In a bid to address pressing issues facing the investment industry, the CFA Institute – the global association of investment professionals – has launched its Research and Policy Centre.
This initiative aims to bring together thought leaders, policymakers, decision-makers, and subject-matter experts to foster engagement and generate practical solutions.
The Centre focuses on four key themes: capital markets, technology, the future of the industry, and sustainability, all in line with CFA Institute’s principles of intellectual independence, impartiality and technical rigour.
As part of its launch, the Centre released its flagship research report, The Future State of the Investment Industry. The report draws from insights gleaned from 3,000 global investment professionals, offering a macro-level perspective on megatrends and future scenarios shaping the industry. It also provides guidance for current and aspiring investment professionals to prepare for upcoming challenges.
‘Positive force’
Paul Andrews, managing director for research, advocacy and standards at CFA Institute, emphasised the need for practical, unbiased insights in a marketplace often rife with research influenced by bias or partiality.
“Our goal is for the Research and Policy Centre to be a positive force for the industry, delivering and transforming research insights into actions and practical applications that strengthen markets, advance ethics, and improve investor outcomes for the ultimate benefit of society.”
The report, a part of the New Generation of Investors, New Ways of Investing research series, presents four distinct narratives based on interviews and scenario modeling.
Key findings
Diverging worlds: This scenario envisions deglobalisation, geopolitical conflicts, inequality, demographic shifts, and technological innovations creating distinct and divided perspectives in a world of targeted content and personalisation.
Sustainable finance: As investors increasingly consider environmental, social, and governance factors, this scenario sees the business sector and investment industry embracing multi-stakeholder practices and long-term sustainability, with a focus on climate change mitigation.
Digital transformation: Rapid technological advancements, including artificial intelligence, machine learning, and big data, drive change in the investment industry. Firms that effectively integrate these innovations into their talent acquisition and investment processes thrive.
The end of cheap money: Elusive economic growth, inflation, and high debt levels lead to higher, more volatile nominal interest rates. Central banks grapple with the need to manage inflation while promoting economic growth, creating opportunities for new investment strategies and products.
The report highlights significant findings, such as 77 per cent of respondents believing that investment management’s future impact on society will be more positive in the next five to 10 years. It also outlines challenges and opportunities facing organisations in the industry.
The Research and Policy Centre also aims to provide valuable insights that strengthen markets, enhance ethics, and improve investor outcomes, ultimately benefiting society as a whole.
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