The Analyst Spring 2025 | Sustainable Investing: Leadership in Action
SPRING
SUSTAINABLE INVESTING: LEADERSHIP IN ACTION
Are Stars Aligning for investment in sustainable multifamily real estate?
Taking an effective leadership role in sustainable investment involves innovation, the ability to understand the big picture, and a vision that encompasses the long term. On a preliminary, practical level, sustainable investment can be as simple as a time commitment to learning about and making deliberate investment decisions with a lens of responsibly managing and protecting natural resources.
One of the requirements for Toronto District School Board students to graduate from high school is to complete 40 hours of volunteer work in their community. As a part of this program, students can direct their efforts toward making a physical difference in the environmental landscape of their community by removing invasive species and planting native, sustainable plants. My daughter participates in this program and is proud of her leadership role in environmental stewardship.
Moving beyond hands-on sustainability efforts and into a business perspective, sustainable investment is more complex and nuanced; however, the commitment to leading sustainability practices and protecting what is important to us and future generations remains the same.
In this issue of The Analyst, we learn from sustainability thought leaders. We speak to leaders from Indigenous financial institutions to get their wisdom on meaningfully integrating Indigenous cultural values into their companies while addressing historical and ongoing barriers. Our featured charterholder, Jennifer Vieno, CFA, ESG Research Director, Technology Media and Telecom, Sustainalytics Morningstar, shares her career path in ESG and sustainability and highlights the value of building strong networks and the difference it’s made in her own career trajectory.
We explore the landscape of sustainable multi-family real estate as a Canadian investment option. Our practical application feature on visualizing climate trends explores how to utilize Python to unlock valuable insights.
The Industry Standards Reporting Research Council shares information about their pilot project to assess the feasibility, viability, and next steps required to develop industry-specific standards for alternative performance measures.
The second selection from our Book Review series is Indigenomics: Taking a Seat at the Economics Table, in which author Carol Ann Hilton highlights her framework for understanding and growing the Indigenous economy and the reciprocity of how success in the Indigenous economy benefits Indigenous peoples and Canadian society. Finally, we bring you the second part of our series on the art of questionology, gaining insight from two fact-finding professionals, an investigative journalist and litigation lawyer, on the mechanics and best practices for asking better questions.
As spring is upon us, I hope this issue provides the seeds necessary to bring sustainable intention to many aspects of your personal and professional life.
Our profession often calls on us to predict the future, whether it’s the market’s direction tomorrow or in the months ahead. Yet with markets influenced by rapidly evolving domestic and international government policies, volatility and uncertainty are quickly becoming the new norm. This reality challenges investment professionals to stay informed, adapt quickly, and remain resilient in the face of unforeseen risks.
Paradoxically, it’s also what makes our work so intellectually stimulating. As CFA charterholders, we bring qualities uniquely suited to today’s demanding economic environment: specialized skills, analytical rigour, ethical standards, and an unwavering commitment to excellence. However, no professional thrives in isolation.
It is precisely during times like these that being a member of the CFA Society Toronto community proves its worth. Our Society exists to help our members excel in their careers, forge meaningful connections, and exchange expertise through educational programming and thought leadership that fosters professional growth and shapes the future of finance and investing. We believe deeply in the power of community, where learning not only comes from leading subject matter experts but also from one another. By exchanging best practices, personal experiences, and success stories, we collectively elevate our profession and each other’s potential.
This issue of The Analyst is one example of countless resources the Society offers to help you succeed. It presents diverse perspectives and insights from other members, helping you build your knowledge as we explore new opportunities and tackle new challenges together. But knowledge alone isn’t enough. Simply being a member won’t solve the professional challenges you face. Only in taking further steps and actions will you fully benefit from CFA Society Toronto’s comprehensive value proposition.
I invite and encourage you to attend our educational events, immerse yourself in the insights shared in every issue of The Analyst, join us at our monthly Brewing Connections gatherings, and share your knowledge and expertise by volunteering on our committees or in our mentorship initiatives. By actively engaging in these opportunities, you expand your professional network, deepen your expertise, and help strengthen our entire community’s capacity to adapt and succeed.
Thank you for your commitment to CFA Society Toronto and for upholding the highest professional standards in the investment industry. Together, by participating and learning from one another, we can forge a stronger financial community—one that excels in times of uncertainty and shapes the future of finance and investing.
Warm Regards,
Brian Madden, CFA, CFP CIO, First Avenue Investment Counsel Inc.
Chair, Board of Directors CFA Society Toronto
TheAnalyst is published quarterly by CFA Society Toronto 120 Adelaide Street West, Suite 2205 Toronto, Ontario M5H 1T1
Senior Advisor, Member Communications Rossa O’Reilly, CFA
Editorial committee members
Jack Bruton, CFA
Winfred Lam, CFA Mark Timm, CFA Jindou Zhang, CFA Kevin Zhao, CFA
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Angha Gupta, CFA Krystyne Manzer, CFA, MFin
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From the desk of the CEO | Fred Pinto, CFA, ICD.D
In our industry, we devote a great deal of focus, time, and expertise to helping clients achieve their financial goals. Yet, amid the demands of advising others, it’s crucial that we also invest in ourselves. Much like the markets we navigate, our professional landscape evolves continuously, making lifelong learning essential to staying ahead.
To help you do just that, CFA Society Toronto is proud to launch our new Learning Partner Portal this March. We’ve partnered with leading educational providers to bring you exclusive member discounts on high-impact courses and certifications curated for our members. Whether you’re looking to refine technical skills like financial modelling, enhance your knowledge of private equity and alternative investments, or master sustainability frameworks, you’ll find programs tailored to in-demand knowledge areas for our members.
Beyond simply acquiring new skills, an investment in your education can pay dividends throughout your career. By enhancing your expertise, you become better equipped to strengthen your capabilities, adapt to changing landscapes, and deliver greater value to your clients and workplace. Our Learning Partner Portal is designed to make this ongoing development convenient, accessible, and rewarding by helping you to maintain a competitive edge and contribute to the growth of the broader financial community.
We continuously expand our offerings and welcome your feedback on new courses and learning opportunities that you would find valuable. Let us know the areas you’re most interested in exploring so we can continue to curate relevant, high-quality content for you. Please visit the portal regularly for updates on newly added programs and certifications tailored to your evolving needs.
I encourage you to take full advantage of this opportunity. Sign in, explore the curated learning opportunities, and enroll in the programs that align with your goals. As you continue to invest in yourself, you also elevate the collective strength and reputation of our Society. Here’s to unlocking new avenues of growth, innovation, and excellence for you and those you serve.
Sincerely,
Fred Pinto, CFA, ICD.D CEO, CFA Society Toronto
Wisdom in Wealth: Learning from Indigenous Leaders in Finance
By Angha Gupta, CFA
You’ve probably heard buzzwords like cultural fit, community empowerment, transparency, and sustainability. However, when a company or financial institution embodies these terms, it no longer needs buzzwords. This article explores insights from leaders at Indigenous-led financial institutions, who integrate their cultural values into financial services, community empowerment, and sustainable development to foster economic inclusion and drive growth.
Mark Sevestre, General Manager, Misssissaugas of the Credit First Nation Community Trust, was raised in Burlington, Ontario, before being recruited for football at Mount Allison University, where he studied commerce. He worked at BMO for several years, first as a Branch Manager on a reserve just outside London, Ontario, and then later in Toronto, before becoming General Manager at the Mississaugas of the Credit First Nation Community Trust. In 2006, he was a Founding Member and Senior Advisor of the National Aboriginal Trust Officers Association (NATOA). He currently resides in Six Nations of the Grand River. When asked how he ended up doing so much for the Indigenous community, Sevestre said, “A lot
of work that I have done was merely that no one else was doing it, and it just happened to fall in line with a lot of the stuff that I had done.”
Vancouver-based Geordie Hungerford, CFA, is a consultant who studied engineering in his undergrad and then worked in equity research and a tech startup in Greater China. After working as a Consulting Associate at McKinsey & Company and as a technology investment banker at Broadview Jefferies, he transitioned to securities law, while in his spare time supporting the Gwich’in First Nation (Hungerford is Gwich’in) as a Gwich’in representative on the Arctic Economic Council and as a Board Member with the Gwich’in Development Corporation in Inuvik, Northwest Territories. When asked about his career journey, Hungerford remarked, “I like to really challenge myself, and I like to see patterns and trends before other people see them.”
Understanding barriers
Most financial institutions today have a set way of doing things—from how they provide investment advice to their analytical analysis,
hiring practices, and organizational structure. Too often this means that many minority communities do not qualify for funding opportunities, which includes Indigenous peoples. Indigenous peoples, amongst other communities, have a community culture of helping each other out when needed, where needed, without asking. Many financial institutions, on the other hand, focus more on the financials, such as return on investment (ROI), and have many layers and rounds of reviews before any loan is approved. While there is increasing acknowledgment of the potential of the Indigenous economy and a greater commitment to Indigenous funding, many institutions still do not understand or have the appetite to structure financial risk to unlock the opportunities the Indigenous economy is bringing to the table. Additionally, Indigenous peoples are not a part of the discussion at large financial institutions, partly due to these organizations’ hiring practices, partly due to their values, and partly due to the lack of Indigenous members on their boards. Finally, many people and institutions hold broad assumptions and biases about Indigenous peoples, such as that they are all against oil or other specific market segments.
Integrating cultural values
Recent media coverage of the treatment of Indigenous peoples and unmarked children’s graves at former residential schools raised awareness of the attempted erasure of Indigenous cultures and values in Canada. The result is a greater willingness of Canadians to get involved and integrate Indigenous cultural values into their companies to help correct the past, while addressing the issues above.
Hungerford and Sevestre suggest actions that individuals and firms can take to meaningfully integrate cultural values and move beyond buzzwords:
Consult
When reviewing companies in your portfolio, ensure that Indigenous peoples are consulted about their values, the land, their culture, etc., to ensure companies make the right commitments to Indigenous communities. Talking to and understanding the community are key factors in designing the right type of portfolios.
Connect
Work with organizations like National Aboriginal Trust Officers Association and consultants like Hungerford to understand why Indigenous peoples don’t work for your firms. There may be interested Indigenous candidates, but recruitment, advancement, and board opportunities are often not inclusive.
Support better regulation
Better regulations are needed for Indigenous products and financial opportunities, and these regulations need to include Indigenous perspectives from the moment the regulations are being designed or updated.
Provide professional development opportunities
Create opportunities for professional development for lower-ranking staff to ensure equality in hiring practices. At the same time, reduce the company’s layers of hierarchy to make it easier to have a team-based approach to collaboration, rather than a top-down approach, which is more compatible with approaches in many Indigenous communities.
“The role that a CFA charterholder plays in the community will have an impact on the Indigenous communities and on the world’s future.”
Review hiring practices
Companies must hire Indigenous people at all levels of the organization, which is notably lacking in investment banking, asset management, and trading. Hiring Indigenous people and people from diverse communities at the lower levels is tokenism and not enough. Indigenous people need to be hired or promoted to senior management and onto the board. Senior Indigenous leaders can help the organization transform to be more welcoming for Indigenous employees and Indigenous clients.
Expand
A broader suite of Indigenous financial institutions and Indigenous financial solutions need to be created. Hungerford gives an example of a project he worked on to create a bond standard with Indigenous taxonomies. A values-based approach based on traditional cultural values is critically important, and a regular KYC (know your client) form may not cover that understanding.
Build change for the next generation
Change cannot come from the outside. Schools, universities, associations, and other institutions must establish programs and scholarships that bring more Indigenous people into the business world and into science, technology, engineering, and math programs early on (as early as middle school) to later make these changes from within firms.
Create a dialogue
There needs to be an open and honest conversation with Indigenous communities. Communities are not necessarily against certain developments, including fossil fuels, oil, and mining. However, many Indigenous communities’ values have always been about sustainable and inclusive ways of taking from nature and giving back to it (a trend in sustainability—a circular economy).
Listen and learn
As we move down the path of sustainable development, listen to Indigenous communities for whom this is a way of life and have this entrenched in their lives, and who can thus help guide the path forward.
As financial and investment professionals and leaders, we must learn, grow, and bring about change. As Sevestre puts it, “The role that a CFA charterholder plays in the community will have an impact on the Indigenous communities and on the world’s future.”
We need to set up our companies for success and ensure everyone is heard and has a voice at the table. We must move past conversations and performative statements and act now. As is often said, with great power comes great responsibility. We have the power, now let’s take the responsibility as well.
Angha Gupta, CFA, is a senior analyst in S&P Global Ratings. She holds an MBA from Ivey Business School and is an FSA Credential Holder from IFRS. She is a member of the Corporate Finance Committee at CFA Society Toronto. nies to help correct the past, while addressing the issues above.
Congratulations New Members
Abhishek Agarwal, CFA
Omar Alassar, CFA
Carlos Andres Amexquita Valencia, CFA
Anshu Anand, CFA
Anushyan Arulsothy
Dalbir S. Bains, CFA
Sebastian Fraser Beckett, CFA
Rajat Bhandari, CFA
Sarab Arvinder Singh Bhatia, CFA
Rahul Vinod Bhojwani, CFA
Duje Bobeta, CFA
Scott Joseph Botsford, CFA
Erinn Carey, CFA
Caroline Chan Ying, CFA
Yuqing Chang, CFA
Zhuo Yu Chen, CFA
Zixuan Chen, CFA
Yutong Chen, CFA
Jiaying Cheng, CFA
Melissa Kelly Chi Kam Chun, CFA
Jee Young Choi, CFA
Raoul Chopra, CFA
Wai Sze Grace Chung, CFA
Joseph Samuel Clarke, CFA
Annan Cui, CFA
Shu Hui Dai, CFA
Iliyan Iliev Daskalov, CFA
David Herbert Eitel, CFA
Uzoma Erondu
Chirag Gangwani, CFA
Sean William Garrity, CFA
Naveen Gupta, CFA
Jiahui Han, CFA
Xinyue He, CFA
Yingjun Huang, CFA
Ata Izadnia, CFA
Aqeel Shabbir Jangbarwala, CFA
Yanyu Jiang, CFA
Hong Jin, CFA
Yudhvir Kabuli, CFA
Dillon Thyler Kandasamy, CFA
Masoumeh Keihani, CFA
Mikhail Kindrat, CFA
Bryan James Webster Kitchen, CFA
Stephen Richard Kloss
Andrej Kosevic, CFA
Naveen Kumar, CFA
Louis-Martin Labrecque Harbour, CFA
Justin Edward Lau, CFA
Shayna Rebecca Lefko, CFA
Michel Leveillee, CFA
Ruo Nan Li, CFA
Mucong Li, CFA
Songyao Li, CFA
Pengchun Li, CFA
Ruoqi Li, CFA
Sijing Li, CFA
Kun Li, CFA
Ran Li, CFA
Yue Li, CFA
Jiapeng Lin, CFA
Richard Liu, CFA
Lusong Liu, CFA
Junyan Luo, CFA
Congying Ma, CFA
Kritesh Madan, CFA
Heerththan Manokaran, CFA
Ryan Frank Edward McNeely, CFA
Olaleye Morohunfolu, PhD, CFA
Roman Morozov, CFA
Sarah Shazeeda Osman, CFA
Vedang Vithal Parab, CFA
Chinmay Harishkumar Patel, CFA
Maharshi Umesh Patel, CFA
Nitesh Prakash Pillai, CFA
Eran Poyastro
Aneesha Surina Prihar, CFA
Rajay Rasheed A Pyne, CFA
Yanqiu Qiang, CFA
Atif Rahman, CFA
Sayeda Samar Rizvi, CFA
Brent Mongerie Rogers, CFA
Andrew David Ross, CFA
Xin Ruan, CFA
Manveer Singh Saluja, CFA
Zachary Ryan Schenker, CFA
Aidan Marc Smith-Edgell, CFA
Kingsley Szeto, CFA
Emre Tali, CFA
Martin Tallushi, CFA
Victoria Nicole Toncic, CFA
Siya Tong, CFA
Minh Khoa Tran, CFA
Luca Vincent Trivisonno, CFA
Renuka Upadhyay, CFA
Sarah Madeline Verdon, CFA
Mallika Verma, CFA
Chun Wang, CFA
Yuli Wang, CFA
Xinyi Wang, CFA
Xuan Tong Wang, CFA
Shijing Wang, CFA
Bhumika Watson
Cheong Tai Wong, CFA
Ziqian Wu, CFA
Yue Wu, CFA
ZiWei Xiao, CFA
Kang Yang, CFA
Xin Yang, CFA
Shun-Chieh Yao, CFA
Huiying Yao, CFA
Ming Qing Yao, CFA
Harrison Clarke Young, CFA
Andrew Chia-Hua Yu, CFA
Wei Hang Yuan, CFA
Jialu Yue, CFA
Jianxing Zhang, CFA
Yangyang Zhang, CFA
Lisheng Zhou, CFA
Zhaoyu Zou, CFA
Book review: Indigenomics:TakingaSeatattheEconomicsTable by Carol Ann Hilton
By Walter de Wet, CFA
Understanding an economy requires knowledge of its history, its culture, and the values of the people who operate within it. These factors provide an essential context for analyzing economic challenges, progress, and opportunities. Carol Anne Hilton’s book, Indigenomics: Taking a Seat at the Economics Table, offers a rounded framework for understanding and growing the Indigenous economy.
Looking beyond profit maximization
When searching for a definition of “Indigenomics,” no definitive answer exists. The definition depends on the context. On her website, Hilton describes Indigenomics as “calls for a new model of development, one that advances Indigenous self-determination, collective well-being, and reconciliation.” With this background, the book contextualizes how Indigenous values inform economic incentives, strips down myths surrounding the Indigenous economy, and provides insights for developing Indigenous economic leadership. If the Indigenous economy succeeds, it will benefit Indigenous peoples and the broader Canadian society.
Values and cultural perspectives
A critical focus of the Indigenous economy is environmental sustainability and the individual’s intergenerational responsibility toward the broader community. Indigenous economies prioritize collective well-being over individual gain and emphasize the environment and community over short-term profits. Wealth in Indigenous economies is not only monetary but includes a balance between social, environmental, and cultural values.
Indigenomics contrasts with some traditional Western economies, which often prioritize profit maximization and economic growth at the expense of the community and environment. Cultural beliefs, environmental conservation, and intergenerational obligation are cornerstones of Indigenomics. Economic decisions are made with a sense of accountability toward the land, community, and future generations.
Hilton challenges the Western economic model, where profit-driven motives are widespread. She advocates for a broader framework integrating the Indigenous economy and its values. For this to happen, Indigenous peoples need equal opportunities to participate in decision-making processes for meaningful economic development. Indigenous peoples require a “seat at the table” in economic discussions and policy development to create these opportunities. Ownership of their traditional land and active participation in developing and using these lands are some of the catalysts needed for fostering Indigenous economic growth. Aligning economic policy with Indigenous needs and values is crucial for executing Hilton’s framework.
Myths about the Indigenous economy
A critical element of Indigenomics is addressing and dismantling common misconceptions about the Indigenous economy. Hilton breaks down common myths, such as the belief that Indigenous peoples are overly dependent on government support or that Indigenous businesses cannot thrive.
She highlights the significant contributions of Indigenous leaders and businesses to driving economic growth. Changing these misconceptions is an important step toward creating a narrative within Canada that acknowledges the resilience and innovation of Indigenous economies.
Building cooperative economic systems
Hilton suggests an economic development model where Indigenous values coexist alongside the broader economy. Historically, Indigenous peoples were denied the full title to their lands, which put significant constraints on the potential growth of the Indigenous economy. The book emphasizes the importance of partnerships between Indigenous and non-Indigenous entities founded on mutual respect and benefit. Collaboration and integration of Indigenous rights and values are needed to bridge the gap and build a prosperous economy.
Measuring progress for the future
While Indigenomics provides an informative framework for developing the Indigenous economy, it raises an unresolved question of how we should measure success in the Indigenous economy. Traditional metrics, such as GDP, are informative but fail to capture the holistic nature of Indigenous wealth, which encompasses more than monetary outcomes.
Developing other parallel metrics that account for the broader impacts of economic activities is necessary. These measures would require more comprehensive data on the Indigenous economy and the creation of frameworks that align with Indigenous values. With more data, economists could better measure progress and policies that drive meaningful economic development of Indigenous communities.
Conclusion
The book highlights the barriers that have hindered the development of the Indigenous economy, such as institutional obstacles and gaps in infrastructure and financing. A 2023 report by the Bank of Canada highlighted that the Indigenous economy was valued at $48.9 billion in 2020 but noted that significant barriers remain.
Hilton envisions a $100 billion Indigenous economy. This growth of the Indigenous economy is achievable if the barriers that Hilton describes in the book are addressed. Realizing this vision will depend on actionable steps, such as policy reforms, invest-
ment in infrastructure, and the inclusion of Indigenous voices in economic decisionmaking. Indigenomics: Taking a Seat at the Economics Table is an informative and thought-provoking “must-read” for anyone who wants to develop a more holistic view of the Canadian economy.
Walter de Wet, CFA, is a Senior Research Strategist at Nedbank CIB Global Markets. Walter is the Chair of the Member Communications Committee at CFA Society Toronto.
Visualizing Climate Change with Python
Winfred Lam, CFA
In a previous edition of The Analyst, we explored the power of Python’s Pandas library for data analysis. Now, we’re diving into the visualization and analysis of climate change trends—a topic of growing importance to financial institutions and the investment industry. This article focuses on transforming and visualizing data to unlock insights during exploratory data analysis (EDA).
Effective EDA uncovers hidden patterns and trends and highlights potential issues within data sets, making it an essential step in any analysis workflow. Additionally, we’ll spotlight the JSON format—a cornerstone for storing and sharing web-based data and a key format for representing climate data.
1:
Visualizing Toronto’s temperature
We’ll start by analyzing Toronto’s temperature trends over time. The first step is identifying a reliable data set or an effective data application programming interface (API). One such option is the Meteostat API, which provides access to average temperature data for specific latitude and longitude coordinates. [FIGURE 1]
If we are interested in the average temperature (tavg), we note that some datapoints are unavailable (NaN), so start by cleaning the data set. We could drop all entries where tavg is NaN data, but say we want to go as far back as possible. We will instead fill NaN with the average of tmin and tmax (an admittedly imperfect but reasonable enough estimation) and do a quick line plot.
2:
FIGURE
3
Seasonal data
The above plot is complex to decipher but already displays one of the common challenges when analyzing time series data: seasonality. To account for it properly (i.e., to compare apples to apples), we will perform some light data manipulation. These are the steps:
1) Reset index so that the “time” column becomes just another column, then parse the year and month of each date into separate columns.
2) Group by Year, Month pairing. We will average the grouped values.
3) Select only the year, month, and tavg data points. Drop the rest.
Below, for each month, we plot the monthly average over the last 70 years.
FIGURE 4:
This analysis is clearer and appears to showcase some upward trend for each month. However, the chart looks very busy. With Python, we can easily create subplots and isolate the data series of each month, all with a few lines of code. To make our results more conclusive, we will also add a line of best fit through each subplot with the help of the Numpy library.
Another popular and compact way to visualize temperature changes is to use a heat map. We will rely on Seaborn, yet another popular library for visualization that is built on top of matplotlib and integrates very well with Pandas dataframes.
FIGURE 6:
While more definite conclusions should be supported by deeper statistical analysis, the above visualizations showcase Toronto’s rising temperature trends over the years.
With Python, we can easily compare temperatures of different regions by visualizing them on a map.
Visualizing data on interactive maps
Suppose we want to compare Toronto’s temperature to other regions worldwide. We could overlay even more data series onto the above charts, but let us take advantage of another type of visualization: interactive maps. With Python, we can easily compare temperatures of different regions by visualizing them on a map. Several libraries allow us to do this, namely Folium, Leaflet, and Mapbox. We will focus on Folium, which allows for easy overlay of labels and markers on a map using Python. Here, we will start with using the Folium library to overlay the temperature of several major North American cities, once again using Meteostat to pull the underlying temperature data.
Unlike tabular data, climate data is often stored in GeoJSON format—a structure designed to capture geographic information such as weather patterns, temperature zones, and flood risks tied to specific coordinates. In the final section of this article, we will delve into effectively utilizing GeoJSON for mapping and data analysis.
JSON and GeoJson data
Financial analysts are no strangers to tabular data, which is arguably the most common method of representation (e.g., Excel, SQL databases) and often the first thing that comes to mind when people think of “data”. However, the data is often returned in JSON format when working with web APIs. JSON (JavaScript Object Notation) is a widely adopted format for exchanging data between servers and web applications. It organizes information as “key-value” pairs, making it both
human-readable and easily parsed by machines. JSON supports various data types, including strings, numbers, arrays, and nested objects, allowing for the representation of complex data structures. This flexibility makes JSON a go-to format in modern web development and data science workflows.
For location-based data, a standard extension of JSON is GeoJSON, a specialized format designed to store geographic and spatial information. GeoJSON builds upon the JSON structure by introducing standardized keys such as “type”, “geometry”, and “properties”, which describe spatial features like points, lines, and polygons. These features can represent anything from a single location (e.g., a city) to extensive geographic regions (e.g., countries or natural landscapes). GeoJSON is especially useful for visualizing and analyzing geographic data in mapping tools and Geographic Information System (GIS) applications.
One of GeoJSON’s key advantages is its compatibility with a wide range of tools, including Python libraries such as Folium. By combining the structured nature of JSON with the spatial focus of GeoJSON, we can seamlessly exchange and analyze geographic data across diverse systems. Suppose we are interested in mapping and comparing global temperatures across countries worldwide. To do this, we first need to overlay country borders, available in GeoJSON format at the URL below.
We can use Python’s Requests library to retrieve the data and return it in JSON format. JSON data can be complex, and navigating through it in Python may initially seem challenging (we’ll demonstrate this below). To help with this, we also include an image of the tree structure generated using an online JSON viewer (https://jsoneditoronline.org/). These tools can be an invaluable way to understand the structure for highly complex JSON data.
8:
Remember that JSON stores data in a hierarchical, tree-like structure, which can be represented as a nested dictionary in Python. Let’s unpack it to understand the data better.
At the first layer, we see “type” and “features”. This is a common way to conceptualize GeoJSON data, as GeoJSON is structured around a Feature Collection, which contains multiple features, each representing a spatial object like a point, line, or polygon. Each feature typically has:
1. Geometry: Describes the shape (e.g., Point, LineString, Polygon) and coordinates.
2. Properties: Key-value pairs that describe metadata or attributes associated with the geometry (e.g., country names, population). We get the “features” data set via below and see that it is a Python list of length 241. This aligns with what we saw in the image above.
9:
FIGURE
FIGURE
JSON supports various data types, including strings, numbers, arrays, and nested objects, allowing for the representation of complex data structures.
Referencing the first value of the list, we see that it is yet another dictionary with three key-value pairs: “type”, “properties”, and “geometry”, just as shown in the image above. We would be particularly interested in the “name” of the country, which is likely under “properties”, and the “geometry” key, as it contains the coordinates.
FIGURE 10:
Referencing “properties” under the variable first_country_data, we see that one of the keys is in fact “name”. Let’s retrieve the associated value. It is Aruba!
FIGURE 11:
As for “geometry”, we note that the dictionary retrieval contains the key “coordinates”, which will return a list of coordinates. These coordinates make up the border of Aruba.
FIGURE 12:
We have now found the pattern to access all countries’ names and border coordinates in the data set. We want to get the border coordinates of Canada and plot it on the map. Folium’s built-in GeoJSON() method allows us to easily map GeoJSON data onto the interactive map.
FIGURE 13:
These tools can be an invaluable way to understand the structure for highly complex JSON data
Choropleth map
Defining country borders on the map is crucial, as it establishes the framework for layering additional data. With these boundaries in place, we can now create a choropleth map, which uses variations in colour or shading to represent data values across geographical areas to visualize and compare temperature changes in countries over time.
Let us first read in global historical temperature. The data set can be viewed on Kaggle. We will apply some initial transformations to the data, such as dropping NaNs and converting the date type.
14:
Although the data set goes back to the year 1743, we cannot assume that 1743 data is available for all countries. Let us find the maximum range of dates for which we would have data for all countries. For each country, we find the most recent data points available.
FIGURE 15:
We also find the earliest start date for which we would have data on all countries.
FIGURE 16:
From above, we see that for select countries, data is not available until 1948. So, let’s use 1948 as the starting point. To keep it simple, let’s compute the temperature change in August from 1948 to 2013 for each country.
FIGURE
We are now ready to overlay the data onto the Folium map using the folium.Choropleth() method. The method has many optional arguments, but the key arguments to note in this case are geo_data, data, columns, and key_on, all of which are needed to properly overlay and join the two data sets.
18:
Folium allows us to overlay various data onto maps, making it easier to identify trends and clusters at a glance. For instance, a financial institution might overlay flood zone data in coastal cities with insurance claims to better inform property insurance pricing.
Python’s extensive ecosystem of libraries, as well as data APIs written for Python, simplifies data procurement, transformation, and visualization. At the same time, Folium enables the creation of interactive maps to visualize trends and patterns. Python’s seamless handling of GeoJSON data, essential for representing geographic information, makes integrating spatial data into analyses straightforward. As such, Python stands out as a versatile and powerful tool for visualizing climate data.
FIGURE
Winfred Lam, CFA, is a Manager at BMO Corporate Treasury responsible for Balance Sheet Management. He holds a master’s degree in computer science from the University of Pennsylvania and is a volunteer member of CFA Society Toronto’s Member Communications Committee.
CFA Charterholder Profile – Jennifer Vieno, CFA
The power of persistence and strong networks in pursuing career goals
By Krystyne Manzer, CFA
With nearly fifteen years in progressively senior roles, Jennifer Vieno, CFA, shares key milestones and challenges from her career, emphasizing the importance of persistence and support systems. She also offers advice for those looking to advance in the industry, highlighting the value of building strong networks and taking a proactive approach to career growth.
What was your career journey in the finance and investment industry? What motivated you to pursue a career in this industry?
I began my career in finance as a bilingual service representative at Fidelity Investments’ call centre with a clear goal: to learn as much as possible, as quickly as possible, and pivot to the investment side of their business. That role was a crash course in investment knowledge and emotional intelligence. During the role, I began pursuing the CFA charter and shadowing the reporting and analytics team, completing their reports between client calls. This hands-on experience set me apart when a position opened up on the team. From there, I continued moving closer to the investment side, first as an institutional analyst and then an investment analyst covering their institutional Canadian equity funds.
My next move was as a product manager at BMO, where I covered their fixed income and sustainability funds. That’s where my desire to move to sustainability research took hold, and I focused my energy on expanding my knowledge and skills by taking classes and networking, culminating in my move to Sustainalytics Morningstar. I initially joined Sustainalytics Morningstar as a manager and have progressed to my current position as
ESG Research Director, where I lead a team in Toronto and Romania.
What do you love most about what you do?
My role’s most rewarding and challenging part is staying current on sustainabilityrelated developments across companies in the technology, media, and telecom sector. There is always a new controversy, trend, regulation, risk, or opportunity to review and integrate into our assessments. It is gratifying and stimulating and could never be described as dull!
What were some key milestones or turning points in your early career that helped you advance?
Early on in my career, I realized the importance of being a persistent advocate for my career growth. While working as a service representative, I knew I needed to differentiate myself and prove my skills to achieve my goal of working on the investment side. I approached the Reporting and Analysis Manager, outlined my skills, and offered to take on some of the team’s tasks, to which I got a “yes” but no start date. I gently persisted and eventually started with one report, which grew into another report and further tasks
as I gained the team’s trust. When a role opened on the team, I had already proven my ability and keenness to the team and was offered the role. Persistent advocacy would continue to be an essential component in the rest of my career progression.
What are some challenges you faced during your career, and how did you overcome them?
Transitioning from an individual contributor to a people manager while also pivoting from traditional financial to sustainability research was one of the most challenging points in my career and one of the steepest learning curves I have encountered. I overcame this challenge by being honest with myself about what support I would need to successfully move forward. Luckily, I had an incredibly supportive manager who helped me figure out and build my management style. I connected with peers to learn from their experiences and signed up for a new manager program, which provided opportunities to work through challenges in a non-judgmental environment. Building a strong support system was integral to helping build confidence in my own abilities.
What do most people not know about ESG/sustainability that you think needs to be more prominent?
While there has been a rising backlash toward the term “ESG,” it’s important to recognize the growing amount of research that demonstrates how effectively managing ESG risks can contribute to company sustainability and profitability. For example, companies that optimize resource efficiency to use less water, energy, and other resources not only reduce
costs and associated environmental impacts but mitigate regulatory risks. Similarly, companies that foster inclusive workplaces can attract and retain candidates from a broader, more diverse talent pool, which helps drive innovation and lower turnover. These are just two examples out of many sustainability practices that can reduce costs, improve efficiency, and support long-term growth. This is not about “being woke,” as some are describing it, but about ensuring the longterm sustainability of companies.
How has CFA Society Toronto helped you in your career?
The CFA program helped bolster my analytical and research skills with its impressive and rigorous amount of content. Having the CFA charter on my resume signalled dedication to my education and allowed me to be competitive for jobs that otherwise would have been out of reach, especially in Toronto, which has the largest number of CFA charterholders globally.
Joining CFA Society Toronto’s Member Communications Committee further enhanced my career by providing opportunities to showcase my writing and analytical skills. I got to interview interesting professionals and write about topics I cared about. I was able to build my leadership skills as the Vice Chair and then Co-Chair of the committee. I am excited to continue my learning with the Society through their various events and offerings.
As you look back over the last few years of your career, what is one thing that you have changed your mind about recently?
The pandemic made me rethink the concepts of work–life balance and mental health in the workplace. While I still value the importance of hard work and dedication in growing one’s career, I’ve come to recognize that working smarter, not harder, is essential. Burnout among hard-working employees is a real risk leaders should be aware of and work to mitigate. Supporting and talking about mental health in the workplace can help employee satisfaction and retention.
What advice would you offer to finance and investment professionals looking to advance their careers?
Be persistent in pursuing your goals. Be good in your current role, but make sure to focus on building relationships and a strong network that can vouch for you. Many opportunities are shared informally through networks. Case in point, my last two career moves came from people within my network who thought I might be a good fit for the opportunity.
If you’re targeting a particular role, find out what skills and knowledge are required and develop a plan to close any gaps. Informational interviews are an invaluable resource as you discover and identify your desired career path. Reach out to folks in roles you desire to discuss their career path and experience. Please don’t feel anxious about reaching out; many have benefitted from these conversations in the past and are happy to pay it forward. If they accept, be prepared, listen actively, and be respectful of their time.
Jennifer Vieno, CFA, Career Highlights
• ESG Research Director, Technology Media and Telecom, Sustainalytics Morningstar
Krystyne Manzer, CFA, MFin, is a Vice President and Portfolio Specialist at RBC Global Asset Management. She is a member of CFA Society Toronto’s Member Communications Committee.
• Former Co-Chair, Vice Chair, and committee member, CFA Society Toronto’s Member Communications Committee
• Master of Arts, Economics, University of Ottawa
• CFA charterholder
FUN FACTS:
Bucket list travel destination:
While there are many countries on my list, if I have to pick one, it would be exploring Japan.
Something most people don’t know about you that you’d like to share:
I lived in Istanbul for a few years. Living there is still one of my favourite life experiences, and I can keep a basic conversation going in Turkish after all these years!
What are you currently reading?
I’m reading This Is How They Tell Me the World Ends by Nicole Perlroth. If you’re looking for a thrilling book on the history of cyberwarfare that will have your heart pumping, you won’t be disappointed.
What is something you do to de-stress?
Music helps me de-stress; I sing and play the guitar and ukulele.
Are stars aligning for investment in sustainable multi-family real estate?
By Mark Timm, CFA
Sustainable multi-family real estate (residential property with more than one housing unit) is gaining traction as an investment option in Canada, but hurdles remain. Through a sustainability lens, it makes sense. According to the United Nations, the construction and operation of buildings contributed 37 percent of global greenhouse gas (GHG) emissions in 2022.1
The financial calculus is more nuanced, although industry participants interviewed by The Analyst suggest a supportive framework is slowly falling into place.
Anecdotally, industry participants report that, after years of incorporating sustainability in other real estate segments like office and industrial, institutional investors are showing interest in sustainable multi-family property such as condominiums and apartment buildings.
Partly, it’s a response to demands for more sustainable investment practices from stakeholders like pension beneficiaries and regulators.
To some degree, it also reflects increasing evidence that unsustainable real estate assets could become stranded during an institutional investor’s typically long holding period due to climate change’s impact on the insurability of and demand for those properties.
Today, it’s also a matter of scarce capital. Private market fundraising— not just for real estate deals—has been difficult for a couple of years due to tight liquidity and the fact that many institutional investors have already reached maximum exposure to private assets. In that situation, sustainability becomes a differentiator for institutions allocating scarce capital.
“When you think of a real estate project as a capital market asset, you want it to be attractive to the widest possible pool of buyers, partners, and financiers when it enters the market,” says Stephen Job, Vice President at apartment developer Tenblock. “We have to anticipate where the capital markets will be ten years from now. All the trends indicate there will be more environmental and policy reasons to have resilient sustainable assets.”
Tenant preferences are instructive
In Canada’s challenging rental market—where affordability and availability remain key concerns—sustainability is not yet a top priority for most residents when choosing a unit. However, interest is growing. According to a 2024 survey of more than 20,000 Canadian
multi-family building tenants, 39 percent expressed willingness to pay more for a unit with net-zero carbon emissions. While 87 percent indicated they wouldn’t pay more than 2 percent of their rent for this feature, the data provides insight into resident expectations and potential future trends.2
The survey offers direction to developers on where to focus their sustainability efforts. For example, 2023 results revealed that 60 percent of tenants would accept temporary inconvenience to allow for renovations that reduce a property’s carbon footprint. This aligns with where the industry’s sustainability efforts are already focused.
In Canada, a significant portion of the multi-family housing stock is between 50 and 70 years old, presenting a prime opportunity for energy-efficient retrofits. Using concessional financing and other government incentives, targeted upgrades—such as replacing outdated heating systems and improving insulation—can cut over 90 percent of a building’s GHG emissions while delivering a net internal rate of return (IRR) of 6 to 12 percent for investors who buy, retrofit, and resell, says Pierre-Laurent Macridis, Manager, Private Investment Research at Rally Assets, an impact investment management firm.
In robust multi-residential markets like Toronto, Montreal, and Vancouver, investors who hold on to the retrofitted property as an operating asset with the intention of capitalizing on expanding valuation multiples can see net IRR potential ranging from 10 to 16 percent, Macridis continues. Macridis says greenfield projects (those starting from scratch without prior development) remain less attractive than deep retrofits of older-stock housing because, for many investors, the perceived higher upfront costs and risks of a completely new sustainable build may offset any operating gains.
Sustainable incentives?
In recent years, governments have offered a growing range of incentives for sustainable real estate, whether brownfield (projects on previously developed land) or greenfield. One of the most popular is the “MLI Select” concessional loan insurance offering of Canada Mortgage and Housing Corporation (CMHC). The financing is available for both existing properties and new construction, with eligibility based on the energy efficiency, accessibility, and affordability of a project.
Accompanying the incentive carrot is the stick, as municipalities add sustainability requirements in building codes, often requiring retrofitting of non-compliant buildings.
Such regulatory moves reflect growing social license, or community
[1] United Nations Environment Programme. “Why Making Buildings Greener Is Crucial to Countering Climate Change.” June 20, 2024. https://www.unep.org/news-and-stories/story/why-making-buildings-greener-crucial-countering-climate-change [2] simplydbs. “2024 Canadian Multi-Residential Satisfaction Study.” Accessed: January 23, 2025. https://simplydbs.com/cmrs
support, for sustainable real estate. Sustainable projects may see expedited municipal permitting processes that otherwise can take so long that they render original project cost assumptions obsolete.
On the other hand, there is pushback that such sustainability regulations add to the difficulty in meeting already-challenged affordable housing construction targets.
But at least one company says that’s a false choice. Heartwood Trust raises equity capital for multi-residential projects designed to be climate resilient in a way that’s scalable. In their projects, they set quantitative targets for the carbon neutrality of both construction and operation that are expected to drive financial returns.
“If it’s done intelligently, it makes a better investment,” says Heartwood’s co-founder, architect David Constable. “The lower operating costs can more than offset the upfront cost if it’s done in a data-driven way.”
Heartwood invests in buildings designed for projected 2050 climate conditions to avoid the risk of a costly retrofit or deteriorating structural resilience. The resilient design is core to the intended investment appeal of the projects, says Tim Blair, also a co-founder. And the cost savings from better energy efficiency can be passed on to tenants.
“You have an asset that’s ready for the 2050 climate. That really creates value for your investors and your tenants over the long term.”
Job says the biggest hurdle facing more widespread development of sustainable multi-family real estate is taxes and development charges—something only governments can change.
“There’s no shortage of equity capital looking to build and own sustainable apartment buildings in great locations in Toronto and beyond,” he says. “You just can’t get past the fact that revenues still aren’t high enough to clear that cost hurdle.”
In Canada’s challenging rental market—where affordability and availability remain key concerns—sustainability is not yet a top priority for most residents when choosing a unit.
Job acknowledges the federal, provincial, and municipal governments are beginning to recognize this and take steps that are making some projects at the margin viable. But more needs to be done.
“We’re close,” he says. “There seems to be alignment between the three levels of government, but policy still hasn’t come as far as the talking points and speeches.”
Mark Timm, CFA, is an independent financial writer with more than three decades of experience in Canada and abroad as a journalist, equity analyst, and Director of Institutional Marketing for a leading Canada-based global asset manager. Mark is a volunteer with CFA Society Toronto’s Member Communications Committee.
Photo credit: Alex Ohan (https://www.pexels.com/photo/city-buildings-by-the-water-12430203/)
An Initiative to Improve Corporate Disclosure: The Industry Standards Reporting Research Council
By Rossa O’Reilly, CFA
The requirement for public companies to file audited financial statements prepared according to Generally Accepted Accounting Principles (GAAP) dates to the 1930s. Since then, there has been a growing sense that managers do not use these general-purpose financial statements to continuously manage their businesses, as they do not, in many cases, provide good measures of absolute or relative operating performance.
The ISRRC pilot project
The working group initially determined that a pilot project would provide the best proof of concept of the ability to set standards for APMs.
The objectives of the pilot project are to:
1) Assess the feasibility and viability of a standard-setting process for industry-specific standards that would improve corporate disclosure quality, usefulness, and comparability
2) If that standard-setting process is considered viable, determine the appropriateness of establishing a sector accounting standards board
The objectives of APM standards are to:
Today, most figures and information used by investment analysts are not based on GAAP. These corporate disclosures, known collectively as alternative performance measures (APM), have little or no standards, structure, or independent verification associated with them. The creation of APM standards has been hampered by the fact that APMs tend to be very industry-specific, and APM reporting does not fall clearly into the remit of a single standard-setter or regulator.
The quest for meaningful financial reporting
The issue of the lack of standards for APMs was raised at a May 15, 2018, meeting of the Bank of Canada and Canada’s eight largest pension funds. At this meeting, Stephen Poloz, then Governor of the Bank of Canada, suggested that the pension funds establish a working group in conjunction with CFA Society Toronto and CFA Societies Canada to review the issue and consider potential alternatives for forming a process for establishing standards in APMs.
Since then, the Canadian Coalition for Good Governance have been added to the working group. Originally named the Alternative Performance Measures Working Group, it was later incorporated as a non-profit and now operates as the Industry Standards Reporting Research Council (ISRRC). Its objective is to identify if there is a need for APM standards and, if so, determine how to develop standards for APMs on an industry-specific basis.
• Provide industry-specific standards for the comparability of companies that can be applied in a consistent manner
• Focus on the needs of the end-user (investors and analysts) and not the preparer
• Be internationally relevant
The key performance indicators are that the APM standards are:
1) Used by the international investment community
2) Embraced by the issuers
3) Supported by the international accounting standard-setters and securities regulators
Two separate industries, real estate and oilfield services, were used as the test industries for the pilot project to assess the viability of the process, as alternative performance measures are already used extensively in these industrial sectors.
ISRRC oversees consultation with investors, analysts, issuers, industry experts, standard-setters, securities regulators, and other relevant stakeholders to facilitate broad-based adoption of the new APM standard-setting process. The initiative is volunteer-led and has a small budget funded by CFA Societies Canada and the Canadian Maple 8 pension funds.
The pilot project is operated by a nonprofit corporation created specifically for this project. This entity is a subsidiary of CFA Societies Canada; the ultimate ownership and future direction of the organization will be determined by the working group after the pilot project.
Current status of ISRRC and its pilot projects
Today, ISRRC has substantially finalized its pilot projects, which have validated the need for and viability of an APM standard-setter. Procedures, processes, and a conceptual framework for determining and establishing APM standards are being finalized.
ISRRC has conducted a survey in 74 countries that identifies what information portfolio managers, analysts, and lenders use to make investment and credit decisions. This is the first time this type of information has been collected from users, and it validates ISRRC’s perspective on the widespread use of APMs. Once the results are published, significant interest is expected from traditional standardsetters and global regulators.
Tom Trainor, CFA, the ISRRC’s Canadian Co-Chair, has outlined for The Analyst some of the important early findings of the survey. “We are still analyzing survey results and expect to have final results in later Q1 of 2025. Initial results have indicated that, while companyprovided information is still the largest source of information used to make equity and credit investment and lending decisions, the use of alternative performance measures exceeds the use of audited GAAP information.”
Outreach on the project continues, with the objective of familiarizing senior staff at organizations and in the academic and research community with the project and its goals. In addition, ISRRC continues to reach out to regulators, standard-setters, accounting bodies, and governance organizations. ISRRC also has an ongoing dialogue with leading academics and researchers in Canada, the United States, and Europe about the project, its developments, and feedback on improvements to their proposed processes.
ISRRC is finalizing project recommendations and working with senior leadership at CFA Institute to determine the optimal organizational structure and a process for securing support from the global investment community to improve corporate disclosure and reporting.
What the future holds
Regulators have told ISRRC that they would like to see an industryled solution, so it is incumbent on users and practitioners to make their voices heard. As with other CFA Institute initiatives historically (notably the development of the CFA Code of Ethics and Standards of Professional Conduct and the CFA Performance Presentation Standards in the past), a great deal is being achieved and facilitated by continuing to prepare definitive sets of alternative performance measures with the assistance of practising specialists in various sectors. In time, ISRRC believes regulators and other standard-setters will take increasing notice of what practising analysts and portfolio managers are doing with APM standards and will be encouraged to join and support our endeavours.
The combination of top-down and bottom-up approaches is widely viewed as the most effective way of achieving progress in setting alternative performance measurement standards.
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.
➥ To find out more about developments on this vital project click here.
The Power of Asking the Right Questions, Active Listening, and Thoughtful Follow-Ups
By Joanna Wolff, CFA
Asking thoughtful questions at the right time, in the best order, can help us make more informed investment decisions during uncertain times, when it matters most to our clients and their portfolios. Continuing from where we left off in “Exploring the Art of Questionology in the Research Process,” this article focuses on mechanics and best practices for how to ask better questions.
What research exists on how to ask questions? What can we learn from other inquisitive disciplines about the type, tone, sequence, and framing of questions to enhance information-gathering techniques? I spoke with an investigative journalist and a litigation lawyer—seasoned fact-finding professionals—to find out.
Preparation: What do you need to know?
Read annual reports, transcripts, and industry reports and follow competitors. Research a company well to determine the areas where you require more information.
Decision sciences company, Mu Sigma, offers the following guide to choosing questions based on conversation goals:1
• Funneling questions delve deeper into a subject “to understand how an answer was derived, to challenge assumptions, and to understand the root causes of problems.” What qualities does the new CEO bring to the company that are necessary for it to regain leadership in its markets?
• Adjoining questions explore a subject to broaden our understanding of it. How could this technology apply to a different industry?
• Elevating questions zoom out to raise broader issues and the bigger picture. What geopolitical trends should we be concerned about?
• Clarifying questions zero in to better understand what was said and uncover the intent behind it. Could you explain what you meant by that?
However, preparing for an information-gathering interview is more than just making a list of the questions you plan to ask. Even more importantly, being well-prepared allows you to listen actively during the conversation, probe with follow-up questions, and confidently go off-script when necessary. These follow-up questions require minimal preparation but are especially powerful, as researchers at Harvard have found.2 They signal to your conversation partner that you are listening, care about their input, and want
[1] Pohlmann, Tom, and Neethi Mary Thomas. “Relearning the Art of Asking Questions.” Harvard Business Review website article, March 27, 2015. https://hbr.org/2015/03/relearning-the-art-of-asking-questions
[2] Brooks, Alison Wood, and Leslie K. John. “The Surprising Power of Questions.” Harvard Business Review, May–June 2018. https://hbr.org/2018/05/the-surprising-power-of-questions
FIGURE 1:
to know more. Experts emphasize that the skill of listening cannot be overstated—it helps you follow tangents, uncover unexpected insights, and spot issues that need addressing. Consider your conversation like a map: follow lines of thought with follow-up questions to reach a deeper understanding. Sometimes, you may even know more than the person you’re interviewing, so listening closely ensures the conversation remains honest and productive.
Sequence can be subjective: What are some best practices?
According to researcher Alison Wood Brooks, the optimal order of your questions depends on the circumstances.3 If the encounter is tense, asking the toughest question first may make later questions feel less intrusive. For relationship-building, start with less sensitive questions and escalate gradually.
Another suggestion from the professionals I spoke with was to begin by summarizing what you know. Then ask, can you help me understand xyz? This approach builds trust and encourages openness, the same way asking questions in a casual tone will.4
Compound questions, meaning a single question with multiple parts, naturally allow the interviewee to answer only the easiest part. However, when asking simple questions, you will likely need multiple straightforward questions and answers to get to your point.
Be careful with leading questions, as they can make your conversation partner defensive. They can help, though, in getting a discussion back on track. Pause in between sentences. Silence compels most people to fill the silence with more details, maybe even some details they didn’t initially intend to share.
Always ask: “Is there anything we didn’t discuss but should have?” Often, this is when the most valuable insights emerge. Sometimes, this is when the interview actually begins.
Consider your conversation like a map: follow lines of thought with follow-up questions to reach a deeper understanding.
Some parting thoughts
What became apparent in this research is that it isn’t just about the questions. It is about having higher-quality conversations: preparedness establishes trust, and follow-up questions demonstrate respect, increasing the odds of gathering useful information for decision-making.
How we frame our questions and the tone we use are equally important. Our conversation partner will be pleased to share their expertise if we are genuinely curious and interested in learning more about a topic. That said, not every conversation will be a good one. Learn from those conversations that did not go as well as you had hoped they would.
As with most skills, to become better at asking questions, practice.
Why not give it a try?
Joanna Wolff, CFA, is a Portfolio Manager at Sionna Investment Managers. She is a volunteer member and Vice Chair of CFA Society Toronto’s Member Communications Committee.
[3] Brooks, Alison Wood, and Leslie K. John. “The Surprising Power of Questions.” Harvard Business Review, May–June 2018. https://hbr.org/2018/05/the-surprising-power-of-questions
[4] Brooks, Alison Wood, and Leslie K. John. “The Surprising Power of Questions.” Harvard Business Review, May–June 2018. https://hbr.org/2018/05/the-surprising-power-of-questions
Canadian Advocacy Council Quarterly Update
What’s new with the CAC?
Advancing investor protection, industry professionalism, and market integrity across Canada, the CAC works to focus attention on pressing advocacy files dominating the regulatory agenda. Ensuring fair, equitable, and sustainable outcomes for stakeholders is more important than ever, and 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 consultation processes. To see the comprehensive catalogue of our commentary letters, visit us online at cfacanada.org/advocacy
Published Canadian Advocacy Council of CFA Societies Canada (the “CAC”) comment letters
OBSI – Consultation on Loss Calculation for Complaints Involving Unsuitably Sold Illiquid Exempt Market Securities
The Ombudsman for Banking Services and Investments (OBSI) sought input from stakeholders and the public on their approach to calculating investor losses in cases involving unsuitable sales of illiquid exempt market securities.
The CAC generally agreed with OBSI’s assigning zero value to such securities and requiring investors to return them to the firm, while calling for exceptions where necessary. The CAC emphasized the need for clarity on how OBSI determines the end value, as firms could unintentionally benefit from selling the securities later, where conditions allowed. The CAC stressed that investors should not be able to misuse OBSI’s position as a safeguard against normal market losses.
The CAC highlighted the need for OBSI to consider cases involving captive dealers with limited investment options and to clarify their methodology for evaluating alternative investments. This would help ensure fair outcomes for both consumers and firms involved in disputes concerning these securities.
CSA – Proposed Amendments to Mandatory Central Counterparty Clearing of Derivatives
The CAC submitted comments on the Canadian Securities Administration’s (CSA’s) consultation regarding proposed amendments to National Instrument 94-101 related to mandatory central counterparty clearing of derivatives.
The proposed amendments aim to update the list of mandatory clearable derivatives to reflect the transition to a new interest rate benchmarks regime based on overnight risk-free interest rate
benchmarks. Specifically, the Proposed Amendments reflect the cessation of certain inter-bank offered rates (IBORs) and the Canadian dollar offered rate (CDOR) interest rate benchmarks. The Proposed Amendments also contemplate adding credit default swaps (CDS) referencing certain indexes as mandatory clearable derivatives.
The CAC agreed with the proposed amendments and appreciated the inclusion of a cost-benefit analysis. However, the CAC requested more detailed information to facilitate better stakeholder engagement and understanding of the decision-making process behind the proposed changes.
Specifically, the CAC sought clarification on the thresholds used to determine which derivatives require clearing, including any factors beyond trading activity, and how international harmonization was considered. The CAC believes stakeholder engagement would be enhanced through availability and review of the analysis and criteria behind selecting certain derivatives for mandatory clearing and why some were excluded.
CIRO – Distributing Funds Disgorged and Collected through CIRO Disciplinary Proceedings to Harmed Investors (Phase II)
The CAC responded to the Canadian Investment Regulatory Organization’s (CIRO) request for comment on its initiative to distribute disgorged funds to harmed investors. The CAC commended CIRO for its transparency, stakeholder engagement, and policy leadership in this area as an important mechanism to enhance investor protection, market integrity, and confidence.
The CAC:
• Acknowledged CIRO’s clarification that the program will operate using its existing resources and structure, with the General Counsel’s Office acting as Administrator
• Recognized that CIRO has conducted an impact assessment and concluded that the benefits to investors outweigh administrative costs
• Supported CIRO’s plan to conduct regular reviews to assess the program’s effectiveness and encouraged the publication of these findings to enhance transparency and inform stakeholders
• Noted that the Administrator has discretion to forgo distributions if costs exceed benefits, based the amount of funds collected, number and value of claims, claimant locations, and feasibility of payment processing. The Council encouraged CIRO to publish the reasons behind such decisions to maintain transparency.
• Sought clarification on whether residual funds from non-pursued distributions will remain within the CIRO Restricted Fund exclusively for future claims or be available for other purposes
• Appreciated CIRO’s responsiveness to feedback, and remains open to further engagement
Other letters filed:
• OSC – Statement of Priorities 2025-2026
• CIRO Rule Consolidation Project – Phase 4
Who is the Canadian Advocacy Council?
The Canadian Advocacy Council (CAC) is a volunteer advocacy council of CFA Societies Canada, representing the twelve Canadian CFA Institute Member Societies and, ultimately, Canadian CFA charterholders. The council includes investment professionals from across the country who review regulatory, legislative, and standardsetting developments affecting investors, investment professionals, and Canadian capital markets. The CAC 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 or as a part of the CAC, please contact cac@cfacanada.org.
