10 years after the 2008 financial crisis - Survey results
You were recently invited to fill out a survey on the state of the industry 10 years after the 2008 financial crisis. As a result of your participation, we are now better informed on your challenges, your perspective on the economy and on our profession.
Data revealed by this survey allows us, among other things, to promote your expertise in the business world.
Thank you to all those who took the time to participate in the survey.
The results issued in this press release have been published in various media, including La Presse+ on September 16, 2018 and Finance et Investissement on September 17.
RISK MANAGEMENT AND THE INVESTMENT SELECTION PROCESS HAVE GREATLY IMPROVED
Ten years after the 2008 financial crisis, an in-house survey among members of CFA Montreal (Chartered Financial Analyst) shows significant progress in terms of risk management, the addition of controls and improved due diligence in the investment selection process. The survey also reveals that portfolio managers are demonstrating more transparency and a greater degree of accountability.
“The survey results confirm that the investment industry has learned from the 2008 financial crisis,” said Frederick Chenel, CFA, president of CFA Montreal. “Over 80% of respondents report significant improvements in both risk management and relationships with clients. In their opinion, increased regulations over the past 10 years has also provided a better framework for the financial and investment industry, reducing the risk of a similar event of the same magnitude occurring in the future.”
“The vast majority of respondents are seeing a greater degree of accountability among portfolio managers, and this vigilance among professionals in our industry is, in itself, proof of their efforts to act in the best interests of their investor clients,” concluded Chenel.
Approximately 10% of the 2,500 CFA Montreal members responded to the survey which shows that, for 57% of respondents, investor concern about the current economic environment is relatively low, and that less than half of the respondents expect another financial crisis occurring by 2021. For 49% of respondents, the key triggers for a new economic crisis would be political instability and uncertainty, as well as a cooling of the ten-year bull market.
Looking at the short term, CFA Montreal members estimate that the types of investments most at risk over the next 12 months are emerging market debt and equities (59%), high yield bonds (48%) and U.S. equities (38%).
- 91% of respondents reported a significant improvement in risk management.
- 91% have seen progress in ESG trends.
- 89% have noticed a tightening of regulations.
- Over 85% agree that improvements have been made in due diligence and the investment selection process.
- Less than half of all respondents (48%) anticipate a new crisis by 2021.
- In their opinion, the key triggers to a new crisis would be political instability and uncertainty (49%), the “natural cycle” of crises (49%), and a stock market bubble and/or tariff wars (39%).
- 78% observed a greater degree of accountability among portfolio managers.
- 73% agree that there is improved listening and adaptation to risk aversion and propensity of investors.
The survey was conducted online by CFA Montreal among 2,500 members between August 20 and September 6, 2018, and 227 members responded. The maximum margin of error of the survey is 6%, 19 times out of 20.
As a follow-up to the survey, CFA Montreal will be presenting a conference on September 18 entitled 10 years later: the evolution of the asset management industry since the financial crisis.
The event will be hosted by Monique Leroux, Chair of the Board of Directors of Investissement Québec, Corporate Director, Former President and Chief Executive Officer of Desjardins Group and will include a panel of experts from the profession.