In the investment industry, professionals have a number of designations they can earn.  For the public, the designations are not as easy to recognize and understand as M.D. in the medical profession or CPA in accounting.  The reason is that there are a number of specialties in the investment industry, so it is important to inquire about the specific designation(s) of the person you are working with and the education required for achievement.

At Holderness Investments, we are money managers and focus on investment research and analysis.  Over the past 30 years, a trend has developed where broader “financial planning” has started to separate from money management.  The reason for this trend has to do with a larger amount of investment options available to the public including mutual funds, ETFs, and derivatives.  It also has to do with the introduction of tax-deferred or tax-free accounts which encourage different savings strategies depending on the client goals.

Financial Advisors and Money Managers - 2

There remains some overlap between some between financial planners and money managers; but often, investment professionals are specializing in one area and creating a partnership to work with the specialist in another area.  That is, a financial planner will hire a money manager to make specific trading decisions for their clients.

CFA Institute Logo 2For money managers globally, the Chartered Financial Analyst designation offered by the CFA Institute has become the global investment industry’s most challenging and most widely respected graduate-level investment credential.

Earning it and passing its three challenging levels demonstrates a commitment to professional ethics and mastery of a comprehensive range of the advanced practices and principles needed in the profession.  The Program is organized into three levels, each culminating in a six-hour exam. CFA Program candidates report dedicating in excess of 300 hours of study per level. Completing the entire Program is a significant challenge that takes most candidates between two and five years.

The body of knowledge for study is comprised of 10 general topic areas:  Ethics, Economics, Corporate Finance, Equity Analysis, Fixed-Income Analysis, Financial Reporting, Quantitative Methods, Alternative Investments, Derivatives, and Portfolio Management.

Click Here – Why Hire a CFA Charterholder?

Click HereSample CFA Questions

Click HereCFA Code of Ethics and Standards of Professional Conduct

Click HereCFA Asset Manager Code of Professional Conduct

At Holderness Investments, our professionals strive to attain the CFA designation and endorse the Codes of Conduct advocated by the CFA Institute.