments are most relevant, with the Corporate Finance option classes (particularly valuation) also very useful.  Additional courses in financial statement analysis and regression analysis would also be very useful.

For more information see:
CFA Institute
CFA Program and CFA Candidate Services
CFA Institute and University Program
CFA Program Fact Sheet
CFA Institute Study Guides
Analyst Forum - web board for candidates to discuss the CFA program


Please note that any statements herein not drawn directly CFA Institute sources reflect my own interpretation of CFA Institute policy.
Maintained by John Elder