Investment expertise right here in Alaska: CFA creditials 'gold standard' worldwide.

• Author: Duhrsen, Julee

Many investors in Alaska know there are a multitude of financial designations associated with the financial industry, but only one designation--the Chartered Financial Analyst, or CFA-has become the global professional investment credential, the "gold standard" among investment professionals worldwide (The Economist, Feb. 26, 2005; Financial Times, June 19, 2006). The great news for Alaskan investors is that they don't have to search Outside for this level of expertise, because 35 Alaska investment professionals hold this certification.

Understanding the significance of the CFA charter--and what is required of those who hold it-can be useful information when choosing an investment adviser. Selecting an individual responsible for managing your personal or institutional investments is an important decision.

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CFA CHARTERHOLDERS IN ALASKA

Currently 35 CFA charterholders work in Alaska in a variety of capacities such as portfolio managers, investment analysts, chief investment officers and chief financial officers, among other related roles.

The State of Alaska has long recognized the value of having CFA charterholders manage the state's investments. The Alaska Permanent Fund Corp., with nearly $40 billion invested, currently employs four CFA charterholders. Rick Schaefer, chief investment officer and a CFA charterholder, says, "The Alaska Permanent Fund Corporation's role is to invest its funds on behalf of more than 600,000 Alaskans. This trust requires that its staff continually aspire to the highest standards of investment expertise, professionalism and integrity, which are all qualities that are embodied in the CFA Program."

Private corporations and investment firms in Alaska also have a number of charterholders on staff. Firms with more than one CFA charterholder include McKinley Capital Management, Alaska Permanent Capital Management, and Alaska Native regional corporation Cook Inlet Region Inc., with seven, three, and two charterholders respectively. (See chart for a listing of other charterholders in investment positions throughout the state.)

WHAT DOES IT TAKE TO BECOME A CFA CHARTERHOLDER?

The CFA program is administered by the CFA Institute and consists of three six-hour exams taken in sequential years. More than 250 hours of intense study and preparation are typically needed to pass each exam, which has an average 52 percent pass rate since 1963. Ultimately, only one in five individuals who start the program...