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 ...
CFA INSTITUTE RESEARCH CHALLENGE
HOSTED BY CFA SOCIETY OF PERTH

2020 COMPETITION
KICK-OFF MEETING
CFA INSTITUTE RESEARCH CHALLENGE HOSTED BY CFA SOCIETY OF PERTH - 2020 COMPETITION KICK-OFF MEETING - CFA ...
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

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CFA INSTITUTE RESEARCH CHALLENGE HOSTED BY CFA SOCIETY OF PERTH - 2020 COMPETITION KICK-OFF MEETING - CFA ...
2019 GLOBAL CHAMPIONS
           Ateneo de Manila University

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CFA INSTITUTE RESEARCH CHALLENGE HOSTED BY CFA SOCIETY OF PERTH - 2020 COMPETITION KICK-OFF MEETING - CFA ...
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

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CFA INSTITUTE RESEARCH CHALLENGE HOSTED BY CFA SOCIETY OF PERTH - 2020 COMPETITION KICK-OFF MEETING - CFA ...
2019 SEASON SNAPSHOT

6,100+   Students
4,000+   Volunteers
1,150+   Universities
   160   CFA Societies
  117 Local Challenges
   95 Countries

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CFA INSTITUTE RESEARCH CHALLENGE HOSTED BY CFA SOCIETY OF PERTH - 2020 COMPETITION KICK-OFF MEETING - CFA ...
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

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CFA INSTITUTE RESEARCH CHALLENGE HOSTED BY CFA SOCIETY OF PERTH - 2020 COMPETITION KICK-OFF MEETING - CFA ...
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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CFA INSTITUTE RESEARCH CHALLENGE HOSTED BY CFA SOCIETY OF PERTH - 2020 COMPETITION KICK-OFF MEETING - CFA ...
GLOBAL NETWORK OF THE WORLD’S TOP
BUSINESS AND FINANCE STUDENTS

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CFA INSTITUTE RESEARCH CHALLENGE HOSTED BY CFA SOCIETY OF PERTH - 2020 COMPETITION KICK-OFF MEETING - CFA ...
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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CFA INSTITUTE RESEARCH CHALLENGE HOSTED BY CFA SOCIETY OF PERTH - 2020 COMPETITION KICK-OFF MEETING - CFA ...
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

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ADVISER 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

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ETHICS 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

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SAMPLE REPORT

https://www.cfainstitute.org/en/societies/challenge/past-champions

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CFA 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)

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REPORT 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

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SAMPLE PRESENTATION

https://www.cfainstitute.org/en/societies/challenge/past-champions

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PRESENTATION SCORING

                              Maximum
       Criteria                Points   Comments

     Financial Analysis         25

                  Valuation     25

           Presentation         20

   Question and Answer          20

     Team Involvement            5

                  Materials      5
                    TOTAL       100

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SUBJECT 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

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INTERACTING 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.

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WHERE 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

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STUDENT 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

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STUDENT 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.”

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PAST STUDENT EXPERIENCE DISCUSSION
FORUM

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CFA 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

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CFA 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

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CFA 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

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REFINITIV
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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