Chronicles of an Allocator

October 2022: Introducing Renewed Professionalism

Issue 32, October 2022

Authored by Steven Novakovic, CAIA, CFA

Earlier this year, CAIA Association published Portfolio for the Future™ as a resource for investors to navigate the economic and capital market shifts occurring across the globe. We were delighted by the response to this call to action and recognized we could do more to assist investors. The result, A Renewed Professionalism, published earlier this month, highlighting six guiding principles for investment professionals to implement the portfolio for the future.

Many of the principles outlined emphasize and reinforce the importance and need for professionalism in the finance industry. All CAIA Members acknowledge the importance of professionalism by adhering to our Professional Code of Conduct, and therefore, these six principles are likely to resonate as strongly with you, as they do for us.

Doing the right thing is never the wrong and regrettable decision for professionals. Yet, a common perception of the finance industry is one of misalignment and bad actors. In A Renewed Professionalism, we shine a light on key areas where investors can (re)commit to doing the right thing and fully display their adherence to professionalism.

We often talk about investing as a long-term endeavor, these principles are a reminder that professionalism, too, can be a long-term investment. We believe an organization embracing each of these principles would stand apart from the crowd and appeal to clients over the long run.

Allow A Renewed Professionalism to be an opportunity to reflect on your own organization and practices and be a gut check for your own professionalism. As CAIA Members, we can set standards for the industry and further build our reputation as best in class professionals. If any of these principles are not yet reflected in your work, just remember, it is never too late to do the right thing.

We hope you enjoy reading the articles in this month’s edition of Chronicles as much as we did. Each was selected to bring to life one of the principles discussed in A Renewed Professionalism. These articles offer real world examples and applications that you can take with you and integrate into your own practice. Our shared commitment to these principles will continue to be revealed through pertinent industry case studies, a video series, and lively discussion panels throughout the months ahead. We also will look forward to hearing how you take these principles and apply them to your organization.