As a strong advocate for uplifting local capital market standards, for CFA Society Sri Lanka, the objective of conceptualizing an event of this nature is to recognize and reward professionals who have established industry benchmarks for the advancement of domestic capital market participants.
The event, as always, will witness the participation of stakeholders including industry regulators, stockbroking companies, unit trusts, investor relations teams, and senior management of listed entities.
The awards will be presented under the five categories of Best Equity Research Team, Best Equity Research Report, Best Sector Report, Best Investor Relations Team, and Best Unit Trust Team, with awards for Gold, Silver, and Bronze in each category respectively.
In past editions of the awards, CFA Society Sri Lanka has closely engaged with leading industry stakeholders such as the Colombo Stock Exchange (CSE), towards helping shape the Sri Lankan capital markets.
The CSE has ably supported the local CFA chapter on a number of initiatives over the years including the historical journey of the CFA Capital Market Awards,
Speaking of the impact of the CFA Capital Market Awards vis-à-vis its key focus on investment research, CSE Chairman Dumith Fernando notes:
“Over the last few years, I’ve seen firsthand how the awards have brought out the best among research firms in the country.”
Fernando also observes that laying out the criteria that brokers are evaluated against, is another positive development in this regard.
According to the CSE Chairman, the Best Investor Relations (IR) Team award, in particular, has the potential to impact IR best practices among listed companies, and the CFA Society has the opportunity to engage with the regulators such as the Securities and Exchange Commission of Sri Lanka (SEC), and the CSE, to introduce a framework for companies to improve their performance on this front.
The much-coveted CFA Sri Lanka Research Challenge – which permits university students to better understand the linkages between a firm and industry-level performance and financial markets and learn best practices in equity research – is also viewed as a stepping-stone for young participants to enter the local capital markets.
Fernando remarks: “The Research Challenge helps bridge the gap between the theoretical and practical knowledge of university students.
Particularly with the involvement of the CFA Society, as well as the industry experts brought to the table, you’re in a really good position to elevate the practical knowledge of students to the next level.”
While commending the rigorous program in place and mentoring opportunities on offer, the CSE Chairman also maintains that these aspects of the Research Challenge provide “a fantastic foundation for participating students to become leading investment professionals.”
Commenting on the analytical skillset that the CFA qualification brings to the capital markets, as well as the prominent position held by CFA charterholders in the industry, Fernando affirms:
“When it comes to financial analysis, CFA and its membership provide an advanced level of competency, and this can be leveraged to enhance their level of practical know-how in capital markets.
“Individuals with the CFA qualification occupy very senior roles right across the investment industry.
They have the requisite training and background, and the community and network provided by the CFA Society is likely a major part of their success,” he adds.
Reflecting on the changes in the capital market landscape, Fernando points out that the CSE has introduced a number of new products, with plans to make further introductions in the future – although a lack of exposure to more complex products may hinder the progression.
“This is where the CFA Society could come in, by tapping the strength of its international network and experts.
The ability to bring that knowledge and provide training for the local research market, in particular, would be a great asset.
Many local research firms may not have access to the kind of global expertise that the CFA Society can bring to the table, so there will be much that can be done around that,” he notes, in conclusion.