Are Chartered Financial Analysts Generating CFA Alpha? (A study of Professional Investment Qualification of mutual fund managers and its role in Mutual Fund’s Performance in Pakistan)

Abstract

The purpose of this research study is to empirically investigate the impact of mutual fund manager’s professional investment qualification as a CFA Charterholder on mutual fund performance in Pakistan. Chartered Financial Analyst (CFA) program is one the most widely known professional qualifications for investment professionals across the globe. Since 1980’s there has been an increasing trend of managers with CFA charter, joining the investment industry and because of their profound professional judgment, it has become an important qualitative factor to have a significant impact on the performance of mutual funds. In literature, only a handful studies have investigated the impact of CFA as fund manager’s professional investment qualification on mutual fund performance and those too are available for mutual funds in developed economies. Recently, (Kaur, 2017), investigated this relationship for mutual funds in an emerging economy. However, in Pakistan, no research study was found to investigate this relationship, so far.