Author Archives: Joshua M. Howard, CFA

A Letter From Our Society President

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Joshua M. Howard, CFA

Society Members –

I write to you at the end of a very eventful year, especially for economies and governments. There were unexpected results in many elections and referendums, and the extent to which markets and pollsters misjudged major votes was astounding. Brexit, the Columbian Peace Deal, the US presidential election, the Italian constitutional referendum – the models and analysis that seemed to work so well in the past were upended by new trends and patterns that will require a major revision to the way political scientists, economists and investment professionals model the world. It is a good reminder to those of us who rely on quantitative models to continually test our assumptions, be skeptical of small sample sizes and not rely too heavily on historical data when predicting the future.

Another theme in 2016 was the dismal reputations that bankers and asset managers have in society right now. Each candidate in the presidential primaries and the main election seemed to get the loudest cheers when bashing Wall Street and hedge fund managers. But members of the CFA Society are helping to counteract this reputation. Besides our adherence to a Code of Ethics we have Society members providing financial education in high school classrooms with BestPrep, a partner program of CFA Society Minnesota. Other charterholders mentor younger colleagues through our professional mentorship program. Some help develop CFA curriculum through the Program Practice Analysis process, or teach our Level I, II and III prep classes, or do a myriad of other volunteer activities that help determine the future of finance and its reputation in the country.     

I sincerely appreciate all of the volunteers who support CFA Society Minnesota initiatives. I also want to thank each and every one of our members for the work you do each day for your clients, and for adhering to the highest ethical standards despite the turmoil that sometimes surrounds us. I am constantly impressed and inspired by the work being done by charterholders in the region, and I appreciate your commitment to our Society and the industry.

As 2016 comes to a close, I want to wish all Society members and their families a very happy New Year.

Josh Howard, CFA
President, CFA Society of Minnesota

A Letter From Our Society President

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Joshua M. Howard, CFA

Society Members –

One of my favorite events of the year is the CFA Society Minnesota’s New Charterholder Dinner. There is an excitement in the air that equals or exceeds all of our other events, for reasons that those of us who have completed the three exams can easily understand. The excitement extends beyond just the honorees – the guests in attendance are usually just as relieved as the new charterholders that their partner or spouse is finally done with all that studying.

As I handed out charters at the dinner I couldn’t help but wonder what these new charterholders will be doing ten or fifteen years from now. My fifteen-year-career in the industry has seen the explosion of fundamental indexing and smart beta strategies, the rapid growth of ETFs, the slow bleed of actively managed assets and the massive shrinking of employment in traditional equity trading and investment banking. The next 15 years may continue some of these trends, or be upended and taken in a new direction by big data, increased regulation, demography or some unforeseen events (which seem to be happening a lot lately).

In 2013 CFA Institute launched an initiative called the Future of Finance. This initiative is an effort to “shape a trustworthy, forward thinking financial industry that better serves society.”  I do not discount the challenge of taking the time to be “forward thinking,” given the time demands placed upon us to complete our regular day to day tasks and the constant short termism we face from markets, investors and clients.  But, it is useful to step back every once in a while and really contemplate the future of the industry.

  • How will new and developing technologies such as block chain and artificial intelligence affect investment management and wealth management?
  • Will passive continue to take asset from active, or is there a limit to the amount of money that can be invested passively and still have efficient markets?
  • Are defined contribution plans an effective way to provide retirement security, or will they need to be reimagined or replaced?
  • How will states and companies fund their huge pension deficits in a world of low returns and expensive assets?

These are important questions that will need to be answered, some sooner than others, and hopefully by people with financial expertise. In the meantime, I want to once again congratulate our 70 new CFA charterholders and 34 Level III Pass Candidates in Minnesota, North Dakota and South Dakota, and to the others around the world.  It is a tremendous accomplishment to get through all three exams while working in the industry, and I look forward to seeing you at future CFAMN Society events and programs.

Josh Howard, CFA
President, CFA Society Minnesota

A Letter From Our Society President

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Joshua M. Howard, CFA

Society Members –

I just returned from the CFA Institute’s annual Americas Regional conference, held this year in Miami, FL. Also attending the conference were Society Vice President Mark Peiler, CFA and two of our Society staff, Mark Salter, CAE, ABC and Diane Senjem.

The Americas Region is the largest of three regions into which the Institute has grouped Societies: the other two are Europe, Middle East and Africa (EMEA) and the fastest growing region, Asia Pacific (APAC). Even though this conference was a regional conference I once again came away impressed with the global reach of the charter. I listened to presentations from Society leaders from Mexico and Cayman Islands, networked with charterholders from Bozeman, Bahamas, and Boston, and attempted to keep up at social events with the Argentinians.

I want to convey to the members of CFA Society Minnesota my takeaways from the conference. The theme of the conference was “Ideas to Impact.” Too often great ideas have little impact because there is no strategy in place to execute those ideas. This conference attempted to get all of us to focus on not just coming up with big ideas, but to consider our strategy for implementing those ideas to have the greatest impact on our membership.

After last fall’s Society Leadership Conference I wrote to you about the CFA Institute’s determination to better partner with Societies through additional funding, improved IT resources, better branding and increased dialogue between Institute staff and Society volunteers. I can attest that this has occurred over the past year and is expanding over time, which allows volunteers at the local Society level to better implement our ideas and have a bigger impact.

The Institute staff – from CEO Paul Smith to Society Relations personnel – continue to listen to us, involve us in major initiatives and provide funding for innovative programs and projects. Through the brand campaign they are raising awareness of the CFA charter amongst employers, clients, potential charterholders and regulators. Through the Asset Manager Code of Professional Conduct, now adopted by over 1,300 firms worldwide, they are leading the investment profession to maintain the highest standards of ethics when dealing with clients. Through their credentialing programs they are educating the next generation of investment professionals with the latest skills and knowledge required to work in the industry today.

We are part of an organization that has over 147,000 members in 158 countries, represented by 147 Societies. We are committed to upholding the highest standards of professional excellence and education, and I am excited to lead the local Society as we partner with the global body to develop future professionals, deliver member value and build market integrity.

Josh Howard, CFA
President, CFA Society Minnesota

A Letter From Our Society President

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Joshua M. Howard, CFA

Last month the Board of Directors of CFA Society Minnesota met to discuss the status of our current three to five-year strategic plan, which has been in place for two years now.  We took some time to reflect on what we have accomplished, debated whether any goals needed revising, and brainstormed ideas on what we hope to accomplish in the upcoming year. I was once again impressed by the commitment of your Board of Directors, as 18 board members spent three and a half hours at the end of a work day engaged in strategic planning, which isn’t every analyst’s idea of a good time.

CFA Society Minnesota’s Mission and Vision, which you can find on our website under the About Us tab, guided us in the creation of our current strategic plan and continues to guide our thinking about how we run the Society.  Our Mission is “To promote and advance the professional excellence, ethical behavior and fellowship of our members through quality programs, educational offerings, and volunteer opportunities.” Our vision states that “We envision a CFA Society of Minnesota that is highly valued, well respected, and widely recognized by investors, academia, and the business community in our region.” Both our mission and vision were updated in 2013. They align with and compliment the CFA Institute’s mission and vision, recognizing that each entity (Society and Institute) has different capabilities and goals.

Our current strategic plan has three main objectives. They are:

  1. Member Engagement: Expand participation and involvement among Society members
  2. Industry Awareness and Involvement: Increase awareness of and involvement in the Society among professionals and firms in our local investment industry
  3. Operational Excellence: Improve the effectiveness and sustainability of the Society’s business processes

Each of these objectives is supported by 2-3 specific, measurable goals. These include finding ways to assist our members as they grow in their careers (leadership training, writing and speaking groups, etc.), building a brand campaign and adopting policies and procedures that will aid in long-term financial and organizational stability. If you would like to see a detailed strategic plan, please contact the Society office at executivedirector@cfamn.org and they would be happy to provide the latest version.  If one of these objectives or goals is an area you would like to support please let our staff know that as well. We are always looking for thoughtful, energetic volunteers to help us accomplish our strategic plan.

Joshua M. Howard, CFA
President, CFA Society Minnesota

A Letter from Our Society President

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Joshua M. Howard, CFA

With less than one month to go candidates are now in crunch time for the CFA examinations on June 4th. If you are a charterholder, you likely vividly remember the anxiety of these last few weeks before the exam, hoping that certain topics will be tested heavily, and that other topics will be avoided. You may also remember the constant checking to make sure you have the right ID, verifying that you packed enough writing utensils, practicing the route to River Centre (and maybe a backup route as well) and wondering how many backup batteries you really need for your calculator (is four too many?).

As we have for the past three years, CFA Society Minnesota provided prep classes at all three levels this year, offered over the course of three weekends in April and May. More than 60 candidates attended these classes, including a sold out Level II class. A big thank you to Travis Simon, our class coordinator, and all the instructors for the work they put in over the past few months helping candidates prepare for the exam.

In addition to those who took our classes many other candidates were involved in our study groups or used their Society membership to receive discounts on Schweser products. Candidate preparation is a core component of the work CFA Society Minnesota does, and I wish all candidates the best of luck on June 4th.

If you already are a charterholder please don’t forget about our post exam party, beginning at 4:30pm on exam day at the Eagle Street Grille in St. Paul. Come celebrate with the test takers at all three levels as they enjoy a much needed respite from studying and taking practice tests. Tell the candidates how great it will be when they finally pass Level III and receive the charter, at which point they can burn their CFA books in a celebratory bonfire – or, for the CFA nerds out there, prominently display them in their office. Just don’t tell them that the CFA exam nightmares will go away (e.g. forgetting your ID, being asked only FSA and quant questions, going to the wrong location, the Institute deciding to add a fourth level before you finish, etc.). As a couple coworkers of mine were discussing just the other day, including one who got the charter over 30 years ago, those nightmares still occasionally occur.

Joshua M. Howard, CFA
President, CFA Society Minnesota