The value of a CFA

Integral Wealth Management is proud to announce that our very own principal and portfolio manager, Mike Abram, has earned the Chartered Financial Analyst (CFA) designation. This designation is considered one of the highest distinctions in the investment profession¹. Those who successfully obtain the charter must pass a series of three increasingly complex exams that demonstrate competency in topics such as utilizing investment tools, valuing assets, portfolio management, and wealth planning². Given that the passing rate for each exam is historically 40%-50%³, roughly 10% of candidates pass all three exams on their first attempt, as Mike has accomplished. Congratulations, Mike!

The average investment client rarely has access to the advice of a CFA charterholder. Many CFA charterholders work as chief investment officers for publicly-traded companies or manage investments for institutions like banks, hedge funds, or pension plans. Mike decided to pursue this designation to make the knowledge base and skills of a CFA charterholder available to Integral’s clients. With each portfolio he manages, Mike carefully considers the client’s unique financial picture through the lens of the following CFA curriculum focus areas:

• interpreting economic indicators to understand the influence of macroeconomics on financial markets
• analyzing financial statements for company fundamentals and trends
• valuing assets using various models to determine whether assets are overvalued, undervalued, or fairly valued
• understanding how the yield curve drives risk and return across bond investments
• recognizing psychological influences and biases to improve financial decision-making
• planning for generational wealth transfer and/or charitable giving while minimizing taxes

CFA charterholders also must exhibit a commitment to ethical and professional conduct by following the CFA Institute Code of Ethics and Standards of Professional Conduct. Lastly, ongoing continuing education requirements ensure CFA charterholders stay up to date with the latest research and strategies. We are proud of Mike’s commitment to excellence and the care he gives to our clients.