Washington Society of Investment Analysts Letter from the President: Raising Our Game Dear Members: As the Washington Society of Investment Analysts (WSIA) approaches its 52nd Anniversary, I would like to take this opportunity to tell you what the Board of s is doing to put our human and financial resources to their highest and best use for the maximum benefit of our 1,150+ members. My overall theme as your President this year is to raise our game and examine how the Board of s can make incremental improvements (i.e., derive alpha from existing Society and CFA Institute resources) to the products and services that we provide to all members. Strategic Review. Given the incredible growth in membership in October 2004, the Board of s conducted a Strategic Review of WSIA s vision, mission, and core values, evaluated the level of resources needed to meet members needs, defined the roles of the Board of s and Officers, identified necessary changes in corporate governance and our bylaws, and charted a course for the strategic direction of WSIA for the next five years. Vision. Our vision is to create a highly recognized and respected organization that promotes the highest ethical, educational, and professional standards and is the leading association of investment professionals in the Washington, D.C. investment community. Mission. Our mission is to maintain a strong local society that serves proactively its members needs for high quality continuing professional education and rewarding career development opportunities. Core Values. Rather than develop our own core values, the Board adopted the CFA Institute/Society Principles of Affiliation that were developed in concert with countless volunteers around the globe and the CFA Institute. These principles represent a shared vision governing the relationship between WSIA and the CFA Institute and focus on the importance of working together with CFA Institute for the benefit of all stakeholders. Partnership With Fernley & Fernley. Given the significant growth in our membership, the Board recognized that additional resources were necessary to expand the level of services provided to members and to make the most efficient use of our volunteers time. Therefore, after WSIA news november 2004 WSIA Terence E. Burns, CFA President thoughtful consideration, the Board engaged Fernley & Fernley, an International Association of Association Management Companies accredited organization, to provide association management support for WSIA. If you have not seen the recent announcement, please see the related article on page 4. Role of s and Officers: Champions. Although many interesting ideas were developed during the strategic discussion in October 2004, perhaps the most interesting idea was to reaffirm the role of s and Officers as strategic thinkers and volunteer coordinators rather than doers. In this regard, each Board member and Officer volunteered to serve as a Champion for one or more strategic initiatives and to identify new volunteers to help plan and implement these initiatives. The overall objective is to provide additional benefits to WSIA members, develop an extensive network of volunteers the backbone of WSIA, and identify future leaders of WSIA. Here are several strategic initiatives for which we need volunteers: Strategic Initiative CFA Candidate Education Public Awareness Membership Volunteer Involvement Technology (website) Ethics Awareness Career Development Program Development Corporate Governance/ Leadership Development Communication and Marketing Finance and Accounting news Champions Bob Pugh, CFA Bob Pugh, CFA Michael McMillan, CFA Craig Lukin, CFA John Adams, CFA, Sue Pine (Fernley & Fernley) Don Lindsey, CFA Sheffield Richey, CFA Dee Ann Smith Julie Dellinger, CFA Kathy Neumann, CFA Ellen Safir, CFA Terence Burns, CFA Daryl Dennis, CFA Marie-Sophie Tar, CFA Bob Pugh, CFA Don Lindsey, CFA continued on page 2
In this regard, I encourage all of you to take Jeff Diermeier s advice: VOLUNTEER. (see related article on page 3) If you are interested in getting involved and contributing your valuable time, please contact one of the individuals listed on the front page. Changes to Bylaws. In order to reflect the recent changes in the CFA Institute s bylaws regarding work experience requirements (now four years of acceptable work experience) for members and sponsorship requirements, the Board of s voted unanimously to adopt similar language in WSIA s bylaws. During the Strategic Review in October, the Board also voted unanimously to increase the number of non-officer s from four to six Regular Members in Good Standing. This change was recommended and approved for a number of reasons, including: a) Create depth in leadership; b) Identify additional individuals interested in making a contribution given the strategic initiatives that the Board would like to accomplish; c) Involve senior investment professionals in the Washington, D.C. investment community that will increase the visibility of WSIA and the CFA Charter; and d) Have the composition of the Board reflect the composition of the Society in terms of demographics, profession (for example, academic versus practitioner and private clients versus institutional focus), and experience. Name Change: CFA Society of Washington, DC. As you may know, the main impetus for changing the name of the Association for Investment Management and Research (AIMR) to CFA Institute was to protect and enhance the CFA brand a key component of the CFA Institute s strategic plan on a global level. (See related discussion on page 3.) At the September 2004 Board meeting, the Board discussed the idea of changing the name of WSIA to help protect and enhance the CFA brand on a local level. Although the Board is in favor of making such a name change, the Board would like to get feedback from the membership. Therefore, I encourage you to respond to the upcoming survey. Alternatively, you may email your feeback to wsia@wsia.org. It is worth noting that if WSIA changes its name, CFA Institute will provide the Society with $8,000 that can be used to defray the costs of developing a new logo, letterhead, brochure, etc. that are associated with affecting the name change. Increase in Member Dues: Who Says There Is No Free Lunch? At the September 2004 Board meeting, the Board voted unanimously to increase annual dues for regular members from $75 to $100. That increase, which will become effective for the 2005-2006 fiscal year, also entitles each regular member to attend one Society luncheon in that fiscal year free of charge! The main reasons for approving the dues increase are to: a) Maintain and improve the quality of the services provided to members, b) Maintain the financial health of the Society, c) Raise additional resources to improve significantly our Public Awareness efforts, and d) Reduce our dependence on revenue from our CFA Candidate Education Program. In this regard, it is important to realize that your dues subsidize the costs of Society events including the Annual Kick-Off Meeting, our luncheon Programs, the Annual Gala Dinner, and the Annual Members Meeting. Update on CFA Institute 2011 Annual Conference: Washington, D.C. As you may know, WSIA submitted an application to CFA Institute to host the 2009 Annual Conference in our nation s capital: Washington, D.C. Although CFA Institute may award another Society the honor of hosting the 2009 Annual Conference, the WSIA is still in the game for hosting the 2011 Annual Conference. Summary. In summary, I would like to conclude this letter by assuring you of several things. Your Society is in good hands; we have a great group of committed volunteers, although we can always use one more volunteer. Your Society is in strong financial health; we are fortunate to have adequate financial resources to effectively manage Society affairs. Your Society is headed in the right direction; we are committed to raising our game. Finally, I would like to take this opportunity to thank Patricia Hertzberg, CFA, (WSIA President 1995 1996) who handed me my CFA Charter in November 1996 and several years later asked me to volunteer and serve as Secretary. Thank you, Pat, and thank all of you for the opportunity to serve you. Sincerely, Terence E. Burns, CFA President Coming Soon: Volunteer Night Washington Society of Investment Analysts WSIA 100 N. 20th Street, 4th Floor Philadelphia, PA 19103-1443 p: 888.718.3893 WSIA news page 2
CFA Charter Award Ceremony November 3, 2004 The Washington Society of Investment Analysts (WSIA) was honored to have Jeffrey J. Diermeier, CFA, President/CEO Elect of the CFA Institute host the WSIA s 2004 CFA Charter Award Ceremony. Jeff s career and accomplishments are an inspiration to our new CFA Charterholders, CFA candidates, and all of us. Until early 2004 he was Global Chief Investment Officer at UBS Global Asset Management, where he oversaw the management of more than $400 billion in assets, covering asset allocation, equities, fixed-income, real estate and currencies, and a staff of 435 investment professionals in 10 countries. Jeff has received several awards, including two Graham and Dodd "Scroll Awards" for research articles he has contributed to the Financial Analysts Journal. Jeff recently chaired CFA Institute s Board of Governors Planning Committee, and in that capacity played a leadership role in the development of a five-year strategic vision for the organization. Those attending the ceremony had the opportunity to hear Jeff outline CFA Institute s strategic plan for the next five years. As you know, the CFA Institute has experienced tremendous growth since 1990, with the number of Charterholders increasing from 10,500 in 1990 to 61,577 in 2004! Jeff plans to build on CFA Institute s success and core competencies: the CFA Program, Standards and Professional Development. Strengthen the financial foundation. Just as diversification is a key tenet of portfolio management, diversifying the CFA Institute s sources of revenues is also a priority. In order to reduce the dependence on revenues from CFA candidate enrollment, CFA Institute is working hard to develop new products and services for members. For example, an initiative to launch a GIPS (Global Investment Performance Standards) certification program has been proposed. Protect and enhance the CFA Brand. In May 2004, members voted overwhelmingly in favor of changing the name of our organization to CFA Institute a huge first step in terms of enhancing the recognition of the CFA designation around the world. Before awarding the CFA Charter to our newest Charterholders, Jeff gave all of us some good advice: Volunteer on a global and local level! The CFA Institute and the WSIA rely heavily on volunteers the backbone of both organizations. WSIA needs additional volunteers to succeed and serve well our members. Do the right thing! Being a CFA Charterholder requires integrity. Every day we are faced with choices that can mean doing the expedient thing or doing the right thing. Set an example as a CFA Charterholder, and always do the right thing. Going beyond these core activities is an important goal for the CFA Institute s incoming President, a goal which he illustrated with the following quote from Jim Underwood s, What s Your Corporate IQ? (2004): If you start your management day assuming the future will be a simple repetition of the past, you as well as your organization are destined to fail. The five main pillars of CFA Institute s Strategic Plan are: Exercise thought leadership. CFA Institute has launched the CFA Centre for Financial Market Integrity to enhance the organization s advocacy of setting the highest ethical and professional standards in the investment management business and of promoting the importance of the integrity and transparency in financial markets. Leverage technology to provide better service to members. CFA Institute constantly is working to make its website (www.cfainstitute.org) an effective information source for members. Reshape the organization to be more flexible and responsive. CFA Institute wants to provide an outstanding response to stakeholders, develop a truly integrated business model, successfully globalize the organization, and address effectively a growing niche within the industry private wealth management. Terence Burns, CFA and Jeff Diermeier, CFA proudly present Zhong Wang with his CFA charter WSIA news page 3
CFA Candidate Education Program WSIA and Stalla have signed a partnership agreement to enhance the level and quality of services the Society provides to CFA Levels I and II candidates in the Washington, DC area. Under the agreement, WSIA will continue to make most policy decisions, such as assigning Society members to teach the sessions; and Stalla will assume responsibility for managerial tasks, such as enrolling candidates, shipping study materials and arranging for classroom facilities. Stalla will also provide professional training for Society member instructors to maximize their ability to help candidates learn the curriculum. WSIA will continue to organize CFA Level III study groups at no cost to those candidates and participate in the Boston Society Practice Exam program. CFA candidates will continue to receive the Stalla texts and practice exam software as they did under the previous agreement, but now will also benefit from an online tutor to ask questions individually outside of class, and will have unlimited viewing of video lectures of CFA sessions led by Stalla's top national instructors. WSIA and Stalla are able to offer these additional resources with an increase in candidate fees of only about twenty percent above last year's cost. WSIA and Stalla are very pleased to be working together to help improve pass rates on the Levels I and II exams, which hit historic lows in 2004. The commitment of WSIA members combined with the resources Stalla offers will help achieve that goal. Partnership with Fernley & Fernley The WSIA Officers and Board are pleased to share with you the recent decision to partner with Fernley & Fernley for professional management support. Fernley & Fernley specializes in providing management services to non-profit organizations like ours. In fact, the WSIA was introduced to Fernley & Fernley by the leadership of the Financial Analysts of Philadelphia (FAP), which has worked successfully with Fernley & Fernley for over a year now. Partnering with Fernley & Fernley will allow the WSIA leadership to focus on the strategic goals and initiatives of the Society, knowing that the day-to-day tactical operations are being managed by industry professionals. Fernley & Fernley is a dual accredited association management company based in Philadelphia where they serve volunteer-driven organizations. To learn more about their industry accreditations, visit their web site at http://www.fernley.com/accreditation.htm. One of the advantages of partnering with Fernley & Fernley is their ability to accommodate requests for additional services as the need arises. Service capabilities range from organizational leadership, financial management, database management, administrative management, communication and publication services, and web services. Effective November 1st, the WSIA Headquarters contact information is: WSIA 100 N. 20th Street, 4th Floor Philadelphia, PA 19103-1443 888.718.3893 Our new Fernley Management Team is willing and able to assist the WSIA leadership in accomplishing the goals and initiatives of the organization. To contact the Fernley Management Team, you may reach them by dialing our new main number, provided above, and then entering their respective extensions, listed below: Mike Mitkus ext. 2277; and Sue Pine ext. 2220 Please join me in welcoming our new Headquarters Team! For more information on Fernley & Fernley, visit their web site at: www.fernley.com WSIA Partners with Management Firm of Fernley & Fernley, Inc. WSIA news page page 44
Schedule of Upcoming WSIA Events WSIA Officers and s Efficient Asset Management: Stock Portfolio Optimization & Asset Allocation Presentation by Richard O. Michaud, President and CIO New Frontier Advisors Thursday, December 2, 2004 from 12-2 pm Location: University Club Pension Panel Presentation by Brad Pelt, Pension Guaranty Benefit Corporation (PBGC) And Ann Combs, Employee Benefits Security Administration Wednesday, December 15, 2004 from 12-2 pm Location: University Club Asset Allocation Panel Moderator: Don Lindsey, CIO, George Washington University, Speaker: Larry Kochard, CIO, Georgetown University, Ken Miranda, International Monetary Fund And Laura Rubenstein, Assistant Treasurer, NASD Thursday, January 11, 2005 from 12-2 pm Location: University Club Hold the Date for the following WSIA Events: Annual Gala Dinner Week of January 24th Paul Hanrahan, President and CEO of AES, Corp. an international independent power provider Wednesday, March 9, 2005 Small Cap Panel Including Chuck Akre and Preston Athey Wednesday, March 23, 2005 President Terence E. Burns, CFA Bank of America 8300 Greensboro Dr., Ste. 360 McLean, VA 22102-3602 703-761-8350 terence.burns@att.net Vice President Dee Ann Smith SunTrust Bank 1445 New York Ave., 6th Fl. Washington, DC 20005 202-879-6284 deeann.smith@suntrust.com Treasurer J. Robert Pugh, Jr, CFA Insight Wealth Management, Inc. 9526 Clematis St. Manassas, VA 20110 703-368-4729 jr46562@aol.com Secretary Donald W. Lindsey, CFA George Washington University 825 21st St., NW Washington, DC 20052 202-994-8925 dlindsey@gwu.edu John C Adams, CFA, Investments 2121 K St., NW Washington, DC 20037 202-521-2313 Julie H. Dellinger, CFA ICMA Retirement Corporation 777 N Capitol St., NE Washington, DC 20002-4240 202-962-4680 jdellinger@icmarc.org Daryl Dennis, CFA ICMA Retirement Corporation 777 N Capitol St,. NE, Ste. 600 Washington, DC 20002-4240 202-962-8204 ddennis@icmarc.org Michael McMillan, Ph. D, CFA Johns Hopkins University 1625 Massachusetts Avenue Washington, DC 20036 202-588-9319 mcmillan@jhu.edu Ellen B. Safir, CFA New Century Advisors 7272 Wisconsin Ave. Bethesda, MD 20814 301-941-1933 esafir@ncallc.com Marie-Sophie Tar, CFA World Bank 1818 H St., NW Washington, DC 20433 202-473-9095 mtar@worldbank.org Ex Officio & Kathleen B. Neumann, CFA TAMRO Capital Partners 1660 Duke St., Suite 200 Arlington, VA 22314 703-740-1001 kneumann@tamrocapital.com Program Committee Co-Chair Sheffield C. Richey Jr., CFA Gilkison Patterson Investment Advisors, Inc. 1901 N. Beauregard St., Suite 300 Alexandria, VA 22311 703-931-1366 srichey@gpia-va.com Program Committee Co-Chair Sylvia Elizabeth Bargas, CFA Federal Retirement Thrift Investment Board 1250 H St., NW Washington, DC 20005 202-942-1625 sbargas@verizon.net Membership Chair Craig L. Lukin, CFA Roumell Asset Management, LLC 3 Bethesda Metro Center, Suite 700 Bethesda, MD 20814 301-961-1554 clukin@roumellasset.com WSIA news page 5
Washington Society of Investment Analysts 100 N. 20th Street, 4th Floor Philadelphia, PA 19103-1443 p: 888.718.3893