The CFA West Michigan Society

State of the CFA West Michigan Society

June 15, 2011

Introductions and Strategy Overview

Introductions and Strategy Overview│ 2

Strategy Overview

Strategy Overview│ 3

In 2009, the Strategic Planning Committee identified three

primary strategic objectives:

■ Emphasize outreach to our members and candidates

■ Explore ways to add value to our Charter

■ Promote the Charter and our membership in the local financial community

Initiatives to meet those objectives:

■ Increase the number of luncheons and provide member networking opportunities through social events

■ Partner with other members of the financial community to sponsor events

■ Sponsor a local competition of the Global Investment Research Challenge

■ Expand the Society’s university outreach beyond GVSU and WMU

■ Use our existing media network more proactively

■ Financial Update: Where did the money come from and where did it go?

■ Membership: How many members did we have, do we have and will we have?

■ Public Awareness: Who needs to know what and how are we telling them?

■ Programming: What did we do, when did we do it, and where did we do it?

■ Technology: What’s a WebEx and how do I get one?

■ Education: How many scholarships did we hand out? Who in their right mind would take a mock exam?

■ Strategic Initiatives: What’s a GIRC?Level 2 funding: What is it and what are we doing with it?

Advocacy: What’s CFAI up to and how does it affect us?

■ Proxy: Who’s in, who’s out?

■ Investment Forecasting Awards: Who won?

Presentations

Presentations│ 4

Financial Update: Ryan Allen, CFA

Financial Update│ 5

Financial Update│ 6

Member Dues Member Dues

Member Dues

Guest FeesGuest Fees

Guest Fees

$-

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

Fiscal 2009 Fiscal 2010 Fiscal 2011 YTD

Revenue HistoryCFA West Michigan Society

Financial Update│ 7

$1,446

$(240)

$2,410

$(500)

$-

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Fiscal 2009 Fiscal 2010 Fiscal 2011 YTD

Net Income (Loss)CFA West Michigan Society

Financial Update│ 8

$-

$5,000

$10,000

$15,000

$20,000

$25,000

Fiscal 2009 Fiscal 2010 Fiscal 2011 YTD

Financial Position SummaryCFA West Michigan Society

Total Surplus Cash

Membership: Andrew Mason, CFA

Membership│ 9

0

10

20

30

40

50

60

70

80

90

100

Enrollments Charterholders

Membership│ 10

Enrollments versus Charterholders

• Jason Balgavy, CFA

• Greg Bosch, CFA

• Ben Carlson, CFA

• David Hodge, CFA

• Brandon Lund, CFA

• Jaime Mauppin, CFA

• Steve Osterink, CFA

• Dan Rinzema, CFA

• Wei Sun, CFA

Membership│ 11

Congratulations New Charterholders

0

20

40

60

80

100

120

Charterholder Non-Charterholder Guest

Membership│ 12

Total CFA West Michigan Membership

0

100

200

300

400

500

600

1994 2002 2010 2018 2026 2034 2042 2050

Congratulations New Charterholders │ 13

The Magic of Compounding

564

Public Awareness: Jeff Tryka, CFA

Public Awareness│ 14

■ The Public Awareness efforts of CFA West Michigan are designed to

support the Society’s mission across

disciplines

■ Our outreach and communications are targeted to a variety of groups:

• Our members

• The broad financial and

professional community

• General public

■ We employ a variety of channels from traditional media to new media

Public Awareness – Who needs to know?

Public Awareness│ 15

Public Awareness│ 16

■ Ongoing updates for monthly meetings and presentations

■ News for special events• Panel Discussions

• Global Investment Research

Challenge

• Outreach events at Universities

• Joint events (World Affairs

Council)

■ Recognition of achievements

What are we telling

them?

■ Traditional methods – press releases, outreach to West Michigan business

and traditional media (Grand Rapids

Press, Business Journal, MIBiz, etc.)

■ Electronic distribution – e-mails to members, posting of press releases to

our website

■ Alternative channels – such as event calendars on media websites (GR

Chamber of Commerce, Broadcast TV

Stations, etc.)

■ Advertising

How are we telling them?

Public Awareness│ 17

Programming: Greg Bosch, CFA

Programming│ 18

■ Educate Members and Provide Opportunities for Networking

■ Build Luncheon Presentations around Recurring Events

- start the season with Eurasia Group

- start the New Year with Mitch Stapley

- end the season with the Federal

Reserve

■ We have tried (and will continue to try) new things

- CFA Connect

- late afternoon meeting

- GVSU meeting

- Kalamazoo meeting

Programming

Goals

Programming│ 19

■ Aug ‘10 – Geopolitical Risk: Emerging Trends and Hot Spots

Willis Sparks, Eurasia Group

■ Sept ‘10 – Opportunities of Investing in the Real China

Tim and Ping Liang, AlphaMax Advisors

■ Oct ‘10 – Frontier MarketsLarry Speidell, Frontier Asset Management

■ Nov ‘10 – Managing Bonds in Today’s Marketplace

Chris Vincent, CFA, Willaim Blair & Company

■ Dec ‘10 – Market OutlookSteve Heck, CFA, MFS

Luncheon

Presentations

Programming│ 20

■ Jan ‘11 – Bond VigilantesMitch Stapley, CFA, FifthThird

■ Feb ‘11 – Currency: Driving Forces and Diversification

Kieran Osborne, CFA, Merk Investments

■ Apr ‘11 – US Economic OutlookPaul Traub, Chicago Federal Reserve Bank

■ June ‘11 – Society Annual Meeting

In the future…

■ Sept ‘11 – Geopolitical RiskEurasia Group

Luncheon

Presentations

Programming│ 21

■ CFA Connect- informal gatherings after business

hours to provide networking

opportunities for members,

candidates and guests

■ CFA Christmas Party- held at the GRAM including dinner

and tour of the special Diana: A

Celebration exhibit

Social

Opportunities

Programming│ 22

Ideas ■ If you have ideas for luncheon presentations or social events,

please let us know.

Technology: Alan Kort

Technology│ 23

■ Announcements

■ Calendar

■ Presentation Archive

■ Job Postings

■ Proxy Voting

■ CFA Program and Membership Information

■ Industry Links

Website Services

Technology│ 24

■ Online RSVP

■ WebEx

Additional Services

Technology│ 25

Education: Larry Blose, Ph.D.

Education│ 26

Society Scholarships

Education│ 27

December 2010 4 scholarships

June 2011 7 scholarships

Total 11 scholarships*

*We obtained 1 scholarship through the society

scholarship sharing program

Education│ 28

CFA Reception and Information Session – March 24, 2011

The Speaker for the session was William Trent,

the CFA Director of Exam Development for the

CFA Institute. Participants included 47 students

and finance professionals from the area, 8 CFA

candidates, 6 Faculty Members from GVSU, and

Four CFA West Michigan Society members.

Education│ 29

CFA Mock Exam

The Mock exam was a six hour examination under

CFA test conditions administered on May 21. The

exam was jointly sponsored by GVSU,

Kaplan/Schweser, and CFA West Michigan Society

Level I 16 participants

Level II 4 participants

Level III 7 participants

Total 27 participants

Strategic Initiatives: Martin Axelrod, CFA

Strategic Initiatives│ 30

Strategic Initiatives│ 31

Strategic

Initiatives

■ Strategic Planning – Continue Implementation

Board Member Champions

Optimize Strategic Objectives per Offering

More Discrete Goals / Benchmarking

■ Regional / International Best Practices Sharing

CFA Connect

Professional Associations

Member Communications

Advocacy to Government

Career Services

Strategic Initiatives│ 32

Strategic

Initiatives■ College Outreach

Global Research Investment Challenge

Level 2 Funding Initiative

■ Technology

Website – news, events, registrations

WebEx

Career Services

Social Media

Proxy: David Hodge, CFA

Proxy│ 33

■ Director Elections

■ Ted Fuger, CFA 2012

■ Greg Bosch, CFA 2014

■ Len Harrison, CFA 2014

■ Maximum Size of Board (8 persons)

■ Note: Directors Not Standing for Election

■ Andrew Mason, CFA 2012

■ Martin Axelrod, CFA 2012

■ David Hodge, CFA 2012

■ Ryan Allen, CFA 2013

■ Jeff Tryka, CFA 2013

2011-12 Proxy Items

Proxy│ 34

Investment Forecasting Awards

Investment Forecasting Awards│ 35

3.90%

3.60%

3.56%

3.50%

3.15%

3.05%

3.00%

2.70%

2.65%

Investment Forecasting Awards│ 36

10-Year U.S. Treasury Note Yield

Dave Mange 3.05%

Investment Forecasting Awards│ 37

10-Year U.S. Treasury Note Yield

1322

1313

1200

1180

1165

1143

1126

1100

1050

Investment Forecasting Awards│ 38

Standard & Poor’s 500 Index

Jay Wisentaner 1322

Investment Forecasting Awards│ 39

Standard & Poor’s 500 Index

Aircastle Limited

Atmel

Devry Inc.

Jacobs Engineering

Spartan Motors

Susser Holdings

Turkcell

X-Rite Corp.

Investment Forecasting Awards│ 40

Individual Stock Selection

Ryan Allen Atmel 144.23%

Aircastle Limited 39.18%

X-Rite Corp. 32.32%

Jacobs Engineering 26.36%

Susser Holdings 23.20%

Devry Inc. 14.79%

Spartan Motors 11.40%

Turkcell -6.94%

Investment Forecasting Awards│ 41

Individual Stock Selection