Every few months, an article is released proclaiming that one particular designation or credential is the one-size-fits-all solution that will propel your career into the stratosphere. Several months ago, one of these articles highlighting the merits of the CFA charter sparked a considerable debate on CFA Society Toronto’s LinkedIn Members Only Group. As career-focused professionals in a competitive market, we strive to know what’s in the “secret sauce” that will help make us a sought-after commodity. I recently had the opportunity to sit down and chat with four recruiters to discuss what they look for in an ideal candidate in the investment industry. Let’s see what they have to say.

THE RECRUITERS:
James Lorimer, Managing Director & Principal of Capital Markets at Ludwig Financial
Beverley Morden, Partner at Richard Moore Associates
Andrew Pardy, MBA, CFA is the Managing Director of Satoruum
Bill Vlaad, MBA, owner of Vlaad and Company

When recruiting in the area of finance, what is the top accreditation or degree you want candidates to have? Why?

James Lorimer: We do most recruiting in the area of investment banking, and in that world, an MBA (Master of Business Administration) trumps a CFA designation, whereas in other areas of finance, the charter is the designation that you would want to have.

Beverley Morden: It depends on the nature of the role. We recruit for insurance, portfolio management, and equity. The CFA charter is clearly the preference for research, institutional sales, and portfolio managers. In treasury, we would be looking for someone with a CFA charter along with an accounting designation such as the CPA (Chartered Professional Accountant). If the driving forces for the role are technical and evaluation skills, we want someone with their charter. When it is more of an overall financial understanding of the business, we would look towards someone with an MBA combined with financial acumen.

Andrew Pardy: This would depend on the specific job. If it’s a buy-side/sell-side institutional analyst or a portfolio manager, then CFA charter—no question about it. Once you get into the broader world of finance, you are better off with an MBA. That being said, I’d recommend that anyone who is thinking of doing an MBA should do it at an elite school to ensure that they have a program with a solid reputation and a strong, high-calibre network of individuals in their graduating class.

Bill Vlaad: What makes an ideal candidate really depends on the specific position, each having their merit as the number one choice, but entirely dependent on the role.

A number of MBA programs require students to take two years out of the work force to focus on academia and curriculum learning, whereas the CFA Program and some MBA programs allow for people to work while they study. Which path do you think prepares people best for a career in finance? Why?

JL: Both routes have their own merits. Many MBA programs require a number of years of professional experience to help with the maturity level of the students and to make sure they bring real-world experience to the table. Completing the charter while you are working really helps you to get experience in a more practical and hands-on capacity—the things you can use on a day-to-day basis in your own job.

BM: Our preference is that candidates acquire work experience prior to their MBA and that they take time off to focus on their studies. This way they have a clearer mind that is open to learning, and they can contemplate how to apply it following graduation. However, we recognize that not everyone can afford this luxury.

AP: My personal belief is that practical work experience is going to be the best background. People can benefit from each program more if they have active experience in which to apply the theory.

BV: Generally, within the area of finance, I would say that working while completing your charter is helpful because you have the added focus on your career. While you generally need two years of work experience prior to entering an MBA program, it doesn’t necessarily need to be related to your desired industry.

From the perspective of costs of programs and ROI, which path do you think is a better investment in the short and long term?

JL: I am a big believer in having both accreditations. Both programs are different enough that people can benefit from each. Although an MBA can be more expensive, I think the ROI is well worth it. For the most part, it’s not pure finance. You also get exposure to organizational behaviour, marketing, operations, and soft skills, which are equally important. A background that is purely finance-based can give you a limited focus.

BM: If the long-term goal is a career in financial services, then the pursuit of the charter is the preferred long-term choice. If you plan a career in another industry in a role in which you will operate at a strategic level, then an MBA is likely more relevant—unless you are the chief financial officer. Then your career growth would benefit from both.

AP: It depends on the MBA. In general, for the average person, I think the CFA charter is going to carry a bigger bang for the buck. However, there are some MBA programs—very selective programs from top-tier schools—that may represent a better long-term investment in the end.

BV: In the short term, the CFA charter is a best bet, but there is no on-campus recruiting to help you in the end because it is a self-study type of program. However, the CFA charter provides differentiated career options. The charter is an improvement in your career, as opposed to an entrance to a career. Someone who does their CFA charter or MBA shows their willingness to learn, which is an important consideration to keep in mind. This can be the thing that sets one person apart from another when it comes to getting the job.

“Earning both degrees is advantageous in qualifying for a CFO role in a major organization”

Which program do you feel better prepares you for a leadership/strategic-thinking role?

JL: An MBA, for sure. It offers a different type of learning experience than the charter. The one main drawback to the CFA Program is that it is self-learning, which means you are on your own. There is a lot of group work and structured learning offered in MBA programs that will help you develop team work and leadership skills.

AP: I think an MBA would be a better option if your chosen career path was a strategic role. I have both. I would say that the CFA charter is analytical. You can select an MBA program with a specific focus on strategy.

BV: An MBA, for its broad and general scope.

Some argue that the combination of the MBA and CFA charter makes for an ideal candidate. What are your thoughts? Are there any other designations you’d consider highly valuable?

JL: I’d say, absolutely. For candidates breaking in to the finance world at a more senior level, having both gives them the advantage of a focused and in-depth understanding of finance. There has really been an increase in the number of people doing a Master of Finance (MFin), and these are great programs.

I would personally prefer the balance of an MBA and a CFA charter, as compared to an MFin and a CFA charter, as I consider them similar in nature. There is always a risk of being too finance-focused, so experience in other fields and complementary learning will give candidates a better understanding of how companies and investments really work.

BM: There are a number of areas in which we see the requirement for complementary designations and degrees. We just completed a search for an oil and gas client in Calgary in which a professional engineering degree alongside a CFA charter made a great combination. We are also seeing candidates with backgrounds in law who earn their charter and head towards private equity. Our advice would be to decide the end goal for your career prior to making this decision. If you are aiming for a role where there is a high degree of finance specificity, then earn your charter. If you are heading towards a strategic role, then obtain your MBA. Earning both degrees is advantageous in qualifying for a CFO role in a major organization.

AP: That really depends on where you want to go. I would recommend the CFA charter for some specific capital markets positions. An MBA is going to have a broader appeal throughout the finance world and outside of the institutional investment world. The finance universe is much larger than that. The CFA charter would make someone more of specialist, whereas the MBA would make someone more of a generalist. An accounting designation is also often seen as being very attractive to clients. Combinations such as CFA charter plus CPA–CA (Certified Professional Accountant–Chartered Accountant) or CFA charter plus CMA–CA (Certified Managing Accountant–Chartered Accountant) are very powerful mixes.

BV: The CFA charter/MBA combo is definitely a power punch. People also need to be aware of accreditation overload. They also need to have practical experience. I would say an honours business administration or a definitive undergrad would be second tier to the CFA charter/MBA combination.