THE VALUE OF THE INVESTMENT PROFESSION A REPORT ON STAKEHOLDERS’ VIEWS

THE VALUE OF THE INVESTMENT PROFESSION A REPORT ON STAKEHOLDERS’ VIEWS 

INTRODUCTION
NATALIE WINTERFROST, CFA
CHAIRMAN, CFA SOCIETY OF THE UK
In recent months, CFA UK has canvassed stakeholders across the investment 
sector for their views on the profession’s value and the factors that may inhibit 
our ability to generate greater value. We spoke to investment managers, clients, 
consultants, the regulator, policy-makers and other stakeholders. We are 
grateful for their time and for the opinions they expressed that are summarised 
in this report.

There is universal agreement about the 
fundamental importance of investment, but views 
vary about the value the profession delivers and 
how that can be enhanced. Some of those we spoke to 
put greater emphasis on the profession’s role in helping 
clients to meet their needs. Others stress the role 
investment plays in improving the efficiency of capital 
allocation across the economy. All believe the investment 
profession performs a vital social function in converting 
individuals’ savings into investable capital, which is 
applied to generate a return for the original savers. 
All those we spoke to also identified challenges 
that the profession should address if it is to 
enhance the value it delivers and raise its standing. 
Leaders within the profession are keen to raise 
levels of transparency and to see the profession’s 
role and actions explained more clearly. 

A recent CFA UK member survey reveals that whereas 
55% of respondents feel that clients hold the profession 
in relatively high regard (scoring 7 or above out of 
10), less than 20% of respondents reckon that the 
profession is held in high regard by society more 
broadly. We need to close the gap by taking more time 
to communicate our value beyond our client base.
The value the profession delivers is hard to quantify. 
Our investment actions take time to feed through 
to returns. The impact of our stewardship is rarely 
immediate. Our stakeholders, however, are confident 
that capital allocation is enhanced by investment 
managers competing to identify productive investment 
opportunities and that client outcomes are improved 
by competition to design and deliver products that can 
best meet their needs. A common observation among 
those we talked to is that if the investment profession did 
not currently exist, it would have to be created – even 
if its design might not then be exactly as it is today.

The investment profession touches all parts of society. 
Our clients – direct and indirect – are numerous. We work 
directly for many individuals, but support many more 
through the services and products we provide to pension 
schemes, insurance companies and charities. More than 
half of the UK’s working age population has pension 
savings
. More than three-quarters of UK households 
have insurance products. And close to 2,500 UK charities 
depend on the investment profession to generate the 
income and build the capital that supports their wor.

The profession helps clients to identify their investment 
needs, builds risk-diversified portfolios to meet those 
needs and provides access to investment opportunities. 
We use specialist skills and knowledge within this process 
(and across associated activities such as trading, custody 
and reporting) so that clients and society more broadly 
benefit from economies of scale and the division of labour.
The capital entrusted to us finances economic 
and social activity, contributing to job and wealth 
creation. Investment professionals do not run the 
companies in which they are invested, but they 
help those companies to manage their capital 
efficiently and they set the price of that capital.
This report on stakeholders’ perceptions of the investment 
profession comments on how investment generates 
value, then addresses factors that inhibit our ability to 
deliver greater value, before commenting on the need for 
professionalism and a supportive policy and regulatory 
framework. The many conversations that have informed 
this report were provided on an ‘off the record basis’ but 
the unattributed quotes included in the report give a sense 
of the constructive and insightful feedback we received.
The report will be used to encourage discussion within 
our membership – and with our stakeholders – about 
how we can address the challenges that have been 
identified. We plan to publish additional reports that 
consider these challenges in depth and make specific 
recommendations for tackling them. We look forward to 
this work and to continuing to explain and communicate 
the importance and value of the investment profession.

THE VALUE OF THE INVESTMENT PROFESSION A REPORT ON STAKEHOLDERS’ VIEWS