Broader Mission Bolder Voice Bigger Community - … NL Annual... · CFA Society Netherlands Annual...

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CFA Society Netherlands Annual Report 2012/2013 Broader Mission Bolder Voice Bigger Community Amsterdam, September 2013

Transcript of Broader Mission Bolder Voice Bigger Community - … NL Annual... · CFA Society Netherlands Annual...

CFA Society Netherlands

Annual Report 2012/2013

Broader Mission

Bolder Voice

Bigger Community Amsterdam, September 2013

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Content

About Us

President’s Statement

Treasurer’s Report

Event highlights per Quarter

Volunteer Overview

Chair Comments Chair Membership Chair Education Chair Events Chair Advocacy

Sponsorship Overview

Director’s Report

Financial Statements Profit and Loss Account Balance Sheet Overview Notes to the Financial Statements

Statement KasControleCommissie

New Charterholders

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About Us CFA Society Netherlands (CFA NL) is a member society of the CFA Institute (CFAI). The Society was founded in 1999 as the Netherlands Society of Investment Professionals (NSIP) and has grown from 20 members in 1999 to close to 700 at the end of the fiscal year. Over the year, the Society has welcomed some 100 new members. Since 2012, CFA NL is operating with a staffed office to support the realization of our mission.

The mission for CFA NL remains unchanged and relevant for everything we aim for:

Our mission is to lead the investment profession in the Netherlands by setting the highest standards of ethics, education, and professional excellence.

In advancing our mission, we are dedicated to building a Society that:

All serious investment professionals aspire to be a part of

Investment professionals go to first when seeking international credentials and continuing education

Leads the industry’s thinking in the area of ethics, integrity, and excellence of practice

Partners with its (affiliated) members and the global network of societies to deliver on the mission

Forever derives its strength and energy from its highly qualified volunteers and professional staff

The CFA Society Netherlands is open to qualifying members as well as affiliate members. The latter category is open for all financial market participants whether they have entered the CFA Program or not. Members of CFA NL are also members of the CFA Institute and thus part of a global network of investment professionals. The CFA Society Netherlands is fully operated by volunteers who target the well-being of its members and the broader investment and financial community. The Board of the CFA Society Netherlands in 2012-2013 consists of: Hilko de Brouwer, CFA President Jacco Heemskerk, CFA Vice President Bert Hospers, CFA Treasurer Frans Verhaar, CFA Secretary and Membership Chair Michel Iglesias Del Sol, CFA Advocacy Chair Sophie Robe, CFA Events Chair Rogier van Aart, CFA Education Chair

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President’s Statement Dear member, The past year has been one of major change for the Society. A lot of ideas and initiatives culminated into a bigger ambition and visible improvement in the way we run and live the Society. We are most proud to see a growing number of volunteers stepping up their commitment in various degrees and areas. This has enabled us to make major progress on many sides. Most visible is obviously the event programming. Apart from strongly attended events, we have also been able to add bi-monthly, member-only, networking drinks. This has proven to be a success that we seek to continue and we like to welcome many of you there. Behind the scenes a lot of time has been spend on thinking and working on more visibility for the Society. This includes Media Outreach, Social Media efforts via a new LinkedIn group, but also a new governance model for the Society and the commercial BV that was established last year. An important element has also been the observation that our Society ByLaws are in need of an overdue update as our legal name is still Netherlands Society Investment Professionals. Despite our efforts to focus on key areas of progress, we were again faced with more ambitions than available time. In essence, this is a good sign as it shows we can still make further progress with your help. The Society has a huge potential that we can seek to unlock together. The Board Members, staffed office, volunteers, sponsors, and CFA institute have shown tremendous teamwork. As two Board Members will step out, we’re confident to attract new and motivated volunteers again for these positions. On behalf of the Board I would like to thank all of you for your on-going membership, volunteering support, and critical feedback. We hope to meet all of you personally anytime soon. This annual report is a reflection of the great things that have happened last year. We hope you are as pleased as we are with the results and the health of our membership base and finances. As non-CFA charterholders can now also become an affiliate member of the Institute and the Society, this is an interesting proposition for many of your colleagues, friends or contacts. Thanks for your support and outreach to others in building a broader mission, bolder voice, bigger community for the CFA Society Netherlands. Best regards, Hilko de Brouwer, CFA President 13th Society Year 2012-2013

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Treasurer’s Report

CFA Society Netherlands and the Chartered Financial Analysts Netherlands Support BV are financially sound as can be seen in the individual and consolidated financial statements in the financial part of this annual report. CFA Netherlands cs. is well prepared financially to support increased levels of member-focused activities. Our organisation is not only financially sound but also our membership numbers have increased significantly. In 1999 CFA Netherlands cs. started with financial backing of twenty so-called “founding sponsors” that each provided NLG 5,000. In order to maintain its tax-exempt status, CFA Netherlands cs. will need to continue filing tax statements, confirming its non-profit nature, on an annual basis. We aim to operate on a cash neutral basis in the long term. The main source of income for CFA Netherlands cs. continues to be annual membership fees and sponsorship from CFA Institute. However, sponsorship from other private parties is becoming more significant. In 2010, the Chartered Financial Analysts Netherlands Support BV was founded to be able to conduct the staffed office and commercial activities in a separate legal entity. Over the past year, the CFA Society Netherlands together with the CFA Institute still covered the larger part of the expenses of the CFA NL Support BV. Our aim is that the CFA NL Support BV will generate sufficient revenues over time to independently finance the activities. Bert Hospers, CFA Treasurer 2012-2013

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Event Highlights

Education Partner event Candidate General Social

Q1 and Q2 (July through December 2012)

Type Title Speakers CE

points

Attend

ance

Sponsors

An

nu

all

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ing

ev

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Live Mock Exam 17 Nov 2012

20

Post Exam Drinks 1 Dec 2012

50

Research

Challenge Kick-off 17 Oct 2012

60 ING Investment Management

Annual General

Meeting 23 Oct 2012

7

Charter Award

Ceremony 6 Dec 2012

Nitin Mehta, CFA, Director EMEA Region CFA Institute

127

On

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ff e

ve

nts

Sequel to the Gold

Standard? 12 Sept 2012

Louis Boulanger, CFA Hendrik Tuch, CFA, AEGON

2 26 AEGON Asset Management

Best Practices in

Hedge Funds 2 Nov 2012

Nassim Taleb, Author Gideon Berger, Blackstone Joe McCahery, DSF Melanie Owen, BlueCrest

3 126 Blackstone BlueCrest Duisenberg School of Finance

ETF Travelling

Conference 21 Nov 2012

Deborah Fuhr, ETFGI Nicole Bastiaansen, AFM Kris Walesby, ETF Securities

2 33 FactSet

Sequel to the Gold

Standard? 11 Sept 2012

Louis Boulanger, CFA L. Baele, Tilburg University

2 30 In cooperation with Tilburg University

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Q3 and Q4 (January through June 2013)

Type Title Speakers CE

points

Attend

ance

Sponsors

An

nu

all

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ec

urr

ing

ev

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Annual Fore-

casting Dinner 17 Jan 2013

Anatole Kaletsky Harald Benink, Professor Mike Zelouf, CFA, Western

2 64 Western Asset

Exam Prep Event 21 Jan 2013

45 Kaplan Financial HP

Live Mock Exam 18 May 2013

60

Post Exam Drinks 1 June 2013

250

Research Finals 28 Feb 2013

2 40 ING Investment Management

Networking Drinks 27 March 2013

25

Networking Drinks 22 May 2013

Nick Mills on Personal Branding

1 50 In cooperation with CAIA

Networking Drinks 24 July 2013

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Investment

Opportunities in

the US 13 Feb 2013

Andy Friedman, Advisor D. Richardson, Eaton Vance Mike Wands, CFA, Putnam Joe Hudson, One Earth Cap

2.5 65 Eaton Vance Investment Managers Putnam Investments

An Evening with

Tomáš Sedláček 11 June 2013

Tomáš Sedláček, Author and Professor

1.5 120

CFA/CAIA Real

Estate Seminar 9 April 2013

Alex Moss, Consilia Capital Matthijs Storm, Kempen Gerard Groener, Corio Alphons Spaninks, AXA RE Jeremy Ford, Metropolitan Piet Eichholtz, Professor

3.5 105 Kempen Capital Corio AXA Investment Mgrs Metropolitan Real Estate In cooperation with CAIA

CFA/VBA/CAIA

Private Equity

Seminar 18 June 2013

Bjorn Tremmerie, EIF Mark Burbach, Blue Sky Paul v Hastenberg, Clavis Ludovic Phalippou Peter Cornelius, AlpInvest Dörrte Höppner, EVCA

3.5 85 NVP In cooperation with VBA and CAIA; this event attracted close to 200 people, 85 of which CFA affiliated.

IASB Roundtable 26 June 2013

Dennis Jullens, Lecturer Vincent Papa, CFA Institute Steve Cooper, IASB

2.5 25 In cooperation with Rotterdam School of Management

27.5 1436

CE Credits: The strategic aim of the Board has been to provide 20 hours of CE credits annually. This year we surpassed our goal, with 27.5 hours in total being offered. Attendees: Our events attracted over 1400 guests this year and are growing in visibility to the general public. Regularly 1/3 of our attendees are from outside the CFA family.

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Volunteer Overview

Very special thanks to all the volunteers that have been willing to put in so much of their invaluable time and effort for the benefit of the Society and the membership!

Rik Albrecht, CFA Outreach, Ethics, CFAI Standards

Sereeparp Anantavrasilp, CFA Events, RSM Liaison

Giorah Bour, CFA KasCommittee

Maurice Geraets, CFA KasCommittee

Rani Piputri, CFA Events, Education

Sjoerd Rozing, CFA Research Challenge

Anne Schilder Social Media

Richard Schreuder, CFA Disclosure, Standards, Events

Vincent Stap, CFA Events, UvA Liaison

Gerlinde Hartman, CFA Events, Education

Mahsun Dogan, CFA Events, Education

Sander Huizinga, CFA Fixed Income event

Branko Radujko Hedge Funds event

Maria Dinkova Events, Education

Matthijs Storm Real Estate event

Matthias Pezij, CFA Networking drinks

Marc van Loo, CFA Research Challenge Mentor

Joseph van den Heuvel, CFA Research Challenge Mentor

Luca Della Santa Research Challenge Mentor

Marco Vermeer, CFA Research Challenge Mentor

Martijn Bos Research Challenge Mentor

Jan Hein de Vroe, CFA Research Challenge Mentor

Leroy Tujeehut, CFA Research Challenge Mentor

Marcel Oomen, CFA Research Challenge Mentor

Pieter van Putten, CFA Research Challenge Grader

Erik Leseman, CFA Research Challenge Grader

Patrick Koster, CFA Research Challenge Grader

Lemer Salah Research Challenge Grader

Marco Koster Research Challenge Data/Factset

Ilja van den Bosch Research Challenge Data/Factset

Jeroen Bos, CFA Research Challenge Judge

Frans Jurgens, CFA Research Challenge Judge

Hamlin Lovell Research Challenge Judge

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Chair Comments

Chair Membership 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 the same benefits of regular members and become involved in all that the CFA Society has to offer. Besides our efforts to focus on our membership’s on-going educational development, this year we hosted 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 Netherlands, as well as on the international stage. In addition, we can’t forget about just wanting to have fun with likeminded friends. The core objective of the membership chair is to promote the advantages and benefits of membership through recruitment, assist potential members throughout the application process, review and approve new member applications, respond to membership inquiries, and manage existing memberships. In addition to these on-going activities throughout the year, the Membership chair worked on several initiatives including a member renewal campaign, member recovery campaign, and charter pending acquisition campaign. At the end of the membership year (30 June 2013) the society had a total of 675 members, consisting of 662 regular and 13 affiliate members. A total of 656 members are CFA charter holders.

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* At the time of writing (25 September 2013), the total number of people who joined in 2013 stands at 64, bringing the current membership to 721

Frans Verhaar, CFA, CAIA Membership Chair 2012-2013

Chair Education The activities in the Education area have centred on facilitating Mock Exams, Scholarships, the Research Challenge, and Program Partners. LinkedIn Group The existing LinkedIn Group was utilized more often to share information about events, research and articles. The number of members has increased gradually from about 90 to 130. For next year we are planning to invite all CFA NL members into this group.

Continuing Education For our members, we have continued the approach to offer event-driven continued education. In order to achieve this, the Education Chair has been directly involved in organizing Events and evaluating the content provided. Our events in the past fiscal year offered members the opportunity to collect sufficient CE Credits: In organizing fewer but larger events we want to be able to provide an educational experience that combines Dutch with non-Dutch speakers, CFA with non-CFA speakers and Academic with Practitioner speakers. We continue to apply the policy that no presentation should include marketing material for products and/or organizations. All presentations are pre-screened in this respect before the conferences. We aim to provide a platform for knowledge and content whilst using sponsorships smartly and low profile.

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Speakers List A Dutch speakers list was created to find good speakers easier. Scholarships We have continued the support to academic researchers and market practitioners via the CFA Institute scholarship program. Three scholarships were distributed to the local winners of the research challenge. Furthermore, we promoted the scholarship program via all Dutch study associations. This has resulted in 23 applications for 16 scholarships. With KaplanSchweser we have managed to arrange additional scholarships for Kaplan study material. There are six sponsorships of this prep material available and the website has been updated with an application form for candidates. We hope this will further lower any barriers to entering the CFA exams by potential candidates. Last year we awarded three KaplanSchweser scholarships. Research Challenge

We have again organized the CFA Institute Research Challenge in cooperation with the CFA Society Belgium. The Research Challenge was kindly sponsored by ING Investment Management. The co-ordinator of the Research Challenge is Sjoerd Rozing, CFA who succeeded in bringing the level of analysis to a higher plan.

The CFA Institute Research Challenge offers students the unique opportunity to learn from leading industry experts and compete with peers from the world’s top finance programs. This annual educational initiative promotes best practices in equity research among the next generation of analysts through hands-on mentoring and intensive training in company analysis and presentation skills. Local CFA societies work in conjunction with participating local universities to assemble teams of 3–5 business and finance students. Each team works directly with a mentor to research and prepare an equity research report on a publicly traded company. Each team’s findings are locally evaluated by high-profile panels of heads of research, portfolio managers, and chief investment officers from the world’s top firms. Local champions advance to regional competitions in the Americas, Asia, and Europe, and then to the global final. Eleven Dutch and Belgium universities participated. Sligro N.V. was the subject company. After a kick-off meeting in October, the teams had the opportunity to meet the management team and ask a lot of questions. The final reports were graded by a team of CFA charterholders and the best four teams were revealed during the semi-finals at the ING Investment Management offices in The Hague. The best three were asked to present their conclusions in front of a Jury, consisting of Frans Jurgens, CFA, Jeroen Bos, CFA, CMA (ING). Hamlin Lovell, CFA, CAIA, FRM (IMQubator). The event ended with networking drinks. In total 50 students and charterholders attended the finals and drinks at the Amsterdam Exchange. Erasmus University finally won the cup, an entitlement to receiving CFA scholarships for one level, as well as 1,000 euro. They proceeded to the regional finals in London, where they just not made it into the best four teams of EMEA.

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Kaplan/Schweser Mock Exam & Prep Courses Another round of June and December mock exams were organized. In December we increased the participation fee from $49 to $65, to make sure all the costs are being covered by the revenues. The upturn was again positive. We aim to continue this Mock Exam for the years to come in cooperation with KaplanSchweser. We also widened the discussion with KaplanSchweser in order to broaden our cooperation onto CFA prep courses. In January we organized the CFA Program Information Evening and Workshop for the second time. This was set up to inform students on the CFA program and how to best prepare. Kaplan/Schweser organized an introduction presentation on their material. About 45 people showed up during the event being below expectation (partly because of the terrible weather, partly because of lower exam registrations). University Program Partners

In the Netherlands, we have three partner universities. Rotterdam, Tilburg and Amsterdam (UVA) were all contacted in 2012/2013. We have improved the awareness by giving a CFA Institute presentation (Professor’s Kit) at Erasmus and we have written an article in students’ magazines of Tilburg. For next year we continue to give presentations and write articles to increase awareness, potentially in combination with the research challenge. Rogier van Aart, CFA Education Chair 2012-2013

Chair Events This year we have built up a team of volunteers to support the organisation of events whilst we are still welcoming anyone who is willing to dedicate some time and energy. We have also developed a new event programming structure with a quarterly Event Committee meeting as well as a Forecasting Dinner Committee. This new structure allows us to better plan and organise events, improve the programming, better manage the time and energy of volunteers, and support the fund raising activities and the communication with sponsors.

Annually recurring events Annual CFA Charter Award Ceremony On 6 December 2012 we organized a Charter Award Ceremony. This annual event featured new CFA Charterholders and their family and friends to watch them receive their Charters. In 2012 we had close to 90 new Charterholders, half of which attended the Charter Ceremony in the Industrieele Groote Club in Amsterdam to receive their charters.

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Annual Forecasting Dinner The Annual Forecasting Dinner features top notch speakers to give their views on economic developments for the year to come. The Dutch investment community (members and non-members) is invited to join. This year the event took place in the prestigious Scheepvaartmuseum in Amsterdam and was attended by some 60 attendees. Our main speakers debated the future of the Euro: Mr. Anatole Kaletsky (an award-winning journalist and financial economist) and Professor Harald Benink (professor in Banking and Finance at Tilburg University). The panel discussion was moderated by Mike Zelouf, CFA, from Western Asset Management, which also partially sponsored this event. CFA Annual General Meeting The Annual General Meeting took place in October. In this annual meeting incoming President Hilko de Brouwer, CFA was represented by incoming Vice President Jacco Heemskerk. A new Board of motivated volunteers took over the management of the Society and the BV with a focused, motivated but realistic plan for the upcoming year.

Larger Events Best practices Seminar: Hedge funds Driven by one of our very motivated volunteers, Branko Radujko, we organized a specific content seminar to improve the knowledge and practical skills of our members in the Hedge Fund space. The main sponsor was Blackstone with Blue Crest as co-sponsor. Nassim Taleb was invited as key note speaker and the conference was sold out and overbooked with more

than 120 attendees. Investment opportunities in the US Conference On 13 February 2013 we hosted, together with the main sponsor Eaton Vance and co- sponsor Putnam our first specific US investment conference. The conference, held in Grand Hotel Karel V in Utrecht, was attended by over 60 (non-)members. The conference featured Andy Friedman a well know political commentator and advisor as key speaker.

CFA/CAIA Real Estate Seminar On 9 April 2013 we co-organized together with CAIA our first ever Real Estate event, attended by over 100 people. Thanks to the great involvement of volunteer Matthijs Storm (Kempen), we were able to attract a strong academic speaker (Piet Eicholtz) and a highly regarded expert in the field, Alex Moss, as moderator. The speakers each proposed their own ideas about how the current threats in the Real Estate market can lead to new opportunities. The event was fully sponsored thanks to Kempen Capital Management, Corio, AXA Investment Managers and Metropolitan Real Estate. We may consider repeating this highly successful event. CFA/CAIA/VBA Real Estate Seminar For the third year in a row, we co-organised the very successful Private Equity Seminar on 18 June 2013 VBA and CAIA. High level speakers updated the audience on allocation strategies for private equities in investment portfolios. The event was attended by over almost 200 professionals (85 of which CFA-related) and was kindly held in the auditorium of ABN AMRO Bank.

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Smaller Events Seminar on the Gold standard Louis Boulanger, CFA, held 2 presentations (in The Hague and at Tilburg University) presenting his research on “monetary disorder and the role of Gold”. His presentation was supplemented by Mr. Hendrik Jan Tuch, CFA (Senior Portfolio Manager Fixed Income Sovereigns at AEGON Asset Management) and Ms. Lieven Baele (Associate Professor in Finance at Tilburg University). The event was kindly sponsored by AEGON Asset Management and the event took place on their premises in The Hague. Beyond physical/synthetic: where do we stand on best practices for ETF’s? Three main speakers being Deborah Fuhr (ETGFI, an independent consultant), Nicole Bastiaansen (AFM regulator), and Kris Walesby (ETF Securities), all defended their views and perspectives on this market of growing importance. that was attended by some 35 attendees in the Crowne Plaza Hotel. This event was part of a Travelling Conference which also took place in Paris and Frankfurt and was fully sponsored by FactSet. Ethics Key Note speaker event As part of our focus on Ethics and Integrity, CFA NL hosted an event at the Nieuwe Poort in Amsterdam featuring Tomáš Sedláček as key note speaker. He focused his speech on the “economy beyond models” followed by an interesting discussion. The event was oversubscribed with over 120 attendees, illustrating the interest amongst our membership for alternative-type speakers and ethics/integrity related content. IASB Roundtable As part of our efforts to increase educational content and discussion on more technical subjects such as standards, regulation and disclosure we co-hosted together with RSM, at the request of IASB, a roundtable event. Here 25 attendees discussed the challenges of IFRS in equity valuation and debated the upcoming changes to IFRS giving valuable feedback to IASB in their efforts to draft or adapt standards. Social media workshop As part of the networking drinks, we organised a small social media workshop moderated by

Nick Mills (ABN AMRO). The workshop was followed by a lively Q&A discussion.

Social events

This year we re-instigated the Member Social/Networking drinks. The concept is to have bi-monthly drinks at a predictable location and time. These drinks are meant to further build networking opportunities strictly for members. These drinks are currently held in Amsterdam in a trial period and can easily be used as a platform for short presentations.

Sophie Robe, CFA Events Chair 2012-2013

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Chair Advocacy The activities for advocacy in the past year were mainly focused on external relations, outreach and increasing CFA NL awareness. The purpose of the Advocacy Chair is to increase communication about ethics, trust and professional standards in order to support fair and transparent markets, better serve member interests and build the profile of the Society and its members. Contacts with regulators During the year follow-up meetings were held with the Dutch Securities Institute, the Dutch Central Bank, and the Autoriteit Financiële Markten (AFM). DSI is meant to be a self-regulation initiative for the Dutch financial sector that maintains various registers of qualified financial professionals. The CFA designations (or parts thereof) qualify to prove sufficient investment knowledge for some registers. During the past year, the Society has also contributed to comment letters from CFA Institute on regulatory issues. Based on the results of member surveys, the Society tries to communicate member views to regulatory bodies. Codes and Standards An integral part of the CFA Institute mission is to develop and administer codes, best practice guidelines and standards to guide the investment industry. These standards help ensure all investment professionals place client interests first. During the past year, the CFA Society Netherlands has worked on Dutch translations of these codes and standards to facilitate their acceptance in the Dutch financial sector. Currently there are Dutch versions available of:

- The Code of Ethics and Standards of Professional Conduct (‘de code ethiek en regels voor professioneel gedrag’)

- The Pension Trustee Code of Conduct (‘de gedragscode voor leden van het bestuur van een pensioenfonds’)

Furthermore, the Society has promoted the use of the Asset Manager Code of Professional Conduct and the Global Investment Performance Standards during the past year. To this end, various meetings were held with leading Dutch asset managers. CFA Institute Society Leaders Conferences CFA Institute organizes several Society Leader Conferences annually, and requires societies to attend them. The SLC provide an excellent opportunity to liaise with CFA Institute and board members of other local societies. This helps to further align our Society with CFA Institute. These meetings are intended to increase knowledge of the CFA lnstitute for board members and to share best practices. Job Portal The job portal on the CFA Netherlands website is currently provided in conjunction with CFA Institute and eFinancialcareers. Michel Iglesias del Sol, CFA Advocacy Chair 2012-2013

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Sponsorship Overview CFA Society Netherlands selectively offers sponsorship opportunities for industry-related companies. As a non-profit organization, sponsorship is used directly to support the on-going mission and activities of the Society. We are very grateful to the following companies for the strategic sponsorship support we received in 2012-2013:

Many event sponsors have allowed us organize specific events, projects or activities. We like to express our gratitude to the following sponsors that have allowed us to ensure the high-quality content and financial soundness of our events throughout the year:

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Director’s Report The Chartered Financial Analysts Netherlands Support BV (CFA NL Support BV) is in operation to support the CFA Society Netherlands in advancing and realizing its mission. The CFA NL Support BV is a legally separate entity that is fully owned by the CFA Society Netherlands. From the BV all commercial, sponsorship and staffed office activities are enabled and facilitated. Currently, the Directors of the BV are the so-called executive Board Members of CFA NL, being the President, the Treasurer and the Secretary (Chair Membership). The BV enables CFA NL to organize and govern the majority of activities at arm’s length thus reducing the financial and operational risks. The BV currently operates with one paid employee, Ms. Terri Thompson. The BV also currently collects sponsorships and event entrance fees. The BV also takes account of office and eventing costs. The BV is well-positioned financially for the future. It is the aim to source more staffed office resources and external activities effectively via this entity going forward. The Board of Directors for the Chartered Financial Analysts Netherlands Support BV in 2012-2013 consists of: Hilko de Brouwer, CFA Director Bert Hospers, CFA Director Frans Verhaar, CFA Director

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Financial Statements

Profit and Loss Account The financial statements consist of the CFA Society Netherlands, the Chartered Financial Analysts Netherlands Support BV, and the consolidated statements.

CFA Netherlands Profit and Loss Account 2012/2013

Revenues CFA Society NL CFA Support BV Consolidated

Society dues € 87.518,20 € - € 87.518,20

Program/Events € 10.921,00 € 66.345.95 € 77.266,95

Education/Courses € 603,33 € 1.428,00 € 2.031,33 CFA Institute Funding Programs Current account CFA

€ 29.545,67 € -

€ - € 90.082,76

€ 29.545,67 € -

Other € 1.491,74 € 714,96 € 2.206,70

Total € 130.079,94 € 158.571,67 € 198.568,85

Expenses CFA Society NL CFA Support BV Consolidated

Board € 1.289,81 € 1.649,10 € 2.938,91

Treasury € 8.620,28 € 6,781,56 € 15.401,84

Advocacy € - € 6.779,00 € 6.779,00

Program € 600,00 € 43.537,70 € 44.137,70

Education/Courses € - € 237,40 € 237,40 Office costs Current account CFA

€ 73,08 € 90.082,76

€ 56.087,32 € -

€ 56.160,40 € -

Other expenses € 527,20 € 14.374,03 € 14.901,23

Total € 101.193,13 € 129.446,11 € 140.556,12

Net Profit € 28.886,81 € 29.125,56 € 58.012.37

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Balance Sheet Overview The financial statements consist of the CFA Society Netherlands, the Chartered Financial Analysts Netherlands Support BV, and the consolidated statements.

CFA Netherlands Balance Sheet 2012/2013

Assets CFA Society NL CFA Support BV Consolidated

Cash and deposits:

Current accounts EUR € 7.459,68 € 20.768,88 € 28.228,56

Current accounts USD € 29.061,81 € - € 29.061,81

Current account CFA € 80.061,21 € - € -

Deposit € 53.258,34 € 18.183,16 € 71.441,50

Other current assets € 20,00 € 18.544,60 € 18.564,60

Total current assets € 169.861,04 € 57.496,64 € 147.296,47

Guaranty € - € 1.599,00 € 1.599,00

Investment in Affiliates € 18.000,00 € - € 18.000,00

Total fixed assets € 18.000,00 € 1.599,00 € 19.599,00

Total assets € 187.861,04 € 59.095,64 € 166.895,47

Equity & Liabilities

Current liabilities € 24.290,62 € 5.213,18 € 29.503,80

Current account CFA € - € 80.061,21 € -

Total current liabilities € 24.290,62 € 85.274,39 € 29.503,80

Long-term debt € 3.448,28 € - € 3.448,28

Total liabilities € 27.738,90 € 85.274,39 € 32.952,08

Equity $ 131.235,33 € -55.304,31 € 75.931,02

Retained earnings € 28.886,81 € 29.125,56 € 58.012,37

Total equity € 160.122,14 € -26.178,75 € 133.943,39

Total liabilities & equity € 187.861,04 € 59.095,64 € 166.895,47

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Notes to the Financial Statements Both the CFA Society Netherlands and the CFA Support BV realized a profit of €28.886,81 and €29.125,56 in 2013. The CFA NL BV was founded to be able to conduct the Staffed Office activities in a separate entity. Over the past year, the CFA Society Netherlands together with the CFA Institute still covered the larger part of the expenses of the CFA NL Support BV. Going forward, our aim is that the CFA Support NL BV will generate more revenues to finance the activities by gaining more sponsorships and thereby reducing its dependence on the Society. Board expenses Board expenses include general cost reimbursements for the board members, like travel costs, administrative costs, software costs and internet filing services. CFA Netherlands board members visited the Society Leadership Conference in Milan in February 2012 and the CFA Institute Annual Conference in Singapore in May 2013. Expenses are paid in part by the CFA Institute and in part by the CFA Society Netherlands. Treasury expenses Treasury expenses represent costs for accountant services in the past fiscal year for both the CFA Society Netherlands and the CFA NL Support BV. Office costs Office costs include expenses made by the staffed office including staffed member salary, office rent and office inventory. Operational funding from the CFA Institute was received to support the start-up of the staffed office activities during the course of the reporting year. Other Expenses Other expenses represent banking charges, currency gains and losses, insurance and taxes. Other Current Assets Other current assets totalling €18.564,60 include amounts for accounts receivables, taxes and bank interest. Short term liabilities Short term liabilities totalling €29.503,80 mainly include reimbursements of €22.444,62 paid by CFA Institute in advance and amounts that were paid after 30/06/2013 but need to be recognized in this fiscal year, being accrued expenses of €3.055,- and sales taxes of €2.158,18. For the liabilities, CFA Netherlands has a loan from CFA Institute.

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Statement KasControleCommissie We, the KasControleCommissie, have audited the accompanying consolidated balance sheet and the underlying subsidiaries as of 30.6.2013. In our opinion the financial statements referred to present fairly, in all material respects, the consolidated financial position of CFA Society Netherlands and its subsidiaries.

Yours sincerely,

KasControleCommissie

Maurice Geraets, CFA

Giorah Bour, PhD, CFA

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New Charterholders 2012 Congratulations and a warm welcome to our newest CFA Charterholders!

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CFA Society Netherlands Laan van Kronenburg 2

1183 AS Amstelveen The Netherlands

www.cfanetherlands.nl

Phone: +31-20-545-9056

[email protected]