Aug. 16 (Bloomberg) -- More than half of the 63,249 people who took June exams to receive the Chartered Financial Analyst designation, a key credential for money managers and analysts, passed, the program's administrator said.

The overall pass rate climbed this year from 48 percent in 2005 in part because of better preparation by candidates, said Robert Johnson, managing director of the CFA Institute's programs division. The Institute's program is used to measure the competence of financial analysts, portfolio managers and investment advisers.

Those seeking jobs in the financial services industry have swelled applications to take the tests as more employers expect the accreditation when hiring. Candidates must sequentially pass three rigorous, six-hour exams on economics, financial accounting, securities analysis and portfolio management, Johnson said.

``There is a great economic incentive to be committed to these exams,'' Johnson said. ``People were successful because they want that recognition. A CFA designation is readily recognized and valued throughout the world.''

This June the exam was offered to candidates from 149 countries in test centers based in 189 cities in about 89 countries worldwide, he said. Candidates from at least 60 countries had to cross borders to sit for the exam, Johnson said.

Global Importance

Of the 26,467 candidates taking the Level I exam in June, 40 percent passed, while 48 percent of the 20,499 taking Level II passed, the Charlottesville, Virginia-based CFA Institute said. About 16,283 people took the final Level III test, with 76 percent passing.

``Employers of investment professionals believe strongly in the value of the CFA program and many require their professional staff to earn the CFA charter,'' Jeff Diermeier, chief executive officer of the CFA Institute, said in a statement.

Employers with the largest number of CFA charterholders, include ABN Amro Holding NV, Canadian Imperial Bank of Commerce's CIBC World Markets, Deutsche Bank AG, Fidelity Investments, Goldman Sachs Group Inc., HSBC Group, Merrill Lynch & Co., Northern Trust Corp., Royal Bank of Canada, State Street Cos. and UBS AG, the CFA Institute said.

``Hiring people with a CFA designation is especially important for firms that operate globally,'' Johnson said.

To contact the reporter on this story: Samantha Zee in Los Angeles at szee@bloomberg.net

Last Updated: August 16, 2006 18:22 EDT