Hello pipol! :cool:

I would like to know what is really the CFA (Certified Financial Analyst) and what are the advantages of it.

I heard from some people that it is useful credential (if you have it, it is an extra edge) to get into an MBA course.

Others mentioned that it is definetly not comparable to an MBA, but it is effective enough to get you into a very good job (finance related of course).

Lastly, given the lower cost of applying to it about USD 1,000 without the books; and study at your own pace, it seems quite inviting. The only catch is that you can only take 1 test per year for three years.

To the people working in finance or finance related industries:
Is it really an advantage?
Would you recommend it?
Is it limited to just finance or can you use it to other areas like marketing, consultancy, etc.?

Thank you very much for your thoughts pipol. I appreciate it.

hi aoi,

i work for a financial company, pero i'm not a finance person. anyway, i often hear about the cfa (chartered financial analyst) exams here in my company, so i guess it really is a big deal. i don't know that much about it yet but i would think that it's highly recommended. kung baga, you have an edge if you passed the 3 levels of the cfa exams, and very impressive yan sa resume mo. i only get to hear about this kasi when they send company-wide emails about conducting study-groups. but am not interested kasi hindi talaga sa kin click ang finance. anyway, let me know if you want to learn a lot more about it.

If you want to be an investment banker, you don't need a CFA, although it could push your investment banking career forward by making your resume look better. The CFA is required if you want to go into a more complex finance career such as portfolio management or equity research. I have a Brazilian classmate who passed all 3 CFA exams and he told me that the tests were very difficult. Also, the tests in Europe (where he took the exams) were more expensive. I don't know how much they would cost in Asia.

However, a CFA is also very rewarding. You can easily make $100,000/year in the US w/o an MBA and much more if you do have an MBA. If you're up to the challenge, then by all means take the exams. The sooner you get done with them, the better it will be for you.

I work in the acounting/finance department here in the Chicago area and currently I am working on my MBA part-time. Actually, it is the first time I heard of CFA and doing a quick research, it is very impressive title to add on your resume. Although, here in the Chicago area, it is not as popular as MBA or CPA designation. On my opinion, CFA is very specialized and you are limited to the companies and positions that are available. Also, your target location will be a factor too. If you are looking to be in the top 10 banks and willing to relocate anywhere, I would say this is the way to go. But if Finance is just your stepping stone and you want to move to other directions such as marketing, I would go with the MBA from a reputable school. Timewise, the CFA will take you 3 yrs assuming that you pass all 3 test compared to 1-2 yrs in grad school. I am not an expert on this and it is a hard decision as both involves time, effort and money. But either way, I think it will be beneficial to you.

Thank you guys!

I appreciate the comments and thoughts , quite informative.

I hope you guys would not mind if sometime in the future i will ask you for more details about it.

Thanks again and please do not hesitate to add more information about the CFA.

hey aux,

where in chicago do you work? downtown? i am also currently working in chicago... i don't think there are a lot of ateneans here in chicago...

[ February 13, 2002: Message edited by: purple_mnms ]

I work in Lisle and its by Naperville, about 40 minutes west of downtown Chicago. I know at least a couple from high school but they are of different batches.

Hi, aux s!

I used to work in Lisle also, but then I moved to OakBrook Terrace about 5 months ago.. Where in Lisle? (if you dont mind me asking) Im so excited that there's a fellow Atenean from the same area.

Purple_msnms:

Do work in downtown? I may be working there for bit, dont know how long. Depends on the proj. But my home base is in Oakbrook Terrace. Are you into IT?

hi honey_babes,

yep, am in i.t. and am also working in downtown chicago. where in chicago will you be assigned? finally... an atenean here....

honey_babes. I work at cabor near the big lucent buildings. I used to work at oak brook too a couple years ago before the company I work for was bought by Dynegy. Do you live in the area as well?

purple m&ms, do you mind telling me what finance company you are working for?

Sorry to get a little off topic here but its just nicce to know fellow ateneans in the area...

for those interested in the CFA program, here are some information.
http://www.aimr.org/cfaprogram/index.html

I live in Glendale heights, somwhere in the northwest suburbs.. it's not far from Oak Brook. So from what batch are you guys from?? And what's your major? I'm from batch 2000. BS MIS..

Am so happy that finally someone is from this area!

you're from Batch 2000 MIS? Do i know you?

Hi,
I work as an equity analyst in london and i have thought about taking the CFA at some point. If you are not looking to pursue a finance related career, i can already tell you to forget about it as it really won't be worth it. If you are currently working, i am also telling you know that it is quite a lot of work to find the time to study for the exams. What i did is instead of taking an MBA, i took a masters in finance at London Business School. It's only for a year - it is quite expensive (living expenses in london can be a bit shocking), but it did the job. A CFA degree is nornally a plus for fund managers but i work with a number of very talented analysts who do not have a CFA and do not plan to take one. If you want to get into the capital markets - whether it's as an analyst or specialist salesperson, fund manager, etc. and you don't have any background in the industry, AND you don't really feel like taking time off work, AND you feel you're disciplined enough to complete it, then by all means. It could open doors.

Hope that helps.

I've been on the buy-side for a global investment company in New York for almost 4 years now. I've worked with both MBAs and CFAs, and people with both credentials. Consider the CFA if you are in the early stages of your career and if you are determined to stay in the investment management business long-term. Getting as much exposure to evaluating and investing in the capital markets and working with talented people and managers who have been through the different cycles will still be the best "teachers" and will help you the most down the line. I'm sure many will agree.

Sorry, off-topic...

tintin_96, my friend most beloved. Kumusta na? Glad to see you've found your way into this online forum. I am sure lots of folks will benefit from what you have to share.

found a good article...

http://lists.businessfinancemag.com/cgi-bi...KQMh0BSg03Z60Ac

Hello there!

Many thanks to the people for the insights that they have shared.

Just to let everybody know, I have decided to go for it at least to pass level 1. I am based in Tokyo and thinking about the potential benefits like what reyesaa had said "100,000 USD", a lot of money. Just a question, what kind of companies or sectors in the financial industry that pay that much "USD 100,000". Moreover, is this at a starting level (when you change careers into the financial area)or do you have to have a lot of industry experience?

I have to agree with Tin_Tin96. It is indeed quite tough to find time to study. I have decided to try also for the Japanese Proficiency Test level 1 (the highest). Most probably, I will fail as the gap between level 2 and level 1 is very high. Not to mention the kanji and nuances in the Japanese language. I just hope that if I decide to come back home, my knowledge of Japanese will help me to find some good paying job. I have not been home for 3 years already.

About the LBS, I checked it on the internet and it seems to me that people going there have had lots of experience in the financial industry. I guess that counts me out already, though I am not sure.

Question for batch97, just how early is "early career stage" that you mentioned? Is there an age limit in the investment management business?

Many thanks in advance for your opinions people. I appreciate it.

Aoi,

When I said early stage of career, I meant as one starts a career in investment management. The CFA is really a 3 yr comm. and considering it later on may not be such a good trade-off for some due to many factors (increased role, exp gained, family life, other priorities). Again, I've worked with and met some people that have been very successful in invst mgmt who didn't have CFAs or MBAs. I'd say investment experience and building a solid track record for yourself/your team are the best teachers and the best assets to possess for a successful career.

[ September 15, 2002: Message edited by: jg1 ]

Typically investment banks (i.e. Goldman Sachs, Morgan Stanley, etc.), fund management companies (i.e. Fidelity, etc.), and management consulting firms (i.e. McKinsey, Bain, etc.) pay that amount to newly-hired MBA graduates. However, that amount has been tempered a bit due to the downturn in the global economy, but even then starting salaries for MBAs recruited by these firms remain significantly high at a minimum of around US$80,000.

You do not need to have a lot of industry experience to get such an offer. However, once you are in business school, your Summer Internship is very important in making you qualified for such a job if you do not have previous work experience in the finance industry. In any case, even those with previous work experience in finance take an internship to bolster their chances of getting a good offer. The internship is the point where MBAs make their career transition. For example, if you were a real estate sales broker prior to attending business school and you want to pursue a career in investment management (the field where CFAs normally practice in), then it is crucial that you get a practicum in either a fund management firm or an equity research department of an investment bank.



It depends on what LBS program you are considering. Those in the MS Finance program have extensive experience in finance. However, those in LBSs’ MBA program come from many diverse backgrounds so in that case you’re still not counted out.



What’s more important than age is professional maturity. A b-school will evaluate your ability to lead and manage people before they consider you for admission.

Although I don’t know your employment history, 4 to 5 years of total work experience is just about enough to make a shot for b-school. If you’re from batch 97, I know several of your batchmates who have either competed or are in the process of completing their MBAs in some very fine schools.

Hi
Just to add quickly regarding the Finance course at LBS, i must admit that most of my classmates did have some finance background. However, there were still quite a few of them who came from a consulting background. In terms of work experience - there really is no set rule -- I was 23 when i applied for the program (24 when the thing started), and there must have been 2 or 3 people my age or slightly younger than me. So that's just c. 3 years experience. If you combine that with a good effort on your GMAT and a focused essay on why you think the course is what will suit you best, then the LBS people will definitely consider you. On salaries, never take it out of context -- you have to factor in the living expenses in the place where you will be working. The salary figures given in earlier messages are broadly accurate although note that in the City, (ie. broking, fund mgt etc.) it is really the bonus the that makes the big difference to the total package. However, living in London is not cheap. Just going to a movie here would cost you £8 -- that is something like $12 and a nice dinner for two people would be about $100. And don't even ask me about property prices! Upside is the currency is quite strong.

Hope that helps.

I think I saw your picture in the UBS Warburg worldwide career brochure.

oh god....where did you see it? they didn't even show it to me. i am the poster child for diversity - female, asian, etc. Sorry- didn't mean to sound cynical and to be fair to them, they are quite a nice firm to work for.

They handed them out when UBSW hosted on-campus cocktails over here last week. Actually, I didn't notice it the first time around until I read more thoroughly when I got home. When I saw the pic again I asked myself "What's this Asian girl doing w/ a foreign-sounding surname?" then that's when it hit me - "Teka...Si Tintin B. ito a!!!" I didn't know before that you worked in UBSW.

UBSW did strike me as a good place to work and I sent in my application already. I hope things work out well.