SECTIONS
SECTION I

Disruption Looms Large:

A Message from Paul Smith, CFA

Paul Smith, CFA

President and CEO

CFA Institute

Welcome to the CFA Institute Research Foundation Review 2018.
As I reflect on my five years as president and CEO of CFA Institute, I see much that we can be proud of. Over the course of our long history, we have been steadfast in our mission to lead the investment profession globally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society.
Our profession has evolved greatly since our founding in 1947, but education remains a key component of our cause. Through the Research Foundation, we seek to provide independent, high-quality research that helps investment professionals effectively fulfill their duties with prudence, loyalty, and care.
The Research Foundation is only one piece of our suite of market-leading educational products, which also includes the Future of Finance, Enterprising Investor, and the Financial Analysts Journal. It is through these channels that we seek to educate and engage investment management professionals across the globe.
The passing of John Bogle in January 2019 has caused me to ponder his enormous contributions to our industry, many of which were made possible through his dedication to reason, research, and ongoing professional development. His mind did not rest easily. He pushed the industry to change, he pursued his ideas with passion, and he contributed to our industry through his scholarly ways. His research at Princeton University led him to embark on a career in investment management, and he never stopped thinking about ways in which our industry could improve. He was an academic at heart—in addition to being a visionary business leader.
For our industry to deliver on its ultimate mission, we must be aligned with our clients’ interests. Jack believed, without any hesitation, that investors’ interests must come first. We have espoused this view since our founding, and so we are kindred spirits with Jack and pay homage to his status as an icon in our field.
Jack was perhaps the ultimate disrupter. These days, professionals in our industry face disruption every day across myriad fronts. Disruptions loom large, forcing all of us to be forward thinking. As well-trained investment professionals, we counsel our clients to prepare for volatility and to have a long-term view. We need to be prepared for volatility within our industry as well, even if forecasting the future of our profession 10 years down the road seems nearly impossible.

We can face disruption, in part, by learning from both the successes and failings of the past. We stand 10 years removed from the global financial crisis. For some, that may seem like a lifetime ago; for others, it remains fresh in their minds. Indeed, regulators continue to promulgate rules and regulations designed to prevent a repeat of that near catastrophe. I have no doubt that the systemic failings that led to that global crisis will be researched well into the future—much in the same way that scholars continue to explore the roots of the Great Depression.

The global financial crisis proved that the world is indeed a small and interconnected place. One shock to a singular economy can cause seismic reverberations around the world. So, I am very pleased to see that the Research Foundation has broadened its offerings and has translated research pieces from many other markets. We as professionals must not be myopic in our thinking and must keep a global view.

As I prepare to retire from my role at the end of 2019, I applaud the Research Foundation for its ongoing commitment to serious research in our field. Long may it last.

Section I Content:

Disruption Looms Large: A Message from Paul Smith, CFA
The Year In Review

Multimedia Summaries