September 17, 2018 - 6:30 AM EDT
10 years after the 2008 financial crisis: a survey conducted by CFA Montreal shows that risk management and the investment selection process have greatly improved
10 years after the 2008 financial crisis: a survey conducted by CFA Montreal shows that risk management and the investment selection process have greatly improved
10 years after the 2008 financial crisis: a survey conducted by CFA Montreal shows that risk management and the investment selection process have greatly improved

Canada NewsWire

MONTREAL, Sept. 17, 2018 /CNW Telbec/ - Ten years after the 2008 financial crisis, an in-house survey among members of CFA Montreal (Chartered Financial Analyst) shows significant progress in terms of risk management, the addition of controls and improved due diligence in the investment selection process. The survey also reveals that portfolio managers are demonstrating more transparency and a greater degree of accountability.

"The survey results confirm that the investment industry has learned from the 2008 financial crisis," said Frederick Chenel, CFA, president of CFA Montreal. "Over 80% of respondents report significant improvements in both risk management and relationships with clients. In their opinion, increased regulations over the past 10 years has also provided a better framework for the financial and investment industry, reducing the risk of a similar event of the same magnitude occurring in the future."

"The vast majority of respondents are seeing a greater degree of accountability among portfolio managers, and this vigilance among professionals in our industry is, in itself, proof of their efforts to act in the best interests of their investor clients," concluded Chenel.

Approximately 10% of the 2,500 CFA Montreal members responded to the survey which shows that, for 57% of respondents, investor concern about the current economic environment is relatively low, and that less than half of the respondents expect another financial crisis occurring by 2021. For 49% of respondents, the key triggers for a new economic crisis would be political instability and uncertainty, as well as a cooling of the ten-year bull market.

Looking at the short term, CFA Montreal members estimate that the types of investments most at risk over the next 12 months are emerging market debt and equities (59%), high yield bonds (48%) and U.S. equities (38%).

Survey highlights

  • 91% of respondents reported a significant improvement in risk management.
  • 91% have seen progress in ESG trends.
  • 89% have noticed a tightening of regulations.
  • Over 85% agree that improvements have been made in due diligence and the investment selection process.
  • Less than half of all respondents (48%) anticipate a new crisis by 2021.
  • In their opinion, the key triggers to a new crisis would be political instability and uncertainty (49%), the "natural cycle" of crises (49%), and a stock market bubble and/or tariff wars (39%).
  • 78% observed a greater degree of accountability among portfolio managers.
  • 73% agree that there is improved listening and adaptation to risk aversion and propensity of investors.

The survey was conducted online by CFA Montreal among 2,500 members between August 20 and September 6, 2018, and 227 members responded. The maximum margin of error of the survey is 6%, 19 times out of 20.

As a follow-up to the survey, CFA Montreal will be presenting a conference on September 18 entitled 10 years later: the evolution of the asset management industry since the financial crisis.

The event will be hosted by Monique Leroux, Chair of the Board of Directors of Investissement Québec, Corporate Director, Former President and Chief Executive Officer of Desjardins Group and will include a panel of experts from the profession.

About CFA Society Montreal

With over 2500 members and over 2000 candidates, CFA Montreal is the 10th largest chapter among 150 CFA® societies across the world. Founded in 1950, the association is part of the CFA Institute's global network, which currently brings together over 140 000 experts in investment spread throughout 148 countries. The CFA Institute defines the standards relating to investment professionals' practices and manages the CFA® program (Chartered Financial Analyst). The CFA® title is the most recognised standard internationally to evaluate the qualifications and integrity of financial professionals. Obtained as a result of passing three levels of examinations, it reflects the high-level expertise in portfolio management and financial analysis.

CFA Montreal is a leader in investment. The association contributes to the growth and health of the Montreal financial ecosystem by promoting excellent practice and ethical principles associated with the CFA® title among its members, customers and employers alike. CFA Montreal is also strongly committed to favoring the advancement of women's careers in investment.

The professional holders of the CFA® charter mainly work in asset management, private wealth management, private equity and infrastructure, financing and investment banking as well as risk management. They actively participate in the Montreal economy's vitality.



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Jean-Alexandre D'Etcheverry, 514-843-2369, jadetcheverry@national.caCopyright CNW Group 2018

Source: Canada Newswire (September 17, 2018 - 6:30 AM EDT)