PRESIDENT’S MESSAGE

With the warming weather and Stanley Cup finals - unfortunately without our Senators - comes the end of CFA Ottawa’s fiscal year. This means that over the next few weeks, we will be voting for a new Board for 2012-2013. Building on the record breaking year we just had, I could not me more optimistic for the coming year and the success of our Society.

In March, CFA Ottawa delivered a spectacular forecast dinner at the new Convention Centre, where 420 attendees had a chance to listen to our elite panel of speakers and network at the premier financial event of the year in Ottawa. We also hosted two very successful luncheons on Infrastructure and Active versus Passive Manage-ment, along with a networking event at the Mill Street Brew Pub.

However, our biggest success is undoubtedly the international recognition the Ottawa Society received for its outstanding work. In May, CFA Ottawa Society won its first global award for the Best Outreach and Awareness Campaign, in front of our colleagues from around the world at the Annual Conference in Chicago. This is a major honour and hopefully only the beginning for the Ottawa Society.

CFA Ottawa will be building on this success by drafting a strategic plan over the summer to ensure that we can meet our member’s goals and meet the increasing and growing list of strategic initiatives that the CFA Institute is implementing. The results from the survey we sent you will be very helpful for us in this exercise and we thank you for your participation.

Over the coming months, you will notice new branding coming from the CFA Institute. This comes along with a focus on a bolder voice, broader mission and bigger community. As the financial markets continue to gyrate, the CFA Institute continues to evolve and grow.

Have a great and safe summer!

Sacha Imbert, CFAPresident, CFA Ottawa Society

PRESIDENT’S MESSAGE ..............1

CFA FORECAST DINNER ............2

FORECASTERS OF THE YEAR ......3

CHARTERHOLDER PROFILE ......4-5

EVENTS .......................................5

NEWS FROM THECFA INSTITUTE .............................6

EDUCATION CHAIRREPORT ....................................7-8

TREASURER’S REPORT .................8

CFA OTTAWA ELECTIONS ...........9

JUNE 2012 ISSUE

sacha imbert, president

RECORD BREAKING SUPPORT FOR 2012 ANNUAL FORECAST DINNER

Each year the CFA Ottawa Society hosts the premier networking event for the local finance and investment community. This year was no exception. On March 29th, over 400 members and colleagues joined us for our largest event yet at the new Ottawa Convention Centre. This record attendance eclipsed our previous dinner by 56% and was a key driver in our recognition and success at the Global Society Excellence Awards in Chicago.

We were honored to have three compelling guest speakers from three different areas of the profession. Focusing on macroeconomic trends, we had Doug Porter, CFA, Manag-ing Director and Deputy Chief Economist of BMO Capital Markets. Speaking directly to investment trends and regula-tory oversight, we had Eric Bushell, CFA, Chief Investment Officer from Signature Global Advisors.

Finally, with fresh insights straight from the budget lock-up sessions, we had Jamie Golombek, Managing Director of Tax and Estate Planning from CIBC Private Wealth Management. Mr. Golombek spoke about new themes from the budget and their implications for investors. The evening was moderated by Naomi Ridout, CFA, from Macquarie Private Wealth. Ms. Ridout is a past President of the CFA Ottawa Society.

The CFA Ottawa Society would like to thank each of our presenters and the moderator for their contributions as well as each of our sponsors who helped make this event possi-ble. We hope to build on the incredible success of this event next year and hope that our members will continue to push us to grow and improve our program offerings in the future.

FORECASTERS OF THE YEAR 2011

CATEGORY

TSX Paul Gasperetti

S&P 500 Craig Lueck

Oil

USD/CAD exchange rate

Tim Horton’s Stock Price (THI)

Overall Winner

Pascal Bruneau

James King

Ian Sterling

David Stewart

FORECASTER

FORECASTER

Ian Sterling 6.5%

Ian Taylor 7.1%

Graham Mayes 8.0%

VARIANCE

Past President of the CFA Ottawa Society, Andrew Baechler, did an entertaining presentation of the annual Forecaster of the Year award. It is also important to note that Andrew was the winner of the 2010 award.

Participants were asked to predict the year-end values for the TSX, S&P500, Oil, USD/CAD, and the price of Tim Horton’s stock. For the TSX, the group average over-predicted the change in value by 18% as bullish sentiments reigned among the participants. For the S&P500, the group average was a little more respectable with a variance of 13.1%. For oil, the predicted change varied by 7% when compared to the actual Year End closing price of $99.00. For the USD/CAD, the group over-predicted the increase in the CAD with an average estimate of $1.04 vs. the actual Year End value of $0.98. And for the price of Tim Horton’s, the group average estimated price was 5% off the mark.

The average variance was slightly higher this year, when compared to last.

Congratulations to our top forecaster Ian Sterling, who, on average, came within 6.5% of the targets. We commend Ian on his predictive prowess.

Congratulations to runners up Ian Taylor and Graham Mayes for their accurate predictions. A special thanks to Andrew for the entertaining presentation.

Category winners:

We would like to thank everyone for participating. Will performance persist? Attend next year’s Forecast Dinner to find out!

Sponsorsreception sponsor

thank youto our

gold sponsors

silver sponsors

in kind sponsors

C A R L E T O N U N I V E R S I T Y

WE ASKED MR. COOK ABOUT HIS CAREER AS A CFA CHARTERHOLDER

after completing the ca designation, what attracted you to a career in finance and why did you decide to pursue the cfa designation?

Obtaining a CA designation and holding a CFA charter was not part of a grand plan. I initially completed a B.Comm in Hotel Management from the University of Guelph and worked for several years in the hotel business in Bermuda, where I was born and raised. I wanted to do something else after the Commerce degree, and met with people at Coopers and Lybrand (now PriceWaterhouseCoopers) and it was from these meetings that I began working on my CA designation. I did not have many of the required accounting and tax courses so I also spent several months in ‘the grind’ of summer school in Dalhousie University to obtain all the required courses. During my articling years at Coopers and Lybrand I worked on several company audits in the hotel, insurance, and investment industries.

It was during this time that I worked on an audit of a Bermuda based in-vestment management company that managed several retail mutual funds, and venture capital pools with investments in the United States and Asia, and clients who were based in Bermuda and Germany. This was my first real exposure to the investment industry and with an element of ‘global investing’. The principal owner was a great guy and a seasoned investor in stocks. He followed a value style of investing, held a contrarian view, with a long term horizon, all of which I found really interesting. During each year of that audit, I learned and appreciated more about the investment business.

After I left Coopers and Lybrand I took a job as Controller of a hotel on the island. While I enjoyed the work, I got a call one day from the principal owner of that same investment company. He was looking for a Controller/Treasurer and that was it, I began to work in the investment industry.

I completed the CFA Level 1 examination in Bermuda, and completed Levels 2 and 3 here, after my move to Ottawa. I like the portable nature of the CFA designation and the fact that it is globally recognized.

what has holding a cfa charter meant for your career as an investment professional?

From a management perspective, the CFA Charter has broadened my skill set and provided me with more tools in the tool kit. I like having both an investment lens and an accounting lens that I can use and apply to different opportunities and situations in the workplace.

Working through the requirements for a CFA charter has given me a sound knowledge of the different types of investments, the importance of a well balanced portfolio construct, and how to more effectively understand and communicate the risks and returns. I think the CFA Institute does a fine job with respect to ongoing professional development and seminars – and this is great material to have access to as needed.

This investment knowledge is beneficial both in the work place and for vol-unteer work. I find it rewarding to be able to provide investment input and direction as part of an Investment Committee of a national foundation.

CHARTERHOLDER PROFILE

Brian has over 20 years of experience in the finance industry and is currently VP Finance at Brookfield Renewable Energy Group, and has been with Brookfield in this and other capacities for four years.

Prior to this, he worked at MD Management in various finance and investment positions. Brian is also a former CFA Ottawa Society President.

brian cook, ca, cfa

Continued on next page

CFA OTTAWA LUNCHEON SERIES RECAP

The Luncheon Series continued its stellar participation record from 2010/2011, with two well received events in the early part of 2012.

The topics featured and speakers included:

• February 2012: Infrastructure - Eric Bonnor – Senior Vice-President, Brookfield Asset Management

• May 2012: Searching for Alpha - Harry Marmer – Executive Vice- President, Institutional Investment Services, Hillsdale Investments

• June 2012: Diversification & Beyond: The Risk Factor Approach to Asset Allocation – Sebastien Page – Executive Vice-President & Head of Client Analytics, PIMCO As a reminder, the Luncheon Series is focused on the professional devel-opment of members and candidates of the CFA Ottawa Society. Each luncheon is eligible for 1 credit hour of CFA Professional Development.

We would like to extend our thanks to all who took some time out of their busy schedules to attend, and to the speakers that were gracious enough to share their knowledge.

Should you have any future luncheon topic ideas or speaker suggestions, we would be glad to hear from you.

CFA OTTAWA WEBSITE

Please regularly visit the newly improved CFA Ottawa Society website (www.cfaottawa.ca) for additional information on upcoming events and relevant developments in Ottawa’s financial analysis community.

CFA OTTAWA SOCIALS RECAP

In 2011/2012, CFA Ottawa also brought to you three social events.

These social events featured:

• December 2012: Wine & Cheese at the Royal Ottawa Golf and Country Club

• May 2012: “5 à 7” at the Mill Street Brewpub

• June 2012: Post exam cocktails at Oliver’s

These events are great to help facilitate dialogue with the local society’s volunteers and executives. It also offers a great networking opportunity to current and aspiring Charterholders.

CHARTERHOLDER PROFILECONTINUED

what gives you the most satisfaction in your role as vice-president, finance at brookfield renewable energy group?

I have the opportunity to work with a great company, in a growing industry and with a fine group of business professionals. This is a rare combination of factors to find in the work place. We have been in business for over 100 years and operate one of the largest publicly-traded, renewable power platforms globally with annual revenues of $1.4 billion. The portfolio is primarily hydroelectric with over 170 power generat-ing assets across 67 river systems in Canada, the United States and Brazil.

The portfolio generates enough electricity from renewable resources to power over two million homes each and every day. We are listed on the TSX, and have filed in the United States in anticipation of a listing on the NYSE later this year.

Given this background, what gives me the most satisfaction is providing people on the team with the opportunity to work to their full potential, and seeing them do well.

specific to a new cfa charter-holder who wants to live and work in ottawa, what career advice would you offer?

Some people tend to under-estimate Ottawa. The city has a lot to offer with a wide range of businesses that operate in the area, together with the benefits a good life style close by. I cycle along the Ottawa river every day to and from work, and the Gatineau hills are close by.

From a career perspective, I would humbly offer the following advice i) accept that there will be moments of failure, we are only human, so learn from the mistakes and move on, ii) stay positive – celebrate when you win, iii) accept imperfection and don’t try to make perfect decisions. As Warren Buffet says “the best that you can do as a leader is to gather all the information that you can (in a timely manner), do a cost-benefit analysis of the potential options, use your best judgment – and then go for it”.

JUNE EXAM

On June 2nd 2012, the CFA Institute adminis-tered the CFA exams with a record number of registered candidates totaling nearly 150,000 for all three levels of the exam. Good luck to those who wrote!

CFA INSTITUTE MARKS 50TH ANNIVERSARY OF THE CFA PROGRAM

CFA Institute, celebrated 50 years of the Char-tered Financial Analyst Program by opening Toronto Stock Exchange (TSX) and hosting ceremonies in 23 other financial centers around the world on Tuesday, May 29, 2012. The global market ceremonies represented the greatest number of stock exchanges worldwide opened or closed by one organization on a single day.

Thank you to members who responded to the 2012 CFA Ottawa Member Survey. The response rate was excellent and the feedback was helpful. The Society was encouraged as the survey high-lighted many things members believe we are doing well. The survey also pointed to potential areas of improvement; we will focus on these in the coming year.

Following are some interesting points to note from the survey results:

•49%ofmembersconsiderthemselvestonot be active members of the society;

•Themajorityofmembersaresatisfied(or above) with the quality of service CFA Ottawa is offering;

•MembersplacesignificantvalueonProgramming & Education, along with Career & Job related ads;

•TheSocietyshouldbeconcentratingeffortson promoting the CFA charter to local employers;

•Mostmembersattend3to5eventsperyear and the main reason for attending is the topic of the event;

•Theforecastdinnerwasconsideredengaging and satisfying.

Note that we welcome feedback at any time; please contact us directly at admin@cfaottawa.ca

CFA BRANDING

The CFA Institute has created a new logo (below) in an effort to further promote the CFA Charter. The new logo was created within the context of a new branding strategy. The branding strategy is built bottom-up from the brand pillars, through the tone of voice, to finally the brand positioning. The brand pillars are identified as the following:

•Professionalexcellencetoraisestandardsinindustry•Championforethicalbehaviorininvestmentmarkets•Arespectedsourceofknowledgeininvestmentmarkets•Strongglobalcommunityofinvestmentprofessionals•Servinginterestofinvestorsandofsociety

The tone of voice represents the manner and style in which we speak about ourselves. It shapes how we look, feel and sound and should be reflected across all communications. Our tone of voice, within this strategy, has been defined as being; insightful, ap-proachable, premium and vibrant. This finally leads to our brand positioning, which is defined as “Shaping and investment indus-try that serves the greater good.”

Lastly, the new logo symbolizes the collective identity of our global community of investment professionals centered on a core of ethical best practice. The CFA Institute is updating the brand to better highlight our identity as a dynamic and growing global organization committed to actively building fair and effective financial markets.

BRAND POSITIONING

TONE OF VOICE

BRAND PILLARS

SHAPING AN INVESTMENT INDUSTRY THAT SERVES THE GREATER GOOD

INSIGHTFUL

Professionalexcellence

to raisestandards in the industry

Champion for ethical behaviour

in investmentmarkets

Respectedsource ofknowledge

in investmentmarkets

Strong, globalcommunity

of investmentprofessionals

Serving theinterests of

investors andof society

APPROACHABLE PREMIUM VIBRANT

NEWS FROM THE CFA INSTITUTE

CFA OTTAWA SURVEY RESULTS

EDUCATION CHAIR REPORT

CANDIDATE EXAM SUPPORT

As in years past, the CFA Ottawa Society undertook many activities leading up to the June exam to support local candidates in their efforts. These activities are outlined bellow;

1. BSAS practice exam was distributed to 13 individuals this year. This was in addition to the approximately 20 students who signed up online for the practice exam and test bank.

2. On May 12th, a study group session was held, with the help of Professor Yuriy Zabolotnyuk. This event was brought on by the suggestion of a candidate and will surely be implemented again next year. However, this will be done earlier in the study cycle to facilitate candidate success.

3. On May 19th, a Schweser mock exam was held at Carleton University for all three levels of the CFA exam. This was an opportunity for candidates to experience a trial run of the exam day, a few weeks prior to the actual exam. 19 candidates signed up for the event, with some positive feedback from the participants after the fact. A special thank you to Anna Evstafyeva and Stevan Dostanic for making this event a success.

4. The deadline for applications to the December 2012 exam scholarship is August 15th 2012. Scholarship application forms are available on the CFA Ottawa Society website.

Please note, that candidates who sat for the June 2012 exam can provide feedback on exam questions and the administration of the exam via the CFA Institute website.

CFA AND THE TELFER SCHOOL OF BUSINESS

June marked the completion of the inaugural class of the Telfer Capital Market Mentorship Program. The pro-gram’s aim is to provide students with the knowledge, skills and experience to compete for and attain finance related positions of their choice.

The program was led by Brian Carrière, Relationship Manager at the University of Ottawa, and included the

participation of five local CFA Charterholders who volunteered with the program. Please contact Brian (bcarriere@telfer.uottawa.ca) if you are interested in becoming involved with this program in the upcoming year.

The CFA Ottawa Society also contributed to the 2012 First Avenue Advisory of Raymond James Capital Markets Competition, held at the Telfer School of Business, by donating the second prize for the first runner-up in the competition.

UNIVERSITY OF OTTAWA FINANCE SOCIETY CFA AMBASSADOR

Roary Macdonald is currently entering his 4th year in the Telfer School of Management at the University of Ottawa. Through a partnership with the Finance Society, he will represent the school and act as an ambassador for the CFA Institute for the upcom-ing year. The first role of its kind for the CFA Institute, its main responsibility will be to facilitate the student body in actively pursuing their CFA designation upon completing their bachelor’s degree. Through actively communicating with his peers, and estab-lishing a network of current CFA Charterholders, his goal is to increase the level of commitment to this designation by bridging these two worlds.

Name: Roary MacdonaldAge: 21Hometown: Kingston, OntarioSchool: University of Ottawa, 4th yearProgram: Commerce, w/ Co-Op E-Mail: roary.macdonald@financesociety.ca

TREASURER UPDATE

CFA Ottawa Society 2011/2012 fiscal year-to-date results have tracked according to plan. At January 2012 our cash and equivalents balance stood at over $165,000. Having a strong surplus at this time is important given the cash outlays associated with hosting several spring lunches and the annual forecast dinner in March. The forecast dinner was a resounding success financially, bringing in a record number of table sponsorships. The Society’s revenues remain a function of regular CFA Institute funding, member-ship dues, employment postings, and cost-neutral programming. CFA Institute funding was down slightly year over year due to a new funding formula; this has not impacted our cash position materially.

In 2011/2012 we continued to follow a treasury management policy for CFA Ottawa that was approved at the board level in 2010. This provides clear guidelines and policies regarding deployment and management of surplus funds going forward as well as the cadence and mechanics of reporting to the board. We continue to seek ways to streamline the payment process for events, and we believe the Paypal and Eventbrite platforms help streamline the payment flows into the society and make cash management easier.

Our goal is to continue to find ways to effectively deploy our capital and bring value added events and programming, and use society funding to help keep costs to members down.

We welcome any questions or feedback on the current fiscal position. Have a great summer!

Robert Pelletier, TreasurerCFA Ottawa Society

roary macdonald

c/o Trevor Mulligan174BankStreet•P.O.Box71047Ottawa, Ontario K2P 1W0 Email: admin@cfaottawa.caOttawa CFA Society Volunteers & Leadership Sacha Imbert, CFA ..................................................................................................President Trevor Carson, CFA ................................................................................................Vice-President Pierre Barber, CFA ..................................................................................................Secretary Robert Ernest Pelletier, CFA ....................................................................................Treasurer Julian M. Deschatelets, CFA ...................................................................................Past President Andrew Baechler, CFA ............................................................................................Board Member at Large Paul Baron, CFA .....................................................................................................Education Chair Trevor J. Mulligan ...................................................................................................Administrative Support Roger Soler, CFA ....................................................................................................Membership Committee Chair Rebecca Tam, CFA ..................................................................................................Program Chair Adwaite Tiwary ......................................................................................................Technology Chair Stevan Dostanic ......................................................................................................Newsletter Editor Wesley Blight, CFA .................................................................................................Programming

CFA OTTAWA SOCIETY

UPCOMING ELECTIONS FOR CFA OTTAWA BOARD

In the coming weeks, you will receive an email to solicit your votes for the 2012/2013 CFA Ottawa Society Board of Directors. The email will include a link that will allow you to vote by proxy. You will also have the option to vote in person at the Annual Meeting, to be held in July of 2012 (exact date and location TBA). Full bios of the nominated individuals will be in the proxy form.