CFA INSTITUTE RESEARCH CHALLENGE HOSTED BY CFA SOCIETY OF PERTH - 2020 COMPETITION KICK-OFF MEETING - CFA ...
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CFA INSTITUTE RESEARCH CHALLENGE HOSTED BY CFA SOCIETY OF PERTH 2020 COMPETITION KICK-OFF MEETING
CFA RESEARCH CHALLENGE
BACKGROUND
The CFA Institute:
- is the global association of investment professionals that sets the standard for
professional excellence and credentials
- has more than 152,000+ members in 163 countries and territories, including
145,000+ CFA charter holders and 148 member societies
- writes and administers the CFA Examination, the gold standard in investment
accreditation, and is a leading voice on issues of fairness, efficiency, and
investor protection for global capital markets
The CFA Society of Perth:
- is one in this network promoting the lifelong learning opportunities for over 200
members and candidates in Perth and the surrounding area
- is responsible for hosting the Local CFA Research Challenge
2
2019 GLOBAL CHAMPIONS
Ateneo de Manila University
3
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 3 teams of 3-5 students
participate
• What does it involve?
- Analysis of a publicly-traded
company
- Interviews with company
management
- Mentoring by a CFA charterholder
- Research report writing
- Presentation of research
4
2019 SEASON SNAPSHOT
6,100+ Students
4,000+ Volunteers
1,150+ Universities
160 CFA Societies
117 Local Challenges
95 Countries
5
2020 TOURNAMENT DIAGRAM
Global Final
New York, USA
22 April 2020
Americas EMEA Asia Pacific
Regional Regional Regional
New York, USA Dead Sea Area, Seoul,
20-21 April Jordan South Korea
1-2 April 18-19 March
~55 Teams ~35 Teams ~25 Teams
~110 LOCAL LEVEL CHALLENGES
6
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 media exposure
• Robust global network of students
and thousands of volunteers
worldwide
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GLOBAL NETWORK OF THE WORLD’S TOP
BUSINESS AND FINANCE STUDENTS
8
COMPETITION TIMELINE
Today Kick-Off
Next 2 Weeks Preliminary Research & Submit Final Teams*
Register with CFA Institute
5 Sept Analyst Briefing – Conor O’Prey (Canaccord)
1:00-3:30pm, ECU SXL Company Presentation
Videoconference
7 Oct First Draft Report Due to Mentors
14 Oct Final Report Due
17 Oct Local Semi Finals
Week of 22 Oct Local Final Presentations (7pm UWA)
18-19 Mar 2020 Regional Final in Seoul, South Korea
22 April 2020 Global Final in New York City, USA
* 30th Aug deadline to submit final teams
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RULES OVERVIEW
• Each team consists of 3-5 students • Mentors and faculty may NOT contact
(undergraduate and/or graduate) the company
• Universities may form up to two teams • Mentors, faculty, and subject company
each may NOT provide material non-public
• Students must be enrolled in the information
university they represent and
registered for at least a part-time • Written reports must conform to the
course load at the time of the kickoff guidelines set forth by CFA Institute
meeting and include the cover page and
• Reports and presentations must be the disclosure statement provided by CFA
students’ original work Institute
• Students may not have contact with • Teams may not use props in their oral
the subject company outside of presentations
organized events • Students, mentors, and faculty must all
• Students may not enlist the help of agree to abide by the CFA Institute
any investment professionals other Code of Ethics and Standards of
than the mentor or faculty adviser Professional Conduct
10ADVISER AND MENTOR INVOLVEMENT
Faculty Adviser Industry Mentor
• Insight and guidance on research • Insight and guidance on industry
methods and tools as taught in practice
academia • 6 hours maximum of productive time
• 10 hours maximum of productive • Face to face or virtual
time
• Company management question
• Access to faculty for other projects development
unrelated to the Research Challenge
is permitted • Review first draft of research report
• All work must be the original work of • Presentation development
the students assistance
• Provide participating student email
addresses to CFA institute
11ETHICS RESOURCES
• Ethical Standards for Investment
Professionals: An Interactive Case-
Based Course
• Ethics Course Module 2: Standard
II—Integrity of Capital Markets
• Ethics Course Module 3: Standard
III—Duties to Clients
• Ethics Course Module 6: Standard
VI—Conflicts of Interest
• Ethics Course Module 7: Standard
VII—Responsibilities as a CFA
Institute Member or CFA Candidate
12SAMPLE REPORT
https://www.cfainstitute.org/en/societies/challenge/past-champions
13CFA INSTITUTE RESEARCH CHALLENGE
ASSESSMENT AND SCORING – STANDARD FORMAT
Written report: Presentation requirements:
• Maximum 10 A4 pages, appendix limited to • Only team members present
20 pages
• No props can be used
• Prepared from the perspective of an
• 10 minute presentation with up to 10
independent research analyst
minutes for Q&A from judges
• Contain only publically available • Scoring:
information
- Financial Analysis (25%)
• Be original work
- Valuation (25%)
• Must include (Scoring):
− Business Description (5%)
- Presentation (20%)
− Industry Overview and Competitive Positioning (15%) - Question & Answer (20%)
− Investment Summary (20%)
- Team Involvement (5%)
− Valuation (20%)
- Materials (5%)
− Financial Analysis (20%)
− Investment Risks (15%)
− Other (5%) The winner of the local final has the
highest combined score (50% written
report and 50% presentation)
14REPORT SCORING
Maximum
Section Points Comments
Business Description 5
Industry Overview &
Competitive Positioning 15
Investment Summary 20
Valuation 20
Financial Analysis 20
Investment Risks 15
Corporate Governance 5
TOTAL 100
15SAMPLE PRESENTATION
https://www.cfainstitute.org/en/societies/challenge/past-champions
16PRESENTATION SCORING
Maximum
Criteria Points Comments
Financial Analysis 25
Valuation 25
Presentation 20
Question and Answer 20
Team Involvement 5
Materials 5
TOTAL 100
17SUBJECT COMPANY
Southern Cross Media Group (ASX:SXL)
Business Description:
Southern Cross Media Group is engaged in the creation and broadcasting of content on
free to air radio (FTA), TV and online media platforms across Australia. The Company
broadcasts on over 80 metropolitan and regional FM and AM radio stations, digital audio
and radio and regional FTA TV stations.
• Radio stations include: Buddha, Kinderling, Easy Classic Rock and Old Skool
• Other broadcast channels include: Seven, 7mate and 7two, nine, ten, life, go, gem
and eleven
18INTERACTING WITH SOUTHERN CROSS
• Designated officers ONLY
• Host organized communications
ONLY
• Teams are permitted to interact with
the company as a member of the
general public
• Industry mentor or faculty adviser
must be present for all student-
subject company interactions
• As long as individuals aren’t
investment management
professionals, students may contact
and survey company suppliers,
customers, vendors, etc.
19WHERE TO BEGIN
• Visit the CFA Institute Research
Challenge website:
www.cfainstitute.org/researchchallenge
- Peruse educational materials
selected specifically for
participants
- Watch videos of past
presentations
- View past reports from winning
teams
- Faculty advisors to provide
participating student email
addresses to CFA institute
20STUDENT TIPS - 2020
HOW TO BEST UTILISE YOUR MENTOR
• Mentor can provide broad advice but not
perform detailed edits. The reports are meant
to be your original work
• Determine project workplan ASAP and stick to
it. Set meetings with mentor well in advance.
Note that mentors may not be available at your
best times
• Be prepared for your meetings. Be sure of what
you need to get out of each session prior to
arrival
• Keep ‘team debates’ outside of meetings as
much as possible. Focus mentor time on the
most pressing issues
• Try to reserve at least one session to fine tune
your presentation with your mentor
• Email correspondence with mentors should be
copied to the entire team, not just one person
• Communicate effectively with your mentor. Let
them know how you are progressing and how
you performed in the competition
21STUDENT TIPS - 2020
DONT’S TIPS:
• “Don’t commit to this if you have a busy • “Get started early”. “We were still working on
schedule, its very time consuming and pretty our report with half an hour to go”. “This was a
stressful. The last thing you want to do here is tip last year however we ignored it, and so will
let down your team mates and your university” probably this years’ group being students.”
• “Don’t leave this to the last minute! Time • “Get to know your group early, find out
management is key to a successful competition” everyone’s strengths and weaknesses, then
from that assign parts and tasks for the report.”
• “For the team who does progress to the ASEAN
final, arrive at your destination a few days • “We split up the report into 5 sections, i.e
before the event starting date. We arrived on Industry Overview, Business Overview, Financial
the day, so we were jet lagged and didn’t get Analysis, Modelling and Risks. From there we
proper practice in” first worked on each others parts and then when
finished we would sit down together and see if
the part needed any improvement.”
BENEFITS • “Assign a group leader early to eliminate
• “The Research Challenge opened up numerous arguments and disagreements, or a method
job opportunities” were you will resolve arguments.” You will have
a lot of these with so many conflicting ideas,
• “The Research Challenge helped me connect my and with arguments you will waste a lot of time
academic knowledge to the real world” if not resolved promptly.”
• “Use your industry mentor and university
mentor wisely. Ours was very helpful with our
presentation, remember not to waste their time
either and expect them to hold your hand. In
the end its a group effort, you won’t get things
right the first time and its the smallest details
that count so make sure you prepare thoroughly
for them to check.”
22PAST STUDENT EXPERIENCE DISCUSSION
FORUM
23CFA RESEARCH CHALLENGE
NEXT STEPS
• Register within 14 days of kick off:
- Students sign up with Faculty Advisors
- Faculty Advisors to sign participating students up AND send the list to
martin.stulpner@perth.cfasociety.org
- Volunteers:
http://www.cfainstitute.org/community/challenge/involved/Pages/volunteer_welcome.aspx
- Let us know of any sign up issues: martin.stulpner@perth.cfasociety.org
• Meet as a team to establish roles, discuss approach
• Begin your research (including CFA resources)
• Meet your faculty advisor and/or mentor
• Plan to attend sessions and training
24CFA RESEARCH CHALLENGE
USEFUL LINKS
CFA Society of Perth Research Challenge:
http://www.cfasociety.org/PERTH/Pages/ResearchChallenge.aspx
CFA Research Challenge Webpage:
http://www.cfainstitute.org/community/challenge/Pages/index.aspx
25CFA RESEARCH CHALLENGE
ADDITIONAL RESOURCES
• Refinitiv
- Access to the Eikon
database during the course
of the competition for all
team members (you will
need to opt-in)
• CFA Research Challenge
website:
- Ethics
- Research
- Report Writing
- Presenting
26REFINITIV
OVERVIEW
Refinitiv is one of the world’s largest providers of financial markets data and
infrastructure, serving over 40,000 institutions in over 190 countries. They are
the 2019-2020 Official Global Data Provider of the CFA Institute Research
Challenge! As part of their sponsorship, each student registered for the
competition will receive complimentary access to Eikon. This product will
allow students to “access an incredible depth and breadth of financial
analysis data to make smarter decisions. Eikon is a flexible, open platform
that’s purpose-built for trade innovation and lets you connect with the world’s
largest directory of verified financial professionals.”
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QUESTIONS?
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