German Association for Financial Analysis and Asset Management

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German Association for Financial Analysis and Asset Management
logo
legal form eV
founding 1960

place Frankfurt am Main
Members 1400
Website www.dvfa.de

The German Association for Financial Analysis and Asset Management (DVFA), with over 1,400 members, is the organization of German financial analysts with the largest number of members . It operates as a professional association for "investment professionals" in Germany . Asset management is the English term for asset management .

For years, the DVFA has been a body for setting industry standards, such as the DGFR (German Principles for Financial Research), the principles for effective financial communication or the rating and validation standards.

The DVFA is a member of the European Federation of Financial Analysts Societies (EFFAS), to which 26 national associations belong.

Fields of work

Principles for effective financial communication

The DVFA principles for effective financial communication have been describing the expectations of institutional investors and financial analysts regarding the financial communication of companies since 2006 and explain how deviations from these expectations may be interpreted by the addressees. The principles are to be understood as recommendations to board members, IR managers and interested parties. The principles were defined by the DVFA Committee “Effective Financial Communication”, in which, in addition to investment professionals from various asset classes, IR managers and representatives of the professional associations DIRK and DPRG work together. The last update to version 3.0 took place in May 2008.

The principles are of outstanding importance for practical investor relations work in Germany and are structured as follows:

  • Three dimensions, in which effective financial communication is effective and based on the principle of credibility (target group orientation, transparency, continuity)
  • Six behavioral maxims, two of which are assigned to the dimensions (capital market orientation, equal treatment, materiality, traceability, timeliness / comparability, expectation management)
  • 30 guiding principles including explanations, definitions of terms and numerous examples

Analyst conferences (DVFA GmbH, DVFA conference center)

Among other things, it organizes so-called analyst conferences in which companies present their financial reports specifically to financial analysts and institutional investors .

Qualification programs (DVFA GmbH, DVFA Finanzakademie)

DVFA has been offering qualification programs for investment professionals since 1987. The target group are specialists and executives in banks, asset managers and companies. In the past 25 years, more than 4,000 graduates from the DVFA Finance Academy have obtained a certified degree and are therefore part of an international qualification network. Overall, the DVFA u. a. the degrees:

Applied Investment Management (AIM)

The AIM is an application-oriented qualification and thus tailored to daily consulting practice. In this program, the participants develop an intuitive understanding of central capital market and portfolio relationships. This enables them to make investment recommendations and provide their clients with qualified support in their investment decisions. Graduates receive the "Certificate in Applied Investment Management".

Certified International Investment Analyst (CIIA)

The CIIA is a qualification at an academic level with an international focus. The focus of the program is on understanding key capital market models using mathematical analysis. Graduates are able to quantitatively analyze assets and portfolios, formulate investment strategies and implement them including hedging mechanisms. After passing all exams, the Association of International Investment Analysts (ACIIA) awards the title "CIIA - Certified International Investment Analyst".

Certified Credit Analyst (CCrA)

The CCrA is a practical qualification for credit experts in banks and on the capital market. Among other things, the participants learn about instruments for assessing individual risks and methods for actively managing entire loan portfolios. Further modules include the regulatory treatment of loans and credit risks as well as the rating and analysis of credit products. Completion of the program entitles you to the title "CCrA - Certified Credit Analyst".

Certified Real Estate Investment Analyst (CREA)

The CREA program combines the knowledge of real estate experts with that of financial analysts and investors. The structure, function, analysis and valuation of real estate investments as well as portfolio management are dealt with. The CREA is a joint offer by DVFA and the IREBS Real Estate Academy . After successfully passing the exam, graduates receive the title “CREA - Certified Real Estate Investment Analyst”.

Certified Risk Manager (CRM)

The CRM qualifies specialists in risk management for banks and the financial market. The program focuses on overall bank management and the requirements of regulation as well as on the analysis of market, interest rate, credit and liquidity risks. Graduates receive the title “CRM - Certified Risk Manager”.

Result according to DVFA / SG

The DVFA / SG result is a calculation method that was developed by the DVFA together with the Schmalenbach Society (SG). The DVFA / SG result - often just called DVFA result - corresponds to earnings per share adjusted for extraordinary influences , comparable to the adjusted annual profit . It made it easier to compare and evaluate annual financial statements published in accordance with the German Commercial Code (HGB) .

Since the conversion of the accounting of all stock corporations listed on the regulated market to International Financial Reporting Standards (IFRS), the DVFA / SG result, which is based on the German Commercial Code, has lost its importance. While numerous companies reported the DVFA / SG result between 2000 and 2003, this information is rarely found today. Instead, different, non-standardized profit adjustments are applied; In summary, one speaks of non-GAAP measures (for: indicators that do not comply with generally accepted accounting principles).

Cash flow according to DVFA / SG

Cash flow calculation for works councils and employee representatives or employee representatives in economic committees as recommended by the German Association for Financial Analysis and Asset Management (DVFA) and the Schmalenbach Society (SG):

1. Profit for the period before extraordinary items (consolidated profit for the year before profit transfer or profit after tax)
2. ± Write- downs / write-ups on fixed assets, no write-offs on receivables (see income statement)
3. ± Changes (differences) in long-term provisions (generally longer than 1 year) (see balance sheet)
4th ± other non-cash expenses / income, e.g. income from the release of special items (see balance sheet)
5. = Cash flow according to DVFA / SG

Web links

Individual evidence

  1. ↑ http://www.dvfa.de/fileadmin/downloads/Publikationen/Standards/grundsaetze_effektiven_finanzkommunikation.pdf
  2. ↑ http://www.dvfa.de/aim
  3. ^ CIIA - Certified International Investment Analyst - DVFA. Retrieved April 27, 2018 .
  4. ↑ CCrA - Certified Credit Analyst - DVFA. Retrieved April 27, 2018 .
  5. ↑ http://www.dvfa.de/finanzakademie/programme/crea-certified-real-estate-investment-analyst/
  6. ↑ https://www.youtube.com/watch?v=QUtx3Uvj3Lg&feature=youtu.be
  7. ↑ CRM - Certified Risk Manager - DVFA. Retrieved April 27, 2018 .