The CFA Society Nigeria (CFAN) has kick-started a process that will assure the country’s investment industry of a pool of quality analysts in the immediate and distant future.
Last week, the CFAN held the kick-off event of the local challenge of the 2017/2018 CFA Institute Research Challenge and for the first time, 8 top Nigerian universities will be joining 1,000 others across 81 countries to compete in the competition.
The CFA Institute Research Challenge is the world’s most prestigious investment research competition which promotes ethics and best practices in investment research through hands-on mentoring and intensive training in analysis and presentation.
Ahmadu Bello University, Babcock University, Covenant University, Lagos Business School, Obafemi Awolowo University, University of Abuja, University of Ibadan and the University of Lagos are the schools that will provide students for 3-5 teams that will play the role of real equity research analysts.
“The purpose of the Research Challenge is to introduce students to the practical side of investment analysis and inculcate relevant skills (equity analysis, report writing and presentation) required for a career in the investment world,” Razaq Ahmed, chairman of CFAN’s University Relations Committee told BusinessDay.
“The competition is expected to provide a talent pool for the Nigerian investment industry.”
The research teams, guided by their Faculty Advisers, have been paired with industry mentors from leading asset management and investment banks.
They are required to conduct investment research on Flour Mills of Nigeria Plc in the quest to represent Nigeria at the regional finals scheduled for Dublin, Ireland in early April 2018; Nigeria’s national final is scheduled for February 2018 in Lagos.
At the regional and global level of the competition, students are required to carry out an initiation of coverage (equity research report) on a publicly traded company with the aim of arriving at an investment recommendation to buy, sell or hold the company’s stock.
As in the real world, findings from the research process are condensed into a report alongside a presentation to respected panel of industry experts for evaluation.
The competition, which started in 2006, involves teams from both undergraduate and graduate schools competing across three stages: national, regional and global finals. First, teams from participating universities compete for the right to represent their countries via a national competition.
Thereafter, national champions progress to a one of three regional qualifiers with winners obtaining tickets for the global finals. The competition operates on a June to April cycle and Nigeria would be making her maiden appearance at the 2018 championships with the finals scheduled for Seoul, South Korea.
The overriding objective of the CFA Research Challenge is to provide university students with valuable real world exposure to the practice of finance to complement the theoretical framework of the university education.
In addition, the competition provides university students an opportunity to foster lifelong relationships with the finance industry as students get introduced to investment professionals as mentors, peers from other universities and companies involved with the CFA Research Challenge.
By working in teams and with industry mentors, the competition helps students develop critical interpersonal skills needed in the investment management industry alongside much needed networking opportunities with finance professionals.
Winners stand the chance to undertake travel and the opportunity to win scholarships and cash prizes.
Hezron Atunde
