Latest news with #CFAInstitute
Zawya
29-05-2025
- Business
- Zawya
CFA Institute Report Examines Policy Solutions to Capital Formation Barriers in Africa and the Role Private Markets Could Play in this Development
New research from CFA Institute ( Capital Formation in Africa: A Case for Private Markets ( examines the case for mobilizing private capital to support the structural investment needs of sub-Saharan Africa. The research identifies and analyses existing barriers to the development of capital markets and offers a series of policy recommendations for regulators, policymakers, the investment industry, and international institutions active in the region. Structured as a series of market-specific chapters, Capital Formation in Africa: A Case for Private Markets ( covers 11 African economies, with contributions from local investment industry leaders in Botswana, Ethiopia, Kenya, Mauritius, Nigeria, South Africa, Uganda, West Africa (with a focus on Côte d'Ivoire and Senegal), Zambia, and Zimbabwe. Dr. Phumzile Mlambo-Ngcuka, Former Deputy President of South Africa, writes in her foreword to the research: 'The CFA Institute research illuminates the current state of Africa's capital markets but also serves as a call for stakeholders to engage thoughtfully with the markets evolving dynamics. It is my hope that this work will inspire policy reform and innovative solutions that navigate the complexities of capital formation with investor protection and strategic foresight. In doing so, we can shape the future of finance and drive the socioeconomic development of Africa.' Ahmed Rashad Attout, Director of Financial Sector Development at the African Development Bank, also comments in his foreword to the research: 'At the African Development Bank, we are committed to building enduring partnerships with stakeholders who share our vision of a prosperous, inclusive, resilient, and integrated Africa. It is in that spirit that we welcome this important research from CFA Institute. The publication provides a much-needed local perspective on capital market development in Africa. Its conclusions and recommendations provide a basis for advancing the development of the investment solutions needed to build the efficient, dynamic, and integrated capital markets that Africa needs to drive its development agenda.' The research will be launched today in Abidjan, where the African Development Bank is holding its annual meeting, during a panel discussion ( moderated by Olivier Fines, CFA, Head of Policy Research and Advocacy at CFA Institute. Fines adds: 'There is historically a strong correlation in various parts of the world between capital market development and socioeconomic progress. This research seeks to consider the main barriers to capital formation in sub-Sahara Africa and whether private markets, particularly private equity and private debt, can be a catalyst for stronger capital market development in the region. The authors believe private capital is particularly suited to the region's current structural investment needs, including infrastructure and small- and medium-sized enterprise funding. The research also considers the potential for mixed finance projects and offers enduring lessons for sub-Saharan Africa based on the successes of the Asian tiger economies.' Recommendations in the report: For Regulators and Policymakers: Offer regulatory clarity and predictability through clear roadmaps and policy consultations when making significant changes to existing legislation Issue guidance on the regulatory treatment of private assets Develop strong and standardized corporate governance rules to improve corporate governance practices, the bedrock of investor confidence For Governments: Consider forming public-private partnerships to stimulate the growth of financial infrastructure Collaborate with local firms to deliver investor education campaigns and offer grants and scholarships to students and early-career professionals pursuing accredited professional licensing qualifications Consider initiating projects to create endowment-like funds aimed at generating economic growth in various sectors of the economy Coordination between public authorizers and the private sector can make clearer the objective to integrate capital markets within the economic fabric of society For Institutional Investors and the Investment Industry in Sub-Saharan Africa: Allocate resources and provide incentives for professionals to improve their skills; identify areas of skill deficits and recruit talent to address gaps Consider targeting small- and medium-sized enterprises in marketing campaigns that highlight the availability of funding and capital-raising options Develop private markets by aligning long-term and stable financing needs of SMEs and startups with private market's long-term investment horizon Leverage local institutional investors (local pension funds, insurance firms, and sovereign wealth funds) as long-term anchor investors in capital markets Distributed by APO Group on behalf of CFA Institute. For further information or to speak with the research authors, please contact: pr@ Follow CFA Institute on: LinkedIn X : @ CFAInstitute. About CFA Institute: As the global association of investment professionals, CFA Institute sets the standard for professional excellence and credentials. We champion ethical behavior in investment markets and serve as the leading source of learning and research for the investment industry. We believe in fostering an environment where investors' interests come first, markets function at their best, and economies grow. With more than 200,000 charterholders worldwide across 160 markets, CFA Institute has 10 offices and 160 local societies. Find us at About the CFA Institute Research and Policy Center: The CFA Institute Research and Policy Center brings together CFA Institute expertise along with a diverse, cross-disciplinary community of subject matter experts working collaboratively to address complex problems. It is informed by the perspective of practitioners and the convening power, impartiality, and credibility of CFA Institute, whose mission is to lead the investment profession globally. Visit the Research and Policy Center at
India Today
28-05-2025
- Business
- India Today
Finfluencer frenzy: Why you shouldn't chase viral stock tips
It often starts with a reel. You're unwinding after a long day, scrolling through Instagram, when a sharply edited video stops your thumb. A confident voice promises a stock that will "double in 30 days." The chart looks convincing. The profits look real. The urgency feels minutes, you're watching another. Then another. Before you know it, you're downloading an app, opening a demat account, and investing in a company you hadn't heard of until five minutes how thousands of retail investors are getting swept up in a surge of financial advice on social media, driven not by seasoned economists or licensed advisors but by a new breed of digital celebrities known as 'finfluencers'.FINFLUENCERS RIDE DIGITAL BOOM In India's booming digital economy, these social media personalities have become the new-age financial guides for millions of retail investors. A recent CFA Institute report found that 82% of retail investors act on finfluencer advice, and 72% even reported making the surface, it sounds like a success story. But scratch a little deeper, and the sheen wears off. Only 2% of these finfluencers are Sebi-registered, and the rest? Operating in a regulatory grey zone where accountability is optional and consequences are rare.'The biggest risk is acting on flashy advice without context,' warns Trivesh D, COO of brokerage firm Tradejini. 'We know many finfluencers aren't qualified, but they sound convincing. If you're blindly following someone with no skin in the game, you could end up in poor trades, or worse, manipulated stocks.'advertisementAnd this isn't just a matter of a few bad calls. The psychological mechanics behind these digital interactions are built to influence, not inform. FOMO—fear of missing out—is baked into the more dramatic the claim, the more views it garners. The algorithms that power your feed reward virality, not veracity.'Emotion rarely leads to sound investing,' Trivesh adds. 'When people online seem to be making money, it creates pressure to jump in. But that's not a strategy, it's just emotion dressed up as one.'VLA Ambala, a Sebi-registered research analyst and co-founder of Stock Market Today, has seen firsthand how this emotional bait can sink unsuspecting investors.'Most of these influencers are neither qualified nor willing to come under Sebi's regulatory umbrella. Many of them are simply copy-pasting trending content to attract followers. They promote risky or unsuitable financial products for personal gain,' she STOCK BUZZ, RESOURCEFUL IPO HYPEConsider the now infamous case of the Resourceful Automobile IPO. With just two Yamaha showrooms and eight employees, the company's IPO was still subscribed 400 times, thanks largely to finfluencer hype. 'There was no substance, only buzz,' Ambala recalls. 'And that buzz was manufactured.'Then there's the case of Gensol Engineering Ltd, where finfluencers widely promoted the stock and its charismatic promoters, Anmol and Puneet Singh Jaggi. The company's meteoric rise drew in thousands of retail investors, but when Sebi flagged serious corporate governance issues and fund diversion, the stock tanked and investors saw losses of up to 95%.advertisementCrypto investors, too, have been stung. Popular YouTubers endorsed platforms like Vauld, a Singapore-based crypto firm that suspended deposits and withdrawals in 2022. Indian investors were left stranded, unable to retrieve their consequences are real and often costly. 'Following unverified advice from finfluencers can damage an investor's long-term strategy,' Ambala cautions. 'Instead of growing wealth with clear goals, people end up chasing random tips. It's inconsistent and unsustainable.'CREDIBILITY CRISISPerhaps the most worrying part is the illusion of credibility. 'Many finfluencers look like professionals but are actually experts in sales and marketing,' she says. 'They appear free, but they earn massive commissions through brokerage referrals and subscriptions. The average viewer doesn't see the conflict of interest.'Despite repeated warnings from Sebi, a vast number of these content creators continue to offer direct stock recommendations, often without disclosing affiliations or incentives.'If someone is promising guaranteed returns, pushing penny stocks aggressively, or avoiding questions about their holdings, that's a red flag,' says Trivesh. 'Genuine advice rarely comes wrapped in hype.'advertisementBoth experts stress that education is the first line of defence. Building financial literacy and cultivating scepticism can go a long way in protecting retail investors.'Don't just take someone's word for it,' Trivesh says. 'Cross-check with reliable sources. Look at company filings. Consult licensed professionals.''Popular doesn't mean accurate,' Ambala adds. 'Social media algorithms push what gets the most clicks—not what's true. The onus is on investors to verify before they act.'So, what should new investors do? Slow down. Read. Ask questions. Find out if the person dishing out stock tips is registered with Sebi or is at least credible. Learn the basics before diving into complex strategies. And most importantly, if it sounds too good to be true on social media, it's usually a warning sign, not a winning bet.
Forbes
15-05-2025
- Business
- Forbes
The Importance Of The Investment Policy Statement
An often overlooked document in the family office space. Does your family office have an IPS? In previous discussions, we have highlighted several aspects of governance within family offices, particularly in relation to investment management. At the heart of investment governance is a vital document that outlines investment goals, objectives and strategies. In this article, we will explore the importance of this vital document that determines the success of family office investments. Understanding the Family Office Landscape Family offices are designed to manage the wealth of a single family, often spanning multiple generations, each with distinct financial needs, varying risk tolerances, and a wide range of long-term objectives. These objectives can range from wealth preservation and risk adjusted growth, to philanthropic goals, business interests, and provisions for future generations. Despite their complexity, family offices often operate with less formal structures compared to other institutional investors. From our experience, this formality manifests in several ways: This lack of structure can lead to several negative consequences, including non-alignment and inconsistent investment strategies, conflicts of interest, increased risk-taking, or even investment decisions that erode the family's wealth over time. What is an Investment Policy Statement? This is where the Investment Policy Statement (IPS) comes into play. The IPS serves as the foundation for investment activities in a family office. It is a highly customised document that is uniquely tailored to the preferences of the family. Referring to the evergreen report 'Best Governance Practices for Investment Committees' released by the Greenwich Roundtable and 'Elements Of An Investment Policy Statement For Individual Investors' released by the CFA Institute, as well as our own experience in helping family offices create sound investment governance, a well-crafted IPS should typically include: 1) Purpose: This section clearly articulates the reason for the family office's existence and the investment portfolio. It defines the beneficiaries, the time horizon over which the investments will be managed, and the overall goals the portfolio is intended to achieve. A clear purpose guides all subsequent policy decisions. 2) Objectives: Building upon the stated purpose, the objectives section outlines the specific, measurable, achievable, relevant, and time-bound (SMART) goals for the investment portfolio. These typically include both return objectives (e.g., achieving an average annual return of 7% above inflation) and risk objectives. Clearly defined objectives provide a benchmark against which the portfolio's performance can be evaluated and ensure that risk-taking is aligned with the investor's capacity and willingness to bear it. 3) Asset Allocation: Often considered the most significant driver of long-term investment returns, this section details the strategic framework for how the portfolio's assets will be distributed across different asset classes. A comprehensive asset allocation strategy often includes four crucial elements: 4) Governance Framework: This section sets out the structure for managing the investment process. Key elements include: The above allows for a structured and accountable approach to the comprehensive oversight of the investment portfolio. 5) Other Provisions: This section includes supplementary policies and guidelines that govern the day-to-day management of the investment portfolio, deemed necessary by the family office. Examples include: Coin stacks and chart graphs on a chessboard background. Horizontal composition with selective focus ... More and copy space. Why does your Family Office need this? A well-crafted investment policy statement may prove even more essential today than in previous environments, given recent periods of market volatility and anticipated lower investment returns over the market cycle. The IPS offers several key benefits: Alignment Risk Management Dispute Resolution Execution There has been considerable talk about the "professionalization" of family offices in recent years. However, there is little guidance on how to achieve this. We believe the IPS is a crucial first step in the professionalization journey. Our 'Family Office Maturity Model' outlines the stages of evolution, from the initial 'Embedded' phase, where personal and business affairs are intertwined, to the 'Mature' stage, characterized by structured governance and board-level oversight. The IPS plays a foundational role in this transition. For further details, you can view the 'Agreus Family Office Maturity Model' here. Implementing and Maintaining the IPS Developing and implementing an IPS is a collaborative process that should involve key stakeholders, including family members and trustees. It is essential to ensure that all parties understand and are aligned with the policies outlined in the document. At the same time, we understand that developing an IPS may not be a typical exercise for many family offices. It demands significant thought, a deep understanding of market dynamics, and familiarity with core investment principles and practices. Therefore, we highly recommend engaging experienced external advisors and hiring seasoned Investment professionals in the process. The IPS is not a static document. It must be reviewed and updated regularly to reflect changing market conditions, evolving family circumstances, and any changes in the family's objectives or risk tolerance. Ongoing reviews will ensure that the IPS remains relevant and effective in guiding the family's investment strategy.
Yahoo
07-05-2025
- Business
- Yahoo
Beyond calculators: Advisors' growing role in uncertain times
In times of uncertainty, financial advisors and other investment industry professionals must listen to clients' valid concerns while at the same time keeping them focused on their long-term plans. That was the key takeaway from two of the opening speeches and a panel at this week's CFA Institute LIVE conference in Chicago. Recent economic volatility amid the unknown future of U.S. tariffs and the impact on inflation represent only one of the challenges facing the industry, said Margaret Franklin, CEO of the CFA Institute , the professional development and training organization that certifies chartered financial analysts. For example, she pointed to the rise of private markets and the looming Great Wealth Transfer to spouses and younger generations. When Franklin began in the industry, large institutional investors were the "dominant" client base and market participants, she noted. "Today, individuals play a far more central role in capital markets," she said. "More than $80 trillion is expected to transfer to the next generation, and they're looking for ethical, informed, professional advice. This is a massive opportunity and, of course, an associated responsibility. Yet, despite this, the talent gap is significant. Not enough professionals are entering wealth management, even as that demand grows." READ MORE: Advisors navigate a political divide in client outlooks Back to the fundamentals However, neither advisors nor their clients can afford to ignore the macroeconomic backdrop that is driving fears of a recession. Despite those concerning headlines, the "fundamentals are not collapsing," said Rosie Rios, a former U.S. treasurer who is now chair of America250 , a Congress-commissioned organization tasked with overseeing the celebration of the country's 250th birthday next year, and a member of the boards of American Family Insurance, Ripple Labs and Fidelity Charitable Trust. She's a veteran ex-Treasury Department official with firsthand experience from the 2008 financial crises and the 2020 pandemic. Unemployment remains relatively low, while inflation is higher than the Fed's target but down from its 2022 peak, sectors such as technology, energy and health care are displaying continued strength and the U.S. economy is growing faster than those of Western Europe and Canada, Rios noted. "We're in a better position than any economy in the world," Rios said. "Clearly, we can no longer do things the same. Change is difficult, but we have been through worse. This is not the financial crisis of 2008 and this is where creativity and human capital is going to play a very, very big role."
The Hindu
06-05-2025
- Business
- The Hindu
MIT-WPU School of Economics and Commerce launches B.Com Financial Analysis Program
The MIT World Peace University (MIT-WPU) has launched its new Financial Analysis program, with the CFA Institute delegation in attendance. The ceremony highlighted collaborative plans to integrate financial curriculum into the university's academic programs. This aims to equip students with the skills required for successful careers in the global finance sector. Under the newly launched Financial Analysis program, MIT-WPU will offer on-campus training for the CFA Level I and II examinations, integrating them directly into the curriculum. In the first year, students will also have the opportunity to pursue the Investment Foundations Certificate from CFA Institute. This certificate will provide them with an understanding of the investment industry, including its structure, core concepts, and ethical considerations. Dr. R. M. Chitnis, Vice Chancellor, MIT-WPU, said, 'CA, CS, and CMA are professional courses in India, focused on auditing, taxation, and legal compliance, authorised under Acts of Parliament. In contrast, the CFA is a global qualification that supports companies in finance and investment banking, representing a distinct domain. Students who pursue these professional degrees alongside the CFA qualification will gain a significant competitive advantage in the fast-evolving world of finance.' Dr. Anjali Sane, Dean of the School of Economics and Commerce at MIT-WPU, said, ' With the launch of the Financial Analysis program, we had the opportunity to engage in insightful discussions on emerging trends in the investment industry. Our focus has been on building a curriculum that meets global industry standards and empowers students with the skills needed to thrive in the world of finance.'
