CFA Society of Houston Membership Meeting Agenda. December 2, :00 PM 1:30 PM

Transcription

1 CFA Society of Houston Membership Meeting Agenda December 2, :00 PM 1:30 PM 1

2 Introduction Meeting Agenda Jim Jordon, President Board activities and membership Scholarship Program Investment Research Challenge Finance Programs Key issues for our future Ronald Joe, Treasurer Steve Mathews, Vice President Jeff Curtiss, Secretary Questions and Comments 2

3 INTRODUCTION Jim Jordon, President 3

4 Introduction and CFA Society of Houston Board Activities CFA Institute - Society benchmark standards and metrics Programs Administration Finance / accounting Disclosure and transparency Strategic planning process Facilitated by CFA Institute Future plans for our Society, Board plans versus member needs 4

5 CFA Society of Houston Current Mission - To promote the highest professional and ethical standards with the investment community. To encourage our membership and others to earn the Chartered Financial Analyst (CFA) designation. To provide and promote educational opportunities for the investment community. To be advocates outside the investment community on issues that affect our profession. To inform the local business and educational communities of the efforts and importance of our Society and to foster the exchange of ideas and information. 5

6 CFA Society of Houston Revised Mission - The CFA Society of Houston and its members are committed to the highest professional and ethical standards. The Society fulfills this commitment through a Mission that: Encourages investment professionals to earn and maintain the Chartered Financial Analyst (CFA) designation; Provides opportunities for its members to continuously advance their career and professional development skills Comments? 6

7 Situation Analysis CFA Society of Houston membership growth trends 7% average annual growth rate since 2004 Candidate Counts Average Percentage Growth Since FY2004 Total Enrolled Candidates 5% Pass Rates Level I Level II Level III Houston U.S. World Houston U.S. World Houston U.S. World 2006 A 46% 41% 40% 38% 47% 48% 76% 81% 76% 2006 B 36% 38% 39% 2007 A 41% 40% 40% 39% 41% 40% 58% 60% 50% 2007 B 42% 41% 39% 2008 A 41% 36% 35% 37% 45% 46% 51% 58% 53% 2008 B 35% 36% 35% 7

8 Situation Analysis: Membership Demographics CFA Society of Houston Membership Characteristics 859 members Down 5 members (net) since % CFA Charterholders (versus 87% global average) 93% Regular members; 7% Affiliate Age: 8% <31 47% % % 54+ 6% no age data available 8

9 CFA Society of Houston Scholarship Fund To promote education and careers in finance and investment management To foster good relationships with local universities, and develop future talent and members of the Society Rice University University of Houston Scholarship Committee Chair Jack Lippincott Currently award four scholarships of $2,500 each Challenge Sustaining support from the Membership 9

10 Investment Research Challenge - Texas Background Student competition based on research report writing Fundamental investment research on a Texas-based company student interaction with the CEO and CFO Started as a collaboration between Houston and DFW in 2005, four universities participated. Key leaders Leah Bennett, Houston Sharon Criswell, DFW 10

11 Investment Research Challenge-Texas Current Activities Currently five societies and 11 universities involved Texas and Louisiana societies LSU, Rice, SMU, TCU, Texas A&M, Texas Tech, Tulane, University of Houston, the University of Texas-Austin, UTD, and UTSA. Track record The winner from Texas has placed 1 st or 2 nd in the North/South American Regional Challenge in 3 of 4 years. Approximately 30 volunteers are involved in the judging process Target company for 2010 = Rent-A-Center 11

12 FINANCE Ronald Joe, Treasurer 12

13 CFA Society of Houston ( Society ) Not-for-profit professional organization Tax-exempt per IRC 501(c)(6) CFAH Scholarship Fund ( Fund ) Established as separate legal entity in April 2002 Tax-exempt per IRC 501(c)(3): contributions to the Fund are tax deductible 13

14 Audited Financial Statements Transparency, good governance, legal requirements Auditor: Bentley Bratcher & Associates FY : Compiled financial statements FY : Full audits July to June fiscal year, cash basis of accounting Audit Results: Unqualified audit opinions for the Society and for the Fund 14

15 SOCIETY FY 2009 FY 2008 (Not Audited) Net Assets $ 282,279 $ 269,079 Total Revenue 209, ,698 Total Expense 195, ,206 Net Surplus $ 13,200 $ 31,492 15

16 FUND FY 2009 FY 2008 (Not Audited) Net Assets $ 121,554 $ 130,336 Total Revenue 4,254 5,005 Total Expense 13,036 12,517 Net Surplus $ (8,782) $ (7,512) 16

17 Society Financial Assets Liquid bank account deposit: Sterling Bank Money market account and fund: Sterling Bank, Invesco Fund Financial Assets Liquid bank account deposit: Sterling Bank Money market fund: Invesco Exchange-Traded Fund, via Fidelity: SPDR MSCI ACWI ex-us: tracks MSCI All Country World Index ex-us Cost = $9.972 Market Value = $8,296 (11/30/09) Mutual Funds: Fidelity Fidelity Spartan Total Market Index Fund: tracks Dow Jones Total Stock Market Index Fidelity Spartan International Index Fund: tracks MSCI EAFE Cost = $51,061 Market Value = $50,763 (11/30/09) 17

18 Best use of financial resources? Future of Scholarship Fund? Investments: preservation vs. growth? 18

19 PROGRAMS Steve Mathews, Vice President 19

20 Society Programs for Spring Program - January speakers John Person Technical Analysis John Edward, Morgan Keegan Master Limited Partnerships Thomas Nelson, TCW Small Cap Stocks in a Portfolio Career Support Programs Social Events Forecast Dinner Early May 2010 Members costs will be heavily subsidized 20

21 KEY ISSUES FOR OUR FUTURE Jeff Curtiss, Secretary 21

22 Society engagements and future events Other Texas CFA Societies Houston Based Financial Organizations (NACD, FEI, CPA, NIRI, etc.) Houston Based Educational Institutions Rice University, U of H, Executive MBA Programs, Phoenix University, etc. Activity, Age, Venue Focused Programs Commodity Trading, Wealth Management, Hedge Funds, etc. Texas Regulators/Legislators pertaining to State laws or regulations impacting investment professionals 22

23 Constraints on future Society activities Volunteers Special Projects, Committee Assignments, CFAH management (7 year commitment) Financial Break even performance, slow/no revenue growth, cost creep Standards CFAI Society Standards, Prudent Cash Reserves; Mission 23

24 QUESTIONS AND COMMENTS 24

25 Other issues of importance you would like the Board to consider E Mail us at cfah@theassociationnetwork.com Comments: 25