Recognizing Excellence: The CFA Capital Market Awards Offer Vital Recognition to the Equity Research Analyst Profession – Adaderana Biz

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As the ninth annual CFA Capital Market Awards – scheduled for June this year – fast approach, organizers from the CFA Society Sri Lanka review the winners of the 2021 edition of its landmark event, which recognizes and rewards professionals who have established credentials for the advancement of national capital market players.

Among the five major accolades presented at the CFA Capital Market Awards are the Top Equity Research Team honors, awarded to Capital Alliance Securities (CAL Securities) last year. The award recognizes teams working to develop research as an integral part of investment decision-making, targeting informed, efficient and fundamentally-driven capital markets, and promotes the provision of high-quality and timely research to all market players. CAL Securities also received the title of Best Industry Report at the 2021 CFA Capital Market Awards.

Commenting on the award, CAL Group CEO Ajith Fernando noted: “At CAL Securities, we consider our research team to be a key contributor not just to the brokerage unit but to the entire organization. We were honored to win the gold award for Best Equity Research Team and Best Sector Report at the 2021 CFA Capital Market Awards, and we believe this is a testament to the team’s dedication to providing timely and relevant”.

Ajith Fernando, CAL Group CEO

Reflecting on the role of investment research at CAL Securities, the team explains that it has evolved from simply supporting stock decision-making to now covering all verticals and being an essential organisation.

Due to many needs being met across the organization and the investment landscape having changed so much, the CAL Securities team has witnessed significant changes both in its product offering and in the way whose information is disseminated. Five to six years ago, its product line focused primarily on company and sector reports, as well as daily market reports, whereas today it includes partnered content to provide field information, primary research and macro research.

More attention is also paid to what investors want to hear versus the team deciding on its own what solutions to propose, getting regular feedback from investors and keeping the lines of communication open.

CAL Securities’ head of research, Trisha Peries, CFA, says this has also led to greater demand for macroeconomic and political research/information: “In addition to equity research, it is expected that Equity research teams have a much deeper understanding of conditions and their effect on certain counters.

This means that CAL Securities’ spectrum of clients has expanded to include journalists, government institutions and the general public looking to boost their knowledge and financial literacy.

The way data is reported has also changed with a greater focus on voice clippings, videos, social media usage and reports incorporating more graphical content. In addition, a balance is struck between concise content given investors’ time constraints and providing the depth of detail and analysis needed to make informed decisions.

According to the team, the end goal is to provide insight and insight that the investor has not yet received, with chief strategist Udeeshan Jonas, CFA, saying, “We don’t want to be another generic information provider, so anything included in our reports must provide information that investors have not yet seen from another source.

CFA Capital Market Price Spotlight

On what CAL Securities did differently to win gold in the Best Equity Research Team and Best Sector Report categories at the 2021 CFA Capital Market Awards, the team highlights enhanced content standards while communicating the level of detail required to a user’s investors. -Friendly manner.

As Peries explains, “There is a difference in the way people consume information today, so it’s important to get the information out as soon as possible, with in-depth data to back up the research. Besides traditional reports, there is more video content and the use of webinar formats, as investors want to get a glimpse of what people in the industry are saying. »

The team believes this approach helped them stand out and won them the award for Best Equity Research Team. CAL Securities also points out that each member has leveraged their strengths by focusing on their areas of expertise, with the team working together on much larger information such as industry reports.

When it comes to industry reports, the team notes that they take a top-down approach with an understanding of the industries that will see value creation, while maintaining that their insights go beyond their own research to derive insights from actors in the value chain of a given sector.

Jonas notes that the team incorporated feedback received from the CFA Capital Market Awards to adjust the products accordingly. He believes that this feedback is not just a price requirement, but a market requirement that helps raise industry search standards, which “has also led to improved reporting over time. years”.

The team believes that the awards have helped CAL Securities, in particular by recognizing the work done by equity research analysts, by providing recognition not only in the local market but also globally by helping commercializing research capabilities when launching operations in Bangladesh and also attracting customer interest.

As for what else the CFA Society needs to do, the team says that helping improve financial literacy and championing investment banking/equity research as a career option – not just at the academic level but also in secondary education – should be on the agenda. , as it will help provide a greater pool of talent for the industry at a time when attracting talent is becoming increasingly difficult. In addition, improving the financial literacy of the general investing public is encouraged so that they are able to make more informed decisions.

As industry players participate in these efforts, CAL Securities believes that a global body such as CFA will lend greater credibility to the process, bringing parties together and providing much-needed market awareness.

Photo – CAL Securities Research Team. From left to right: Trisha Peries, CFA – Head of Research, Nilakshi De Mel – Senior Analyst – Research, Ishara Nilam – Assistant Manager – Research, Pravir Goonewardene – Assistant Manager – Research, Udeeshan Jonas, CFA – Chief Strategist and Natalie Kulasekere – Senior Analyst – Research

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