fiscal year 2009-2010
TRANSCRIPT
CFA Society of Dallas-Fort Worth
ANNUAL REPORT
2009-2010
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ABOUT CFA/DFW
The CFA Society of Dallas-Fort Worth (formerly the Dallas Society of Financial Analysts and prior to that, the Dallas Association of Investment Analysts) was founded in 1951 to:
provide interchange between investment and portfolio managers; promote good fellowship among those whose primary occupation is
investment and securities analysis; improve analytical procedures and techniques; promote our membership to the investing public. The society plays a
vital role within the Dallas and Fort Worth area promoting a better understanding of the investment management profession; (Media Guide)
encourage, strengthen and support the Chartered Financial Analyst® professional designation and to assist those candidates working towards achieving the CFA® charter.
Of equal importance has been its mission to promote high standards of professional and ethical conduct among its members. For more than 50 years, these objectives have guided the society and the local investment community. The society was the 15th formed worldwide. As of May 2010, The CFA Society of Dallas-Fort Worth has 1047 active members, and is among the largest member societies of the CFA Institute (formerly the Association of Investment Management and Research).
CFA Society of Dallas/Fort Worth
Tel: 214-363-3284 Email: [email protected]
www.cfadfw.org Mailing Address:
Post Office Box 820516 Dallas, TX 75382
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CONTENTS
President’s Letter ............................................................... 4
Mission & Purpose .............................................................. 5
Board of Directors .............................................................. 6
Past Presidents .................................................................. 7
Strategic Advisory Board .................................................... 8
Awards & Scholarships ........................................................ 8
Investment Research Challenge ............................................ 9
CFA Exam Review .............................................................. 10
Programs ......................................................................... 11
Forecast Dinner ................................................................. 13
University Relations ........................................................... 14
Career Development .......................................................... 14
Benefits of Membership ...................................................... 15
Membership Requirements .................................................. 16
Financial Statements .......................................................... 19
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PRESIDENT’S LETTER
To our members of the CFA Society of Dallas/Fort Worth:
Enclosed you will find the CFA Society of Dallas Fort Worth annual report. The latest year has been a year of challenge and rebuilding for our industry.
It has been my pleasure, as your local president to represent the membership, board members, and sponsors over the latest year, as they have all collectively worked hard, and made great strides for our local membership and our industry as a whole.
In the following pages, short summaries from each area of our organization from the respective local board member have been included for your review. If you find a certain area of special interest, please reach out to that member for further information and feel free to inquire about a board membership and serving your fellow members as well. Each area is extremely important in serving member needs and as such, we welcome feedback from this report and look forward to serving members for the next 12 months.
Sincerely,
John A Kvale President CFA Society of Dallas/Ft. Worth 2009-2010
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MISSION & PURPOSE
CFA/DFW Mission Statement
The goal of the CFA Society of Dallas-Fort Worth is to provide timely information, education, professional enhancement, networking opportunities and advocacy to investment professionals in the greater North Texas area.
CFA/DFW Purpose The purposes of the society are as follows:
To provide a professional society for financial analysts and investment professionals in the Dallas-Fort Worth and North Texas area.
To foster the interchange of information and opinions among the members.
To promote topical and educational meetings relevant to the profession.
To foster a high standard of ethics and to promote sound, professional standards of investment research and portfolio management among the members.
To foster high educational standards for institutions providing instruction in the field of financial analysis and also among the members through participation in the Chartered Financial Analyst® Examination Program.
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2009-2010 BOARD OF DIRECTORS
Mr. David Aler VP - University Relations/ Scholarship Verde Apartment Communities 1801 Royal Lane Suite 400 Dallas, TX 75229 469-420-6018 [email protected]
Mr. Robert Butler Programs Co-Chair (214) 628-3499 [email protected]
Joe Chairez University Relations Co-Chair JP Morgan (214) 965-3528 [email protected]
Ms. Julia Cunningham Past President Deloitte & Touche 2200 Ross Ave. Suite 1600 Dallas, TX 75201 214-840-1506 [email protected]
Ms. Jacqueline L. Finley VP-Communications Forecast Dinner Co-Chair/Volunteers Westwood Holdings Group,Inc 200 Crescent Ct. Suite 1200 Dallas, TX 75201 214-756-6956 [email protected]
Mr. Ben Friedman Public Relations Chair Cimmaron Asset Management 545 E. John Carpenter Freeway Suite 1900 Irving, TX 75062 214) 389-9185 [email protected]
Ms. Cassaundra Frost Treasurer Bank of Texas 7600 W. NW Highway Dallas, TX 75225 214-706-0355 [email protected]
Mr. Mahesh Gehani Volunteer/Social Director
Ms. Florence Huang Membership Luminant Energy 1601 Bryan St. Dallas, TX 75201 214-875-9084 [email protected]
Mr. John Kvale President JK Capital Management 8222 Douglas Ave. Suite 590 Dallas, TX 75225 214 706-4304 [email protected]
Mr. David V. Lewis Past President FCM Investments 2200 Ross Ave. Suite 4600 W Dallas, TX 75201 214-665-6920 [email protected]
Lisa McDaniel Forecast Dinner Chair Volunteer Chair ALMFirst Financial Advisors, LLC 6688 N Central Expy. Suite 200 Dallas, TX 75206 214-987-0860 x117 [email protected]
Mr. Paul Olschwanger Career Development Olschwanger Partners, LLC 7522 Campbell Rd. Ste. 113 196 Dallas, TX 75248 972-931-9144 [email protected]
Ms. Michelle Pryor Secretary Larry Thompson and Associates 3500 Oak Lawn Avenue Dallas, TX 75219-4329 214- 752-5430 [email protected]
Nick Stone Newsletter CSG Investments, Inc. 6000 Legacy Drive Plano, TX 75024 972-206-6367 [email protected]
Bryan Sweeney Programs Co-Chair Sweeney Financial, LLC. 4241 Buena Vista St. Suite 23 Dallas, TX 75205 214-520-3699 [email protected]
Linda Tse University Relations Co-Chair Capital Analytics 3308 Duval Drive Plano, TX 75025 214-459-9846 214-717-9137 [email protected]
Mr. Gary Walsh Past President #3 Luther King Capital Management 301 Commerce St. Suite 1600 Fort Worth, TX 76102 817-332-3235 [email protected]
Mr. David W. Wiley Education Review Class Wiley Investments 6300 Ridglea Pl. Suite 215 Fort Worth, TX 76116 817-862-1231 [email protected]
Dan Meader CFA Board of Governors Trinity Advisory Group 420 N. Carroll Ave. Suite 140 Southlake, TX 76092 817-310-2901 [email protected]
Ms. Sharon L. Criswell SW Region PCR ALMFirst Financial Advisors, LLC 6688 N Central Expy. Suite 200 Dallas, TX 75206 214-987-0860 [email protected]
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PAST PRESIDENTS
David Lewis, CFA Julia Cunningham, CFA Gary G. Walsh, CFA Sharon Criswell, CFA Lyndon J.E. Westerberg, CFA Matt L. Peden. CFA Royce Medlin, CFA Scott L. Miller, CFA David B. Ackerman, CFA David W. Wiley, CFA Daniel S. Meader, CFA Jeffrey L. Williams, CFA Luellen Triltsch, CFA Lynda J. Calkin, CFA Gregg A. Jahnke, CFA Jean Krone Bono, CFA Stephan J. Klaffke, CFA Leon F. Andrus, CFA Hilton Hemphill, CFA Perry V. Rushing, CFA John D. Schoch, CFA John C. Fritsche, CFA Jessica S. Gallia, CFA Thomas S. Wright, CFA Wayne G. Willems, CFA Ben A. Hock, Jr., CFA William J. Goodwin, CFA Richard D. Frizell, CFA Henry Hermann, CFA Richard A. Berry, CFA Kenneth R. Spreen, CFA Jeffrey K. Wentworth, CFA Vernon Dale Crues, CFA Daniel J. Forrestal III, CFA Willam Paul Weathers, CFA David M. Reichert, CFA
Robert M. Nicoud Russell Cleveland, CFA Thomas M. Tatum, Jr., CFA Curtis L. Scott, CFA Harold W. Hartley, CFA Herbert M. Jones, CFA Gerald L. Ray, CFA George T. Hemmingson, Jr. CFA Paul H. Kirk, CFA Lynn L. McCormick, CFA James. R. Crews, CFA James C. McCormick, CFA Harold M. Achziger, CFA R. Bruce Thomas, Jr., CFA M. Harvey Earp, CFA John M. McGinnis Ralph E. Scott T. Davis Temple George S. Rooker James S. Cleaver Clifford J. Osborn Harland Mayes
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STRATEGIC ADVISORY BOARD
Members
Brian Bruce, CFA, Director of the ENCAP Investments & LCM Group Alternative Asset
Management Center, Cox School of Business, SMU
Roddy Cummins, CFA, Executive Director, Investment Services, Guidestone Financial Resources
Fahrenbruch Jeff, Barrow, Hanley, Mewhinney & Strauss
Jim Hille, CFA Chief Investment Officer, Texas Christian University Endowment
Don Hultgren CFA, CEO, Southwest Securities
Luther King, CFA, President, Luther King Investments
Larry Lockwood, CFA, C.R. Williams Professor of Financial Studies, Texas Christian University
Brian McManus, CFA, VP - Research, Westwood Holdings Group,Inc
Emmett M. Murphy, CFA, Paradigm Capital Corporation
John Muse, CFA, Chairman, HM Capital
John Peavy, CFA
Bill Quinn, CFA, American Beacon
Steve Smith, CFA, Smith Asset Management
Jeff Williams, CFA, JP Morgan
Distinguished Member Award - CFA Society of Dallas/Fort Worth
This award was established in 2005 to recognize members who have volunteered to serve the Society on a long standing basis and as a result, our Society is stronger today.
Sharon Criswell 2010 Scott Miller 2009 Lyndon Westerberg 2008 Matt Peden 2007 Dan Meader 2006 Dave Wiley 2005
AWARDS & SCHOLARSHIPS
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INVESTMENT RESEARCH CHALLENGE
In 2007, the CFA Society of Dallas/Fort Worth and the CFA Society of Houston teamed up to launch an exciting new initiative, Investment Research Challenge – Texas. In the initial year of the Challenge, student teams from Rice, A&M, TCU and SMU competed with each other on analyzing, writing, and presenting a report recommending a “Buy”, “Sell”, or “Hold” position on a publicly traded company. The societies assisted in providing education tools; the goal being to provide a value-added real-world application for these students. The teams were then assigned the company to analyze with access to the CEO. Teams were given a template to follow in completing their written analysis/report. All four Texas societies, Austin, Dallas-Fort Worth, Houston and San Antonio provided mentors for the teams, judges or graders. Finalist teams competed before an oral panel made up of leaders in our investment community at the Texas Investment Portfolio Symposium (TIPS). The winning team went on to compete regionally against other winners hosted by CFA Institute in New York City.
Each year the local challenge has grown, and last year it was expanded beyond Texas. This year a total of 10 teams are competing; Rice, LSU, SMU, TCU, Texas A&M, Texas Tech, Tulane, U of H, UT, UTD and UTSA. The Texas company for 2010 was Rent-A-Center (RCII). 5 finalists; LSU, SMU, U of H, UTD, and UTSA competed at SMU on February 20th with University of Houston winning the IRC-Texas competition and SMU coming in second. This is U of H’s 2nd time to win the IRC-Texas. Their team went on to compete against other challenge winners (28 local challenges across Canada, Latin America and the U.S.) in CFA Institute’s Americas Regional IRC held March 18th in New York City. The winner was Brigham Young University who went on to complete in the global finals held on April 17, 2010 in Hong Kong where the University of the Philippines-Diliman won the Global Investment Research Challenge for 2010.
Thanks go out to Mark E. Speese, CEO, Robert D. Davis, CFO of Rent-A-Center and all the contributors of IRC Texas in our CFA DFW society; Brian Bruce, Robert Butler, Joe Chairez, David Cordell, Ben Cowan, Roddy Cummins, Don Hultgren, Ian Lim, Dr. Larry Lockwood, Brian McManus, Jeff Mercer, Steve Orr, and Matt Quinn. Special thanks to the Society Presidents of CFA-Austin, CFA-DFW, CFA-Houston, CFA-Louisiana, CFA-San Antonio, and most importantly, Leah Bennett of CFA-Houston for coordinating the Investment Research Challenge – Texas and making it the huge success it is today. To get involved, contact Sharon Criswell ([email protected]).
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CFA EXAM REVIEW CFA-DFW's Weekly CFA Review Course and Study Program continues to grow and prosper, benefitting area Candidates and your Society. We continue to offer weekly classes in the Spring for all three Levels, and in the Fall for Level 1. We are currently offering programs at three universities: University of Texas at Dallas, University of Dallas, and Texas Christian University.
This is the 20th year since CFA-DFW took over administration of the program. # of Candidates Enrolled Net Profit to CFA/DFW
1991 69 $2,377
1992 89 929
1993 105 1,467
1994 140 5,521
1995 147 2,500
1996 186 5,178
1997 218 10,876
1998 171 12,259
1999 214 26,635
2000 210 33,463
2001 245 28,644
2002 254 21,882
2003 250 9,521
2004 290 20,422
2005 276 17,813
2006 303 23,271
2007 301 28,872
2008 319 34,303
2009 319 34,887
2010 227 14,053
(For 2010, we still have a Fall 2010 Course planned – num-bers are for current Spring 2010 program only. Last Fall’s program had 96 Candi-dates, and profitability was $13,754)
To assist the largest group of Candidates possible, we con-tinue to offer significant amounts of stu-dent discounts and full schol-arships. Thank you to all the Instructors from our Society:
John Harris Travis Keath Jim Kelley
Larry Lockwood Scott Miller
Jim Richards Salil Sarkar
CFA-DFW's education program has raised awareness of the CFA designation. Other Socie-ties have sought our assistance in designing similar programs. I wish to thank the Board and CFA-DFW membership for its support and for giving me the opportunity to direct the CFA-DFW Weekly CFA Review Course and Study Program for the past 20 years. David W. Wiley, CFA Education Chair, Director, CFA-DFW Society Weekly CFA Review Course & Study Program
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PROGRAMS
Dear Members of the Board and Fellow Members, The Program Committee of the CFA Society of DFW is focused on providing a wide variety of educational programs to our members while also offering programs on career development and social programs to promote networking among members. Recognizing the diverse nature of our membership professionally and geographically, an effort was made to touch as many members as possible. While the majority of our programs were held in Dallas, we were also able to offer a number of programs in Fort Worth thanks to our speakers being generous with their time.
Secrets of Successful Channel Checking – An educational session lead by JP Mark with Farmhouse Research kicked off our program schedule with an overview of how to properly conduct channel checking for fundamental research.
Healthcare Reform & Investing programs – Damien Conover with Morningstar presented an update on the investment landscape for healthcare along with thoughts on the pending reform and was kind enough to present in both Fort Worth and Dallas. Also, thanks to the University of Maryland Alumni we were fortunate to have a second healthcare reform program in May by Frank Balco, a 40 year industry veteran.
Alternative Investments - Always a very popular topic with our members we were able to have multiple events this year covering the diverse aspect of the asset class
In January, Robert Rough with Pillar Capital Management offered an overview of Venture Capital investing in general and then focused on the state of the VC industry here in Texas.
In March, iShares presented interesting research dissecting hedge fund returns into beta, exotic beta and true alpha and offered a way to invest in the space using liquid instruments.
In April, Cogent Partners updated us on the private equity secondaries market, definitely a new topic for many in attendance but an area that could heat up in the near future.
On May 11, we held two events at UTD that attracted new CFA candidates and many of our members. The afternoon began with an overview of the CFA Program from Kathy Pilgrim with the CFA Institute who also was our speaker for our new Charterholder ceremony and holiday event in December. After a brief break a very lively panel discussion on ethics and regulation hosted by Nick Stone and featuring Linda Yoder from the SEC’s Fort Worth office and ethics expert, Gary Morris thoroughly engaged and entertained all in attendance.
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Other Program Highlights:
Social (Thank you to our Social Chair & Committee for the help)
Two happy hour events were held at Blue Mesa in Addison to allow our members to network over a few cocktails and appetizers.
Fort Worth Happy Hour – Held at the very popular downtown restau-rant the Reata.
Holiday Party & New Charterholder Ceremony-Uptown hotspot Lotus was a great venue for this dual-purpose event with Kathy Pilgrim from the CFA Institute awarding the new Charters.
Annual Meeting & Year-end Social – With the pressure on to continue to find cool venues for this event, the trendy club Deux was a big hit with our members.
CFA DFW Night at the Stars - With great seats, good food, drinks and fellow members, everyone in attendance had a great night and this could turn into an annual event.
Webinars (Thank you CFA Institute & other CFA Societies)
Our society also partnered with a few organizations to be able to offer our members access for additional quality programs.
PROGRAMS
A conversation with Meir Statman and Hersh Shefrin
Financial Instrument Accounting: IFRS after the Crisis
William Poole: Moral Hazard
Real Estate Investment: Publicly-Traded REITs
Economic Growth and Equity Investing
The Next Wave of Hedge Fund Investing
Importance of Asset Allocation
The State of Financial Market Integrity
Hodges Capital 11th Annual Investment Forum
The Great Investors’ Best Ideas (GIBI) symposium
Turnarounds, Restructurings, and Dis-tressed Investing - University of Texas at Dallas
Southwest Ideas Investor Conference – Three Part Advisors
Restructuring and Distressed Valuation Modeling Training Program - Wall Street Prep
TCU's 8th Annual Investment Strate-gies Conference
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FORECAST DINNER
Forecast Dinner Committee
The Forecast Dinner Committee is responsible for planning the Society’s largest event each year. The Forecast Dinner Chairs work in conjunction with the President and other board members to secure speakers for the event. The committee chairs also oversee all logistical aspects of planning, including choice of venue and marketing and promotion. Attendance for the Forecast Dinner continues to be strong, including years that have been overshadowed by a challenging market environment.
Year Attendance Year Attendance 2005 200 2008 350 2006 279 2009 300 2007 411 2010 329
The 2009 Market Forecast Dinner took place on Wednesday, February 10, 2010, at the Belo Mansion. The panel included:
John Ryding Chief Economist and a founding partner of RDQ Economics
Mark McCray Senior Portfolio Manager, PIMCO
Mark Freeman, CFA Senior Vice President, Portfolio Manager, Westwood Holdings Group, Inc.
Moderator:
John Rogers, CFA President and CEO, CFA Institute
Committee Chairs: Lisa McDaniel, CFA; Jackie Finley, CFA
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UNIVERSITY RELATIONS
The University Relations Committee is structured to provide representation to local universities with at least one committee member dedicated to each represented university. It relies on an open flow of new ideas among committee members, faculty and students for its success. The DFW Society University Relations model has proven so successful that other societies around the world are adopting it. The committee plans to expand on its success in 2010/2011.
Highlights of University Relations Committee accomplishments in 2009/2010:
· Awarded 14 CFA Exam scholarships and 10 review course scholarships
· Organized multiple on campus events
· Judged the UTD and SMU Shadow Investment Research Challenges
· Introduced several new professors and society members to the committee
Thank you to the Committee Members:
David Aler Claire Baranzelli David Cordell Sharon Criswell Julia Cunningham Ben Friedman
Corey Horsch Jeff Jones Larry Lockwood Chris Lucas Jonathan Oge Nick Stone
Niranjan Tripathy Jake Trousdale Linda Tse Gary Walsh Dave Wiley
As Director of Career Services for the CFA Society of Dallas-Ft. Worth, I have fielded over 100 calls from investment professionals moving to the area and/or looking for employment along with counseling many others locally on their current position and career development. In addition, I presented to the society on the topic, Manage Your Career Like You Manage Client Portfolios and met one-on-one with 6 members to help guide and motivate them through some challenging times. I also served as a panel speaker representing the society at UTD. Throughout the past year, I gave more than 20 speeches to various CFA societies around the country and brought back new ideas for future programs.
Committee Chair: Paul Olschwanger
CAREER DEVELOPMENT
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BENEFITS OF MEMBERSHIP
Regularly Scheduled Meetings The CFA Society of Dallas-Fort Worth meets regularly from September through May to hear corporate presentations, educational presentations or industry focused panel discussions. The meetings are open to all members and their guests. Reservations are required and can be made online or by e-mail. Corporate Programs Corporate Programs feature formal presentations by senior executives of publicly traded companies. After describing their company's current operations and outlook, these decision-makers then respond to audience questions, affording unique insights into company and industry issues. Educational Programs Educational Programs are a major goal of the society and constitute approximately one half of all meetings. Distinguished speakers explore topics of current interest to practitioners, and CFA Charterholders earn credit in the CFA Institute Continuing Education Program. Annual New Charterholder Recognition Every fall, the Society honors its new CFA Charterholders with a reception in their honor.
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MEMBERSHIP REQUIREMENTS Each person hereafter admitted as a regular member shall:
hold a bachelor's degree from an accredited academic institution or have equivalent education or work experience
have either: four years experience in financial analysis as defined in the CFA/
DFW by-laws, and have passed Chartered Financial Analyst Examination I ("CFA I"), or;
six years of acceptable professional work experience in financial analysis and passed a self-administered ethics examination in a format established and approved by the Board of Governors of the CFA Institute, or;
at the time of admission as a regular member, satisfy at least one of the following requirements:
a person occupying the position of professor (including assistant or associate professor) or dean of a college or university who is currently teaching or conducting research in the field of financial analysis and/or investments, or,
is a Chartered Financial Analyst Charterholder, or, is a regular member of the CFA Institute and a regular member of
another CFA Institute society, or, is currently engaged as an economist in the field of financial
analysis process, or, is currently engaged principally in the occupation of financial
analysis as related to securities investment management of corporate pension, profit sharing or similar funds, or,
is currently engaged principally in the occupation of financial analysis as related to securities investment management for a public agency, or,
is currently engaged principally in the occupation of financial analysis and has administrative, or executive duties related to securities investment as an employee, officer or partner of a bank, insurance company, securities firm, financial publishing house or other similar organization.
Additional Requirement for Membership No person shall become a regular or affiliate member of the Corporation, or CFA Institute who has not signed a Member's Agreement, and Member's Conduct Statement as provided in the CFA Institute By-Laws Article 9, Section 2 and Article 10, Section 2, which attest, among other things, that the member has carefully read the CFA Institute Code of Ethics and Standards and has disclosed fully any prior violation and pending regulatory or other proceedings relating to his or her conduct.
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FINANCIAL REPORT
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FINANCIAL REPORT
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FINANCIAL REPORT
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FINANCIAL REPORT