Investment Research Challenge - Texas

(IRC-TX)

Investment Research Challenge

The Investment Research ChallengeTM is an educationalinitiative in which leading industry professionals teachbusiness and finance students how to research, write andand present a report recommending a “Buy”, “Sell”, or “Hold” position on a publicly traded company.

• Originated and trademarked by the NYSSA the Investment Research Challenge (IRC) is now being replicated in Boston, Hong Kong and Texas societies (CFA HOUSTON/CFA-DFW) and starting up in Virginia and other regions by local CFA societies.

Purpose of Challenge

• Teaches best practices in research to the next generation of analysts.

• Provides experience in a real-world setting to complement students’ academic curriculum.

• Develops interest in securities analysis and the investment profession at top area business schools.

• Provides an opportunity for experienced professionals to give back.

Investment Research Challenge – Texas - Process

Seminars hosted at

universities and web-casted

Teams selected by universities

Mentors introduced and subject company

announced

Company presentation

Reports submitted

and evaluated

Present to panel–select

winner

• Beginnings and Participants

• Benefits to the Society

• Key Components

• Challenge Timeline

• Next Steps

Beginnings-University Participation

• First Program (SEMI)– Scholarship

– Education

– Mentoring

– Internship

• Objective:– Outreach to Schools

providing students a forum for exchange of ideas

• Steps for Challenge Development:– Core schools

• Rice• SMU• TCU• Texas A&M• U of H• UT

– Add new school(s) each year (Texas Tech in 2008)

– Annual Research Challenge– Winners compete globally

Challenge Participants

CFA Society Faculty Students IndustryResponsibilities

• Determine rules • Liaise with university

advisors and students• Recruit volunteers –

mentors, graders, panelists

• Coordinate logistics together with staff

Responsibilities• Co-ordinate all on

campus activities.• Prepare recruiting

session in the fall • Create council wide

events

Responsibilities• Co-ordinate all student

campus activities.• Work with University

staff to get student club involvement

Responsibilities• Provide knowledge and• Resources• Co-ordinate Company

wide activities• Firm wide involvement

in CFA Houston CFA-DFW

Benefits • Become an active

Society volunteer• Receive recognition in

Challenge-related publicity in the newsletter, on the website, and in press releases

• Network with other volunteers

Benefits• Network with other

schools and universities• Network with CFA

Houston and CFA-DFW members

• Free sharing of ideas with working Industry and other

• University staff

Benefits• Network with other

students in other schools and universities

• Network with CFA Houston and CFA-DFW members and learn about CFA

• Create Industry network for after graduation

Benefits• Easy give back to

community • Network with other

Industry professional• Have a active role in

the Society

Benefits to the Society

Fulfills mission to educate investment professionals and investing public.

Promotes investment management best practices and ethical standards.

Increases number of professionals who volunteer at Society.

Attracts senior-level professionals who may not otherwise be active in Society.

Forges relationships with area business schools and students.

• Key Components

Seminars

Mentoring

Company Presentation

Written Reports

Panel Presentations

SEMINARS

• What: Investment professionals provide basic knowledge of components of securities research and analysis – Internet as the Ultimate Securities Analyst Tool– Research Report Writing – Buy and Sell-side

Perspectives– Ethics

• When: September - December • Where: On campus and/or web cast

Challenge Timeline

September – December Universities select teams Seminars at participating universities or via web cast

January Teams submit questions for company – Company Presents Mentors chosen and confirmed Kick-off meeting at which mentors are introduced and rules are discussed

February - March Teams do written reports

April - May Final reports are submitted and graded Panel Presentations co-ordinated with TIPS Program Winner of IRC-TX competes globally at CFA Annual Conference,

Vancouver or New York, London, or Hong Kong.

Steps Completed:

• Secured funding support from CFA Institute

• Selected instructors

• Co-ordinated Seminars

• Installed web casting

• Company approached

• Final oral competition scheduled with TIPS program in April at Texas A&M.

Next Steps (or in progress):

• Assign mentors• Getting commitments on Judges/Panelists• Solicit sponsors for events/competition• Establish awards – will include CFA exam fees

reimbursements for winning team members• Develop global competition with winners of other

regional/country challenges at CFA Institute’s Annual Conference or other financial center.

Coordinators

• Leah Bennett, CFACFA Society of Houston713-961-0462 (x112)lbennett@kingadvisors.com

• Sharon Criswell, CFACFA Society of Dallas/Fort Worth214-987-0860 (x116)scriswell@almfirst.com

NYSSA – IRC

• The New York Society of Security Analysts (NYSSA) introduced the Investment Research Challenge in the 2002-2003 academic year as a means to promote best practices in research among the next generation of analysts. The Challenge is an eight-month educational initiative in which leading industry professionals teach business and finance students how to research and report on a publicly traded company. The challenge is now fully supported at CFA Institute and is being offered in other regions including Hong Kong, Boston, Texas and Virginia with many additional local CFA societies looking to add a Challenge in the 2008/2009 academic year.