Given the current market downturn and continued turmoil in the months if not years ahead; many analyst have predicted that the financial sector will shrink by half. Having the above said, how do you think the CFA charter is going to par up and if it’s still as valuable?
Yes. I think the charter will remain valuable. The shrinkage in the financial sector will likely be a result of the utilization of less leverage in the system so it doesn’t necessarily mean a large long-term reduction in jobs related to investment management. You will gain from learning the curriculum and the achievement of gaining the charter will show that you are serious in pursuing a career in investment management.
The charter looks increasingly like it is turning into a major qualification for junior level positions. At more senior levels, a track record will often outweigh the importance of the charter, but it still helps. When I started, I figured the knowledge in the CFA curriculum would give me a better sense of what to invest in. That issue is only slightly less murky than it was when I started. However, I have learned a lot about what NOT to do. Recent market action has hammered in some extra lessons on that too - but there would have been more, and more costly lessons if I hadn’t done the CFA work.
If you look at the tone and content of posts on this board, the Charter is being pursued by mostly very young people. The Charter should be pursued for basic knowledge and the recognition in industry that it requires dedication to finish it. It has zero scarcity value now though.
If anything its just a high minimum standard.
$64,542.27
TheEconomist Wrote: ------------------------------------------------------- > If you look at the tone and content of posts on > this board, the Charter is being pursued by mostly > very young people. Not everyone who pursues the Charter posts here. Maybe the people who post here are young and the seniors chose to not post (or simply are not aware of/do not have the time to post).
Another view: the crisis has made it that much tougher to get a finance job. The charter will be more important as you need everything you can to set youself apart from a strong talent pool.
The more I think about it, the more I believe the Charter is of considerably less value. Sure it shows initiative. But it doesn’t really teach you how to do 90% of the things required in even a junior-level equity/fixed income research role. CFA Institute needs to revamp its cirriculum and teach people exactly how to model companies, write research reports, etc. etc. I will say though, that it does give candidates a broad-based, macro understanding of financial concepts. Just imagine how much more knowledge you’d have if you spent all that time learning exactly how to model and value companies, the way that pro’s do it.
NPV is $5,668,990.22
The charter = tools, capability. The value = what you can do with those tools.
jlx177 Wrote: ------------------------------------------------------- > The more I think about it, the more I believe the > Charter is of considerably less value. > > Sure it shows initiative. But it doesn’t really > teach you how to do 90% of the things required in > even a junior-level equity/fixed income research > role. > > CFA Institute needs to revamp its cirriculum and > teach people exactly how to model companies, > write research reports, etc. etc. > > I will say though, that it does give candidates a > broad-based, macro understanding of financial > concepts. > > Just imagine how much more knowledge you’d have if > you spent all that time learning exactly how to > model and value companies, the way that pro’s do > it. I think that this post to some degree highlights some of the issue that this discussion is facing. There are plenty of roles that the charter will prepare somebody for that has little to do with valuing individual companies. Work places such as the SEC, ASIC and other government jobs (which in times of economic downturn become more attractive options) do value a chartered financial analyst but the day to day work has very little to do with detailed individual company modeling. If you define the charter too narrow you run the risk of specializing to a point where the only a very small niche market values it (which I believe is counter to the aims of the CFA Institute to increase awareness and value of the charter).
jlx177 Wrote: ------------------------------------------------------- > The more I think about it, the more I believe the > Charter is of considerably less value. > > Sure it shows initiative. But it doesn’t really > teach you how to do 90% of the things required in > even a junior-level equity/fixed income research > role. > > CFA Institute needs to revamp its cirriculum and > teach people exactly how to model companies, > write research reports, etc. etc. > > I will say though, that it does give candidates a > broad-based, macro understanding of financial > concepts. > > Just imagine how much more knowledge you’d have if > you spent all that time learning exactly how to > model and value companies, the way that pro’s do > it. Two things, 1) maybe they could do a supplemental specialization in modeling. 2) There’s a lot to disagree with on the CFA curriculum, but I guess I don’t know exactly what should or shouldn’t be included. I think you could sell yourself better as an Analyst if the CFA had more detailed modelling skills, but I don’t really how much additional knowledge you would have. I think they could probably do a practical chapter on advice for modelling (things to include, things not to include, how to handle Goodwill in M&A), but I’m not sure how far they need to take it. If you’re a pro getting a CFA, its redundant, if you’re not a pro getting a CFA and want to become one, it wouldn’t be that hard to pick it up.
I don’t know how it is for you guys, but in Montreal, the CFA is practically worth nothing. It is as many mentioned, a niche designation. It doesn’t really help to get a job and there are very few job that have the charter as a prerequisite. Half of the time, the jobs that consider the Charter an asset, will prefer a MFE or MSF. So the competition is very hard. The problem also arise from the fact that the 3 accounting professional groups in Canada (CA, CGA, CMA) are very aggressive in the promotion of their members. On the other hand, from what I’ve seen, the CFA institute is (at least in Montreal) passive when it comes to promoting the skills of their members. I honestly don’t get it. Half of the posts here praise the dedication needed to undertake the CFA while at the same time stating that the charter is of very little help for getting a job. It is in my opinion more than incoherent and I find that the institute needs to do something to better promote us, especially the members. Having passed the first level, I still have at least 2 more years to go in terms of exams, and four years of professional experience to gather before getting my charter. I could be a CA, CMA, CGA, MFE, MSF and even a finance PHD in less time. I don’t know if the situation is similar for you guys down south, but I sure hope not… I would love to know what you think about my stand on this… J.
J. Wrote: > Half of the posts here praise the dedication > needed to undertake the CFA while at the same time > stating that the charter is of very little help > for getting a job. It is in my opinion more than > incoherent and I find that the institute needs to > do something to better promote us, especially the > members. Having passed the first level, I still > have at least 2 more years to go in terms of > exams, and four years of professional experience > to gather before getting my charter. I could be a > CA, CMA, CGA, MFE, MSF and even a finance PHD in > less time. > What makes the Canadian CA so strong is that you have to find a training spot at an approved place before sitting for the UFE exam. You will rarely see a CA who has difficulty landing a job in his/her field.
“You will rarely see a CA who has difficulty landing a job in his/her field.” Indeed, but at the price of working at least two years in auditing. I feel sick just thinking about it… J.
J. Wrote: ------------------------------------------------------- > “You will rarely see a CA who has difficulty > landing a job in his/her field.” > > Indeed, but at the price of working at least two > years in auditing. I feel sick just thinking about > it… > > J. It’s still better than the dozens of lvl 3 candidates who work as FSR’s at call centres. I feel sorry for them.
J. Wrote: ------------------------------------------------------- > I don’t know how it is for you guys, but in > Montreal, the CFA is practically worth nothing. > > It is as many mentioned, a niche designation. It > doesn’t really help to get a job and there are > very few job that have the charter as a > prerequisite. Half of the time, the jobs that > consider the Charter an asset, will prefer a MFE > or MSF. So the competition is very hard. > > The problem also arise from the fact that the 3 > accounting professional groups in Canada (CA, CGA, > CMA) are very aggressive in the promotion of their > members. On the other hand, from what I’ve seen, > the CFA institute is (at least in Montreal) > passive when it comes to promoting the skills of > their members. > > I honestly don’t get it. > > Half of the posts here praise the dedication > needed to undertake the CFA while at the same time > stating that the charter is of very little help > for getting a job. It is in my opinion more than > incoherent and I find that the institute needs to > do something to better promote us, especially the > members. Having passed the first level, I still > have at least 2 more years to go in terms of > exams, and four years of professional experience > to gather before getting my charter. I could be a > CA, CMA, CGA, MFE, MSF and even a finance PHD in > less time. > > I don’t know if the situation is similar for you > guys down south, but I sure hope not… > I would love to know what you think about my stand > on this… > > J. I agree with you. I’m also from Montreal and successfully completed all 3 levels of the CFA program. Looking back, I feel like I should have done something else with the time I spent trying to pass those 3 exams (like doing the MBA or the CA).
Hell, only about 5,000 people in the US pass level 3 each year.
In a recession, suddenly every degree/designation seems to lose its value. Ask the grads from top MBA programs. IMHO, Finance stresses experience over anything else. I am glad that I am a L3 candidate, but that doesn’t trump having more product knowledge.