The Analyst Fall 2025 Issue

FALL 2025 LEADERSHIP IN FINANCE: TITANS & TRAILBLAZERS

In this issue:

The Essentials of Becoming an Angel Investor

A “Brand New” Way to Stand Out from the Crowd

High-Impact Presentations Learning from an Expert on Speaking to Executives Easily

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Page 12

Page 22

The Analyst | Fall 2025

From the editor | Sara Maginn Pacella Leaders inspire and transform ideas into highly performed execution.

They can be founders of grassroots initiatives, C-suite executives, or academics shaping the minds of the next generation of financial professionals.

Table of Contents From the editor.................................. 2

This autumn’s issue of The Analyst, under the theme of Leadership in Finance: Titans and Trailblazers, shares insights from industry leaders and provides strategies and secrets for enhancing your own leadership toolkit.

Board chair message.......................... 3 From the desk of the CEO.................. 4

Our theme-specific feature articles showcase the influence involved in leadership, including what it takes to become an angel investor. We also explore practical ways to strengthen your leadership skills, including tips for building trust through professional brand development and elevating your presentation skills.

The Essentials of Becoming an Angel Investor............................... 5 Book Review How Big Things Get Done................ 10 A "Brand New" Way to Stand Out from the Crowd Through Professional Brand Building............. 12 Why Aspiring Leaders Should Learn to Build FInancial Models........ 14 Charterholder Profile Stephen Foerster, CFA, PhD............. 17 Rethinking Retirement: How FIRE Is Changing Financial Planning......... 20 High-Impact Presentations Learning from an Expert on Speaking to Executives Easily............ 22 Personal Finance 101: Your Guide to Budgeting, Saving, and Investing....................... 24 Diverse Dividends.............................28 Thriving in the Age of AI: Job Hunting Skills for the Modern Finance Professional........................ 30 Advocacy Corner............................... 32 Welcome New Members...................34

What role does financial modeling play in leadership within the investment industry? Explore learning opportunities related to financial modeling and learn about how to move data into actionable strategy.

We also provide highlights from season 1, episode 6 of CFA Society Toronto’s video podcast series, Diverse Dividends, featuring venture capitalist, Silicon Valley veteran, Kijiji Founder, and Canadian National Triathlon Champion, Janet Bannister.

In this issue’s charterholder profile, award-winning author and Ivey Business School Professor Stephen Foerster, CFA, shares his perspectives on the CFA Program, his career, and the investment industry, and compares the unique challenges and opportunities today’s CFA and MBA candidates are facing to those of the 1990s. He also discusses his work on the forthcoming authorized biography of William (Bill) Sharpe, winner of the 1990 Nobel Memorial Prize in Economic Sciences.

Shifting focus to industry trends, notable evolutions in professional culture and lifestyle trends have changed the retirement model of yesteryear. The Analyst examines the rise of the financial independence, retire early (FIRE) movement and how it is inspiring people to achieve financial independence sooner. The FIRE movement offers people the flexibility to decide the trajectory and longevity of their career, whether that means early retirement, pausing for travel or personal growth sabbaticals, or seeking out passion projects and career moves that don’t have a deadline of age 65.

For others looking to harness the power of artificial intelligence (AI) to aid them in their career path, balance is the goal as we explore the expanding opportunities and challenges of job hunting in the age of AI. Our review of How Big Things Get Done: The Surprising Factors That Determine the Fate of Every Project, from Home Renovations to Space Exploration and Everything in Between by Bent Flyvbjerg and Dan Gardner delves into the roots of success and failure in projects. The book uses data and real-life examples of successes and failures to showcase the importance of thoughtfulness, leadership, and impactful execution.

We encourage you to read and share this issue’s guide to personal finance with those interested in learning more about CFA Society Toronto-led financial literacy initiatives. This piece serves as an excellent starting point for those new to budgeting, saving, and investing, and can be a valuable conversation starter with family and friends, particularly among post-secondary students, young adults, and newcomers to Canada.

This autumn, we hope you’ve found a crisp and fulfilling issue that you can sink your teeth into.

Lead onwards and upward!

Warm regards,

Follow us on social media

Sara Maginn Pacella

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Board chair message | Brian Madden, CFA This marks my final message as Chair of the Board, as my term comes to a close at the upcoming Annual General Meeting on November 12.

Our incoming Chair, Heather Cooke, is an absolute dynamo—blessed with wisdom, vast domain knowledge of our profession, warmth, emotional intelligence, and a relentless spirit of volunteerism and service. She will be a fabulous Chair, leading with vision and integrity in building on what our current board and our predecessors, upon whose shoulders we stand, have helped build.

The Analyst is published quarterly by CFA Society Toronto 120 Adelaide Street West, Suite 2205 Toronto, Ontario M5H 1T1 Telephone: 416.366.5755 Website: www.cfatoronto.ca General questions: info@cfatoronto.ca Management Office Chief Executive Officer Fred Pinto, CFA Director, Member Events & Experiences Jenny Yeo Director, Operations Valerie Weddell

Reflecting upon my time as Chair, I’m most proud of the validation our Society has received for success in upholding our mission. In my inaugural Chair’s Message, I said I’d like to look back on my term and see our members strongly identifying with our Society as a professional support system and a vibrant peer-to-peer community, rather than just an association that collects dues. Space constrains me from recounting all the truly touching anecdotes you’ve shared with me that attest to this. These range from newcomers to Canada finding “their people” and rebooting their careers in Toronto, to mid-career professionals leveraging the Society network for support in career transitions, to new and aspiring charterholders seeking professional guidance from more experienced members. Data are the plural of anecdotes, though, and I am pleased to share that our 2025 membership survey reveals that 7 out of 10 of you are “satisfied” or “very satisfied” with your membership—a marked improvement from prior surveys. By way of external validation, in 2024, CFA Institute recognized CFA Society Toronto, among just five other Societies of the 160 globally, as an “Outstanding Society Award Winner.”

Already the world’s largest Society, over the past two years, we’ve grown in membership and, more importantly, in impact—with members, candidates, universities, large employers, other professional associations, and regulators, both on a standalone basis and amplified in partnership with CFA Societies Canada and CFA Institute. We have strengthened our governance and broadened the expertise and collective skills of our board purposefully through the recruitment of new directors. Our Society is more resilient than ever as a result.

Many of you have asked: “Why do you volunteer with the Society?” My answer is twofold: 1. T he work is its own reward. I have a tremendous amount of appreciation for this organization, which has been instrumental to my career journey in different ways over nearly three decades.

2. The work is symbiotic to my professional role. Working inside the boardroom, overseeing strategy, governance, and leadership as a director affords me a better perspective on evaluating strategy, governance, and leadership from the outside, which I am certain has made me a better investor.

It has been my great privilege and pleasure to serve in this capacity, and I look forward to many more years of continued success for the Society and for all of us, as members.

Warm regards,

Brian Madden, CFA, CFP CIO, First Avenue Investment Counsel Inc. Chair, Board of Directors CFA Society Toronto

Director, Marketing & Communications Kenny Chan Senior Manager, Education & Events Meredith Lowry Senior Manager, Education & Events Mary-Margaret Courtney IT Manager Alexandra Pegg Volunteer Relations Manager Leslie Venturino Senior Manager, Corporate Relations & Business Development Aaron Ly Manager, Leadership & Board Governance Calandra Muller Marketing & Communications Manager Jessi-Lyna Wan Manager, Next Gen Program Nyssa Lawson Office Administration Associate Tania Lewis Senior Associate, Education & Events Breanne Cheeseman Associate, Marketing & Outreach Sabina Cichy

Volunteers Chair, The Analyst, Editorial Committee, Joanna Wolff, CFA Editorial committee members Alan Cody Sanaz Fotoohi Angha Gupta Ben Jekiv Winfred Lam, CFA Rossa O'Reilly Attika Raj Thomas Shen Writers Lauretta Chame, CFA Sebastian Davies, CFA Angela Gupta, CFA Ed Ho, CFA Lauren Huneault Rossa O’Reilly, CFA Ian Schnoor, CFA Sabnam Sorkhi, CFA

Editor Sara Maginn Pacella

Art director Janet Sangalang

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

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From the desk of the CEO | Fred Pinto, CFA, ICD.D Advertisers’ Index

Investing in the Leaders of Tomorrow Leadership is more than technical skill or professional recognition.

It is about vision, responsibility, and the willingness to help others succeed. As we explore this Fall issue’s theme of leadership, I am reminded that our community thrives because each generation of leaders has been willing to invest in the next, sharing knowledge, opening doors, and ensuring that high standards of integrity and excellence endure.

RBC GAM................................. 26 & 27

That is why I am proud to share details about one of CFA Society Toronto’s strategic initiatives: the Next Gen Program. Rooted in our 2025–2027 Strategic Plan, this program is designed to inspire and foster future CFA charterholders by connecting students and early-career professionals with the people, insights, and networks that define the CFA Society Toronto community.

The Next Gen Program will roll out over the coming year, under the guidance of our new Next Gen Steering Committee and supported by the work of the Secondary School Relations, University Relations, and Candidate Relations Committees. Programming will include outreach presentations to students and faculty, career discovery events in finance and investment, student mentoring programs, and CFA Program study groups. It will introduce young professionals to the breadth of roles available in our dynamic industry while highlighting the unique value of the CFA charter. This initiative is extremely timely and relevant, as traditional roles evolve into emerging ones, sometimes in adjacent industries with rapid advances in technology.

Opinions expressed in The Analyst do not necessarily represent those of the authors’ firms of employment or of CFA Society Toronto and do not constitute a solicitation for the purchase or sale of any financial instruments. Information herein is obtained from various sources and is not guaranteed for accuracy or completeness. The authors’ firms and CFA Society Toronto therefore disclaim any liability arising from the use of information in this publication. The information provided herein is intended only as general information that may or may not reflect the most current developments. The mention of particular companies or individuals does not represent an endorsement by CFA Society Toronto. Although professionals may prepare these materials or be quoted in them, this information should not be used as a substitute for professional services. If legal or other professional advice is required, the services of a professional should be sought.

Programs like this can only succeed because of you, our members. The most powerful way we can inspire the next generation is by sharing our own stories: our challenges, lessons learned, and successes. We are looking for volunteers—particularly recent CFA charterholders—who are willing to speak at student events, share their experiences through online success stories, and serve as mentors for those just starting their journey. If you are interested in making this kind of impact, I encourage you to visit our Volunteer Page to express your interest.

This initiative is more than outreach; it is about building lasting bridges across generations of professionals. Each of us can remember the people who helped guide, inspire, and support us early in our careers. Their encouragement made a lasting difference. Now it is our turn to do the same.

Our strategic North Star is to enhance and expand our diverse community, promoting an ethical, dynamic, and vibrant investment and financial services industry. The Next Gen Program helps bring that vision to life. By investing in young professionals today, we nurture our community of tomorrow.

Warm regards,

Fred Pinto, CFA, ICD.D CEO, CFA Society Toronto

Welcome new members and CFA charterholders CFA Society Toronto would like to welcome and congratulate all new members and CFA charterholders. See page 34 to see full list of new members.

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

The Essentials of Becoming an Angel Investor

By Lauretta Chame, CFA

Risk, vision, and passion are all hallmarks of angel investors. More than capital, they bring experience, grit, and a strong sense of purpose to the startups they support. This article sheds light on the essentials of becoming an angel investor.

Angel investors: the first believers Angel investors are accredited investors who make direct investments in early-stage companies in exchange for equity, debt, or other ownership terms. They are influential stakeholders because: 1

1. Angel investors fund startups at the riskiest stage: after friends and family, and before venture capitalists. Angel investors bridge the “valley of death,”2 a critical phase of the J-curve where many startups run out of funding.

2. Second, they bring their own experience and commit their time to help the company navigate early-stage and expansion growth phases.

To guide founders, Mark Lawrence, CFA, MBA, P.Eng., Executive Chair of Angel Investors Ontario, draws on his engineering and finance background, leveraging skills such as mastery of new technologies, critical thinking, problem-solving, and crafting clear narratives.

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Sandy Robertson, founder of the Georgian Angel Network and an avid cyclist, applies persistence to both sports and angel investing.

“Cycling gets harder on uphill climbs. I focus on the next pedal stroke and keep climbing. I persist,” he says. Angel investors embody the traits of trailblazers: exceptional risk tolerance, vision, resilience, and discipline.

Angel investors embody the traits of trailblazers: exceptional risk tolerance, vision, resilience, and discipline.

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LEADERSHIP IN FINANCE: TITANS & TRAILBLAZERS

FIGURE 1

J-curve (in Millions USD)

NET INCOME

$20 $15 $10 $5 Valley of Death

$0 ($5) ($10)

J-curve

SEED

START-UP

EARLY-STAGE

EXPANSION

LATER STAGE

0

-3

-5

1

15

Source: Adapted from: Townsend, David M., and Lowell W. Busenitz. "Resource Complementarities, Trade-offs, and Undercapitalization in Technology-Based Ventures: An Empirical Analysis (Summary)." Frontiers of Entrepreneurship Research, vol. 29, no. 1, issue 5 (2009). https://papers.ssrn.com/sol3/Delivery. cfm?abstractid=1420903

Why become an angel investor?

Finally, when strategically navigated, angel investing offers portfolio diversification and exceptional returns, with a historical average internal rate of return (IRR) of 27 percent.3

While financial returns can be compelling, angels are primarily motivated by impact, engagement, and intellectual curiosity.

First, angel investors take pride in contributing to the country’s economic prosperity. Supporting startups fuels innovation, job creation, and long-term economic growth.

How to become an angel investor?

Several ecosystems facilitate access to early-stage investment opportunities:

Second, mentorship is a powerful way to give back to the community.

Lawrence finds the greatest satisfaction in working with coachable founders willing to build a team with individuals smarter than themselves, and in witnessing their startups grow.

• Angel groups bring together accredited investors who pool capital and expertise to invest in early-stage companies.

A screening committee usually reviews startup applications, ensuring only the most promising opportunities reach members. Thus, investors can save time, network, and learn.

Third, it offers exposure to emerging innovations, alongside the opportunity to collaborate with peers and access investment opportunities.

• Accelerators are selective programs that provide startups with intensive mentorship and operational support. Alumni of these programs tend to be more fundable.

• Incubators are programs that provide nascent startups with mentorship, connections, and resources to support their early development.

Supporting startups fuels innovation, job creation, and long-term economic growth.

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• Other channels: University entrepreneurial programs, startup conferences, online funding platforms, personal, or professional networks can offer opportunities to connect with startups.

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Risks and challenges Financial risk

This approach can mitigate risk and support startups through key milestones, aligning investment timing with company growth.

Angel investing carries a high risk of capital loss. According to National Angel Capital Organization (NACO) Canada, just one in ten investments generates 90 percent of total return. Robertson explains: “Out of ten companies, one succeeds, seven fail, and two become zombies.”4

Power of due diligence

Despite these odds, risks can be mitigated by investing in sectors where you have domain expertise, joining angel groups, and constructing a well-diversified portfolio.

Due diligence starts with the founder. Angel investors are, above all, investing in that person. They seek a unique combination of character traits, operational competence, and domain knowledge.

Illiquidity and dilution risks

For Lawrence, coachability is undoubtedly the most important quality of a founder. He says, “Surround yourself with people more intelligent than you.” Robertson echoes this sentiment: “Founders need to know what they don’t know.” Lawrence, who reviews nearly 300 founders’ presentations monthly in the initial funnel, adds that he ensures the founder is continuously up to date on their market.

Angel investments typically take several years to yield returns or exit.

Investors must therefore adopt a long-term horizon. Additionally, future funding rounds often lead to dilution, reducing both ownership and influence. Reserving capital for follow-on rounds helps mitigate this risk.

NACO reports that angel investors who spend 20 hours on due diligence achieve an average return on investment (ROI) of 2.6x, while those spending 40 to 60 hours reach nearly 5.9x. This highlights the importance of a thorough evaluation.

Human dynamics With trust and relationships at the heart of angel investing, emotional intelligence is paramount. Robertson puts it clearly, “If I don’t like you as a human being, I will not invest in your company, regardless of your intelligence or your product.” For Lawrence, the most challenging situations involve founders unwilling to step aside when they are no longer the best fit. “Success can be achieved by the whole team, not just the CEO,” says Lawrence.

Facilitation Before seeking deal flows, angel investors should adopt resilience, patience, and discipline as guiding principles. Robertson says to new investors, “You need to be willing to lose all your money and not see it as failure, but as a lesson.” Lawrence adds, “Take your time to do thorough due diligence before investing. Listen to people with sector expertise, but educate yourself; don’t blindly follow others.”

Portfolio construction

It is also critical to assess the team: Do members share a common vision? Do they collectively bring the right mix of skills, experience, and qualifications to succeed? Is communication consistent across the team? Is there mutual trust?

Other due diligence areas such as governance, financials, product or service, and legal structure require close attention. These are summarized Figure 2.

Post-investment and exit Most effective investors stay engaged with the founder through the three W’s: Wealth (follow-on capital), Work (hands-on support and connections), and Wisdom (guidance).

Lastly, founders should articulate a realistic exit strategy, whether through acquisition or initial public offering (IPO), with an indicative timeline and valuation targets, to manage investors’ expectations.

A thoughtful allocation strategy is essential from the start. Given its high-risk nature, angel investing should represent at most 10 to 15 percent of your total portfolio, according to NACO.

Diversification matters Investing in at least 20 companies is a common practice to benefit from the “law of large numbers.” However, it is not enough; spreading investments across different maturity stages is also crucial to mitigate risk. Early-stage startups offer high return potential but carry higher failure risks, so including later-stage private companies helps balance overall portfolio risk.

Staged investment Lawrence advises, “When you see a good opportunity, divide your allocated funds into three parts: for today, in a year, and in two years.” ©

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

When strategically navigated, angel investing offers portfolio diversification and exceptional returns, with a historical average internal rate of return (IRR) of 27 percent.3 7

LEADERSHIP IN FINANCE: TITANS & TRAILBLAZERS

Most effective investors stay engaged with the founder through the three W’s: Wealth (followon capital), Work (hands-on support and connections), and Wisdom (guidance).

Real world cases Case 1: Niche asset - Turning music into income Music Royalties Inc. (Toronto) buys song rights to generate stable, growing income streams for investors. In 2018, Lawrence acquired 300,000 shares at CA$0.15 per share; by 2025, the share value has more than tripled, with a current 7.2 percent dividend yield. See Figure 3.

the US, Japan, and Australia. The reason for this international success? “It wasn’t just the product,” Robertson says, “it was their personalities.”

Case 3: Success with social impact Virtual Gurus (Calgary) provides virtual assistant services by connecting businesses with skilled remote professionals from underrepresented communities.

Lawrence invested in 2020 at an early stage.

Since then, the company has raised four funding rounds including the participation of major venture capital (VC) firms like TELUS Pollinator Fund for Good.

Case 2: From students to founders Betting on character Years ago, Robertson backed the idea of three Canadian students. Today, their medical products company operates across

He says, “The founder was coachable, hardworking, and had a clear business plan.”

FIGURE 2

Due Diligence Areas

Key Elements to Review

Purpose

Corporate structure & Governance

Cap table, board composition, past financing terms, future funding strategy

Understand ownership, governance quality, and capital needs

Business model & Market

Business plan, revenue model, market data, sales strategy, customer references

Evaluate value proposition, market opportunity, and customer validation

Financial Review

Financial model, financial statements

Determine financial health and capital efficiency

Product or Service

Technology description, market research

Understand product differentiation, scalability, and market fit

Operations & Partnerships

Operational setup, business partners

Assess infrastructure and strength of strategic relationships

Legal & Regulatory

Intellectual property (IP), trademarks, compliance, litigation

Ensure legal protections and identify potential legal risks

Deal Terms & Exit Strategy

Valuation, term sheet, use of funds, exit planning

Align deal structure with investor expectations and return potential

Source: Created by author based on: Cohen, Brian and John Kador. What Every Angel Investor Wants You to Know: An Insider Reveals How to Get Smart Funding for Your Billion-Dollar Idea. McGraw Hill, 2013.

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

FIGURE 3

Detail

Information

Investment Date & Price

300,000 common shares acquired by Lawrence in 2018 at CA$0.15/share

Current Share Price

CA$0.50/share

Return on Investment

3.3x increase in share value

Dividend Yield

7.2 percent current dividend yield

Company Asset

Rights to over 7,000 songs

Revenue Source

Stable passive income via streaming royalties

Key Success Factor

• Copyright laws protect royalties for the artist’s life plus 70 years, ensuring long-term revenues.

• Growth of streaming services ensure new streaming revenues.

Furthermore, this was a case where readiness met opportunity: with a solid infrastructure in place, Virtual Gurus scaled rapidly during the COVID-19 pandemic, as demand for virtual assistants surged.

These cases reveal how thoughtful strategies and founders’ traits drive startup successes.

Conclusion With nearly two-thirds of Canada’s workforce employed by small and medium-sized enterprises (SMEs), angel investors are uniquely positioned to shape the country’s economic future. Yet, as Lawrence highlights, Canada’s angel investing ecosystem faces critical challenges.

Fewer startups are reaching the VC stage, limiting scale-up potential and

prompting founders to migrate to the US. Strengthening this ecosystem through better founder education; stronger collaboration with universities, incubators and accelerators; and supportive public policies beyond VC could reverse this trend and create a ripple effect: more startups, investors, and foreign capital. Moreover, with 20 percent of jobs at high risk due to artificial intelligence and automation, a more robust angel structure could redirect displaced skilled workers into entrepreneurship.

Finally, the retirement of baby boomers is lowering the average Canadian angel investor age from the 50s to the late 40s, a promising shift that also creates a growing need for capital and mentorship. This moment presents a unique opportunity for individuals

Angel investments typically take several years to yield returns or exit. Investors must therefore adopt a long-term horizon.

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

with the right mindset and resources to step into angel investing and actively contribute to Canada’s economic growth.

Lauretta Chame, CFA, is a volunteer with CFA Society Toronto’s Institutional Asset Management Committee.

In Canada, to qualify as an accredited investor, individuals must possess: (i) Alone or with a spouse, assets (excluding principal residence) exceeding CA$1 million (before taxes); or (ii) Net income (before taxes) exceeding CA$200,000 in each of the past two years or CA$300,000 jointly with a spouse.

2 The stage where entrepreneurs have exhausted initial fundings from relatives without having secured institutional investments yet.

3 Wiltbank, Robert, and Warren Boeker. Returns to Angel Investors in Groups. 2007. http://ssrn. com/abstract=1028592 4 A zombie startup operates without significant growth or success, without scaling or failing.

5 National Angel Capital Organization. 2024 Annual Report on Angel Investing in Canada.

2024. https://digital.builtbyangels.com/ link/345980/ 6 Future Skills Centre. Focus on Artificial Intelligence and Technological Disruption.

Accessed: August 28, 2025. https://fsc-ccf.ca/ engage/artificial-intelligence 1

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BOOK REVIEW

How Big Things Get Done: The Surprising Factors That Determine the Fate of Every Project, from Home Renovations to Space Exploration and Everything in Between

by Bent Flyvbjerg and Dan Gardner Ed Ho, CFA

The world of megaprojects Bent Flyvbjerg is the world’s most-cited expert on megaprojects and a statistical realist in a field too often fueled by vision over rigour.

In How Big Things Get Done, co-authored with journalist Dan Gardner, Flyvbjerg draws from a dataset of more than 16,000 projects across 136 countries to uncover the “Iron Law of Megaprojects”: a grim pattern of large-scale undertakings being over-budget, overdue, and underdelivered. The book offers a sobering critique of how big things often go wrong and a compelling playbook for getting them right.

Contrasts in project outcomes The book opens with a tale of California’s high-speed rail debacle, which is a visionary promise of ultra-fast transport that has become, as he dryly notes, a “bullet train to nowhere” with soaring costs and no completion in sight. In contrast, he showcases the understated success of Nepal’s schoolbuilding program, which delivered 20,000 earthquake-resilient classrooms on budget and ahead of schedule. Why do some projects spiral out of control while others quietly overdeliver?

things” ethos. The book’s structure reinforces this heuristic, moving from psychological pitfalls to operational principles with great illustrative case studies in between.

Lessons for finance and angel investing So, what does this have to do with finance and, more specifically, with the evolving world of entrepreneurial finance, the focus of this issue of The Analyst?

A lot.

The roots of success and failure

For those who evaluate early-stage ventures or infrastructure-scale investments, the book offers practical insights for underwriting not only financial return, but delivery feasibility.

The answer lies in cognitive bias, flawed planning models, and a lack of grounding in real-world data. The authors argue persuasively for a “think slow, act fast” model. In other words: deeply understand the problem and plan with precision before breaking ground. This Pixar-style planning contrasts with Silicon Valley’s “move fast and break

For angel investors, like any project manager, one must balance vision with execution. They are constantly evaluating which startups to back and, by extension, which founders have the operational discipline and mindset to deliver. Flyvbjerg’s work offers a toolkit for assessing not just product-market fit or financial runway, but executional probability.

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Investors looking to reduce their own exposure to “black swan” failures can apply these lessons in underwriting.

For example, the concept of reference class forecasting is introduced midway through the book. This method anchors planning in actual historical outcomes of similar projects, effectively benchmarking against past performance rather than relying on founder assumptions or blue-sky projections. For angels assessing startup business plans, this approach could replace speculative spreadsheets with empirical base rates. The book also explains why modularity—breaking big ideas into Lego-like components—is not only a design principle but a risk-management strategy. In startup ecosystems, where pivots are common, this becomes a competitive advantage.

Challenging popular narratives Flyvbjerg’s empirical lens challenges the myth of the visionary hero. Projects that succeed tend to do so not because of charismatic leaders or bold ideas, but because of disciplined planning, accurate budgeting, and transparent feedback loops. This runs counter to much of the popular narrative in venture capital, where storytelling can eclipse substance.

Insights from energy and infrastructure As someone who has focused on the intersection of finance and infrastructure—particularly in the nuclear energy and mining

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

The book reveals that project outcomes follow fat-tailed distributions, meaning most risks are underestimated, and when things go wrong, they can go catastrophically wrong.

sectors—I find Flyvbjerg’s conclusions painfully resonant. Canada’s nuclear sector is entering a new build era after decades of dormancy, and the global appetite for clean energy has revived interest in megaprojects like the Darlington small modular reactors and the refurbishment of aging assets.

Yet the historical track record of nuclear construction is sobering. Cost overruns, delays, and underperformance have plagued even the most well-intentioned programs, often with political consequences. The Iron Law of Megaprojects applies all too well. The same is true for mining projects, particularly in Canada’s North, which tend to be capitalintensive and jurisdictionally complex. These ventures often underestimate logistical and environmental risks.

Understanding and managing risk One particularly relevant lesson for earlystage investors is the idea of the “fat-tail” risk curve. The book reveals that project outcomes follow fat-tailed distributions, meaning most risks are underestimated,

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and when things go wrong, they can go catastrophically wrong. For angel investors deploying personal capital across a portfolio of high-risk ventures, recognizing and mitigating fat-tailed outcomes is essential.

It’s not enough to have a gut feeling or a “unicorn” instinct. Rigour matters.

In a time when capital is constrained and operational discipline is increasingly rare, How Big Things Get Done is an essential read. It teaches that good ideas are not enough. Execution is everything, and it’s not magic. It’s measurable, teachable, and even investable. Flyvbjerg and Gardner provide the missing manual for bridging the

Conclusion: A manual for executional realism

gap between vision and execution.

At its core, How Big Things Get Done is a call for executional realism: a mindset that combines data with humility. The book offers more than project management advice; it provides a framework through which to evaluate leadership, systems design, and operational scalability.

The tone occasionally veers toward the didactic; however, it’s balanced by a wealth of case studies that bring the lessons to life, including the Empire State Building’s rapid construction, Apple’s lightning-fast iPod development, Amazon’s Prime launch, and disaster projects like Scotland’s Parliament building. The examples are global, interdisciplinary, and deeply relevant.

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Ed Ho, CFA, MSc, is an energy consultant specializing in strategy, policy, and finance, focusing on the challenges and opportunities of the energy transition.

He is a candid storyteller with the goal of driving consensus through fact-based diplomacy.

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LEADERSHIP IN FINANCE: TITANS & TRAILBLAZERS

A “Brand New” Way to Stand Out from the Crowd Through Professional Brand Building

By Shabnam Sorkhi, CFA

We talk about brands as if they belong to companies. But what if the same forces that make a company’s products coveted, trusted, and admired also shape how you are seen in the boardroom?

This is not a guide to personal branding in the hashtag sense. It is something quieter and possibly more honest.

What if luxury brands and your professional brand are closer than you think?

You probably did not come here expecting to read about luxury brands. But stay with me. I promise this will be more tangible than it sounds. Do you desire luxury brands? The exclusive and exquisite ones, whether a designer handbag or a high-end car? If we are honest, most of us do. Humans are not known for shunning nice things.

People are drawn to luxury items because they signify something beyond their basic utility. They confer status, embody quality, and even promise an experience. Indeed, you might justify an extravagant purchase by praising its craftsmanship or longevity, perhaps telling yourself it is worth some fraction of the outrageous price, yet you go on to buy it anyway for the intangible allure it brings. Whether it is a couture accessory or a prestige car, much of the value we perceive comes from deliberate brand building that makes these names synonymous with excellence.

Let me pause here for a second. “Professional brand building” as a concept has been gaining mainstream traction lately, and if you are someone like me, a little skeptical by nature, you might have already raised an eyebrow at the buzzword in the title. But if you are still here, I'm with you. This was not an easy sell for me, either. It took time, and some honest observing, for it to feel less like empty jargon and more like something quietly true.

Whether we realize it or not, most of us are already projecting a brand. As Violeta Rangel, fintech executive and career coach, put it: “You already have a personal brand, whether you have been intentional about it or not. And if you have not, it is worth taking a hard look, because you might not like what you find.” What we call professional brand building is, in many ways, just a quiet guide to becoming the luxury version of yourself. The same forces that shape how we perceive a Chanel piece, or a Porsche are quietly at play in every room you walk into. And if we are all goods in motion, then our best bet is to be the kind that commands attention, trust, and a premium.

The four pillars of luxury brands So, what are those forces? At the heart of most luxury brands, four things tend to show up: exceptional quality, unmistakable visual identity, a sense of scarcity, and a story. First, the product itself is often obsessively crafted; that is, flawless stitching, durable materials, and mechanisms that do not falter. Second, there is a look and feel that has been so consistently repeated it becomes instantly recognizable; whether bold or understated, it is never random. Third, exclusivity is built in by design. Pricing, availability, and context all quietly signal: not everyone gets this. And finally, there is always a story, of heritage, artistry, or vision that gives the brand depth and emotional weight. These elements come together to create more than a product, they create perception. And perception, in both markets and careers, is everything.

Here’s the angle that finally made sense: some intellectuals, have successfully argued that the companies and institutions in which we strive to succeed have a soul of their own.

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Here’s the angle that finally made sense: some intellectuals1, 2have successfully argued that the companies and institutions in which we strive to succeed have a soul of their own. And like any of us, that soul responds to beauty, status, story, and presentation, often irrationally so. That is where I began to see it differently. As uncomfortable as this might sound, you, the professional, are not all that different from a good. You are a walking offering of value: your work, your choices, your presence, your story. Calling you “a good” is not dehumanizing. It is honest.

So, how does this all translate into the world of careers and credibility?

The same four elements have equivalents in professional life. They show up in meetings, resumes, emails, and elevator rides. Where luxury brands deliver excellence through materials, precise construction, and refined engineering, the professional equivalent is the depth and reliability of your work. It is your ability to bring clarity to a complex deal, catch details others have missed, or deliver consistently

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

when the stakes are high. That is your craftsmanship, and it is the first layer of your brand.

Then comes presentation. Iconic brands are instantly recognizable through aesthetic choices and signature style. Think of Chanel’s monochrome palette or Porsche’s silhouette. In the professional world, this translates to executive presence, your version of visual identity: how you dress, speak, listen, hold a room. It is the tone in your emails, your posture in a meeting, or the quiet confidence you bring when you contribute to a tough discussion. These signals, subtle but powerful, frame how seriously people take you even before they assess your actual work. If visual distinction gives luxury brands their edge, executive presence does the same for professionals.

And finally, perception is not just shaped by what you do or how you show up. It is shaped by what people believe about you, and that comes down to scarcity and story. Scarcity is the unique value you bring that others cannot easily replicate or access. It is what makes your presence or contribution feel rare, not because you are unavailable, but because you bring something meaningfully differentiated. It may be a way of thinking, a domain of expertise, or a particular finesse.

Story is what roots you; that is, your background, your values, your track record. Luxury brands remind you of their heritage constantly.

Professionals do the same by showing consistency over time. If people know what you stand for, what you are known for, and why you matter, you have begun to create not just a brand, but a kind of professional legacy.

When done well, professional brand building is not about curating an image or polishing a surface. It is about living your brand with integrity: through how you work, how you lead, and how you show up even when nobody is watching. or polishing a surface. It is about living your brand with integrity: through how you work, how you lead, and how you show up even when nobody is watching.

Even the most thoughtful brand can get lost in the crowd. But by the time the four pillars described above are firmly in place, you have likely already cut through most of the noise. The risk of being overlooked drops sharply. Still, markets and careers tend to reward what stays in sight. Excellence draws attention, but sustained visibility secures opportunity. And while you cannot buy visibility, not in the way commercial brands purchase advertising, you still need to find a way to earn it. How you do that is a conversation for another time.

Living your brand As Jason Parker, CFA, Vice President and Portfolio Manager, iA Global Asset Management put it, “My brand is a reflection of every component of me. There is that consistency, that genuineness, to it as well.” This line captures something essential: a professional brand is not something separate from who you are. It is the throughline. It is the quiet coherence between what you say, what you do, and what people experience in your presence. When done well, professional brand building is not about curating an image ©

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Shabnam Sorkhi, CFA, PhD, is a trader, financier, strategist, and fashionista. She has over a decade of experience in finance, spanning management consulting, corporate treasury, and capital markets. Shabnam has worked across the investment value chain, from advising major global bank clients to equity trading on the sell side.

1

Scott, W. Richard. Institutions and Organizations: Ideas, Interests, and Identities. 4th ed. Sage Publications, 2013.

2

eick, Karl E. Sensemaking in Organizations. Sage W Publications, 1995.

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FINANCIAL MODELING

Why Aspiring Leaders Should Learn to Build Financial Models

By Ian Schnoor, CFA, CFM, Executive Director, Financial Modeling Institute

While financial models have become the most important decision-making tools in all areas of finance, the need for strong modeling skills is critical for another reason: Financial modeling is key to fostering critical thinking and promoting leadership development.

In a fast-paced, data-driven business world, leadership is defined by more than strategic vision. It is marked by the ability to analyze complex information and guide teams with clarity and confidence.

Consider this: A three-statement financial model, integrating the income statement, balance sheet, and cash flow statement, is not just a technical exercise. It is a framework for telling the story of a company: where it has been, where it is today, and where it could go. When you can build and understand a company’s financial model, you become the author of that story. As a result, you become the one to whom others

turn for insight, guidance, and leadership.

Recognizing the importance of these capabilities, CFA Institute introduced Practical Skills Modules (PSM) to the CFA Program.

One of the first modules to launch was the Financial Modeling PSM, due to the wide array of roles that rely on financial models to inform business decisions.

So, let’s explore the power of developing financial modeling skills.

Financial modeling: A communication tool for leaders The model as the company’s narrative

A well-built financial model is more than rows of numbers and formulas. It tells the story of a company’s operations, financial health, and strategic potential.

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A well-built financial model is more than rows of numbers and formulas. It tells the story of a company’s operations, financial health, and strategic potential. It connects data points into a coherent narrative that everyone, from executives and board members to investors and lenders, can understand and act on.

By piecing together these elements, the modeler crafts the company’s financial story.

And in doing so, that individual becomes the person colleagues, decision-makers, and external stakeholders rely on for understanding and insight.

Model design as a communication strategy Have you ever worked with a financial model that someone else built? Did you open the file and wonder what the heck was going on?

This happens to all of us. And it’s not your fault. This is because the model was not designed well.

A good modeler may spend as much time planning and designing the financial model as building it. Why? The way a model is designed plays a role in how effectively it communicates the company’s story. Think of a financial model as a financial presentation. When a model resembles a PowerPoint deck, with a cover page, executive summary, assumptions, and scenarios, the reader can easily follow the story. When the reader—likely your boss or your client, or a prospective lender or investor—can follow the story, they feel confident about your work. With a well-designed model in hand, you can communicate outputs and recommendations with poise, confidence, and assurance.

From data to strategy

• Where are the risks and opportunities?

Building a financial model is an exercise in strategic communication. It challenges you to take complex, sometimes messy data, and present it in a way that informs and persuades. A model helps stakeholders evaluate trade-offs, explore scenarios, and make decisions with confidence.

• How do operational decisions translate into financial outcomes?

When you learn how to model, you aren’t just developing great technical skills—

The person who builds the model gains a deep understanding of the business and can answer questions like: • What are the key drivers of performance?

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

you become a storyteller. You can use a model to:

For example:

• Frame strategic discussions

• What happens if market demand softens?

• Highlight key assumptions and sensitivities

• How would a shift in interest rates affect cash flow?

• Demonstrate the implications of different decisions

• What are the implications of delaying a major capital investment?

In short, you can turn data into a narrative that will shape the future of a business or opportunity.

Building leadership through modeling

By engaging in this type of planning, modelers hone their critical thinking skills. They learn to challenge assumptions, identify leverage points, and build out best- and worst-case scenarios.

Precision, discipline, and structure Just as strong leaders must process competing priorities, strong modelers must design frameworks that are precise, logical, and purposeful. Each formula and link are decisions that reinforce sound judgment.

Modeling demands attention to detail, thoughtfulness, and a disciplined approach— qualities that are required in leadership roles. A model that follows best practices becomes a shared tool to be used towards a common goal within a team or organization.

Scenario planning and critical thinking Leadership requires flexibility and the ability to think ahead. At its core, a financial model is simply a forecast—a tool to consider what might happen. ©

Performing research and collecting information Modeling fosters research skills and management skills. When building a model, you will need to collect information from your teammates and your client. You will develop your interview skills to gather the data you need. You will coordinate the efforts of all the contributing professionals.

You will probably also want to read research reports and news articles. In short, the process of preparing to build your model is going to make you very smart about that company. Again, this means your peers and clients will look to you to understand the model and your assumptions. When you can build a good model, you develop a holistic view of the company and understand how decisions in one area will impact others.

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

CFA Institute’s Commitment to Practical Skills Development Initially designed to provide CFA candidates with practical, job-ready skills, the Practical Skills Modules (PSM) have been extended to CFA charterholders as part of CFA Institute's continuing education offerings.

The Financial Modeling PSM underscores the growing importance of applied, hand-on skills for aspiring leaders. In the Financial Modeling PSM, you will learn: • Financial modeling best practices and optimal model design and flow • How to build schedules, including revenues, costs, fixed assets, taxes, working capital, debt, and equity • How to improve your Excel skills by building a working, presentationready financial model This initiative from CFA Institute aims to help finance professionals stay current with industry trends and resources.

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FINANCIAL MODELING

In any organization, or any team, when you are the person who can interpret and present the data in a clear and compelling way, others will feel confident in your work and look to you for expertise.

Financial Modeling Institute and CFA Society Toronto: Supporting leadership development

class three-statement financial model of a company in under four hours.

Financial Modeling Institute (FMI) is proud to partner with CFA Society Toronto to further its mission of providing career development resources for its members by offering members the opportunity to sit FMI’s Advanced Financial Modeler (AFM) accreditation exam.

Why the modeler becomes the leader

The AFM Program prepares professionals to lead in sectors that include portfolio management, investment banking, corporate finance, private equity, equity research, financial planning and analysis, public accounting, valuation, strategy, and consulting.

Candidates who pass the AFM exam have demonstrated their ability to build a world-

When early-stage professionals develop excellent financial modeling skills, they position themselves for career growth as leaders who can guide their teams toward informed, confident decisions.

Conclusion Leadership in today’s business environment demands clarity, discipline, and sound judgment. Building a three-statement financial model develops these attributes by integrating technical skills with strategic thinking and effective communication.

CFA Institute’s inclusion of financial modeling in its Practical Skills Modules and Financial Modeling Institute’s partnership with CFA Society Toronto reflect the essential role of modeling in leadership development.

Financial modeling is not just a technical skill.

It is the language of business storytelling and an essential capability for anyone who

In any organization, or any team, when you are the person who can interpret and present aspires to lead with confidence and impact. the data in a clear and compelling way, others will feel confident in your work and look to you for expertise. You become integral to discussions about strategy, risk, and opportunity. You are the one who: • Understands the business at a granular level • Anticipates challenges and opportunities • Communicates insights clearly to diverse stakeholders

Ian Schnoor, CFA, CFM is Executive Director at the financial modeling institute

About FMI Financial Modeling Institute (FMI) promotes awareness, excellence, and discipline in financial modeling through rigorous accreditation programs and thought leadership.

The Advanced Financial Modeler (AFM) Program is FMI’s flagship accreditation. Developed by the world’s best financial modelers, the AFM Program guides candidates on how to build a world-class financial model. The exam requires candidates to build a three-statement financial model of a company from scratch under pressure, making the AFM the only accreditation that proves financial modeling skills.

To learn more about how CFA Society Toronto members can register for the AFM Program, click here.

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

CHARTERHOLDER PROFILE

Through the Trees: Exploring the Career of Finance Professor and Author Stephen Foerster, CFA, PhD

By Rossa O’Reilly, CFA

Stephen Foerster is a tenured and award-winning Professor of Finance, Ivey Business School at Western University.

Foerster has four children and lives in London, Ontario.

He enjoys golfing and hiking, which, he says, both often involve a walk in the woods. Metaphorically, we had the opportunity to take a thoughtful walk in the woods to explore his perspectives on the CFA Program, the investment profession, and today’s environment for investors.

As a successful academic, what encouraged you to earn a CFA designation in the 1990s?

When I taught investment courses to our business undergraduate and MBA students decades ago, I would encourage anyone who was contemplating a career in finance or investments to obtain the CFA designation because it was, and continues to be, the gold standard certification for the profession. After a while, I thought that if my advice was to be truly impactful, then I should obtain the designation myself.

I had recently obtained tenure, and so with a bit less pressure, I felt I could devote the time to preparing for the exams. I also felt it would help me in my interactions with industry professionals through executive training and consulting.

What features of the CFA Program attracted you?

The greatest feature is the opportunity to drill down into a particular area, such as portfolio management, to understand the

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nuances. I often had undergraduate students ask whether they should pursue an MBA degree or the CFA designation, and I would answer, “Both.” I would get them to visualize a “T”, and I would describe the typical MBA program as the horizontal top of the T, with the breadth of subjects and courses. I would describe the CFA Program as the vertical part of the T, with the depth of coverage in areas such as equities, fixed income, derivates, and risk management.

I also like the discipline that is required to pass each level, and how it isn’t a given that you’ll be successful the first time, which adds to the sense of accomplishment when you are awarded the charter. I distinctly remember one Saturday afternoon in June 1995 on the University of Toronto campus where I was completing the Level I exam in a large auditorium with row upon row of desks. These were the days when the Level I exam was only offered once a year. The proctor announced, “Five minutes to go.”

I heard a discouraged candidate to the right of me mutter under his breath, “You mean one year and five minutes!”

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Stephen Foerster, CFA, PhD Career Highlights • Professor of Finance, Ivey Business School at Western University, since 1987 • Recipient of Ivey’s Teaching Innovation Award and the Carol Stephenson Excellence in Executive MBA Teaching Award • Award-winning author • Lecturer, Wharton School, University of Pennsylvania • PhD and MA, Wharton School, University of Pennsylvania, and BA (Honours Business Administration), Western University • CFA charterholder • Founding co-director, Ivey’s Women in Asset Management program

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CHARTERHOLDER PROFILE

 FUN FACTS: Describe yourself in three words?

Detail-oriented, humourous, thoughtful.

What is your favourite motto or quote?

Diversify, diversify, diversify!

What is your favourite movie?

Stanley Kubrick’s Dr. Strangelove or: How I Learned to Stop Worrying and Love the Bomb. (Peter Sellers masterfully plays three different characters.)

What is the last non-financial book you read and enjoyed?

The Measure by Nikki Erlick.

I believe in investing with a long horizon and in the importance of recognizing and trying to overcome our behavioural biases and emotions.

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Has the CFA charter helped you in your career?

The Journal of Financial and Quantitative Analysis.

It has helped me in several ways. It helped me round out my knowledge base in topics that were less familiar to me. It gave me a better perspective as to why certain topics were important to practitioners and how financial tools are used in practice. As an academic, it gave me instant credibility with those in the investment community. And it allowed me to tap into that new community through my local chapter.

But the biggest reward for me is to watch former students succeed in their careers— perhaps in spite of what they learned in my class. To give a few examples, Fred Pinto is CEO of CFA Toronto Society; Aaron Bennett, CIO of University Pension Plan Ontario, was recently named one of Canada’s Best Executives by the Globe and Mail; and Nicole Musicco was formerly the CIO at CalPERS.

What advice would you give to people pursuing or considering pursuing the designation?

I would recommend getting started as soon as you can. If you are a student, you are already in study mode, and so I would highly recommend writing the Level I exam late in your program. It will also send a strong signal to potential employers that you are serious about developing a career in the industry. I would recommend carving out regular study time well in advance of the exam rather than trying to cram. I was fortunate to pass each exam on my first try, but I know many successful professionals for whom that wasn’t the case, so don’t be discouraged by any setbacks.

What have been some of the major challenges and achievements in your career?

My biggest career challenge was getting tenure, as I was a somewhat late bloomer in terms of getting academic publications.

Obtaining the CFA designation was also a major achievement. I’ve been fortunate to receive research and teaching awards throughout my career, including the Hillsdale Investment Management, CFA Society Toronto Research Award, and the William F. Sharpe Award for Scholarship in Financial Research for a paper that I coauthored in

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How do the career objectives of today’s generation of CFA and MBA candidates compare to those of the 1990s?

What’s common is that finance and investment careers remain as popular as they did decades ago. But today, there are many more exciting career paths, including private markets and private wealth. Competition for jobs remains fierce and so anything applicants can do to try to distinguish themselves might tip the scale. That’s where the CFA designation can be a major asset.

What are your most valued sources of insights and investment ideas?

A common theme in my most recent two books is the importance of developing your own investment philosophy. You must have a view and a conviction behind that view.

For example, you should have an evidencebased view on whether you think markets are efficient or not and invest accordingly through either passive or active management. I had the great fortune of spending some time with Harry Markowitz, whose seminal 1952 article, “Portfolio Selection” in the Journal of Finance, articulated that there’s only one free lunch in investing, and that’s diversification. I believe in investing with a long horizon and in the importance of recognizing and trying to overcome our behavioural biases and emotions.

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

We understand you are you working on another book; can you tell us about the new project?

I’m excited and honoured to be writing William (Bill) Sharpe’s authorized biography.

He was awarded the 1990 Nobel Memorial Prize in Economic Sciences along with Markowitz and Merton Miller. I’m sure every business school student is aware of Bill’s capital asset pricing model, beta, and the Sharpe ratio, but a lot of his major achievements are less wellknown. Bill developed style analysis and the binomial approach to option pricing. Bill likes to think of himself as a “practical theorist,” as he had a successful foot in both academia and practice. Bill cofounded Financial Engines, one of the very first robo-advisors that eventually became a multi-billion-dollar Nasdaq-listed firm.

Bill’s contributions go even further. In 1959, while at the RAND Corporation, he coauthored one of the first papers that described a carbon tax to fight the persistent smog in the Los Angeles Basin. In 1967, he wrote one of the first books on the computer programming language BASIC. Perhaps, as he has claimed, his most impactful paper is a short piece written in 1991 in the Financial Analysts Journal titled “The Arithmetic of Active Management.” It focuses on the importance of fees to investment performance, and the paper is still hotly debated today.

The book I’m writing is also about the times in which Bill has lived. It traces the evolution of the investment industry over much of the past century. Two major trends associated with Bill are quantitative investing and the evolution of index funds. Bill’s 1961 PhD dissertation may have been the first one in finance to include Fortran code. And of course, the implications of Bill’s capital asset pricing model suggest that individuals should invest in “the market” portfolio, which is the primary motivation for the trillions of dollars that continue to pour into index funds. I’m hoping to complete this

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If you are a student, you are already in study mode, and so I would highly recommend writing the Level I exam late in your program. It will also send a strong signal to potential employers that you are serious about developing a career in the industry.

project in late 2026. If you have any great stories about Bill, or know anyone who does, please reach out to me.

About Stephen Foerster, CFA, PhD Foerster is also the award-winning author of Trailblazers, Heroes, and Crooks: Stories to Make You a Smarter Investor; In Pursuit of the Perfect Portfolio: The Stories, Voices, and Key Insights of the Pioneers Who Shaped the Way We Invest (with Andrew Lo); and a number of textbooks including Fundamentals of Finance: Concepts and Applications (with Felipe Restrepo); Financial Management: Concepts and Applications; and Financial Management: A Primer. He writes regularly for his blog, The Perfect Portfolio Investing Blog, on medium.com.

Foerster has written over 100 cases and technical notes in the areas of investments and financial management. He has over 50 publications including empirical studies in leading academic journals such as the Journal of Financial Economics, the Journal of Finance, the Journal of Financial and Quantitative Analysis, as well as practitioner-oriented publications such as Financial

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Analysts Journal. He has also co-authored Cases in Financial Management and is editor of Finance and Money Market Cases.

He has been a consultant, expert witness, and designer and facilitator of executive training courses in portfolio management, finance for non-financial executives, valuebased management, risk management, and other investment areas. He’s a member of the Advisory Board of Financial Economics Network’s Courses, Cases and Teaching Abstracts Journal and a former member of the Editorial Board of Financial Analysts Journal and Pacific-Basin Finance Journal.

He’s currently a member of Western University’s joint pension board, was formerly a Director and Chair of the Investment Committee of Foundation Western (Western’s alumni endowment fund) and was on the Advisory Board of Tremont Capital Opportunity Trust.

Rossa O’Reilly, CFA, is a Past Chair of CFA Institute, Past President of CFA Society Toronto, and former Managing Director of Institutional Equities at CIBC World Markets Inc.

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INVESTING

Rethinking Retirement: How FIRE Is Changing Financial Planning Kevin Zhao, CFA, CPA

Traditionally, retirement followed a predictable path: stopping work at the age of 65 and transitioning to a life of full-time leisure. Post-retirement income would typically be taken care of through a defined-benefit (DB) pension plan set up by your employer, which you spent your whole life working toward.

Rise of the FIRE Movement

However, for many Canadians today, that scenario is becoming the exception rather than the norm. According to the Office of the Superintendent of Financial Institutions (OSFI), the proportion of Canadians’ active Registered Pension Plans (RPP) in DB plans has declined from 90 percent in 1989 to 67 percent in 2019. 1Looking at just private-sector employees, the reduction has been more significant, from 85 to 39 percent in the same period. Employers still offering DB plans today are mostly found in the public sector, and even then, retirement income may not be sufficient for a comfortable retirement.

The Financial Independence, Retire Early (FIRE) movement is the idea of starting to save early and saving at an aggressive rate to allow individuals and families to potentially retire in their 40s or 50s.

Although not entirely groundbreaking, the movement surged in popularity starting in the 2010s with the proliferation of social media, with FIRE becoming a prominent topic in personal finance blogs, podcasts, and videos.

At the heart of the FIRE movement is the concept of financial independence—the belief that life decisions should not be dictated by financial constraints. The goal is to reach a point where you can freely choose how to spend your time, whether that means continuing to work, pursuing a passion project, or focusing on personal growth.

Retiring early doesn’t necessarily mean never working again; rather, it’s about having the flexibility to decide what kind of work to do and for how long. Achieving FIRE allows individuals to reclaim their time, focus on what truly matters to them, and gain a greater sense of control over their lives.

Another shift is the retirement age itself. Many people who dream of travelling the world and pursuing new passions find that waiting until 65 can be too late, both physically and mentally. The traditional retirement model of the past also assumes a shorter retirement period of five to ten years. Today, with increasing life expectancies, retirees may need to plan for 20 to 30 years of retirement, dramatically affecting the amount of savings required to maintain a comfortable lifestyle.

Aside from the freedom, another main motivation for the FIRE movement is a general lack of trust in government-sponsored pension plans. With the state of the economy and inflation rates, more people are starting to realize that national pension schemes like the Canada Pension Plan (CPP) and Old Age Security (OAS) cannot be fully relied upon. As a result, individuals are turning to FIRE as an alternative strategy—one that combines personal savings, employer pension funds, and strategic investments to build long-term financial security.

Many people who dream of travelling the world and pursuing new passions find that waiting until 65 can be too late, both physically and mentally.

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FIRE in action One of the most common questions for those new to the FIRE movement is: How much do I need to retire comfortably? As with most financial planning questions, the answer is, it depends. The amount required varies based on factors such as your spending habits, risk tolerance, and market conditions. A traditional approach

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Barista FIRE: This variation assumes that you plan to do

involves forecasting your household’s annual income and expenses, along with expected growth rates and investment returns, to calculate how much you’ll need by the time you retire, whenever that may be.

A quick alternative used by many FIRE practitioners is 25 times your annual post-retirement expenses. For example, if a couple thinks they’ll need $60,000 a year to live comfortably, then $1.5 million is the number they’ll need to work toward. Some may aim to set aside 50 to 75 percent of their after-tax earnings to grow the fund as early as possible. Another rule of thumb is the 4 percent rule.

It suggests that once FIRE is achieved, you can withdraw up to 4 percent of your savings per year. At that rate, the fund will likely stretch over 30 years.

Types of FIRE There are different FIRE models to fit different goals and retirement needs. Some common ones include:

Lean FIRE: Followers here assume a more modest retirement lifestyle, therefore reducing the total amount that is required.

The aim is still to have 25 times your annual expenses, but to spend less. For example, at $40,000 per year in expenses, the funding requirement is reduced to $1 million.

Fat FIRE: On the opposite end, the Fat FIRE plan assumes more luxurious spending habits and higher retirement spending. To fund this lifestyle, more would need to be put into the fund, and it may take much longer to achieve FIRE. For example, at $80,000 per year in post-retirement expenses, you’ll need a fund of $2 million.

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

some part-time work during retirement. This income will help to offset some of your post-retirement expenses. This hybrid plan helps achieve FIRE more quickly by reducing fund requirements, while also allowing for a good work-life balance for those who prefer not to have a full stop to their working life.

Conclusion The FIRE plan may not be for everyone. For those who want to achieve FIRE one day, you need to stay disinclined in your spending habits and committed to your investment strategies. As with any investments, the desired returns are not guaranteed. There could also be unforeseen life events that significantly change the course of reaching the FIRE goal. However, for some, the FIRE movement offers a clear path to making the dream of early retirement a reality.

Kevin Zhao, CFA, CPA, is a Senior Engagement Manager at Sapling Financial Consultants with a focus on financial due diligence. Kevin holds a bachelor’s degree in accounting and financial management and a master’s degree in accounting from the University of Waterloo. He is a volunteer member of CFA Society Toronto’s Strategic Content Creation Committee.

Office of the Superintendent of Financial Institutions. Registered Pension Plans (RPP) and Other Types of Savings Plans – Coverage in Canada. April 26, 2022. https://www.osfi-bsif.gc.ca/en/oca/ocafactsheets-other-reports/registered-pension-plans-rpp-other-typessavings-plans-coverage-canada 1

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LEADERSHIP IN FINANCE: TITANS & TRAILBLAZERS

High-Impact Presentations Learning from an Expert on Speaking to Executives Easily

By Angha Gupta, CFA

The words “executive presentation” may sound intimidating, especially when you realize you only have 15 to 20 minutes in front of your audience, but with the right approach, you can do this!

We sat down with Tej Rai, Managing Director, Head of Asset Allocation, iA Global Asset Management (iAGAM), to discuss tips and tricks for developing clear, impactful presentations, expressing complex ideas concisely within tight timeframes, and tackling challenging questions with composure and poise.

you can tailor the presentation accordingly. Two ways to do this are to ask the person who gave you the opportunity (like your manager) who your audience is or ask a proxy who knows the audience. If nothing else, approach an actual member of the audience and ask if they can recommend someone you can talk to.

Rai has spent most of his career in the US as a specialist in quantitative finance, asset allocation, and utilizing data analytics to make better investment decisions. A few years ago, he moved to Canada to work for iAGAM, the investment management arm of insurer iA Financial Group. Rai leads the asset allocation team, overseeing CA$20 billion in assets under management and speaking to executives at board meetings and on industry panels.

Practice, practice, practice When you see a good presenter, know that they have likely spent a lot of time preparing their presentation behind the scenes. The ratio of time spent presenting to the time spent preparing is tiny, because practice is key. Write speaking notes for each slide and understand the message behind that slide, why the audience should care, and how it will link to the next slide. Then prepare dry runs with proxies.

Start with your co-workers or the person who gave you that opportunity to present. If you approached the audience for a proxy, then present in front of that proxy. Ask for comments and advice on pacing, pausing, the message, the use of slides, everything.

To begin, there are two key points to remember when presenting to executives: 1) E xecutives are busy, so you aren’t going to get multiple opportunities to present your points. Typically, you can expect between 15 to 20 minutes, with half the time dedicated to the presentation and half to questions.

2) E xecutives aren’t usually the subject matter experts and don’t plan to be; you need to provide just the right amount of information for them make an informed decision—in other words, present information at the right level.

As Rai said, “The people who make it look easy have spent a ton of time preparing behind the scenes that you haven’t seen.” So, practice.

 Tips and tricks for first-time presenters Slides

For those who are first-time presenters, the above provides broad level guidance, but how does that translate into practical tips and tricks? Remember:

Slides are a support and a visual aid, not the star of your show. First, build out your message or narrative and understand your audience—and create slides to support that.

Additionally, the focus of the presentation should be you, not the slides, so less is more. Use graphics and one- or two-word bullets (and remember to have a reason for each of them).

The listener owes you nothing If you’re presenting something that isn’t interesting to the audience or you aren’t engaging them, then the audience will check out. Ask yourself, “So what? Why should the audience care?” For each point, anecdote, fact, story, or slide, find the takeaway or the insight, and if there isn’t one, don’t use it.

 Tips and tricks for repeat presenters The above is helpful if you are new to this, but what if you have been doing this for a while? The biggest risk you face as a regular presenter is complacency. As you get more efficient, building presentations can happen more quickly and easily, but there is also the risk of assuming you know it all. How do you get over that?

Know your audience How does one avoid listener disengagement? Know your audience and understand their concerns and needs so that

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Know your audience

It’s okay to say “I don’t know”

Even if you have presented to the same audience before, their needs, emotions, and perspectives may have changed and evolved, and you need to evolve with it. If you know your audience, work to tailor the experience for them.

No one is expecting perfection, so it’s okay to say “I don’t know” and then follow up with a “I’ll find out and get back to you in (an appropriate deadline).” Don’t fumble through a half-baked answer if you aren’t sure. People appreciate candour, and giving someone a timeline for getting back to them shows transparency on your part as well.

Practice, practice, practice Even if you’ve done this before, practice is still key. Practice helps reduce awkward pauses and unnecessary information, keeping your focus on the key message.

 Tackling challenging questions You’ve done it. You’ve made your first, tenth, or fiftieth executive presentation. But the presentation is only half the battle. Now it’s time for questions. How do you manage that Q&A?

Know your audience Again, knowing your audience can help you prepare for some questions. Understand what areas they may focus on and try to anticipate the questions. Ask the proxies or the person who gave you the opportunity to present what type of questions you may get. While you can’t predict the exact questions, you can get an idea of the type, which allows you to be better prepared.

Practice, practice, practice When you’re practicing, ask your proxies to ask you questions and see if you are prepared. If there are gaps, prepare based on the feedback you receive. Being a subject matter expert, you may leave out some details, thinking that everyone would know them, so these dry runs will help you develop effective, high-level summaries to have ready if needed. ©

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

 How to land the opportunity While the above advice is all well and good for when you get the presentation, the tough part is often securing the opportunity.

For that, build your way up.

Like a marathon, you don’t start by running 42 km—first you train and build momentum. Start small and make your way to the top.

The first step could be to start with your boss, learn from your mistakes, and develop yourself from there.

This will put you in front of your boss and demonstrate your initiative, allowing them to see the progress you are making, so that when it comes time for a real presentation, they will have someone they can call on.

Conclusion Any presentation, whether for executives or others, comes down to knowing your audience and practicing. Rai says, “Being a good presenter is the same as being a good gift giver. You want to give the other person the gift they want, not the gift that you think they want.”

Angha Gupta, CFA, is a Senior Analyst at S&P Global Ratings.

She holds an MBA from Ivey Business School and is an FSA Credential Holder from the IFRS Foundation. She is Vice Chair of the Corporate Finance Committee at CFA Society Toronto.

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PERSONAL FINANCE

Personal Finance 101: Your Guide to Budgeting, Saving, and Investing

By Lauren Huneault

Note: This article is based on the expertise of presenters at CFA Society Toronto’s financial literacy event in January 2025 with an intended audience of post-secondary students, young adults, and newcomers to Canada looking to take control of their finances.

Budgeting, saving, and investing can be daunting terms if you’re just starting on your personal finance journey, but with the right background information, you’ll be ready to make informed decisions in no time.

That’s where this quick guide to personal finance, comes in! With the help of industry experts, this article explores these three key aspects of investing: 1) saving and budgeting,

as protected as possible from the elements.

Once the main structure is complete, you can move on to interior design, where you get into the details of picking stocks and securities.

2) investment basics, and 3) ETF considerations, providing you with the information you need to start on the right financial path.

Building a strong foundation

Let’s start at the beginning, with the foundations of personal finance.

Much like with building a house, it’s essential to have a strong foundation in place before moving on to other elements of the investment process.

Saving and Budgeting

Wang notes there are two equations to help you assess the strength of your foundation: net cash flow and net worth.

According to Lynn Wang, MSc, CFA, CFP®, CLU, FRM, a great way to conceptualize personal finance is to liken it to the process of building a house.

Wang, Wealth Advisor, iA Private Wealth and Insurance Advisor, iA Private Wealth Insurance, says you need to start with the foundation, which includes financial planning and budgeting. Next, you build the structure of the house, or go through the asset allocation process, where you decide how you want to invest. Then you focus on the exterior of the house, or risk management, where you’re focused on ensuring the structure is

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1. Income – Expenses = Net Cash Flow 2. Assets1 – Debt2 = Net Worth “The goal is to achieve positive cash flow, and in this scenario, any extra income can go toward assets or reducing debt,” explains Wang. “In a negative cash flow scenario, you will need to take savings or more from a credit card to cover the negative balance.”

To ensure positive cash flow, it’s essential to go through the budgeting process: analyze your non-discretionary and discretionary expenses and put a limit on discretionary expenses so you can generate savings (positive cash flow).

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Investment basics Now that you have a strong foundation in place, you’re ready to move on to the structural components, where you explore where to invest your accumulated assets.

“Investment to me involves buying assets with the expectation that they will grow in value over time,” explains Ling Zhang, Vice President, iShares Canada Product, BlackRock Asset Management Canada Limited.

“Investments are usually used to achieve longer-term goals like saving for education or retirement.”

Let’s take a closer look at the common investment categories: Cash (high-interest-rate savings account, deposits, or guaranteed investment certificates): Typically offer guaranteed return on investment over a period and have very low risk.

Bonds (fixed-income investments): When you purchase a bond, you lend money to the issuer. The issuer pays you periodic interest, and when the bond matures, the issuer will pay back the initial investment. Bonds generally pay higher income than cash deposits, but may carry greater risks, such as credit or interest risk.

Stocks (also known as equities): Represent the shares of ownership in a company. The price of the stocks can fluctuate based on the company’s performance, market conditions, and other factors. Over the long term, stocks can provide higher total return than bonds, but they also experience greater volatility.

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Commodities (such as gold or silver): May help offset the impacts of inflation on other investments, and they’re also considered a portfolio diversifier, as they typically have lower correlation with other asset classes.

Derivatives (option contracts, futures, swaps): Financial contracts to achieve certain investment outcomes like hedging currency risk or increased leverage.

Real estate (homes or rental properties): This can be income from rental payments or appreciation in property value over time. These investments can require substantial capital and ongoing maintenance and management responsibilities.

Mutual funds and exchange-traded funds (ETFs): These are investment vehicles that hold numerous assets (like stocks or bonds). They are professionally managed—the portfolio manager will rebalance the portfolio and manage the cash flow and other responsibilities.

This means there will be a management fee charged while you’re holding the mutual funds or ETFs.

Zhang explains that while mutual funds have been in existence for over 100 years, ETFs launched in the 90s, so they are newer and less familiar to Canadian investors. ETFs are collections of securities that can be bought and sold on a stock exchange, which can offer benefits like ease of access, trading liquidity, portfolio diversification, and low cost.

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ETF fast facts

best with your goals, risk tolerance, and other factors

Zhang highlights that the diverse ETFs available provide different access and choices, and ETF providers continue to innovate and bring new products in the market. Here are some key examples of ETF options to consider:

• Consult with the experts—investment professionals can help guide you through the process

• Asset class: Equity, fixed income, preferred shares, commodity, options, mixed • S ector and industry: Financials, technology, utilities, consumers, real estate, health care, etc.

• Geography: Canada, US, Europe, Japan, China, India, etc.

• Style: Cap-weighted; factor-based; environmental, social, and governance (ESG); index tracking; actively managed; target outcome

Key considerations when investing in ETFs • Understand the costs involved, including the ongoing cost, the transaction cost, and the tax implications • Select an ETF based on your own important criteria, which can include exposure, risk, value alignment, currency, investment knowledge, and available time • Decide on your approach: ETFs aggregate into several main categories (broad index, narrow index, rules-based, active), so do your research and determine what fits

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Your personal finance journey starts… now!

Now that you’ve learned the basics of budgeting, saving, and investing, and the importance of building a strong foundation before focusing on the interior design of investing, you have the tools you need to successfully start your personal finance journey. Remember to always take time to assess your situation before making any decisions, and to consult with professionals for guidance along the way to ensure you stay on the right path.

Lauren Huneault is a content and marketing professional with fifteen years of experience in content creation and strategy. Lauren has spent the last fourteen years focused on producing relevant educational content to help aspiring and current business owners successfully navigate the challenges of the Canadian business landscape. She has served as writer and editor of trade publications including Your Convenience Manager, Octane, and Franchise Canada.

Property, car, bank and investment account balances, etc.

2 Credit card balance, mortgage, car loan, etc.

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ADVERTORIAL

Emerging markets return to favour

Laurence Bensafi Deputy Head of EM Equities, RBC Global Asset Management (UK) Limited Laurence discusses what’s driven the outperformance of the asset class in the year-to-date and considers whether this trend has further to run.

Key takeaways § Emerging market equities are the top performers so far in 2025, boosted by a weaker U.S. dollar and investors looking for alternative growth areas to the U.S. § China, India, and Saudi Arabia are challenging the ‘superpower’ status of the U.S. § EM stocks are trading near a historical discount to DM equities, despite their superior growth prospects. § dollar and investors looking for alternative growth areas to the U.S. Emerging market (EM) stocks have lagged their developed market (DM) counterparts since 2011, reversing their outperformance over the first decade of this century. The dollar’s strength over this period was a headwind for EM equities, while slowing EM earnings growth relative to many DM countries, particularly U.S. tech stocks, was also a factor.

However, 2025 has seen a turnaround, with the MSCI EM Index outperforming other regional equity indices over the first six months of the year.

Trump was the turning point It is perhaps surprising to look back at late 2024 forecasts and see that Donald Trump’s presidential re-election was anticipated to prolong the period of U.S. exceptionalism. His business-friendly agenda was expected to be positive for the U.S. economy and company earnings. Instead, his presidency has highlighted some of the weakness in the U.S. economy.

President Trump’s proposed reciprocal tariffs and the subsequent trade negotiations have shown that the U.S.’s bargaining position may not be as strong as he had hoped.

The world has changed and other superpowers, such as China, India and Saudi Arabia, are rising to the fore. China, in particular, held its nerve during a series of tit-for-tat tariff hikes, sounding cool upon entering trade talks as it realized it could likely hurt the U.S. more than the U.S. could hurt China – especially when it comes to the supply of rare earth minerals so essential to the U.S. tech supply chain.

Another Trump-related issue has been his ‘Big, Beautiful Bill’ which is expected to add at least US$3 trillion to the U.S. budget deficit over the next decade1. Higher government borrowing means increased Treasury issuance. Historically, EM countries, such as China, have been willing buyers of U.S. Treasuries, but this is changing: these countries are increasingly aware that there are other ways of responding to higher U.S. tariffs without resorting to a trade war.

It’s all about the dollar The dollar has been on a downward trend since U.S. interest rates peaked in October 2023, but the deceleration has picked up pace since Trump returned to the White House.

Recessionary fears, the U.S. president’s repeated attacks on Federal Reserve Chairman Jay Powell’s refusal to slash interest rates, concerns over the size of the U.S. budget deficit, and policy stability have all conspired to weaken the greenback.

While there is a general recognition that Trump’s policies require a weaker dollar to succeed, the speed of that depreciation is key. A gradual depreciation over the next few years would make U.S. exports more competitive and persuade EM countries to import more from the U.S., helping to rebalance the global economy. So far this year, the U.S. Dollar Index, a measure of the dollar’s value against a basket of its major trading partners, has fallen around 10%.

EM countries offer high-quality growth opportunities Uncertainty in the U.S. has sparked interest in growth opportunities in other areas of the world. EM stocks, along with those in Europe, have been an area of focus. As well as future population growth, EM countries offer the largest opportunities for productivity gain and economic growth, as well as high-quality companies that can capture those opportunities and turn them into earnings growth.

Yet, despite these favourable trends, EM stocks trade at a historically high discount of around 50% to U.S. equities, as shown in the chart below. This compares to a 10% premium back in 2011.

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ADVERTORIAL

Emerging markets return to favour

Supportive relative valuations: EM equities trade at a historically high discount to DM

While we aren’t expecting a premium to return in the near future, we would estimate that fair value would be in the region of a 20% discount, given the amount of geopolitical uncertainty in the world at present. That still leaves significant upside potential for EM equities relative to U.S. stocks.

Stay informed Sign up to receive the latest insights from RBC GAM thought leaders. Market commentary, economic insights, and current investment trends delivered straight to your inbox. rbcgam.com/subscribe

This has been provided by RBC Global Asset Management Inc. (RBC GAM Inc.) and is for informational purposes, as of the date noted only. It is not intended to provide legal, accounting, tax, investment, financial or other advice and such information should not be relied upon for providing such advice. RBC GAM Inc. takes reasonable steps to provide up-to-date, accurate and reliable information, and believes the information to be so when provided. Past performance is no guarantee of future results. Interest rates, market conditions, tax rulings and other investment factors are subject to rapid change which may materially impact analysis that is included in this document. You should consult with your advisor before taking any action based upon the information contained in this document.

Information obtained from third parties is believed to be reliable but RBC GAM Inc. and its affiliates assume no responsibility for any errors or omissions or for any loss or damage suffered. RBC GAM Inc. reserves the right at any time and without notice to change, amend or cease publication of the information. ® / TM Trademark(s) of Royal Bank of Canada. Used under licence. © RBC Global Asset Management Inc. 2025 023GAM014_(08-2025)_CFA_TOROnTO_THEAnALYST_EMERGInGMARKETSARTICLE_V308/20/2025

DIVERSE DIVIDENDS

Reframing Risk and Putting People First in Venture Capitalism with Janet Bannister (Editor’s Note: This article is based on Season 1, Episode 6 (featuring Janet Bannister), of Diverse Dividends, CFA Society Toronto’s video podcast series.)

Janet Bannister began her career in the corporate world, before transitioning to a role at eBay in Silicon Valley. She went on to found Kijiji, which may be the accomplishment she is most well-known for. However, she didn’t stop there.

Bannister subsequently launched Staircase Ventures—a Canadian seed-stage venture capital firm that prioritizes founder development, focusing on Canada’s highest-potential tech companies.

Bannister’s life as a Canadian National Triathlon Champion and her professional career have been guided by the credo, “Make the small decisions in life with your head and the big ones with your heart.”

great relationships with their founders and can work collaboratively with their founders and help those founders grow, develop, and build great businesses.”

whether we think this is the team that can realize that vision. Do they have that tenacity and grit to get it done? Have they shown personal accountability and growth, and do they take accountability for the results?”

Finding the right fit All business is people business Initially reluctant to enter venture capital due to preconceived notions about venture capitalists, Bannister quickly realized how people-focused all business is, particularly in venture capitalism. She says, “Most successful venture capitalists are people who build

Staircase Ventures sees 1,000 companies each year and invests in just four. Finding the right company is “not just the needle in the haystack, it’s the golden needle in the haystack.” The firm evaluates all ventures using the business lens and the human lens, and, “If we believe in the vision, we ask ourselves

Less risk with the right people behind the wheel While many view venture capital as risky, Bannister does not, thanks to some wisdom from her father that has helped shape her perspective on business. Her father was a commission-based salesman with IBM,

Subscribe & Listen Now on Your Favourite Channel: Under Diverse Dividends:

Under CFA Society Toronto:

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Finding the right company is “not just the needle in the haystack, it’s the golden needle in the haystack.” and he would say, “Some people think being a commission salesman is risky, but I don’t think it is, because your fate is always in your hands.” As someone who makes informed choices about the companies she invests in, she has some level of control over her risk, in addition to her personal influence with the founders.

Staircase Ventures has a distinct, fivepillar platform that they fund for founders, providing them with access to: ➥ Executive coaches ➥ Peer support groups with other founders facing similar challenges ➥ Confidential health coaches ➥ Personal financial advisors

Empathy, insight, and connection Bannister understands that the best companies have their choice of who they’ll receive funding from, which is why relationships must be built on trust and respect. She notes that with venture capital, since you’ll be locked into your investment for several years, it is crucial to really understand the business and the people you are involved with. In turn, by forging strong relationships with her founders, she gets to see them grow and overcome challenges—a favourite part of her job.

Her operational and entrepreneurial experience has been invaluable to her role as a venture capitalist and working with founders because she has: ➥ Empathy from having been in their shoes ➥ Practical experience that can be used to help them understand who they should hire and how they should build their operations

Putting the people-first approach into Staircase Ventures When launching Staircase Ventures, Bannister built an unparalleled founder growth platform with a people-first philosophy at its core. Bannister notes that both founders and their teams are critical to the success of the business and sees the vital need to help founders and their teams scale at the same rate as their businesses.

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➥ Family support via a cash payment in the first year to spend however they want with the purpose of balancing needs between their work and their loved ones

Diverse Dividends Diverse Dividends is CFA Society Toronto’s new video podcast series from The Analyst, which aims to explore the rich mosaic of the finance and investment industry. Each month, Diverse Dividends features candid, in-depth interviews with industry leaders across the finance and investment world as they share their insights on mindsets, strategies, and lessons that drive their success.

Why listen?

A competitive runner since grade 6, Bannister understands the importance of getting to the front of the pack before it narrows. She equates her philosophy toward enterprise success with the fundamentals of athletics.

Inspiring performance, she believes, can be fostered by coaches, great teammates, and a focus on health. Bannister says, “Some people think we’re really easy on our founders.” She counters, “We have high standards, and we help them rise to the standards.

We give them all of these things, show them that we believe in them, and raise the bar constantly.”

Own your path and build resilience Bannister says that, too often, people make the mistake of letting their career just happen to them. She urges people to figure out where they want to be, develop a plan, and just go for it. “Be deliberate about where you want to go and how you are going to get there.”

To push through moments of doubt, Bannister focuses on building resilience. Her approach is to rely on “belief and confidence in yourself and what you are doing” and think back on times that have been tough and how you’ve done it all before.

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

•

•

•

ctionable insights: Gain A concrete ideas to boost resilience, leadership, and innovation.

Unfiltered dialogue: Learn how industry pioneers navigated setbacks and seized opportunity.

Community connection: Join fellow members in thoughtful discussions that spark inclusive change.

Where to find us Listen during your commute, enjoy it at home for a deep-dive session, or watch Diverse Dividends for a richer, more immersive experience. Join our growing community and take away actionable ideas that can transform both your mindset and your bottom line.

Podcast apps: Subscribe on Apple Podcasts, Spotify, SoundCloud, or YouTube • Online: Stream full episodes at cfatoronto.ca •

Don’t miss a single episode! Tune in to Diverse Dividends wherever and however you love to listen and reap the dividends of diverse experience!

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AI WATCH

Thriving in the Age of AI: Job Hunting Skills for the Modern Finance Professional

By Sebastien Davies, CFA

As large language models (LLMs) and tools powered by artificial intelligence (AI) proliferate across industries, finance professionals are faced with a familiar question reframed for a new era: How do I stand out?

Today’s AI can draft resumes, tailor cover letters, and simulate interviews. It’s tempting to think that job hunting has become a technical exercise. But conversations with Canadian financial sector recruiters and human resources (HR) leaders suggest otherwise. AI may streamline the process, but it cannot replace the human qualities that define a successful career move.

research. Further, platforms like LinkedIn are integrating AI to help identify potential candidates more efficiently.

Still, no one I spoke with described AI as transformative in the deeper aspects of hiring. One recruiter said, “AI can help you get the meeting. It can’t help you build trust.” Think of today’s tools as research assistants, not replacements for good judgment, presence, or character.

AI as an augmenter Job seekers have access to AI tools that make parts of the process faster and more accessible. Recruiters note growing use of generative models to refine resumes, structure messaging, and prep for interviews. On the employer side, AI is being used to draft job descriptions, improve screening, and conduct market

AI may streamline the process, but it cannot replace the human qualities that define a successful career move.

Finding the right balance Jordan Elias, a Principal at Collins Executive Search who focuses on the investment management space, sees real value in AI for early-career professionals.

“AI can be tremendously helpful for those struggling with resume formatting or figuring out how to present themselves,” he said. “For recent grads, it provides helpful structure and clarity on industry expectations.”

This reflects a broader theme: AI can be a strong starting point, especially for those still learning the ropes, but it shouldn’t be treated as a one-size-fits-all solution.

The pitfalls of overreliance Overdependence on AI can backfire. Ben Basian, a Director at IQ Partners with deep experience in real estate, highlighted a common mistake: using AI to update resumes without thoroughly reviewing the output.

“People upload their resume, ask ChatGPT

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to improve it, and send it off without checking. That leads to formatting issues— or worse, inaccuracies,” he said.

In one case, an AI-generated resume misrepresented a deal by blending input from news articles and the candidate’s experience. A hiring manager familiar with the transaction caught the inconsistency.

“The candidate was certainly qualified,” Basian said, “but they came across as careless or dishonest.”

The lesson? AI should support your career narrative, not write it for you.

Adoption remains uneven While AI tools are becoming more common in some hiring workflows, their usage remains uneven across the industry. One senior HR professional at a leading Canadian asset manager noted, “We don’t use AI in recruitment here. Things are still quite manual at this time.” While internal teams may be well-versed in the technology, its application to hiring has been limited—at least for now.

Despite the attention LLMs receive, many firms still rely on traditional, human-led processes when it comes to selecting talent.

Technology may support the journey, but people still make the decisions, and that’s likely because we still value our intuition and processes more than we trust a computer to decide about human relationships.

When AI falls short AI also struggles in technical, domainspecific interviews. Elias, who recruits in investment banking and private equity, explained the limitations.

“Interviews in these roles are dynamic.

We’ll ask a candidate to walk through a

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

deal and then keep digging: Was it a good investment? Was the price fair? Why? That kind of thinking can’t be scripted,” he said.

While AI might help prepare for general HR interviews, it falls short in settings that require deep knowledge and critical thinking under pressure. You can’t fake expertise or curiosity.

The human advantage If there was one consistent theme from every conversation, it’s this: hiring is still a human process. Decisions are based on trust, character, and fit—none of which come through on paper alone, let alone through automated tools. These qualities emerge through conversations, thoughtful followups, and in the impression you leave.

Candidates who stand out are those who build genuine relationships, ask insightful questions, and are known and trusted in their communities. AI can get you in the door, but it’s your empathy, aptitude, and connection-building that earns offers.

Empathy still matters In a world where everything is being optimized, human qualities are becoming more important. As one HR executive told me, “We remember the thoughtful people, not just the polished ones.” ©

This is true for candidates and hiring managers alike. Knowing how to prompt an LLM is helpful. But knowing how to read a room, write a thank-you note, or offer a referral are essential skills for building a career.

Looking ahead That’s not to say AI has no future in recruitment. Basian sees opportunities, especially for recruiters hiring outside their usual domain.

“AI could help us draft better interview questions or identify overlooked candidates in adjacent industries,” he said.

As AI matures, it may support more personalization, better matching, and faster screening. But we’re not there yet. And even if we get there, the fundamentals— trust, character, relationships—will still matter most.

Tech helps, people hire For finance professionals navigating an evolving landscape, the message is clear.

Use AI to sharpen your materials and prepare effectively. But don’t neglect what truly sets you apart: empathy, credibility, and the relationships you build along the way.

The resume may get you noticed.

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Decisions are based on trust, character, and fit—none of which come through on paper alone, let alone through automated tools.

The conversation is what keeps you remembered.

Note: This article features how to harness the power of AI responsibly, and as such, the author used Fireflies.ai to transcribe expert interviews and ChatGPT to aid in article conceptualization and to provide stylistic suggestions.

Sebastien Davies, CFA, works at Aquanow, a leading digital asset infrastructure firm, where he focuses on venture investing and private credit. He has prior experience in institutional capital markets and frequently writes about the intersection of finance and technology. His current work explores the real-world applications and limitations of AI across financial services.

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ADVOCACY CORNER

CFA Societies Canada Quarterly Update What’s new with advocacy at CFA Societies Canada?

Advancing investor protection, industry professionalism, and market integrity across Canada, CFA Societies Canada focuses attention on pressing advocacy files dominating the regulatory agenda.

Ensuring fair, equitable, and sustainable outcomes for stakeholders is more important than ever.

Through our growing relationships with policymakers and regulators, we are working on several important initiatives. Below is a summary of three areas where we have recently provided comment letters. To see the comprehensive catalogue of our commentary letters, visit us online at cfacanada.org/advocacy.

Published CFA Societies Canada comment letters CSA – Financial Innovation Hub Introduces Collaboratory and Data Portability Test On May 16, 2025, the Canadian Advocacy Council of CFA Societies Canada (CAC) submitted a comment letter to participating members of the Canadian Securities Administrators (CSA) in response to CSA Multilateral Discussion Paper 11-406 – CSA Financial Innovation Hub Introduces Collaboratory and Data Portability Test. The consultation sought input on potential regulatory and industry developments related to electronic know-your-client (e-KYC) systems and data portability frameworks.

In its submission, the CAC provided recommendations and considerations for implementing these innovations in the Canadian capital markets. The CAC acknowledged the potential benefits of modernization but emphasized the importance of regulatory clarity, standardization, and investor protection.

Highlights from the submission include that the CAC: • Recognized barriers within current securities legislation, particularly the inability of registrants to delegate KYC

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responsibilities, and recommended revised or additional guidance to support reliance on e-KYC solutions while safeguarding against improper use • Supported the development of a centralized, standardized e-KYC utility system to promote consistency and reduce reliance on fragmented or proprietary solutions • Stressed that without a harmonized, national approach, data portability initiatives could be limited by inconsistent regulatory frameworks across jurisdictions • Emphasized that an industry-wide standard for data portability would enhance transparency, efficiency, and competition, while also supporting innovation and investor control over personal information • Encouraged the CSA to consider open-source collaboration models, such as those supported by the Fintech Open Source Foundation (FINOS), to build and maintain shared KYC platforms, standards, and utilities ©

• Highlighted the opportunity for the CSA to define a clear vision and minimum standards for KYC, which could improve regulatory certainty for registrants and benefit investors

CSA – Securities Regulatory Harmonization in Canada – Seizing the Moment (Joint PMAC & CFA Societies Canada Letter) On April 14, 2025, CFA Societies Canada and the Portfolio Management Association of Canada jointly issued a letter to the Canadian Securities Administrators (CSA) urging renewed leadership to address persistent fragmentation in Canada’s securities regulation system. Recognizing today’s pressing economic and geopolitical challenges, the letter called this a critical opportunity for Canada to pursue greater harmonization of its securities regulation, not through a grand legislative overhaul, but via concrete, actionable reforms that utilize existing collaboration frameworks and regulatory tools.

2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

The letter proposes five potential strategic initiatives for immediate CSA action: 1. CSA Vision Statement on Harmonization A call for the CSA to formally adopt harmonization as a core strategic priority, supported by measurable targets and transparent annual reporting on progress and challenges.

2. E nhanced Transparency A proposed public-facing dashboard and searchable database to track and explain regulatory differences across jurisdictions, complemented by structured stakeholder feedback mechanisms.

3. Multilateral Instrument Transition Plan A multi-year roadmap to convert Multilateral Instruments into National Instruments wherever feasible, supported by sunset clauses and criteria for divergence justification.

4. Systematic

Review of Local Rules The creation of a task force to review and recommend updates or retirements of Local Rules based on clear, consistent criteria, with publicly reported outcomes and milestones.

5. Model Regulation Development Establishment of a working group to develop model regulations for areas where formal harmonization is impractical, encouraging voluntary alignment with tracked implementation.

CIRO – Rule Consolidation – Phase 5

through its Phase 5 Rule Consolidation Project. The CAC emphasized the importance of clear guidance and adequate transition periods to support effective implementation and maintenance of investor protection.

Highlights from the CAC’s submission include that the CAC: • Supported including prospective clients in the definition of “complaint” to address potential risks in onboarding and marketing • Recommended clearer conduct reporting guidance on “serious misconduct” and selective inclusion of dealer-harming behaviour that signals broader risks • Endorsed the 90-day dispute resolution response and internal dispute resolution timeframes as appropriate, encouraging prompt resolution • Supported a scalable dealer capital reporting model, and supported lookthrough for diversified funds while noting risks in niche or illiquid strategies • Affirmed its view that the Dealer and Consolidated Rules (DC Rules) reflect the project’s objectives without introducing undue burden, and praised CIRO’s engagement with stakeholders through the process

Who is CFA Societies Canada?

CFA Societies Canada represents the twelve Canadian CFA Institute Member Societies and, ultimately, Canadian CFA charterholders. CFA Societies Canada’s Canadian Advocacy Council includes investment professionals from across the country who review regulatory, legislative, and standardsetting developments affecting investors, investment professionals, and Canadian capital markets. CFA Societies Canada through its advocacy efforts strives to advance market integrity, transparency, and investor protection, and actively engages Canada’s securities regulators, self-regulatory organizations, industry associations, legislators, and other stakeholders through thoughtful leadership, direct engagement, and the publication of comment letters.

Have your say If you would like to participate in advocacy activity related to these letters or future policy and regulatory initiatives, provide comments on ongoing initiatives, or learn more about volunteer opportunities in advocacy, please contact info@cfacanada.org.

Follow CFA Societies Canada on LinkedIn.

Other letters filed: • CFA Institute – GIPS Standards for Verifiers When Verifying Asset Owners Exposure Draft

The Canadian Advocacy Council (CAC) of CFA Societies Canada responded to Canadian Investment Regulatory Organization (CIRO) Bulletin 24-0276, commending CIRO’s progress on harmonizing regulatory requirements

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WELCOME NEW MEMBERS

Congratulations New Members Ibrahim Oladayo Abdulazeez, CFA

Adrienne Catellier Cote, CFA

Raghushek Jain, CFA

Amin Abooalizadeh

Zhihan Cui, CFA

Sankalp Jain, CFA

Rana Bakhtiar Ahmad Khan, CFA

Kun Dai, CFA

Jothika Lalithambikai Jehanmohan, CFA

Ayat Ahmed, CFA

Daniel Domenic DAngela, CFA

Yue Jin, CFA

Ali Akbulut, CFA

Tjerk Maurits de Gruijter, CFA

Afnan Jivani

Zahra Sadat Alavi Nasab

Haoyun Deng, CFA

Yenchih Juan, CFA

Mir Haider Ali, CFA

Suhong Deng, CFA

Soon Jung, CFA

Kathleen Louise Anderson, CFA

Jo Benjamin DePape, CFA

Madhav Kathal, CFA

Joshua Argier, CFA

Hardik Desai, CFA

Jaspreet Kaur, CFA

Ismaeel Oluwajuwonlo Ashir, CFA

Minh Tam Do, CFA

John Paul Semirnyuy Kerman, CFA

Simran Singh Aujla, CFA

Enxi Dong, CFA

Neeraj Khanna, CFA

Jawad Taj Awan, CFA

Connor Patrick Downs, CFA

Faisal Jarrar Khanzada, CFA

Seyedsepehr Badiei, CFA

Matthew Rober Ellis, CFA

Neeraj Nandan Khataniar, CFA

Omar de Jesus Bairan, CFA

Aly Ahmed Esmat Abdelmegeed Elra-

Suraj Pal Khatkar, CFA

Farham Bajelan, CFA

khawy, CFA

Ryan Alexander Krajicek, CFA

Maxim Barron, CFA

Matt Evans, CFA

Rohun Kukreja, CFA

Anthony Michael James Berg, CFA

Abimbola Saheed Falola, CFA

Bhanu Kumar, CFA

Claudia Veronica Berlanga Sanchez, CFA

Mingyu Fang, CFA

Denis Kuznetsov, CFA

Racheal Bhosha, CFA

Nicholas Francis Farah, CFA

Bonnie Lam, CFA

Fangdi Bing, CFA

Omar Faruk, CFA

King Lun Lam, CFA

Matthew Luke Bishop, CFA

Sean Manley Doyle Finlay, CFA

Renato Alfredo Lazo Paz, CFA

Samuel Adam Black, CFA

Dingrui Fu, CFA

Kenneth Marlon Lebovics, CFA

Stéphane Boire, CFA

Shuang Gao, CFA

Mable Po Ting Leung

Dilaun William Bonni, CFA

Peiqi Gao, CFA

Zhiyuan Li, CFA

Sebastian Gregory Borsatti, CFA

Wouter Frederik Germans, CFA

Bolun Li, CFA

Cameron Mason John Brown, CFA

Mazen Ghanem, CFA

Tian Liao, CFA

Leonardo Abel Bursztyn, CFA

Avery Boman Gobbo, CFA

Shengyang Liu, CFA

Kenneth Marlon Cappuccitti, CFA

Abhishek Goel, CFA

Po Ki Liu, CFA

Michael Tsun Yin Chan, CFA

Roger Paul Goldson, CFA

Runtian Liu, CFA

Zhi Tu Chan, CFA

Nicholas Stanley Gondzik, CFA

Enkhtur Lkhagvajav, CFA

Hugh Kwok L. Chan, CFA

Collin Goody, CFA

Shehroze Khan Lodhi, CFA

Meaghan Maiji Elizabeth Chandler, CFA

Tyler Alexander Grube, CFA

Kerstie Anna Schreyer Logar, CFA

Qing Chang, CFA

Raaghav Gupta, CFA

Shuren Lu, CFA

Wenyan Chen, CFA

Ali Haddadmardani, CFA

Haoxing Lu, CFA

Zhiyi Chen, CFA

Abduh-basit Haqani, CFA

Siqi Ma, CFA

Jingyi Chen, CFA

Nan He, CFA

Michelle Marie MacDonald, CFA

Yi Chen, CFA

Zhe Hu, CFA

Wesley Martin, CFA

Tzu Hsuan Chiu, CFA

Matthew Chi Shing Hui, CFA

Audrey Ngonidzashe Mashoko, CFA

David Robert Clausen, CFA

Roman Ivasyshyn, CFA

Thomas Jeffrey Flinn Mather, CFA

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

Yanda Meng, CFA

Abhinav Madhukar Shenoy, CFA

Xinhe Meng, CFA

Stephanie Shiu, CFA

Luz Larissa Montoya Lomeli, CFA

Sanket Shree Shreemal, CFA

Vineeshaan Muhunthan, CFA

Jade Kearney Shum, CFA

Huma Munir, CFA

Adam Smiarowski

Sabereen Munir, CFA

Chong Hye So, CFA

Tin Yau Sunny Ng, CFA

Ho Lam Arcturus Tam, CFA

Quang Doan Thanh Nguyen, CFA

Joshua To, CFA

Michael Lawrence Novachis, CFA

Kevin Peter Tom, CFA

Kanayo Nsobundu, CFA

Aarsh Sunil Trivedi, CFA

Andrey Nurumov

Scott William VanDeursen, CFA

Annika Lauren Olsen

Alyssa Marlina Venneri, CFA

Maria Olshanskaya, CFA

Blair Fraser Walker

Oluwaseyi Oluwatosin Olusanya, CFA

April N. Walstad, CFA

Olufemi Isaac Oshiyoye, CFA

Li Wan, CFA

Maninder Pal, CFA

Yunpeng Wang, CFA

Sharv Parikh, CFA

Li-Wei Wang, CFA

Krupal Rasiklal Patel, CFA

Xiaojing Wang, CFA

Emily Claire Peacock, CFA

Jonathan Michael Whalen, CFA

Yuan Peng, CFA

Cadence Rose Whitbeck, CFA

Pu Peng, CFA

Nicholas With-Seidelin, CFA

Ziyue Qiao, CFA

Liam David Wolfe, CFA

Mahfouz Rafidi

Vincent Wong, CFA

Angelo Rizzi

Katie Yicong Wu, CFA

Raunaq Raees Rohile, CFA

Liang Wu, CFA

Mitchell Seth Rothman, CFA

Zhuoyan Xie, CFA

Rohan Roychoudhury, CFA

Abdel-Rahman Samy Abdel-Aziz Yacout, CFA

Nicholas Russell, CFA

Sanket Yadav, CFA

Nicholas Rybka, CFA

Fan Yang, CFA

Surya Sankarasubramanian, CFA

Yuhui Yao, CFA

Waleed Mu'taz Mousa Saqr, CFA

Zhennan Ying, CFA

Dolly Saxena, CFA

Gayeon Yoon, CFA

Steven Kenneth Schmidt, CFA

Zhuo Yu, CFA

Peter Thomas Seaton, CFA

Yitian Zhang, CFA

Nihal Ashok Kumar Shah

Zilu Zhang, CFA

Rahul Shital Shah, CFA

Xin Zheng, CFA

Maryam Shahid, CFA

Yuhao Zhou, CFA

Danil Shapoval, CFA

Ran Zhuo, CFA

Xue Shen, CFA

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2025 CFA Society Toronto. All rights reserved. The Analyst | Fall 2025

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