Value of the Charter - location matters.

Every few weeks or so a new thread is started or an old one is rekindled that fans the flames of the old axiom, The CFA is not what most people think it’s cracked up to be. The arguments are convincing and plentiful and go something like this: “Passing won’t get you that promotion”, “Won’t help you break in”, “The opportunity cost is too high, go network dammit”.

I got to say, after reading through these threads and hearing the arguments and counter arguments there’s a lot of truth in that. However rarely do these arguments factor in location.

Most people on this forum - and most charter holders - are located in the US where the finance industry is saturated and the number of CFA charter-holders stands at approx. 50,332. However in other markets the number of charter holders is considerably smaller .

Thailand has 364 charter holders*

China has 2222 charter holders

Malaysia has 419 charter holders

*Info from http://www.newcfa.org/#/professions

(Albeit their financial sectors are smaller - I couldn’t find data on size - the number of charter holders is still tiny in absolute terms as well as relative to the size of the labour market)

So given the lower supply we see employers with different sets of criteria. For example i’ve been looking at opportunities in Beijing, Bangkok, KL and Singapore and I’ve found that in these markets the requirement is typically “Level 1 of CFA passed”. For candidates in these locations and other this bodes well.

Personally, the exam is additive to my experience and I’m not banking on a lower ceiling in the financial services market to get in however I think it’s a worthy observation to remember when we try to assign value to the Charter: Location matters.

And with the mobility of the charter, one could potentially get different utility out of it depending on where one is or chooses to go.

What do you think? And can anyone from these places vouch for this?

Yes you are correct. Location does matter. The farther away you go from the financial hubs, the more valuable the CFA will be in terms of “breaking in” and “showing differentiation”

you need to put these developing markets into perspective… the United States is a MONSTER in comparison to the rest of the world… consider just AAPL stock has greater average trading volume (capitalization) than all the exchanges in Latin America combined - every stock in Mexico/Brazil/Chile/Columbia/Argentina! just New York City has over 2500 “independent investment firms” … all of Brazil has about 500

There is a culture in Brazil were 2 years into college (age ~20) you basically get hired to work full time in the industry of your major. The top econ/finance students from the best 2-3 schools are recruited. So most of the international IB have a bunch of “interns” that are working 40-50hour weeks and gaining “real world” experience. So by the time they graduate with a degree they are initiated into a “full time position” and grand fathered into the industry. Up to a few years ago> these people had ZERO incentive to study/acquire the CFA although many are very intelligent and could very well pass.

A large portion of high level executives/bankers in the financial hub of Sao Paulo have MBAs from the top schools in the United States. Brazil suffers a huge shortage of qualified professionals in many industries including finance. There are about 400 Charterholders. my point is that the industry where people know about or care about the CFA is so small in Brazil that even without the CFA… its not difficult to “get in” you just have to know your stuff