annual report 2015–16 - cfa institute...cfa society detroit annual report | 2015-2016 6 past...

ANNUAL REPORT

2015–16

2015—2016 Board

President

Frank Germack III, CFA Rehmann Financial

Vice President/Program Chair Sam G. Huszczo, CFA SGH Wealth Management

Secretary Daniel Seder, CFA Blue Chip Partners

Treasurer

Julie Sutherland, CFA Trinity, Inc.

Director

Ed Goard, CFA Incore Capital Management

Director

Daniel Kostaroff, CFA LS Investment Advisors

Ex-Officio

Christopher Baccella CFA Old National Wealth Management

Ex-Officio

Stephen Vessells, CFA Charles Stewart Mott Foundation

Committee Chairs

Public Awareness Sam G. Huszczo, CFA SGH Wealth Management

Advocacy/Sponsorship

Daniel Seder, CFA Blue Chip Partners

Scholarship/Candidate Preparation

Michelle Brower,CFA Stout, Risius, Ross, Inc.

Jesse Ultz,CFA

Stout, Risius, Ross, Inc.

Membership Christopher Baccella CFA

Frank Germack III, CFA Stephen Vessells, CFA

Career Development

Mark Maisonneuve, CFA Griffin Portfolio Management Corp.

Mission To lead the investment profession locally by promoting the highest standards of ethics, education, and professional excellence for the ultimate benefit of investors and the investment community.

CFA Society Detroit Vision We envision a CFA Society Detroit that contributes towards our members’ success and builds a reputation for excellence within the investment industry.

Guiding Principles The CFA Society Detroit was founded in 1948 when investment professionals of the greater Detroit area joined together to find the Investment Analyst Society Detroit (IASD). Members of the IASD then voted to join the National Federation of Financial Analyst Societies in 1948 becoming the seventh member society of what is now the CFA Institute. In 2005, the IASD voted to change its name to the CFA Society Detroit. The CFA Society Detroit will abide by the following principles when considering and/or implementing the mission: We will reflect the CFA Institute vision and the CFA Society Detroit mission in our actions We will reinforce the CFA Institute’s Code of Ethics and Standards of Professional Conduct We will continue to be an active volunteer-based organization We will be a leading provider of programs for CFA Society Detroit members We will offer assistance and support to those enrolled in the CFA program

CFA Society Detroit Annual Report | 2015-2016

Table of Contents President’s Message ......................................................................................................................... 4 –5 Past Presidents ................................................................................................................................... 6 Programs Update................................................................................................................................ 7 Advocacy Update ............................................................................................................................... 8 Membership Update .......................................................................................................................... 9 New Charterholders ........................................................................................................................... 10 Candidate Outreach ........................................................................................................................... 11 Public Awareness ............................................................................................................................... 12


Frank Germack, CFA President

President’s Message Dear CFA Society Detroit Members, The 2015-2016 Season began with a new pledge – To broaden our mission, speak with a bolder voice, and serve a bigger community. I am happy to report on our progress. This past summer, the Board of CFA Detroit developed and adopted a new strategic review and direction. The main components include:

More impactful events and programming Increased membership and engagement with CFA Charter holders Adopting a new funding model to increase Society revenue opportunities

The plan was adopted in September, and we have begun to see the benefits of the change in our direction, as highlighted below: Programming for 2015-2016: Our Program Chair, Sam Huszczo, organized a highly successful series of speakers, including Dan Fuss of Loomis Sayles, Bill Smead of Smead Capital Management, and Paul Traub from the Federal Reserve Bank of Chicago, to name a few. Programming also included a Healthcare Roundtable, and an Auto Show event in Detroit which featured unique insights from auto analyst Michelle Krebs. The highlight of our year was our Forecast Luncheon, with close to 250 attending. This event was headlined by Jim Grant, founder of Grant’s Interest Rate Observer, and Jason Trannert of Strategas Securities, LLC. A successful fall golf outing, and a new golf event/Annual Meeting will round out the programming for the season. We believe programming success is measured by attendance, and as such we were happy to see attendance at all events increase by 12% as compared to the prior season. Service to CFA Detroit members: Providing value also includes our service commitment to members. This year, we started two strategic alliances for education and career development. We aligned our CFA program support with CFALA/University of Southern California, which provides candidates with live streaming and recorded exam prep classes, taught by USC professors. We have also joined 14 Midwest CFA Societies to conduct a compensation survey, and are happy to see well over 100 responses submitted by Detroit members. We look forward to the results later this year from the 3,000 total responses, in addition to our local market responses. Our other deliverables include our Mock Exam for candidates, CFA Detroit Job Board, and waived fees for certain local or national CFA or investment industry related events. Our Executive Director, Michelle Doran has provided exceptional service to CFA Detroit this year, and we look forward to her contributions in the 2016-2017 season.

CFA Society Detroit Annual Report | 2015-2016 4

Frank Germack, CFA President

President’s Message (cont.) Our engagement metrics includes the membership census. We were encouraged to see census, including affiliates, increase 6% this year to 417 CFA Detroit members, while retention rates remain above the global Society average. Serving a bigger community: Putting Investors First events, and other Advocacy activities extend beyond CFA Charter holders. Our Advocacy Chair/next year’s Program Chair Dan Seder has served the Detroit Society by once again, obtaining the Governor’s proclamation designating the second week in May as “Investor’s First Week”. We also plan to serve the wider investment professional community with our programming. Our fall signature event, the Forecast Luncheon, is moving to a new location that will hold upwards of 500 people, featuring publicly recognized speakers Kevin O’Leary and Brian Belski. Our communication methods are adapting to new technologies. With the help of Sam Huszczo, our events, announcements and news are now sent via interactive social media channels. He is rolling out our communications model to other CFA Societies, and managed a Best Practice workshop on this topic at the North America CFAI conference this past March. A national branding campaign will focus on awareness of the CFA Charter, ethical standards of charter holders, and their professionalism. CFA Detroit will do its part to contribute to this campaign through the avenues mentioned above, along with key media partners including Dbusiness and the Detroit Free Press. Moving Ahead: CFA Detroit is well positioned to fund the larger events planned for 2016-2017. CFA Detroit has been successful in securing project funding from the CFA Institute, while sponsorship revenues have also helped cover higher expenses for speaking events and advertising. Our Treasurer, Julie Sutherland, has done a masterful job of managing our budget, and I am proud to report an increase in Society reserves of 21% year-over-year. My thanks and appreciation goes out to the Executive Board members mentioned above, along with Board Members Dan Kostaroff and Ed Goard. I am confident our Society will benefit from their future contributions. I would also like to thank our Ex-Officio Board Members, Chris Baccella and Steve Vessells, for their wisdom and guidance over the past year. Finally, it has been a privilege to serve the CFA Society of Detroit. The success of our Society hinges on the suggestions and feedback from members, so please provide this in the surveys sent to members. Also, we have changes to our Board, committees and volunteer positions annually, so please consider a role to support and serve the CFA Society of Detroit.



Past Presidents George R. Berkaw Jr. 1947-48 Robert E. Swaney Jr., CFA 1982-83 Edward M. Spencer 1948-49 Ann G. Simmonds, CFA 1983-84 Herbert D. Hunter 1949-50 Kenneth S. Janke 1984-85 Thomas N. Hitchman 1950-51 Lee P. Munder, CFA 1985-86 Charles J. Collins 1951-52 Michael J. Smith, CFA 1986-87 F. Bradley Case 1952-53 William Rands III, CFA 1987-88 Ferry B. Allen 1953-54 Edmund Sutherland 1988-89 Alexander E. LaPointe 1954-55 Donald E. Danko, CFA 1989-90 Lawrence M. Goodspeed 1955-56 Ann J. Conrad, CFA 1990-91 George A. Nicholson Jr. 1956-57 Edmund P. Cole, CFA 1991-92 David D. Williams 1957-58 Britton L. Gordon Jr., CFA 1992-93 David D. Williams 1958-59 Richard P. Kost, CFA 1993-94 Allen M. Lomax 1959-60 Geoffrey A. Wilson, CFA 1994-95 Donald J. Bevis 1960-61 James M. Lane 1995-96 Milton J. Drake 1961-62 Richard L. Platte Jr., CFA 1996-97 Merwin H. Waterman 1962-63 Robert M. Bilkie Jr., CFA 1997-98 Robert F. Taylor 1963-64 Edward Rosenbaum, CFA 1998-99 Warren L. Carlson 1964-65 John M. Rickel, CFA 1999-00 John B. Watkins 1965-66 Jeffery D. Fox, CFA 2000-01 Milton J. Kittler 1966-67 Philip J. Gaglio, CFA 2001-02 Frank W. Hausmann Jr. 1967-68 Anne M. Nichols, CFA 2002-03 Edward M. Hoban 1968-69 Cathy J. Zehnpfennig, CFA 2003-04 Caroll S. Anderson 1969-70 Mariann Montagne, CFA 2004-05 Thomas E. O'Hara 1970-71 Richard H. Wiggins Jr., CFA 2005-06 W. Howard T. Snyder 1971-72 William F. Camp, CFA 2006-07 Charles S. Ricker 1972-73 Gregory M. Smith, CFA 2007-08 John F. McCormick 1973-74 Christopher M. Ruth, CFA 2008-09 John C. Grant 1974-75 Kevin K.Yousif, CFA 2009-10 Jerry H. Nissen 1975-76 Marisa A. Lenhard, CFA 2010-11 Philip S. Dano, CFA 1976-77 Paul Burger, CFA 2011-12 Benedict J. Smith, CFA 1977-78 David Cooke, CFA 2012-2013 Richard R. Mullaney, CFA 1978-79 Christopher Baccella, CFA 2013-2014 James L. Bashaw, CFA 1979-80 Stephen Vessells, CFA 2014-2015 John A. Cooper, CFA 1980-81 Orville B. Lefko, CFA 1981-82

Sam G. Huszczo, CFA Vice President Program Chair


Program Update The CFA Society of Detroit, in its 2015-2016 program, achieved its highest average attendee per luncheon since these numbers have been tracked by our society. This is a testament to our push towards landing higher profile and more sought after speakers. Our program covered a wide range of topics including: Investment Strategy, Economics, Corporate Presentations, Regional Government, Auto Sector, International and Fixed Income Investing. We held most of our events at the Townsend Hotel, our members preferred venue, along with special events held at the Detroit Federal Reserve Building and the Southfield TownCenter. This season's Forecast Lunch was a huge success with us hosting the high profile speakers: Jim Grant of Grant's Interest Rate Observer and Jason Trennert of Strategas. This had an overall attendance of over 250 attendees marking the 2nd largest Forecast Lunch ever in our society's history dating back to 1948. This event alone was covered by Bloomberg, Crains Detroit, The Detroit Free Press and WDIV TV. In addition to our Forecast Lunch, we hosted Dan Fuss of Loomis Sayles and Michelle Krebs of AutoTrader.com to audiences of over 100 attendees. Not only did our members recognize the successes of our programming, but so did the local media with over 10 media articles written stemming from our events. Along with this came more interest in sponsorship and more benefits from our media partners. This year's programming was a great step forward in solidifying the CFA Society of Detroit as a key source for investment presentations for the Greater Detroit area. We also founded our Future of Finance program, encouraging corporations to sponsor local students to attend and learn alongside our CFA members. Our Detroit Society takes great pride in helping educate the future leaders of finance and our rich history of doing so. Each year, we estimate to host 80+ high school and college students to attend CFA Detroit meetings, thanks to the generosity of corporate sponsors and individual members. Our programming events for the season were as follows: September 22, 2015 Long Duration Common Stock Investing: A Contrarian Manifesto Bill Smead, Smead Investments October 9, 2015 Economic Update Federal Reserve Bank of Chicago – Detroit Branch Paul Traub, Senior Economist November 12, 2015 Forecast Luncheon Jim Grant, Grant's Interest Rate Observer Jason Trennert, Strategas Securities LLC December 9, 2015 Healthcare Industry Luncheon featuring Adam T. Bisnett and Charles DeCoster, Stryker January 19, 2016 Autoshow Luncheon Michelle Krebs, Autotrader.com April 21, 2016 Michigan and the Aerospace Industry Tony Vernacci, Michigan Economic Development Corporation May 19, 2016 Foreign Currency and Gold in Today's Markets Charles de Vaulx, International Value Advisers

Dan Seder, CFA Advocacy Chair


8

Advocacy Update

CFA Institute is a longstanding champion for ethical behavior and professional excellence in the global capital markets. Put simply, “Advocacy” means speaking up about ethics, trust, and professional standards. Most notably, this includes supporting fair and transparent financial markets and practices and protecting the interests of investors. Local societies are instrumental in expanding the reach and impact of advocacy on behalf of all members. Outreach on advocacy-related issues can also provide ongoing opportunities for societies to build brand awareness for themselves and for CFA Institute as a whole. Each May, CFA Institute members join together to build awareness around the importance of putting clients and investors first. In conjunction with CFA West Michigan, we were successful in securing Governor Snyder’s third annual state-wide proclamation for Putting Investors First week in Michigan. However, we have found it extraordinarily challenging to leverage this unique tool. By supporting Putting Investors First Month, we want to inspire our community to make a real impact and foster a market environment where both investment professionals and investors can thrive. Our goal is to develop a repeatable framework for future events that will actively engage our members during the month of May. CFA Society of Detroit continues to encourage all advisors to share CFAI’s Statement of Investor Rights with clients. “The Statement” was developed to advise buyers of financial service products of the conduct they are entitled to expect from financial service providers. These rights reflect the fundamental ethical principles that are critical to achieving confidence and trust in any professional relationship. Overall, CFAIs Advocacy initiative is gaining steam across the country. CFAI has provided a framework for various Advocacy initiatives on a local level. In addition, CFAI encourages local societies work collaboratively in sharing Advocacy best practices. Over the past year, we have sent board members to Chicago and Dallas for one-day Regional Advocacy Workshops. We will strive to bring a more robust Advocacy platform in the years to come.

Chris Baccella, CFA Frank Germack, CFA

Stephen Vessells, CFA Membership Chairs


Membership Update

Total membership in the CFA Society Detroit is 418 members. We have 388 regular, 26 affiliate, and 4 student members. Our membership program provides an opportunity for investment professionals to participate in timely, educational events in the topics of finance, the economy and the markets around the world. Through our Affiliate Membership program, non-CFA charter holders can enjoy many of the same benefits of regular members and become involved in all that the CFA Society Detroit has to offer. Besides our efforts to focus on our membership’s ongoing educational development, each year we host a series of both networking and social events to enhance each member’s personal and professional interests, such as forming new contacts, connecting with colleagues and to learn about career opportunities and the developments in the financial arena in the metro Detroit area, as well as on the national stage. And, we can’t forget about just wanting to have fun with like-minded friends. Our CFA Society Detroit has something for every type of investment professional. We look forward to you joining us during the upcoming year to continue with your professional development, getting to know us at our networking events and to have some fun at a game or on the golf course.

New Charterholders Twenty-five individuals passed the Level III exam and received their Charters in December 2014 and June 2015. Thirteen of these members were presented with their Charters by keynote speaker Daniel J.Fasciano, CFA, Presidents Council Chair, CFA Institute, Managing Director BNY Mellon at our Annual Charter Awards Ceremony which was held on November 17, 2015 at The Townsend Hotel in Birmingham, Michigan.

Congratulations to the following new CFA Charterholders:

Khalid Yaser Beidas, CFA

Gregory Joseph Bosio, CFA Francis Vincent Cusimano Jr., CFA

Ryan Lee Fedricks, CFA Christopher William Fendley, CFA

George Georges, CFA Waymond Eli Harris Jr., CFA

Richard Lee Huddleston, CFA James Frederick Long, CFA

Brian Andrew Miller, CFA Brian David Milligan, CFA Matthew Mondoux, CFA Joshua Mrozowski, CFA Tyler Scott Naimy, CFA

Carl Johan Anders Nystrom, CFA Sam Joseph Palazzolo, CFA

Sruti J Parikh, CFA John William Pearce, CFA

Ricardo Pereira de Souza, CFA Jake Mitchell Powers, CFA

Ilirjan Shkurti, CFA Andrew David Stewart, CFA

Mark Dechun Wang, CFA Steven Andrew Wloszek, CFA

Sean Denton Wright, CFA


Michelle Brower, CFA Jesse Ultz, CFA

Scholarship/Candidate Preparation Co-Chair


Candidate Outreach The CFA Society Detroit has completed another year of assisting and supporting potential CFA candidates with their preparation for the Level I, II, and III exams. The Society awarded ten scholarships to candidates registered for the June and December 2015 exams. These scholarships helped candidates cover the costs of sitting for the exam and ordering study materials. The Society’s scholarship program changed significantly as a result of a transition to a new program instituted at the national level. Specifically, the Access Scholarship Program was introduced which provides needs-based scholarships and reduces exam registration fees to $250. The deadline for Access Scholarship applicants is in the early fall, and awarded scholarships can be utilized for both the June and December exams in the following year. In addition to awarding scholarships, the society also helps bring together candidates in the area who are studying for the same level of the exam. Candidates can reach out to each other to form study groups, share study materials, or work through sample problems. In May, the Society held the 13th annual mock exam on the campus of Wayne State University. The CFA Society Detroit also continues to reach out to local universities in order to educate students about the benefits of the CFA designation. Director Dan Seder, CFA spoke to finance students at Oakland University this the past year. The board will continue to reach out to local universities to help educate new and potential CFA candidates. It is also noted that finance and economics professors at all local universities are given a chance to send 10 students per year to one of our monthly luncheons.

Sam G. Huszczo, CFA Public Awareness


Public Awareness Our goal within Public Awareness is to achieve more local Detroit area recognition of the CFA charter without spending money on traditional advertising. We can achieve this through strategic partnerships and social media. We renewed our partnership with DBusiness magazine for a 4th consecutive year. This has proven to be a very fruitful partnership with us receiving editorial articles and joint sponsorship for their Economic Breakfast Series and Best of Detroit Party. This year we made larger strides to further our efforts within social media. Our twitter page now has over 2,000 local followers, which gives us an audience to advertise our message. The social media angle again has proven to be an excellent way to stay in touch with the media outlets. In the past 2 years we have had the CFA Society of Detroit mentioned and CFA Detroit speakers quoted in: (2 articles) DBusiness, Crains Detroit, (3 articles) Detroit Free Press, WDET Radio, WWJ Radio, USA Today (*National Publication), Oakland Press, WDIV TV, WDET Radio, & WWJ Radio. Even without the USA Today Article, we have access to a circulation of about 1.2 Million people in the Detroit area with these editorials, 5.3 Million with USA Today. We will be constantly looking for other free ways to get our message out there.

annual report 2015–16 - cfa institute...cfa society detroit annual report | 2015-2016 6 past...

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