rom ethics to statement analysis to portfolio construction, the CFA Program provides employees enough information to know where to go,” says Michael Bargholz, CFA, CEO of Alliance Capital Management Australia Limited in Sydney. “It provides them a base to operate from so they don’t make beginners’ mistakes.”
      As CEO, Bargholz is responsible for the investment performance and profitability of the firm, its corporate governance, and fiduciary culture. He describes the key benefits of the CFA Program to a company like Alliance Capital Australia as twofold. First, he says, the program provides a strong foundation in a broad base of skills that enables employees to hit the ground running.

		As an employer of more than a dozen CFA candidates and charterholders, Michael Bargholz, CFA, CEO of Alliance Capital Management Australia Limited in Sydney, is clearly a strong supporter of the CFA Program. In fact, Alliance encourages all employees to consider the CFA Program and covers all expenses for the program, including books and registration.

      The “head start” mentality leads Bargholz to encourage all employees to undertake the CFA Program in their professional development. He does not reserve that nudge for the 34 investment professionals in his local firm. In fact, he suggests that employees in operations and client services would derive benefit from the program as well. Because the CFA Program emphasizes the practical over the purely theoretical, candidates focus on problem-solving for the benefit of the client — finding investment solutions and applying ethics in practice across all aspects of client service.
      “The value of the CFA charter applies equally to the firm’s client services, marketing, and operations teams because it provides a holistic understanding of investment markets with its broad base of knowledge and emphasis on providing solutions.”
      Bargholz, himself a charterholder since 1999, trained as an economist and served as chief economist for AXA Australia before being tapped for the role of CEO of the joint venture company. In October 2000, Alliance Capital Australia had about 50 people on staff managing assets of US$17.24 billion (AU$22.5 billion). Now, it has 85 people on staff (13 in New Zealand and 72 in Australia) managing more than US$27.58 billion (AU$36 billion) out of three locations: Melbourne and Sydney in Australia, and Wellington in New Zealand.
      Bargholz goes on to say that the intensive studying required for the program helps candidates reach the point where all the investment information starts to hardwire in the brain, so they can approach investment solutions and think through any set of problems put before them.
      “It’s up to the individual to find the solutions, but the CFA Program gives the individual a head start versus those without the charter,” he says. “I have a strong degree of comfort when a job candidate has the CFA charter.”
      The second benefit of the CFA Program, Bargholz says, is that it provides a more global context for an investment professional. He says that pursuing the CFA charter is an exciting and rewarding opportunity for local employees to tap into global knowledge and understanding.
      “We’re witnessing a great globalization occurring. We’re seeing it in accounting, in economics, and in politics, but nowhere more than in investment markets. For Australians, having a firm handle on global developments in investment markets provides a definite advantage.”
      In Bargholz’s view, the CFA Program represents a convergence of two forces. The first force is its emphasis on US law relating to fiduciary obligations. This platform is valuable because where US law leads, other markets around the world often follow. The second force is reflected in the CFA Program’s emphasis on standards and ethics, an issue that continues to become more and more global. By participating in CFA Institute, charterholders and candidates gain the benefit of understanding market developments around the world and thus can help to effect change for a stronger, more ethical profession. As an employer of more than a dozen CFA candidates and charterholders, Bargholz says that Alliance Capital Australia is thrilled to have employees with that kind of global perspective on its staff.
      Alliance Capital is a global investment management firm that has been serving Australian clients since 1982. The company’s global total assets under management at the end of 2004 was US$538 billion (AU$702.35 billion). Alliance Capital Management Australia Limited — a joint venture company created by Alliance Capital and AXA Asia Pacific Holdings — is responsible for institutional markets and manages retail assets on behalf of AXA.
      As part of its Study Assistance Program, Alliance Capital Australia encourages all employees to consider the CFA Program. It covers all expenses for the program, including books and registration, by reimbursing the candidate once the exam is taken and passed. Alliance also provides study assistance for attending prep courses and allows a few days of leave for study prior to the exam.
      “I want to express how much I’ve treasured achieving the CFA charter. I’m delighted to support the work of CFA Institute,” concludes Bargholz. “I think the CFA charter is an unmatched qualification for people seeking to join in any part of our firm. It provides such a sound generalist’s understanding of investment management.”