Lisa Carroll

CFA Society Australia is proud to announce that eight organisations across super funds, asset managers, and consultants have adopted the voluntary CFA Institute Inclusion Code (Australia).

Grounded in global standards, the CFA Institute Inclusion Code has been adapted for Australia through consultation with a working group of leading firms, ensuring its relevance to the Australian investment industry. Since the Australian launch of the code in September 2024, the signatories who have adopted the code total eight and include:

1. HESTA
2. Frontier Advisors
3. ECP Asset Management
4. Elston Asset Management
5. MFS International (Australia)
6. CFA Society Australia

Lisa Carroll, CEO, CFA Society Australia, commented: “We applaud these organisations which, alongside CFA Society Australia, have committed to the Inclusion Code after its first year. This milestone illustrates the Australian investment industry’s commitment and leadership to building a more inclusive investment profession.”

Sonya Sawtell-Rickson, Chief Investment Officer, HESTA, commented: “At HESTA we are committed advocates for a more sustainable and inclusive economy. We believe that more diverse and inclusive teams have greater insight and perspective, enhancing decision making and contributing to stronger long-term performance that improves investment outcomes for our members.  HESTA is proud to be a signatory of the CFA Institute Inclusion Code. It is an important step in increasing inclusive cultures in the Australian financial industry.”

Sarah Maynard, ASIP, Global Senior Head, Inclusion Code, CFA Institute, commented: “The Inclusion Code offers organisations a foundation for embedding inclusive practices into strategic talent management and decision-making processes. There is growing recognition that inclusion supports sound business governance and strengthens relationships with clients, employees, and investors alike. As organisations continue to align their operations with stakeholder expectations, the Code provides a practical framework for integrating inclusion into strategy and accountability — reinforcing long-term value and resilience.”

The CFA Institute Inclusion Code is available to investment organisations in Australia of any size that seek to shape a more inclusive future for the investment industry. It provides six metrics-based principles and an implementation framework for signatories to voluntarily measure, report, and improve inclusion in their workplaces. Signatories agree to inclusion through recruitment, retention, leadership development, and across their organisational cultures.

The six principles to which signatories voluntarily commit are:

• Pipeline: Expanding the inclusive talent pipeline.
• Talent Acquisition: Designing, implementing, and maintaining inclusive and equitable hiring and onboarding practices.
• Promotion and Retention: Designing, implementing, and maintaining inclusive and equitable promotion and retention practices to reduce barriers to progress.
• Leadership: Using an organisation’s position and voice to promote inclusion and improve inclusive outcomes in the investment industry. Organisations will hold themselves responsible for their firm’s progress.
• Influence: Using an organisations role, position, and voice to promote and increase measurable inclusive results in the investment industry.
• Measurement: Measuring and reporting on progress in driving better diversity, equity, and inclusion results by providing regular reporting on the firm’s related metrics to senior management, the board, and CFA Institute.

Furthermore, the firms have voluntarily committed to meeting the following foundational reporting requirements within two years of signing the Australian Inclusion Code:

• Establishing senior leader ownership and an oversight governance process.
• Publishing formal, written, publicly available communications outlining the organisation’s Inclusion strategy, policy, commitments, and high-level objectives.
• Adopting an implementation plan to integrate inclusion within the signatory organisation’s people, processes, and policies.

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Margaret Franklin

CFA Institute, the global association of investment professionals, and CFA Society Australia, today launched the Australia edition of its voluntary Diversity, Equity, and Inclusion Code for the Investment Profession (DEI Code).

The voluntary DEI Code is available to investment organisations in Australia of any size that seek to accelerate change by fostering a commitment to DEI.

The Australia DEI Code follows the successful introduction of a DEI Code in the United States and Canada in February 2022, the UK edition in October 2023, and the DEI Code Europe was launched in the Netherlands in June 2024. Since the February 2022 launch, the DEI Code has been adopted by more than 200 investment organisations, representing nearly 30 per cent of global assets under management. CFA Institute worked with CFA Society Australia and a DEI Code (Australia) working group of local investment and DEI professionals from organisations including HESTA, VFMC, Future Fund, Future IM/Pact, and The University of Sydney, to adapt the Code for DEI challenges and opportunities specific to Australia.

“Qualitative and quantitative research has proven that diverse perspectives lead to better outcomes on behalf of investors and create better work environments for employees. To make concrete progress on DEI, organisations that seek to do so need to integrate principles of equity and inclusion throughout the business in terms of behaviours, policies, and operations,” said Margaret Franklin, CFA, President and CEO, CFA Institute. “I’m especially thankful for the collaborative support for the Australia edition of the DEI Code, and I am excited that industry leaders are seeing DEI as a business priority and the right thing to do to support their organisations’ purpose and values.”

Signatory firms voluntarily commit to six metrics-based principles with the goal of creating better working environments and a cycle of positive change for future generations. The six principles to which signatories voluntarily commit are:

• Pipeline: Expanding the diverse talent pipeline.
• Talent Acquisition: Designing, implementing, and maintaining inclusive and equitable hiring and onboarding practices.
• Promotion and Retention: Designing, implementing, and maintaining inclusive and equitable promotion and retention practices to reduce barriers to progress.
• Leadership: Using our position and voice to promote DEI and improve DEI outcomes in the investment industry. We will hold ourselves responsible for our firm’s progress.
• Influence: Using our role, position, and voice to promote and increase measurable DEI results in the investment industry.
• Measurement: Measuring and reporting on our progress in driving better DEI results within our firm. We will provide regular reporting on our firm’s DEI metrics to our senior management, our board, and CFA Institute.
  

Sarah Maynard, ASIP, Global Senior Head, Diversity, Equity, & Inclusion, CFA Institute, commented: “The DEI Code is designed to help organisations address complex behavioural issues encountered in creating inclusive workplaces in the investment industry. The working group was very intentional about adapting the Australia edition to resonate better with local sensibilities, and provide Australian employers with a supportive action-focused framework to build impactful and measurable DEI strategies. By committing to the DEI Code, signatories in Australia take an important leadership role in further driving and accelerating critical and lasting change.”

CFA Society Australia CEO Lisa Carroll commented: “With the launch of the Australia DEI Code, what is clear is that the market is taking actionable steps to tackle a challenge that is highly complex, while avoiding diversity-washing. Together with CFA Institute, we look forward to working with DEI Code signatories in Australia to build and develop more inclusive cultures across the investment sector. This will help close the gap between employers that want to act on DEI and those that actually do.”

Signatory organisations voluntarily commit to meet the following foundational reporting requirements within two years of becoming a DEI Code signatory:

• An established senior leader ownership and oversight governance process.
• Formal, written, publicly available communications outlining the organisation’s DEI strategy, policy, commitments, and high-level objectives.
• An implementation plan to integrate DEI within the signatory organisation’s people, processes, and policies.

Read the Diversity, Equity, and Inclusion Code for the Investment Profession (Australia)

———

Notes:
[1]  DEI Code in the United States and Canada
[2] UK edition
[3] DEI Code Europe was launched in the Netherlands

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Lisa Carroll

CFA Society Australia has been launched following the amalgamation of three local CFA Societies, giving a stronger voice to Australian CFA charterholders and raising the recognition of the CFA credential in Australia.

CFA Society Australia launched the new brand in Brisbane last week in an event for members and candidates, and at further events in Melbourne on 16 May and on 23 May in Sydney, followed by a Perth celebration on 30 May.

Lisa Carroll, CEO of CFA Society Australia said the transition to the CFA Society Australia from CFA Society Sydney, CFA Society Melbourne and CFA Society Perth, will bring together over 3,500 investment professionals under one community, giving them one combined influential voice.

“We are uniting over 3,500 CFA charterholders across Australia and 5,000 CFA Program candidates under one brand, CFA Society Australia, making us one of the largest professional societies in the Asia Pacific region. This is a powerful step towards empowering our members who are committed to the highest standards of professionalism in the Australian investment industry,” said Ms Carroll said.

“Importantly, speaking with one voice will raise recognition of the CFA designation and strengthen the professional standing of our members, which will likely translate into a positive impact on members’ career advancement and opportunities,” she said. “Our members will benefit from a more extensive network nationally and globally. At the same time, we are better positioned to enhance the efficiency of delivering member services across Australia, while retaining the community spirit in each of our chapters in Brisbane, Melbourne, Perth and Sydney,” Ms Carroll said.

Michael Clancy, Chair, CFA Society Australia Board and CEO of Qantas Super, said the transition to CFA Society Australia presents a significant opportunity to strengthen and grow the investment profession in Australia by promoting the highest standards of ethics, education and professional excellence.

“The change will enable us to engage with employers, government and regulators nationally, while continuing to provide member services which are tailored to each geography we serve,” Mr Clancy said.

Margaret Franklin, CFA President and CEO of CFA Institute, said the new organisation will create a stronger and more influential organisation and more efficient society that will better serve CFA charterholders and the public interest. “CFA Society Australia can more effectively create thought leadership, support the growth and reputation of the CFA charter and forge institutional partnerships with far reaching benefits. The organisation can also influence policy markets, promote the adoption of industry standards and share regional and global content for the benefit of its members,” said Ms Franklin.

“The societies in Australia have long served as distinct influential groups that drove innovation for investment professionals of their respective regions. Collectively, the future possibilities will be even greater. We look forward to working closely with the new board and staff of CFA Society Australia, which will advance our mission of leading the investment profession globally in ethics, education and professional excellence for the ultimate benefit of society. Together we are building a more resilient, diverse, influential and sustainable investment profession that serves the greater good.”

CFA Institute will continue to deepen its engagement with Australia, giving Australia a stronger voice in the global community. Australia has become one of CFA Institute’s ten priority ‘Global Financial Centre’ markets.  “As one of ten priority markets, this will help sustain higher levels of member services and the opportunity to provide input to CFA Institute’s strategic priorities and programs,” Ms Carroll said.

Media Contact

Nicki Bourlioufas

Telephone: +61 786 933

nicki@spotoncpr.com

About CFA Society Australia 

CFA Society Australia is part of the worldwide network of CFA Institute member societies that lead the investment profession globally by promoting the highest standards of ethics, education and professional excellence for the ultimate benefit of society. CFA Society Australia represents the interests of over 3500 investment professionals through advocacy, education, events, and professional dev

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Margaret Franklin

CFA Institute, the Global Sustainable Investment Alliance (GSIA), and Principles for Responsible Investment (PRI) have issued a new guidance that aims to bring greater understanding and consistency to terms used in responsible investing which will potentially reduce greenwashing by asset managers.The Definitions for Responsible Investment Approaches^[1] guidance is intended for investors, regulators, policymakers, and other market participants. For each of the terms below, CFA Institute, GSIA, and PRI have outlined a definition, detailed explanation, and a list of definitions that have served as the primary inputs for using the terms in practice.

• screening
• ESG integration
• thematic investing
• stewardship
• impact investing.

The collaboration between the three organisations was inspired by calls from regulators for voluntary standard setters to develop common terms and definitions to ensure consistency in the global wealth management industry. The guidance clarifies existing terms and definitions but does not create new terms. It also recognises important shifts that have taken place in responsible investment, with strategies now being applied to a wide range of investment styles and asset classes in both public and private markets. Prior versions of the definitions were, in some cases, limited to investments in listed companies.

Margaret Franklin, President and CEO at CFA Institute, said: “Technical terminology is an important part of responsible investment.  New terms are always emerging alongside new ideas, and definitions evolve over time.  It is important to standardise terms and definitions as practices mature so that professionals can communicate efficiently and effectively with each other as well as with clients, regulators, and other market participants. We believe this guidance will serve as a valuable resource for CFA charterholders, members, and candidates.”

Lisa Carroll, CEO of CFA Societies Australia, said:  “We welcome and encourage the Australian investment industry to adopt the definitions in this guidance to create greater consistency and understanding by all parties, including investors.

“Promoting the consistent and precise use of terminology in responsible investment will help to reduce greenwashing and introduce greater consistency among asset managers in developing and marketing responsible investment products. The guidance counters confusion about what different responsible investment strategies seek to achieve by clearly differentiating the objectives of approaches, such as ESG integration and impact investing,” Carroll said.  

“These definitions will create a consistent foundation for the continued professionalisation of responsible investment.”

David Atkin, CEO at PRI, said: “Responsible investment has grown significantly, and so have the expectations for clear and transparent communication. Investors need language that enables them to communicate their responsible investment practices accurately, succinctly, and consistently. By unifying around common definitions, we support our signatories and members to communicate with confidence.”

Simon O’Connor, Former Chair of the GSIA, said: “For many years, our organisations have been working to define and clarify the language of responsible investment.  This foundation of experience and expertise enabled us to come together with a common purpose to clarify and harmonise these definitions on a global scale. We now encourage the investment industry and regulators to adopt these definitions to create greater consistency.”

The guidance is available to read on each of the respective organisation’s websites:

CFA Institute, GSIA and PRI.

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In May 2023, 52% of the 15,895 candidates worldwide who sat for the Level II CFA® Program exam passed, above the 10-year average of 45%,^[1] the CFA Institute said. That was the highest percentage since the 2020 test when pass rate dropped to as low as 29% during the pandemic in August 2021. The May result also represents an improvement on the 44% success rate^[2] for those who sat for the exam in November 2022.

Chris Wiese, CFA, Managing Director, Education at CFA Institute, congratulated the successful Level II candidates. “The Level II pass rate continues to normalise from the depths of the pandemic as candidates’ study schedules get back on track. The May Level II cohort returned a notable pass rate of 52%, which comes in above the 10-year average. Over time, we have seen that pass rate spikes do occur, and it’s nice to see more candidates making good progress through the CFA Program.”

Lisa Carroll, CEO of CFA Societies Australia, said: “Congratulations to all successful candidates in Australia. Locally, we have seen the pass rate improve too as financial professionals’ learning normalises. We saw a double-digit percentage increase in the number of candidates in Australia who sat for the Level II exam in May compared to the previous sitting last year. This is also the largest number of Level II candidates since pandemic-related lockdown measures were implemented across Australia in late 2021.

“We have been pleased to congratulate and welcome nearly 300 new charterholders in Australia in the past year as our membership continues to grow. We are very encouraged by these signs of green shoots, as more candidates realise their career aspirations and potential,” Carroll said.

“Importantly, being a CFA charterholder can help professionals move ahead of their peers with competency-based education in essential areas such as financial markets functioning, quantitative analysis, portfolio and risk management, financial statement analysis, derivatives and alternative investments. Ethics education too enables professionals to resolve ethical dilemmas in the best interest of their clients, which is crucial to maintaining trust in, and the robustness of, the financial services industry,” she said.

Candidates for the May Level II CFA Program exams attended in person at one of 471 proctored computer-based examination venues located in 361 cities in 102 markets worldwide. Exam Levels I and II were held during the May testing period.

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[1] https://www.cfainstitute.org/-/media/documents/support/programs/cfa/cfa-exam-results-since-1963.pdf
[2] https://www.bloomberg.com/news/articles/2023-01-19/cfa-level-ii-pass-rate-rises-to-44-closer-to-historic-average

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Lisa Carroll

The global Graduate Outlook Survey 2023 has been released by CFA Institute, the global association of investment professionals, reveals the most important factor Australian graduates seek in a job is a good salary, followed by a flexible working environment, training opportunities, then clear career progression possibilities.

More than three in five Australian graduates (63%) rated a good salary as what they look for most in a prospective employer, well ahead of flexible working environment, which was sought by 50% of graduates, followed by job and training opportunities (sought by 39%). Meanwhile, almost one in three Australian graduates (29%) view the prospect of low pay as their biggest concern regarding their career prospects, followed by feeling unqualified (27%). CFA Institute surveyed almost 10,000 current university students and recent graduates aged 18-25 from 13 markets on their career outlook.

Australian graduates are generally upbeat about finding a job.  Three quarters (75%) say they are confident in their future career prospects, up from 65% in 2021.  Compared to the 2021 Global Graduate Outlook Survey, industry confidence of Australian graduates improved most in finance (with 19% of those surveyed confident about their careers prospects, up from 13% in 2021), and IT & Telecoms (up to 17% from 9% in 2021) while confidence in education and medicine dropped.

“Despite the uncertainty created by the pandemic, students and recent graduates across the world feel more positive about their career prospects, with a big jump in confidence about finance careers. This generation of graduates also displays a strong interest in developing the skills needed for career advancement,” said Margaret Franklin, CFA, President and CEO, CFA Institute. 

Lisa Carroll, CEO of CFA Societies Australia, said: “Seventy-two percent of Australians surveyed said post-graduate certifications and qualifications will help them secure higher earnings while 70% believe they will give them an edge in the job market. Businesses that are investing in the learning and development of their staff and are partnering with certification and educational institutions are seen as responsive to graduates’ needs to further their knowledge and careers.”

The research uncovered that Australian graduates are most confident about a career in healthcare, followed by finance, sales, media and marketing, education then IT and technology. Australians are more upbeat about finding employment in healthcare than international graduates, who are most confident about finding employment in the finance sector.

The survey reveals a high level of confidence in the importance of higher education qualifications. Three-quarters of Australian graduates believe that pursuing a degree is worth it (76%) and that their career prospects are improved by undertaking a degree (73%). More than nine in 10 (93%) said upskilling or acquiring professional/post-graduate certifications are important to the job market,” said Carroll.

“Confidence in the potential of an educational degree and certifications shows that graduates have high expectations for career-ready and professional skills coming out of university,” Carroll said. “The research shows a desire for graduates to prolong their time in education, through certifications and trainings, with a clear acceptance that this is a powerful way to continue to grow professionally and advance their careers.”

When it comes to work arrangements, Australian graduates prefer a hybrid working environment or complete flexibility – just 15% of graduates want to work entirely in the office and just 15% want to be entirely remote, compared to 48% who prefer a hybrid arrangement. Australian graduates also consider themselves to have better career prospects than their parents’ generation, with 51% holding this belief, while 24% think they have the same career prospects.

Graduates convinced by importance of qualifications and determined to use career to “give back”

Together with a desire to upskill, Australian graduates possess a determination to make a positive societal and environmental contribution through their career. More than nine in 10 (92%) say it is important that their career allows them to make an impact. Just 8% think it is not very important.

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Michael Clancy is the chief executive officer of Qantas Super and has more than 25 years’ experience in the financial services industry. He is a specialist in the superannuation, investment, and insurance sectors and is a director on the Board of the Association of Superannuation Funds Australia (ASFA), representing the corporate superannuation sector.

The appointment will run for an initial three-year term.

Lisa Carroll, CEO of CFA Societies Australia, said: “I congratulate Michael and look forward to working with him in his new role, which is a key leadership role in advancing our Australian strategy and the four goals of brand, engagement, value, and growth. Michael brings strong governance and strategy experience, gained in investment management leadership roles and board positions, including membership of investment associations and large not-for-profits,” Carroll said.

“Michael will help to promote the CFA Societies Australia and CFA Institutes’ mandate of serving the greater good by creating an environment where investor and community rights come first, markets function at their best and economies grow,” Carroll said.

Michael Clancy said: “It’s a privilege to be the inaugural Chair of the CFA Societies Australian Governance Council and I look forward to working with everyone involved in the local CFA Societies as we encourage candidates, serve our members and advance the purposes of the CFA Institute in Australia.”

CFA Societies Australia is a collaboration of the three local CFA Societies in Melbourne, Sydney, and Perth. The Australian Governance Council provides governance oversight and strategic direction to CFA Societies Australia, on behalf of members Australia-wide.

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Lisa Carroll

A new survey reveals that almost one in two Australian retail investors (45%) trust the financial services industry, though Australian investors are overall less trusting of the financial services industry and financial advisers than their global peers.

The data is based on a global survey by the CFA Institute of retail and institutional investors that measured their level of trust in the investment industry. The report, Enhancing Investors’ Trust – the 2022 CFA Institute Investor Trust Study^[1], also reveals that globally, trust in financial services has reached an all-time high. The proportion of institutional investors globally with high or very high trust in financial services has risen to 86%, up from 65% in 2020. Among retail investors, trust levels jumped to 60% from 46% in 2020. Trust levels jumped the most in the US, Singapore and Australia.

The report identifies five factors which have driven trust higher: the strong share market performance; fee compression on investment products; the greater level of technology-enabled transparency on investment products; greater investor access to investment markets; and new personalised investment products such as those with a focus on environmental, social, and governance (ESG) factors.

“The highs we’re now seeing in investor trust are a cause for optimism, helped on by strong share markets and falling fees, but the challenge is sustaining trust moving ahead given greater levels of share market volatility.

“In Australia too, trust has jumped significantly since 2020 when just one in four investors trusted the financial services industry, with the Hayne Royal Commission eroding confidence in the asset management industry given the significant amount of negative news coverage at the time,” said Lisa Carroll, CEO of CFA Societies Australia.

“Looking ahead, as interest rates rise this year and returns fall on asset classes such as equities and property compared to previous years, investment product providers and financial advisors may be more challenged maintaining trust levels with their clients. Technology, the alignment of values, and personal connections with investors can, however, help,” Carroll said.

The survey reveals Australian retail investors with a financial advisor are more trusting of the financial services industry; more than one in two people with an adviser (58%) trust the financial services industry, compared to less than half of those (39%) without an adviser. That compares to more than two-thirds of investors globally with an adviser (69%) who trust the financial services industry.

Retail investors also believe that having a financial adviser adds value. Among those with a financial adviser, 85% agreed that there is fair opportunity to profit by investing in capital markets (an increase from 81% in 2020), compared to 72% of those without an adviser (an increase from 57% in 2020). Of Australian retail investors, 86% agreed that there is a fair opportunity to profit.

However, retail investors in Australia are less trusting of financial advisers than their global peers. While 42% said they trust financial advisers, that jumps to 56% of all retail investors globally.

Most investors followed the advice of their adviser during the March 2020 downturn. Among those who were advised to significantly or slightly reduce risk/exposure to the market, 88% and 77% reduced risk, respectively. Among those who were advised to significantly or slightly increase risk/exposure to the market, 75% and 64% did increase risk as advised. However, 21% and 24% reduced risk, respectively. “Overall, having a trusted adviser to inform client decisions in stressed market conditions helped investors stick to their long-term investment plans,” Carroll said.

The main reasons that Australian retail investors leave an adviser are underperformance (51%), followed by a lack of responsiveness (37%), inadequate data security (35%) and fees that are too high (35%).

Trust level in the financial industry among retail investors:

Younger investors, particularly millennials, are leading the way in their use of technology. This investor cohort has relatively high trust in robo-advice, digital apps, and desire to invest in new investment opportunities. More than 70% of millennials prefer technology platforms and tools over having a human being to help navigate their investment strategy, compared with just 30% of those aged 65 or older, the survey found.

Advice is still the domain of humans, with 81% of Australian retail investors more likely to trust human advice versus robo-led advice. China is the only market where fewer than half of retail investors (34%) prefer a human adviser. 

Other key findings from the survey

• The survey reveals that most retail investors with financial advisers (58%) consider themselves early adopters when it comes to new investment products compared to around a third of retail investors (37%) without an adviser.
• In terms of generational differences, the under-35s are nearly twice as likely as the over 65s to have a retail trading account (68% versus 37%, respectively), and are nearly three times more likely to trust digital nudges or technologies (92% versus 33% respectively). Overall, 71% of retail investors say that retail trading apps have increased their understanding of investing, and most say these apps have increased their frequency of trading (57%).
• Most institutional investors (87%, up from 66%) and most retail investors (50%, up from 48%) say technology increases their trust in their asset manager or adviser – due to more transparency, simplified access to markets and products, and personalisation.
• Most institutional investors (87%, up from 66% in 2020) and most retail investors (50%, up from 48%) say technology increases their trust in their asset manager or adviser – due to more transparency, simplified access to markets and products, and personalisation.
• Retail investors across all markets are either interested in or already using ESG investing strategies (77%). Climate change, clean energy, air and water pollution are the top concerns for retail investors, while data protection, sustainable supply chain management, and climate change are the top concerns for institutions.
• Among institutional investors, best-in-class screening (cited by 57%) has overtaken engagement and active ownership as the most popular approach to ESG investing, and institutional investors show high levels of trust in ESG messaging and net-zero pledges (87% trust such messaging). In contrast, less than half (46%) of retail investors trust these pledges, illustrating some concerns over potential greenwashing.
• Fewer than a quarter of retail investors in Australia and Canada (23% and 18%, respectively) say it is important to have an adviser who shares their values. This sentiment is highest in China, where 74% believe shared values are important.

Methodology

On behalf of CFA Institute, Coalition Greenwich conducted an online survey of 3,588 retail investors and 976 institutional investors in October and November 2021. Markets included were Australia, Brazil, Canada, China, France, Germany, Hong Kong SAR, India, Japan, Mexico, Singapore, South Africa, United Arab Emirates, UK and the US. Retail investors surveyed were 25 years or older, with investible assets of at least US$100,000, except in India. Institutional investors included those with responsibility for investment decisions at organisations with assets under management of at least US$50 million, including public and private pension funds, endowments and foundations, insurance companies, and sovereign wealth funds.

Read the full survey. 

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References:
[1] https://trust.cfainstitute.org/

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Kate Galvin

State-owned asset manager Victorian Funds Management Corporation (VFMC) and CFA Societies Australia are the latest organisations to join Future IM/Pact – an industry campaign building a pipeline of future female investors.

The new partners join as Future IM/Pact expands into the early career segment by nurturing a talent pool of women with two to five years’ experience in key feeder roles such as investment banking, management consulting and corporate finance. Called Accelerate, the new early career push follows four years of Future IM/Pact work focused on engaging women at university.

VFMC Chief Executive Officer Kate Galvin explained the partnership offered a valuable opportunity for her team to mentor the next generation.

“After years of targeted recruitment, we now have a breadth of great female talent not only in our investment and executive teams, but across our whole organisation. Our high- performing team is committed to supporting the next generation of diverse talent.

“Partnering with Future IM/Pact will help VFMC continue to grow our female talent pipeline and move even closer to our goal of being one of the first Australian fund managers to achieve gender balance,” she said.

CFA Societies Australia chief executive Lisa Carroll said partnering with Future IM/Pact would support their efforts to increase the number of women who undertake their Chartered Financial Analyst qualifications and thrive in finance roles.

“Supporting more women to launch their investing career is one way we can inspire more women to complete the sought after CFA designation and address the longstanding gender imbalance across the industry.

“Partnering with Future IM/Pact gives us a channel to both women at university and women in their early career who may not have considered this career path otherwise,” she said.

Program gathers momentum

Future IM/Pact founder, Yolanda Beattie, said the new partners bring critical support as the project expands its ambition to increase the depth of the female investment talent pool.

“The women we engage are motivated to build a career where they can impact big issues and apply their smarts towards purposeful outcomes. Investing for the benefit of people in their state is an appealing career proposition and we’re excited to be profiling incredible VFMC talent to showcase this opportunity.

“We’re excited to be working with CFA Societies Australia to take this message to their candidates and then advocate for their potential with our partners. I’m confident this collaboration will bolster both of our efforts to make a difference on this issue,” she said.

Since launching in 2018, Future IM/Pact has provided over 370 women with experience working in investments through its virtual intern program, mentoring circles, investment competition and intern and grad placements with partners.

In November 2021 Future IM/Pact released a White Paper Where are all the Women? How the Australian investment management industry is grappling with its lack of gender diversity and ideas to accelerate progress that outlined a range of structural barriers, as well as breakthrough opportunities, for women in one of Australia’s largest and fastest growing sectors.

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Lisa Carroll

A new report from the CFA Institute, The Future of Work in Investment Management: Changing Organisational Cultures, has found that the culture of investment organisations often constrains innovation; for stronger cultures to develop, leaders must promote more adaptive, agile and inclusive organisations.

Although most investment leaders recognise culture as extremely important, the culture of investment management organisations has, to date, been one of the least understood and least managed areas in the industry, the report found. More proactive leadership of culture is therefore needed.

Lisa Carroll, CEO of CFA Societies Australia, said while a cultural reset will be difficult for some organisations, it is important that employers focus on employees’ performance, promote inclusive work practices and adopt a strong focus on values including trustworthiness.

“Culture is shaped by top-down organisational messages and bottom-up team experiences. The investment industry has an opportunity to build more effective teams through the power of inclusion that values the benefits of diversity,” Carroll said.

“Culture has moved forward in the COVID period and will no doubt continue to evolve. As a guide to investment leaders, organisations should do the practical things well, such as setting out precise work parameters, interpret metrics thoughtfully and fairly, and give feedback on how things are working. The Future of Work report also recommends building and maintaining a people-centric cultural identity. Organisational values should include fairness and trustworthiness, which will help to underpin trust in the investment management industry as a whole,” she said.

Surprisingly, the report found that investment professionals value being rich less than the general population and value doing good for the benefit of society more, when compared with responses from the World Values Survey.[^1] The Future of Work report includes data from a combined 9,000 investment professionals surveyed globally across two Future of Work surveys between March and May 2021.

“The fact that investment professionals prioritise impact and purpose over wealth may be a surprise to many, given they manage a huge amount of wealth on behalf of society. But the trend was clear, as shown by the graph below,” Carroll said.  “There are strong trends in the appetite for meaningful work amongst investment professionals. Organisations can capitalise on this opportunity to align organisational impact with the desire of their employees.”

Other key fundings from the report include:

• Leaders must ask the tough questions; they should review why their organisations exist and the shape and texture of its identity, including its purpose and vision, history and legacy, and artifacts and stories.
• The new sustainability paradigm makes cultural adaptation more urgent. The challenge of blending risk, return, and real-world impact requires a cultural commitment to sustainability through the lens of professional excellence and organisational values.
• Investment organisations should build a robust talent strategy; acquiring, developing, and retaining talent are important. The cultural value of investing in employees builds better talent, and it improves an organisation’s ability to retain staff.
• Investment organisations should take a balanced approach to compensation to strike the right balance that is not unduly geared to commercial success and has more stakeholder components.
• Investment organisations should work together for impact and leaders should build a wide network of cooperative relationships that allow the real-world impacts from sustainable investment initiatives to be scaled up.
• No greenwashing. Organisations need to apply the very highest standards of accuracy and ethics in all sustainability reporting and ensure that the benefits and costs of sustainability practice are communicated without undue bias and with appropriate context.

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[1] World Values Survey.

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