A poll of Montreal CFAs reveals significant progress in risk management and client relations
The 2008 financial crisis has prompted significant progress in risk management, controls, and due diligence in investment selection, revealed a new survey of CFA Montreal members.
“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.”
Based on an online survey of members conducted between August 20 and September 6, CFA Montreal found 89% have noticed increased regulations over the past decade. The majority of respondents said the rules have created a financial and investment industry framework to reduce risks of a similarly catastrophic event in the future, with only 48% expecting a new crisis by 2021.
The most significant area of progress was reported in risk management, where 91% of participants reported seeing improvement. Over 85% also agreed that there have been positive steps in due diligence and the investment selection process.
The survey also found that portfolio managers are demonstrating more transparency and greater effort to consider investors’ interests. Seventy-eight per cent said they observed greater accountability among portfolio managers, while 73% agreed that there has been improved listening and adaptation to the risk aversion and propensity of investors.
Fifty-seven per cent of the survey participants said there were relatively low levels of concern among investors about the current economic environment. If a new economic crisis were to happen, 49% of the respondents said, it would be triggered by political instability and uncertainty, as well as a cooling of the 10-year bull market. Other triggers cited were the “natural cycle” of crises (49%) and a stock market bubble and/or tariff wars (39%).
Focusing on the next 12 months, CFA Montreal members estimated that the most at-risk investments in the short term would be emerging-market debt and equities (59%), high-yield bonds (48%), and US equities (38%).
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