PROFILE MOHAMMAD SHOAIB
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MOHAMMAD SHOAIB

 

By SHABBIR H. KAZMI
Sep 30 - Oct 06, 2002

 

Mohammad Shoaib is the Founder President of Pakistan Chapter of Investment Professionals, the local chapter of The Association for Investment Management and Research of USA (AIMR). Shoaib is the Chief Executive of Al-Meezan Investment Management Limited that manages institutional portfolio and a close-end mutual fund, Al-Meezan Mutual Fund, listed on Karachi Stock Exchange (KSE). He has over 12 years of experience in the field of investment management. He enjoys the distinction of being the first CFA charter holder to be appointed on the Board of Directors of KSE. Previously Mr. Mohammad Shoaib, CFA has worked for Pakistan Kuwait Investment Company. Shoaib has done his BBA (Hon) and MBA from Institute of Business Administration, Karachi He has won several awards and medals for his academic achievements. He was conferred the Chartered Financial Analyst (CFA) designation by AIMR in 1999.

PAGE: What is the role of a CFA in promoting investment in a country?

MOHAMMAD SHOAIB: Growth in investments is a function of a number of variables, including economic and political conditions, economic prosperity and investment opportunities among others. Identification of attractive investment opportunities is a necessary condition for anyone to be able to make the correct investment decisions. This has established the importance of a globally accepted standard with which employers and investors can validate the knowledge, integrity, and professionalism of investment managers and financial analysts. That standard is the Chartered Financial Analyst (CFA) designation.

PAGE: What is the mandate/job description of a CFA?

SHOAIB: A CFA is basically a financial analyst specializing in portfolio management. The job of a CFA is to act in the best interest of the clients utilizing the skills available with him as a result of his exposure to the internationally recognized concepts of portfolio management. It is very important to identify the investment objectives of the client. Besides investment objectives, there are a number of constraints to be evaluated including time horizon for investment, liquidity requirements, income requirements, and tax situation of the client. Every client and portfolio is different from others with unique situation, needs and circumstances.

PAGE: How will the establishment of PCIP help in acquiring CFA?

SHOAIB: Pakistan Chapter of Investment Professionals (PCIP) is one of the 117 member chapters of AIMR across the world. One of the basic objectives of setting up this chapter is to improve the quality of investment professionals and standards of investment management in Pakistan. This objective will be achieved by facilitating those interested in CFA programme by conducting review courses and development of study groups for the candidates of the CFA programme. Further, seminars and workshops will be conducted at regular intervals to improve the knowledge and understanding of the members and the investing public in the area of investment management. One of the big challenges for the Pakistan Chapter is to improve the awareness of the CFA designation and its importance and relevance in the area of investment management among the employers. Going forward, PCIP intends to work closely with the market participants, regulators and educators to improve the standards of knowledge, integrity and professionalism in the area of investment management.

PAGE: How can a CFA evaluate a public limited company of Pakistan when the annual report does not make full disclosure?

SHOAIB: One of the key objectives of PCIP and its parent body AIMR is to improve the quality of corporate disclosures. The code of corporate governance introduced by SECP and adoption of all applicable International Accounting Standards are the recent developments to achieve this objective. It is true that the job of a financial analyst becomes extremely difficult if adequate disclosures are not made in the financial statements.

PAGE: Foreign Investment in a company also depends on the sovereign rating of the country, what role can a CFA play in removing the negative perception of the country?

SHOAIB: Sovereign ratings are based on a number of factors including the ability of the country to fulfil its obligations to the creditors which include other countries under unilateral and bilateral arrangements, as well as multilateral agencies. A CFA does not directly play a role in the determination of sovereign rating. However, qualified investment managers including CFAs can definitely help improve the perception about a country or an economy. As the CFAs in Pakistan, through the forum of Pakistan Chapter, will get more opportunities to network with the CFAs residing in other countries, it will help in removing the negative perception about our economy and will lead to more foreign investment in the country.