2016 ANNUAL REPORT

My Fellow Members and Friends,

Thank you for your help in making the CFA Society of Alabama into a fantastic organization for

investment professionals in Alabama. During 2016 we added eleven new members and we

are now 190 members across Alabama. Employers in our area continue to recognize that the

CFA designation truly matters, and none is harder to obtain.

Members have helped us throughout the year to

schedule excellent speakers for our monthly luncheons,

with everything from political commentators to CEOs

of publicly traded companies, in addition to market

strategists. Our monthly luncheons continue to be

a great way to stay connected to the financial and

investment community, and for members and guests

to network and learn. Attendance on monthly lunches

was outstanding during 2016.

A special thanks to officers Will Aycock (Vice President), Stephen Daniels (Treasurer), Andy

Webb (Secretary), and board members (Guillermo Araoz, Courtenay Bloodworth, Adrian

Hughes, Zach Ivey, Adam Rogers, Kent Russell, Steve Smith and Rusty Yerkes) who have given

their time to support the society. I would also like to thank Kee Goostree who is our society’s

administrative assistant. She has done a fantastic job in organizing many of our events.

During 2016, the CFA Institute brand awareness campaign “A Difference That Matters” provided

support to our local society via advertising funding, allowing us to announce new members

and their achievement in obtaining the CFA charter. Further, the Institute has also funded

projects such as the creation of this report, and our local society has done an outstanding

job at leveraging the CFA Institute’s resources.

Thank you for 2016 and I look forward to another great year for the CFA Society of Alabama!

Sincerely,

C. Johan Grahs, CFA

President, CFA Society of Alabama

PRESIDENT’S LETTER

MISSION CFA Institute, formerly known as the Association

for Investment Management and Research (AIMR),

is a global community of investment professionals

working to build an investment management industry

where investors’ interests come first, financial

markets function at their best, and economies grow.

We advocate for financial market integrity and

develop and promote ethical and professional

standards, such as the Global Investment

Performance Standards (GIPS®) and the Asset

Manager Code of Professional Conduct ™, and our

members uphold our industry-leading Code of Ethics

and Standards of Professional Conduct.

ABOUT CFA INSTITUTE

The Chartered Financial Analyst (CFA) credential is the

most respected and recognized investment management

designation in the world. The curriculum covers academic

theory, current industry practice, and ethical and professional

standards to provide a strong foundation of advanced

investment analysis and real-world portfolio management skills.

A work experience requirement and an annual ethics statement

ensure career-long professional excellence by those who have

earned the CFA Charter. To find out more about the CFA Charter,

please visit www.cfainstitute.org/cfaprogram.

CFA Institute has more than

142,000 members in 159 countries,

with more than 125,000 CFA charterholders globally

GIPS® Standards championed locally

in more than 35 countries

2014 marked the first time in history that

the United States represented less than 50% of total charterholders

145 local societies worldwide – oldest member

society is CFA Society Chicago and

newest member society is CFA Society

Bangladesh (approved November 2015)

>1,100 firms adhere to the Asset

Manager Code of Professional Conduct

Professional standard of choice for

>31,000 investment firms worldwide

INSTITUTE STATISTICS

BECOMING A CHARTERHOLDER

Portfolio Manager 22%Research Analyst 15%Consultant 6%

Chief-level Executive 7%

Risk Manager 5%Corporate Finance Analyst 5%Relationship Manager 5%

Financial Advisor 5%

Other (includes occupations such as Investment Banking Analyst, Trader, Manager of Managers, Strategist, Broker, etc.)

30%

TOP OCCUPATIONS OF MEMBERS GLOBALLY

Investment ToolsQuantitative MethodsEconomicsFinancial Reporting and AnalysisCorporate Finance

Level I Level II Level III

Asset ClassesEquity InvestmentsFixed IncomeDerivativesAlternative Investments

Portfolio Management and Wealth Planningwww.cfainstitute.org/cfaprogram

CFA PROGRAM CANDIDATE BODY OF KNOWLEDGE (CBOK)Knowledge/Comprehension > Application/Analysis > Synthesis/Evaluation

ETHICSETHICSETHICS

Originally started as a subchapter of the Atlanta Society of Finance and Investment

Professionals, the CFA Society of Alabama became an independent society in

August of 1987. As a statewide organization, the Society operates with the goals of

creating a community of investment professionals in Alabama, advancing ethics and

standards in the industry, and increasing awareness of the CFA Charter. Through the

end of 2016, the Society has hosted a total of 295 events and has become one of the

most prominent and respected finance-related organizations in the state. Membership

is open to CFA charterholders and candidates enrolled in the CFA Program who are

actively pursuing the Chartered Financial Analyst designation.

ABOUT US

HISTORY

OFFICERS BOARD OF DIRECTORS

Guillermo Araoz, CFA

Courtenay Bloodworth, CFA

Adrian Hughes, CFA

Zach Ivey, CFA

Kent Russell, CFA

Stephen Smith, CFA

Rusty Yerkes, CFA

Adam Rogers, CFA (Immediate Past President)Johan Grahs, CFA (President)

William Aycock, CFA (Vice President)

Stephen Daniels, CFA (Treasurer)

Andy Webb, CFA (Secretary)

Officers and Board Members (left-to-right): Johan Grahs, Andy Webb, Adam Rogers, Rusty Yerkes, Stephen Smith, Kent Russell, Guillermo Araoz, Courtenay Bloodworth, Adrian Hughes, Stephen Daniels, and Will Aycock.

MEMBERSHIP STATISTICS

+3.8% YoYmembership growth

190 active members

Over 90% being charterholders

1) Birmingham

2) Montgomery

3) Mobile

Top 3 cities represented:

Consultant

Charles S. Northen III, CFA

John H. Goff, Jr., CFA

Winfield Maxwell Baird, CFA

James G. Tatum, CFA

Valjean B. Brookshaw, Jr., CFA

Pedro Verdu, CFA

Carter E. Anthony, CFA

Brian B. Sullivan, CFA

Gary T. Partridge, CFA

Luther L. McDougal IV, CFA

John von Eschenbach, CFA

Rhonda E. Hoggle, CFA

Norman Darden III, CFA

James Lockwood Savage, CFA

Gary T. Partridge, CFA

Thomas R. Gale, CFA

John Preston Boston, CFA

Johnny R. Givens, Jr., CFA

Gary T. Partridge, CFA

Michael Thomas Lytle, CFA

Zachary Paul Turnage, CFA

John P. Maloney, CFA

Timothy E. Parker, CFA

Adrian A. Hughes, CFA

Kevin W. Gamble, CFA

Kenton L. Russell, CFA

Stephen Smith, CFA

Zach Ivey, CFA

Courtenay Bloodworth, CFA

Adam Rogers, CFA

PAST PRESIDENTS1987-1988

1988-1989

1989-1990

1990-1991

1991-1992

1992-1993

1993-1994

1994-1995

1995-1996

1996-1997

1997-1998

1998-1999

1999-2000

2000-2001

2001-2002

2002-2003

2003-2004

2004

2004-2005

2005-2006

2006-2007

2007-2008

2008-2009

2009-2010

2010-2011

2011-2012

2012-2013

2013-2014

2014-2015

2015-2016

Top 10 employers represented

Years in industry

Top 5 job functions

Portfolio Manager

1) Regions Financial

2) Protective Life

3) Retirement Systems of Alabama

4) Highland Associates

5) Vulcan Value Partners, BBVA Compass

7) Welch Hornsby, Harbert Management

9) Leavell Investment Management, Stifel, Nicolaus & Co., Synovus Financial

Research Analyst

Financial Advisor

Chief-level Executive

+20 years11-20 years

0 10 20 YEARS

Note: 3.3% not provided.

0-10 years

40%

15%

8% 8%6%

31

11

10

9

7

5

5

27% 29.8%39.9%

In addition to hosted events, our Society

makes a concerted effort to have repre-

sentatives at the CFA Institute Annual

Conference. This flagship conference

rotates continents each year and is one

of the investment industry’s largest and

longest running educational gatherings

of investment professionals, attract-

ing as many as 1,800 delegates from 70

countries in prior years. Speakers include

top economists, legendary investors,

bestselling investment authors, and

governmental and regulatory leaders who

share insights on today’s most critical

investment issues, examine market

trends, uncover new investment oppor-

tunities, and deliver practical investment

advice. The 2016 conference was held in

Montreal, Canada and was attended by

Adam Rogers, CFA of Retirement Systems

of Alabama, Gary Partridge, CFA of

Regions Financial, and Steve Smith, CFA

of Noesis Capital Management.

EVENTSEach year, the CFA Society of Alabama strives

to deliver a diverse line-up of high caliber

speakers and local networking events. In

2016, the Society hosted 10 events, including:

eight monthly luncheons, a CFA Night at the

Barons baseball game, and the Annual Forecast

Dinner at the Barber Motorsports Museum.

The Society also co-hosted a Birmingham

Financial Alliance Summer Social, where other

participating member organizations included:

Alabama Planned Giving Council, Alabama Plan

Sponsor Council, Alabama Society of Certified

Public Accountants, Estate Planning Council of

Birmingham, Financial Planning Association®

of North Alabama, and Alabama Association for

Financial Professionals.

MONTHLY LUNCHEONS

ANNUAL CONFERENCE

Luncheons are held at The

Harbert Center in downtown

Birmingham. The 2016 line-up

of speakers included analysts,

political strategists, economists,

and fund managers.

Nigel Emmet of JP Morgan speaks at The Harbert Center.

Dr. Adam Parker, keynote speaker of 2016 Annual Forecast Dinner, with Immediate Past President Adam Rogers.

Lindsey Piegza, Chief Economist of Stifel Nicolaus addresses the society.

ANNUAL FORECAST DINNERThe Annual Forecast Dinner is the signature

event of the Society. For the fifth consecutive

year, the 2016 dinner was held at the Barber

Motorsports Museum, a truly unique venue

that is home to the world’s largest motorcycle

collection. The keynote speaker was Dr. Adam

Parker, U.S. Equity Strategist and Director of

Quantitative Research at Morgan Stanley. Past

speakers have included: Jim Rogers, legendary

investor and founder of the Quantum Fund,

Tobias Levkovich of Citigroup, Jason Trennert

of Strategas Research, and Ed Hyman of

Evercore ISI.

Andy Webb, Will Wykle, Lauren Bates, Scott Sealock, and Jason Copeland, all of Highland Associates.

Dr. Adam Parker, U.S. Equity

Strategist and Director of

Quantitative Research at Morgan

Stanley delivers keynote address

at 2016 Annual Forecast Dinner.

CFA INSTITUTE RESEARCH CHALLENGE Once again, we were proud to co-sponsor the Southern Classic round of the CFA Institute Research

Challenge. The Southern Classic is a local level of the CFA Institute Research Challenge, a global

competition presented by CFA Institute with more than 4,000 students from 865 universities around

the world participating. In order to promote best practices in equity research and company analysis,

student participants in the challenge research, analyze, and report on a company as if they are

practicing analysts. Kaplan Schweser and FactSet sponsored the challenge globally. The Southern

Classic was sponsored by RidgeWorth Investments and presented by the Atlanta Society of Finance

and Investment Professionals (ASFIP) and the CFA Societies of Alabama and South Carolina.

During this round, 12 teams of three to five students from the area’s leading universities and business

schools competed for a place in the regional final in Atlanta. A team representing The University of

Georgia won this year’s competition and advanced to the Final Four of the Global Institute Research

Challenge in Chicago. Also competing were teams from: Auburn University, College of Charleston,

Clemson University, Emory University, Furman University, Georgia State University, Georgia Institute of

Technology, Mercer University, Mercer University – Atlanta, University of Alabama, and Wofford College.

STUDENT ENGAGEMENTThe CFA Society of Alabama, with support from

CFA Institute, provides financial assistance for CFA

candidates through the CFA Access Scholarship

program. This program provides support for eight

students each exam cycle by reducing the CFA

Program enrollment fee for qualifying applicants.

Additionally, our Society supports students at

Auburn University, Samford University, and The

University of Alabama, all of which participate in

CFA Institute’s University Recognition Program.

More than 300 universities around the world have incorporated the CFA Program Candidate Body of Knowledge into their own academic programs.

A Member of the CFA Institute Global Network of Societies