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(June 5, 2008) CFA Institute will have administered more than one million CFA exams since its inception in 1963, as nearly 119,000 current and aspiring investment professionals from 165 countries prepare to take the exams this weekend.

The United States by far is fielding the most new candidates this year, 23,685, a 27% increase over last year. In second place is China, with 7,778 new candidates, a 68% jump. In third place is Canada, with 6,223 new candidates, up 35%. New CFA candidate growth continues to be especially strong in developing markets. For example, Vietnamese candidates have increased 302% from 2007.

The CFA Level I examination is administered twice per year, in June and December, and Levels II and III are administered once per year, in June.

The CFA Institute recommends that to be successful, a candidate should study a minimum of 750 hours for the three examination levels. On average, successful candidates sit for four examinations to complete the self-study program and earn the CFA charter.

Since 1990, compound annual growth rate for global registrations in the CFA program is about 17%, the institute says, while the CAGR for CFA Institute membership is about 11%.

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U.S. confidence drops to all-time low: RBC

(June 5, 2008) Americans continue to worry about every facet of their financial situation, according to the most recent results of the RBC CASH (Consumer Attitudes and Spending by Household) Index.

Economic attitudes fell across the board, with consumers viewing the current economy negatively and displaying deep pessimism about the future. As a result, the overall RBC CASH Index for June 2008 hit an all-time low of 22.5, dropping nearly 17 points below May’s 39.0 level.

“After improving in May, the RBC CASH Index has resumed the downward trend that has persisted for most of the past 12 months, as the overall index and each sub-index fell, and all but the expectations sub-index fell to a new record low,” said T. J. Marta, economic and fixed income strategist for RBC Capital Markets. “Despite economic stimulus checks being sent to millions of Americans, this month’s reading indicates consumers are under extreme and growing financial pressure from falling housing prices, rising food and energy prices and a softening job market.”

The economic outlook of Americans dropped sharply during the past month, as seen in the RBC Expectations Index, which fell nearly 20 points to -43.9, compared to -24.1 in May. RBC says the downturn in the index is being driven by consumer expectations that the economy as a whole will be weaker six months from now. More than one-third of Americans (36%) believe that their local economy will weaken in the coming months.

Consumers’ confidence in the investment climate also soured. There was a 15-point drop in the RBC Investment Index to 45.1, compared to 60.7 in May, although the number of consumers reporting they are less confident in investing remained statistically unchanged at 60%.

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Germany the place to invest: Ernst & Young

(June 5, 2008) If you’re going to put money in Europe anytime soon, you should look at Germany, according to a new study released by Ernst & Young.

According to the findings of Ernst & Young’s Location Germany 2008: Germany and Europe — International Manager Assessment report, which was conducted with over 800 international business decision makers, Germany is the world’s leading logistics nation and one of the world’s most innovative countries.

The report also takes a positive view of Germany’s infrastructure, citing the country as having the densest and best-developed traffic and communications infrastructures in the whole of Europe.

Germany is second only to the U.S. in terms of attractiveness as an R&D location, and counts as the third most innovative country in the world behind the U.S. and China respectively.

“Our findings show that Germany continues to make significant gains as an attractive inward investment destination,” says the report’s author, Peter Englisch. “International investors are attracted to the country’s reputation as an innovative power with a highly qualified and flexible labour pool.”

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Manulife launches Group IncomePlus

(June 5, 2008) Manulife Financial has launched a group retirement savings version of its IncomePlus guaranteed minimum withdrawal product.

According to Manulife, Group IncomePlus is the first option available in Canada to guarantee group retirement savings plan members retirement income for life.

“We’re delighted to bring Group IncomePlus to our clients and to the Canadian group retirement market,” says Sue Reibel, senior vice-president of group savings and retirement solutions, “An investment option that provides guaranteed retirement income for plan members while maintaining the flexibility plan sponsors value with capital accumulation plans is ideal for our marketplace.”

The product will be offered as an investment option in any of Manulife’s group retirement savings plans. It will have no minimum initial or continuing contributions, making it accessible to all plan members.

“We’ve been monitoring the growing body of research around plan member needs and behaviour, and it points clearly to a need for an option that addresses the biggest risks members face as they move into retirement: the risk of outliving retirement income and the risk associated with market volatility,” Reibel explains.

Manulife says it will also be offering a selection of educational resources for members through every stage of their participation in Group IncomePlus.

Launch meetings for key market sources will be held in locations across Canada in mid-June and are set to coincide with the release of the Group IncomePlus website.

(06/05/08)