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