Afterthe Bell DecemBer 2012

the Newsletter of clevelAND fiNANce

iNsiDe this issue

message from the President . . . . . . 1

membership . . . . . . . . . . . . . . . . . . .2-3

Programming . . . . . . . . . . . . . . . . . . . .4

education . . . . . . . . . . . . . . . . . . . . . . .6

Advocacy . . . . . . . . . . . . . . . . . . . . . 7-8

Dear Members and Readers,

As we head into the final month of 2012, I hope you are able to take some time to relax and reflect

on a successful and prosperous year. We at CFASC are very pleased with the outcome of our fiscal

year’s first half. However, we have one important task we’d like to complete before yearend that will

significantly impact our Society heading into 2013.

December marks the end of an era of sorts at CFA Society Cleveland. Katie Khoury, the Society’s

executive administrator, has accepted a promotion at Clear Perspective Group (CPG) and, as of Jan.

1, will be responsible for serving the investor relations needs of CPG’s clients on a full-time basis.

Many of you have had the pleasure of interacting with Katie through email, phone calls, or when

you’ve checked in at events, and, if you’ve served as a volunteer with CFASC, working with her on a

more personal level. Regardless, you know she is an important part of our organization. But I don’t

think anyone who hasn’t been on CFASC’s Board actually realizes how much work Katie does for us

beyond what is required of her as a part-time employee. In fact, penning her as such is unfair, as

she is part-time in title only.

During the last three years, I’ve had the pleasure of working very closely with Katie, first as

University Relations Chair when she was instrumental in planning and coordinating the University

Speaker Series, which resulted in some of the most well attended events in Society history. Then,

last year when I served as Program Chair, I made her life extremely difficult. Her unofficial role was

my right hand (wo)man, and she did a majority of the dirty work required to put together such a

successful weekly programming calendar. As President this year, Katie continued to be the person

I turned to for advice and guidance as the Society increased its activities. She will be missed very

much by our members, our Board, and by me, but she’s on to bigger and better things. Please

congratulate her next time you see her.

A search for a new executive administrator is currently underway. The Board is hopeful we’ll have

someone in place by the end of the month and you’ll be able to read about our choice in January’s

newsletter.

Happy holidays to all,

James M. Bailey, CFA

President, CFA Society Cleveland

1www .cfAclevelAND .org

CFA Society Cleveland

3637 Medina Rd., Ste. 110

Medina, OH 44256

216-696-8066

Check us out on LinkedIn, Twitter, Facebook or YouTube

memBershiPmemBer sPotlightInterview conducted by Paul Lebo, CFA, Membership Chair

Q: can you tell our readers about your background?

A: I started in this business in 1969 with Saunders Stiver & Co. in the Terminal Tower. Within a year, I moved on to Prescott, Ball & Turben & Co. and have been with this firm since 1970, although there have been seven name changes. We are now Wells Fargo Advisors, LLC. When I obtained my MBA, this helped me to get into financial research. I earned the CFA charter in 1976, and was number 4242. At that time, there were very few CFA charterholders. Certificates were numbered consecutively. Today, some 30,000 take CFA exams each year.

Q: how did the cfA charter impact your career?

A: As it is today, if you are progressing in this industry, you get your CFA charter. The CFA process is a great educational tool, it helps one do the job today, and the continuing education keeps you up-to-date. It provides credibility, credentials, and education specific to our job. Back then, one had to be in the business for five years and you could not take the last level (third exam) until after completing the fifth year of actual work experience.

Q: how did cfA society cleveland benefit your career?

A: The weekly programs were tremendous at helping me keep up with local companies as well as large companies in Ohio generally. (At Prescott, Ball & Turben & Co. we specialized in research of Ohio based companies.) The other key thing, the Society insisted on speakers being the CEO or CFO of the company, not a person in charge of investor relations. At that time, we had 232 members, and were the 15th largest out of the 57 societies in the U.S.

Q: what impact has the cfA code of ethics and Professional conduct had on your career?

A: My ethical standards were pretty much taught on Sundays throughout my life. The standards provide credibility that we are highly ethical and the industry self-regulates that. However, the Code did not change my way of acting; it confirmed it.

Q: how did you become involved in the cfAsc Board?

A: I had been going to the weekly meetings for about five years before I became involved as an officer. After some time on the Board, I became Program Chair in 1979. Getting more involved in the Society is a good way to make friends and to network with the industry.

Q: last month, cfAsc held its annual charter Awards Dinner and welcomed 13 new charterholders . what is your advice to these newly minted charterholders?

A: Be very enthusiastic about what you do every day and pursue continuing education to stay up to date. Keep involved in CFA Society Cleveland and other professional organizations. And, of course, enjoy being a newly minted charterholder.

Continued on page 3

George Morris, CFAPast President, CFA Society Cleveland

At-A-glANceexperience: Financial industry for 43 years

education: MBA, Case Western Reserve University, 1967. BS Business Administration, BGSU 1960.

hobbies: Tennis, Music, Investing

family: Married to Carole M. Morris (celebrated 50th anniversary in 2012), two daughters and five grandsons.

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memBershiPmemBer sPotlight, coNtiNueDQ: You mentioned being enthusiastic . how important is attitude?

A: It doesn’t matter what you are doing. An attitude of working hard and being ethical does help you become a master of your own fate. Don’t get too influenced by the naysayers.

Q: what are your thoughts about loyalty to the firm?

A: I wasn’t striving to end up as the head of the Federal Reserve. I was interested in doing a good job and having a credible career, something my children can look back and be proud of. Having a philosophy of honesty first, and hard work second, got me farther than I expected.

Q: what is one aspect of the society you particularly like today and what is one aspect that you would change?

A: I like the fact that it is very active group and provides a way to gather with people who are like-minded. The most difficult, until recently, is that we went through a period where there were not regular meetings and the program format changed so it was no longer company-oriented. However, I believe under the leadership over the recent period, we have moved back to meetings that are planned ahead and I like the weekly email announcements. The current leadership is also doing a better job of getting the company presentations that provide value to our members.

Q: could you tell us about cfAsc’s investment conference in 1980 and give some advice for our upcoming investment conference in the fall of 2013?

A: Bill Baker, CFA, ran our Auto Industry conference in 1980 when I was CFASC President. It was attended by 125 people from across the U.S. We held conferences every four to five years, and focused on topics that were important in Ohio. For advice for the upcoming conference, you may want to address healthcare, and target it toward analysts and portfolio managers. You will also want to work closely with the CFA Institute.

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It dOeSn’t MAtteR wHAt yOu ARe dOIng. An AttItude OF wORkIng HARd And beIng etHICAl dOeS Help yOu beCOMe A MASteR OF yOuR Own FAte. dOn’t get tOO InFluenCed by tHe nAySAyeRS.

George Morris, CFA Past President, CFA Society Cleveland

chArter AwArDs DiNNerBrian Brennan, former Nfl Player & head of KeyBanc capital markets’ (KBcm) fixed income Department, addressed a crowd of 50—including 10 new charterholders—at this year’s charter Awards Dinner on Nov . 14 at the city club . he spoke about his time playing football for the cleveland Browns, cincinnati Bengals, and san Diego chargers, as well as his transition to fixed income and his tenure at KBcm .

ProgrAmmiNg

After the BellDecemBer 2012

We are excited to present a high impacting, topically diverse programming calendar for the first

half of 2013 focused on portfolio management, company updates, and macro topics presented by

notable industry experts. We have focused on new topics in 2013 versus those covered in 2012,

such as derivatives, ethics, Federal Reserve policy, fixed income and company presentations

from various new industries. I believe you will be impressed with the quality and credibility of

the speakers and our hope is you will vote by attending and engaging in the events. A couple of

housekeeping items: consistent with the fall programming season, you will find the luncheon day

varies largely based on speaker availability. Please see the summary below for detailed speaker

information. Also, please join us at Zócalo on East 4th Street from 4:30-7:30 p.m. for a celebrity

bartending event to kick off 2013’s programming schedule.

After that, we'll have a presentation by Stephen Malinak, Thomson Reuters' Global Head of

Intelligent Analytics, who will discuss insider actions and resultant share price performance. We

then host Dennis Markey and Heidi Richardson of BlackRock who will discuss their more defensive

view on emerging markets. We conclude January with an economic outlook panel featuring Ken

Mayland, President of Clearview Economics, Stuart Hoffman, Chief Economist, PNC Financial

Services Group, and James Meil, Vice President and Chief Economist of Eaton Corporation.

The programing season continues with several high profile company executive presentations,

including Jeff Weeden, CFO of Keycorp [KEY, $7.5B market cap], Pat Kane, Chief Investor Relations

Officer at EQT Corporation [EQT, $9B market cap], Matt Miller, Investor Relations Manager with the

Hershey Company [HSY $16.5B market cap] and John Hofmeister, former President and U.S. Chair of

Shell Oil Corporation, who recently founded Affordable Energy Inc.

Notable industry experts include Chris Piros, Managing Director of Hawthorn PNC Family Wealth in

Philadelphia, who will address his economic and market outlook. Others include Sandra Pianalto,

the Chief Executive Officer of the Fourth District Federal Reserve at Cleveland, who will discuss Fed

policy, and Dr. Jay Muthuswamy, associate professor of finance with Kent State University, who is

often quoted in the WSJ for his work on high frequency trading. Last, we have the pleasure to host

John Rogers, President and Chief Executive Officer of the CFA Institute.

As you can see, our 2013 calendar is off to a great start and our ears are open for ideas to fill the

remaining five slots. As always, as we look to add value, we welcome member feedback, so please

let us know of topics or speakers that are germane to our mission. Again, we hope to see you soon

at an upcoming event.

Sincerely,

Craig Cimoroni, CFA

Program Chair, CFA Society Cleveland

cAleNDAr of eveNts

Jan . 10, 2013

celebrity Bartending event at Zocalo

Jan . 16, 2013

stephen malinak, global head of

intelligent Analytics

thomson reuters

Jan . 23, 2013

Dennis markey, vice President – ishares

Private client & institutions – midwest re-

gion at Blackrock and heidi richardson,

Director, investment strategist – global

investment strategy at Blackrock

Jan . 28, 2013

forecast luncheon featuring Ken mayland,

President of clearview economics, stuart

hoffman, chief economist, PNc financial

services group, and James meil, vice

President and chief economist of

eaton corporation

feb . 6, 2013

christopher Piros, senior vice President,

managing Director

hawthorn PNc family wealth

feb . 13, 2013

Patrick Kane,

chief investor relations officer

eQt corporation

4cfAsocietY .org/clevelAND

After the BellDecemBer 2012

5cfAsocietY .org/clevelAND

January 10th | Zócalo | 2071 e . 4th st . | 4:30 – 7:30 p .m .

happy hour Drink specials & complimentary Appetizers

Questions? email cfa@cleveland .cfasociety .org

cfAsc celeBritY BArteNDiNg BeNefit for cArol NurserY school

carol Nursery school is a non-profit, non-discriminatory, non-sectarian preschool for children from two-and-a-half to five years old .

celeBritY BArteNDers

4:30-5:15Pm

Iris Wang, Key Private Bank Lin Ma, Huntington Bank

5:15-5:45Pm

James Bailey, PNC Grant Guyuron, Hartland & Co.

5:45-6:15Pm

Jeff Malbasa, Spero-Smith Brad Knapp, PNC

6:15Pm-7:00Pm

Craig Cimoroni, KeyBanc Capital Markets Matt Lower, Northcoast Research

7:00Pm-7:30Pm

Brian Rudloff, Goodyear Tire Jeff Travis, Winslow Asset Management

eDucAtioNmocK eXAm:Preparing for the CFA exams is now less expensive due to two strategic partnerships CFA Society

Cleveland has formed with CFA test-prep providers.

oPtioN #1: Boston securities Analysts society (BsAs)

The best proxy for the regular CFA exam. For 17 years, BSAS has provided mock exams for all

three levels.

cost: $149 enables you to download a PDf of the mock exam and work at your own pace . to

purchase, visit www .bsas .org/pe and click on the “Purchase PDf” tab . use couPoN coDe cleve .

oPtioN #2: Kaplan schweser

Kaplan Schweser has several excellent packages and options to choose from. Kaplan Schweser

has helped hundreds of thousands of candidates prepare for the CFA exam via a concise review of

the curriculum, expert instruction by CFA charterholders, and online tools.

go to portal .schweser .com

use Discount code: clevelandcfA and receive 15% off the retail price!

sPeciAl thANKs to KAPlAN schweser for sPoNsoriNg this YeAr’s reseArch chAlleNge .

ABout the reseArch chAlleNge:The CFA Institute Research Challenge is an annual global competition which provides university

students with hands-on mentoring and intensive training in financial analysis and professional

ethics. Each student participant will be tested on their analytic, valuation, report writing and

presentation skills and gain real-world experience as they assume the role of a research analyst.

After the BellDecemBer 2012

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pRepARIng FOR tHe CFA exAMS IS nOw leSS expenSIve due tO twO StRAtegIC pARtneRSHIpS CFA SOCIety ClevelAnd HAS FORMed wItH CFA teSt-pRep pROvIdeRS.

ADvocAcYThe article appeared in the November/December 2012 issue of CBC magazine. It is reproduced as it appeared.

BANKiNg oN trustemphasis on ethics more important than ever for local financial groupBy Douglas J. Guth

Joke time, folks.

Q: Why don’t sharks attack bankers?

A: Professional courtesy

The general public may get a cynical chuckle of out such topical Jay Leno-style humor, but

members of the financial sector don’t find it too amusing, particularly in light of the scandals and a

recession that have sunk trust in the economic services industry to an all-time low.

CFA Society Cleveland is working hard to regain public confidence. Ostensibly, this group of

“chartered financial analysts” exists to provide opportunities for development and fellowship

among Cleveland-area investment professionals. In a global sense, the Society aims to stay

abreast of industry trends and ensure its members follow ethical practices and guidelines.

Ethics has always been a central tenet of the organization, but proper branding is especially

important amid the public outcry of the recession era. “Our mission statement hasn’t changed;

we’re just speaking with a bolder voice,” Chapter President James Bailey, a senior analyst at PNC,

says. “We’re pushing to get our name out there.”

The Cleveland group has about 450 members between the ages of 31 and 60 working in all sectors

of finance for a variety of different industries. CFASC is a member society of the CFA Institute, which

has more than 100,000 members worldwide.

“we want people to know what our members stand for .”

Renewed emphasis on the advocacy piece of the organization’s mission is a testament to

the concerns of the general public, Bailey says. From the Ponzi-scheme ugliness surrounding

imprisoned financier Bernie Madoff to the near collapse of the world financial system, groups

like CFASC are duty bound to dispel the worry and unpleasant stereotypes currently dogging the

industry, Bailey says.

The run-up to the November election didn’t help, either. Republican candidate Mitt Romney’s

background in financial equity was a cause for consternation among some voters who would like to

lump him in with the problems the country is facing.

“People are asking, ‘Who do I put my money with? How do I trust them,’ Bailey says. “Ethics is the

center of all we do.”

Continued on page 7

“etHICS IS tHe CenteR OF All we dO.”

James M. Bailey, CFA President, CFA Society Cleveland

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ADvocAcYBANKiNg oN trust, coNtiNueD“we’re pushing to get our name out there .”

The group encourages members to become part of a common voice not just to educate others

but to protect the interests of the profession as well, Bailey adds. The first step is branding. For

example, CFASC is not made up of accountants, nor does the acronym stand for the “cat fanciers

association,” as the chapter president jokingly maintains.

“We want people to know what our members stand for,” Bailey says.

One avenue to that understanding has been social media. The organization recently harnessed

Twitter, LinkedIn, Facebook, and YouTube as a way to spread the good word.

CFASC also hosts public speaking engagements with industry names like economist Art Laffer.

These programs are held at City Club of Cleveland and other venues where people from outside

finance can gain knowledge of some of the industry’s inner workings.

“We’re receiving feedback in attendance figures that tells us we’re on the right path,” Bailey says.

The group’s outreach efforts extend to college campuses as well. Members meet with student-run

finance organizations to help them get an early start on networking. The CFA Research Challenge,

meanwhile, involves teams of university students working directly with local, publicly traded

companies in researching and preparing a company analysis. An investment professional mentors

the team during the research process and reviews the students’ findings.

Last March the Cleveland chapter hosted a career fair, inviting students from 18 colleges, who

heard from a panel of two dozen CFASC members on such topics as resume building. Bailey would

like to expand the group’s effort to include individual student mentoring, although that idea is still

at the very early stages.

CFASC is busy building the framework of its advocacy foundation. Regaining the public’s loss of

trust in the investment profession will take some work, but Bailey is confident that the feeling can

be restored through education of members and continued adherence to the industry’s highest

ethical standards.

“I believe in what we’re doing,” Bailey says. “We are working for our clients, not for personal gain.”

For more information: cfasociety.org/Cleveland

“we wAnt peOple tO knOw wHAt OuR MeMbeRS StAnd FOR.”

James M. Bailey, CFA President, CFA Society Cleveland

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