2nd Annual Global Investment Research Challenge

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2nd Annual Global Investment Research Challenge
CFA FRANCE Inaugural Investment Research Challenge
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Regions
2008 Society Participants

• Asia-Pacific
• Hong Kong
• India
• Indonesia
• Singapore
• Europe
• France
• Italy
• Netherlands
• Spain
• UK

• North America
• Atlantic Canada
• Boston
• Dallas/Houston
• Louisville
• New York
• Pittsburgh
• Virginia

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Overview
400 students from over 80 universities in Asia,
Europe, and North America will compete,
including students from these schools ranked
among the Financial Times top MBA programs

• Babson College
• Boston College Carroll School of Management
• Boston University School of Management
• Carnegie Mellon Tepper School of Business
• Columbia Business School
• ESADE (Spain)
• IE Business School (Spain)
• Imperial College Londons Tanaka Business
  School
• London Business School
• MIT Sloan School of Management

• NYU Stern School of Business
• Rice University Jones School of Management
• SMU Cox School of Business
• Texas AM Mays Business School
• University of Pittsburgh Katz School of Business
• University of Texas McCombs School of Business
• University of Virginia Darden School of Business
• William and Mary Mason School of Business

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Key Components

Be mentored by an industry professional
Interview company management
Perform corporate analysis
Present to a panel of industry experts
Write an equity research report
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•  
•  
• Inaugural
• Investment Research Challenge

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Participants

• 8 Teams Tutor Mentor
• ESSEC Bernard Esnault Sarah Smith
• Master Techniques Financières
• Université Paris-Dauphine Gérard
  Chapalain Raphael Dubois
• Master Ingénierie Economique
• Université ASSAS Denis Deschamps Julien
  Guez
• Magistère Banque Finance
• ESC Reims Stéphane Dubreuille Richard
  Houbron
• Master AFI
• ESC Lille Rahma Chekkar Maxime
  Lefebvre
• Master AFI
• Université Panthéon Sorbonne I Diana
  Pop Nina de Martinis
• IAE Master Finance
• Université Lille II Jean-Gabriel
  Cousin Kais Mbarek
• ESA Master Gestion
• CERAM Bertrand Groslambert Christine
  Verpeaux
• Master Finance des Marchés

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The Company

• PRODUITS ET SYSTÈMES POUR INSTALLATIONS
  ÉLECTRIQUES ET RÉSEAUX DE COMMUNICATION

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2008 Timeline

• January 22nd
• February 20th
• March 11th
• March 16th
• March 20th

• Kick-off meeting - introduction of teams to
  mentors and announcement of subject company
• Teams submit questions for the company to CFA
  France irc_at_cfafrance.org
• Company presentation Reuters France 6-8 Bd
  Haussmann at 1800
• Deadline to send additional questions to CFA
  France for submission to company
• irc_at_cfafrance.org
• Conference Call at 1800 answers from the
  company

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2008 Timeline

• April 1st
• April 15th
• May 13th
• May 22nd

• First draft of report submitted to mentors
• Final reports submitted to CFA France for
  evaluation by graders
• 3 finalist teams announced
• Presentations by finalist teams to a panel of
  experts

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The Rules

• Student Teams
• Teams of 3-5 students per university
• Students must be enrolled in the current semester
  at their university
• CFA Charterholders and students who are or have
  been employed in a role whose primary duty
  involves fundamental company analysis are not
  eligible
• If a team loses a member, that member can be
  replaced up until the company presentation on
  March 11th

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The Rules

• Research Process
• Students must not use material non-public
  information in their written reports or oral
  presentations.
• The reports must be the original work of the
  students. Faculty members and mentors may not
  write any part of the report
• Direct contact with the company is limited to the
  company presentation and one follow-up contact
  conference call.
• Teams may contact the companys customers,
  competitors and suppliers. They must confine
  their conversations to corporate officers who
  normally interact with investors, such as IR
  officers, CEOs or CFOs. Any other entity must
  be approved by CFA France.

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The Rules

• Advisors
• Teams may use their mentor and Faculty advisors
  (tutor) as resources, but may not be helped by
  any other investment industry professionals in
  conducting their research or writing their
  reports.
• Tutor can spend up to 10 hours advising the teams
• Mentors can spend up to 6 hours advising the
  teams, including phone calls, face-to-face
  meetings, and reviewing the reports
• Mentors may not contact the company, or any of
  its competitors, affiliates or suppliers unless
  supervising a student call.

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The Rules

• Research Report
• Teams must use the report template provided by
  CFA France
• The body of the report may be a maximum of 8-10
  pages
• Any additional charts and/or graphs should be
  included in the appendix. There is no limit to
  the length of the appendix.
• The report, written in English, must be the
  original work of the students, and may not be
  copied from another source.
• Final report must be submitted to CFA France in
  electronic and printed form (5 copies) on or
  before April 15th.
• Reports will be submitted under an anonymous team
  name, Team A, Team B, to Team H.

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The Rules

• Grading
• Written reports will be graded by a team of 4 to
  5 investment professionals
• Grading will consist of a blind process in which
  the identity of the university is not known to
  the graders.
• The 3 teams with the top scores will be selected
  as finalists to present in front of the panel.
• Graders will provide short comments on the
  reports to all of the teams.

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The Rules
Written Report Scoring Criteria

• Section
• Investment Summary
• Valuation
• Business Description
• Other Headings
• Industry Overview Competitive Positioning
• Financial Analysis
• Investment Risks
• Total

• Maximum Score
• 20
• 20
• 5
• 5
• 15
• 20
• 15
• 100

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The Rules

• Presentation
• Finalist teams will make a presentation in front
  of a panel of investment industry experts
  selected by CFA France
• Students will prepare a PowerPoint presentation
  for the panel, and will have 10 minutes to
  present with an additional 10 minutes of QA
• Panelists will base their scores on the
  presentation only
• The final scores will be based 50 on the score
  of the written report and 50 on the
  presentation, in the case of a tie, the team with
  the highest presentation score will be the IRC
  winner team
• The IRC winner team will be announced

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The Rules
Presentation Scoring Criteria

• Criteria
• I. Materials
• II. Argument (did they use data effectively to
  support their recommendations)
• III. Poise (were they confident in their
  recommendation, were they convincing)
• IV. Questions (were they able to answer
  questions)
• V. Use of Resources (team involvement in the
  presentation, qa)
• Total

• Maximum Score
• 20
• 25
• 20
• 25
• 10
• 100

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2008 CFA France IRC Award

• 4000
• will be awarded

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2008 CFA France IRC Award

• 1000
• will be awarded
• to the finalist team
• who gets
• the highest score on
• the report

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2008 CFA France IRC Award

• 1000
• will be awarded
• to the finalist team
• who gets
• the highest score
• on the presentation

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2008 CFA France IRC Award

• 2000
• will be awarded
• to the finalist team
• who gets
• the overall
• highest score
• The winner team

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2008 CFA France IRC Award
Example  Team Z wins the challenge 
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Our Partners
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Our Partners
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• Questions?