TABLE OF CONTENTS

PRESIDENT’S REPORT..................................................................2

VICE PRESIDENT/PROGRAMMING REPORT...............................4

SECRETARY’S REPORT.................................................................5

NOMINATING COMMITTEE REPORT.............................................8

CANDIDATE AFFAIRS....................................................................9

SCHOLARSHIP COMMITTEE REPORT..........................................9

TECHNOLOGY COMMITTEE...........................................................9

AUDIT COMMITTEE REPORT.......................................................10

EXTERNAL AFFAIRS COMMITTEE REPORT................................10

PRESIDENT’S REPORTTodd Sears, CFA

I am watching the NBA playoffs as I write this and wondering - do you think at any point in their careers, from the time they were small children to now, players like Paul George, LeBron James, and Kevin Durant ever sat on the sidelines waiting for someone to ask them to get in the game? My guess is from the time they first walked in the gym until the day they will retire, they have been and will be calling “next” before they even have their shoes on. They are playing in a league with the world’s greatest players, best coaches, and biggest audiences, and yet they know they have something to add the game that only they can bring. When you put those three letters after your name, CFA, you stepped onto a similar court in the financial world. You are among a select group, playing a game that really matters to people’s financial, emotional, and mental well being, and your team of fellow CFA charterholders will be better off with you on the floor! How can you get involved withCFA Indy?

1. Attend events - our golf outing, monthly luncheons, charter ceremony, annual investment forum, annual meeting, educational sessions, and networking events are all ways to participate. You will meet colleagues, enhance your knowledge of the industry, and have access to great venues.

2. Introduce yourself to current officers, board members, and other volunteers. Take the initiative, get five minutes of their time to introduce yourself, express your interest, and find out how you can help out. Events are great places to say hello, but so is LinkedIn, a cup of coffee, or a quick lunch.

3. Learn about CFA Indy’s current initiatives and volunteer for one (or more for that matter). Work the registration table (and meet everyone who attends), help with copies or handouts, or be the liaison for a speaker. You would be surprised how a little bit of participation one year leads to a lot of participation soon thereafter.

What will you gain from participating? For those just starting your career, it is a great networking experience and offers you the opportunity to take on leadership roles early in your career. For those mid-career professionals, it is a chance to broaden your perspective beyond the typical silos of specialization common to our industry. For those nearing the end of their professional careers, it is a chance to ensure the example they have set and the industry they have built are handed off to others that will carry-on and build on their accomplishments.

Thank you to all of you that have volunteered your time and effort to CFA Indy in the past and present - we have a lot to be proud of because of your participation. This annual report is intended to highlight your accomplishments and make sure everyone is aware of all you have done for us. And, to those of you thinking about getting involved, call “next”, get your shoes on, get on the floor, and show everyone what you have to add to the game!

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VICE PRESIDENT/PROGRAMMING REPORTTim Voegele, CFA, CFP

2013-14 events began with a fun golf outing on a hot day at Brickyard Crossing on August 29th.55 golfers (34 CFA Indianapolis members and 21 Guests) teed ‘em up on this Pete Dye layout.After golf, during lunch, Sean Northup, Assistant Executive Director of the Indianapolis Metropolitan Planning Authority gave an update on the recent push for mass transit initiatives in the Indy Metro area using light rail and bus rapid transit.

On September 20th, the CFA Society of Indianapolis and the Financial Planning Association of Greater Indiana conducted a joint event at the law offices of Barnes and Thornburg LLP in downtown Indianapolis. Over 120 people heard presentations at this all-day event. The first speaker, Carol Bogosian of CAB Consulting, spoke about the challenges and risks to successful retirement for the middle class as part of her work with the Society of Actuaries. We then heard from Jay Mooreland, author of the “Irrational Investor’s Risk Profile,” conducted at the University of Minnesota, who spoke about assessing and controlling emotional, irrational investor behavior.

After lunch, we heard from L. Bryan Carter, CFA, of Acadian Asset Management who discussed frontier markets, their political and economic challenges and opportunities, and the difficulty of investing in true frontier markets.

Later in the day, Duane Thompson, AIFA, President of Potomac Strategies, spoke about ingraining fiduciary principles into the client-advisor relationship. Closing out the day, James Miner informed the audience about the work of the Consumer Financial Protection Bureau as it has emerged from the Dodd-Frank reforms.

In October, our speaker was Constance Hunter, Chief Economist, Alternative Investments at KPMG, who discussed the prospects for economic growth globally, the risks and challenges of emerging markets, and the prospects for accelerating US economic growth in 2014.

On November 13, 2013, Ted Seides, CFA, President and co-CIO of Protégé Partners, spoke to a small group at the Conrad about hedge funds and his charitable bet with Warren Buffett. Ted

of Eaton Vance who gave her assessment of the fixed income market and how she manages the Eaton Vance investment-grade fixed income portfolio. Next, Dr. Tim Garrett of the University of Utah’s Department of Atmospheric Sciences gave a thought-provoking presentation about his model that predicts economic growth based on energy discovery and consumption.

Our luncheon speaker was Claire Fiddian-Green, Special Assistant for Education Innovation to Governor Mike Pence. She provided an update on current activities surrounding educational standards and achievement in Indiana and how the Center for Education and Career Innovation is helping to drive forward educational improvement in Indiana.

After lunch, we heard from Nicholas Wapshott, author and Reuters columnist. Nicholas spoke mostly about his book, “Keynes Hayek: The Clash that Defined Modern Economics” and what he learned about these two men while researching the book.

The day ended with a very interesting presentation by Anastasia Amoroso, CFA, Global Market Strategist on the J.P. Morgan Funds Global Market Insights Strategy Team. Anastasia presented her personal assessment of the global markets with special consideration to the developing situation in the Ukraine.

Bill Smead, Founder of Smead Capital Management and Lead Portfolio Manager for the Smead Value Fund, spoke to the Society in April. Bill’s presentation focused on the following: 1) Valuation matters. Since they are predictive of future returns, it is important to seek lower valuations. 2) High quality. Seek lower leverage, higher profit margins, lower earnings volatility and lower beta. 3) Expense ratios and trading costs. Expense ratios make it hard for actively-managed funds to beat the index, but hidden costs such as turnover are also often quite significant. 4) Housing. Millennials, aged 18-37 are a larger population group than the Baby Boomers and the delayed household formation of the Echo Boomers should be stimulative to the U.S. economy.

At the time of this writing, we had not yet held the May luncheon, but the scheduled speaker is Axel Merk. Axel is the President and Chief Investment Officer of Merk Investments and Manager of the Merk Funds. Axel will

explained some of the common misperceptions about hedge funds and their risk profile. He also commented on his time at the Yale Endowment learning from David Swensen.

December 11th, we held the New Charterholder ceremony at the Indianapolis Marriott North. In addition to awarding the CFA Charter to seven deserving candidates, we were entertained by John Garrett, CPA-turned-comedian. John’s humor was clean and funny and featured a mock game show pitting the new Charterholders versus the Board of Directors of CFA Indy. Everyone had a great time.

In January, Larry McMillan, Founder and President of McMillan Analysis, gave a detailed presentation about using index volatility options for portfolio protection. Larry is author of the best-selling book, “Options as a Strategic Investment” and his firm publishes The Option Strategist newsletter. Larry has over 35 years experience in options and was the 2011 recipient of the Joseph W. Sullivan Options Industry Achievement Award from the Options Industry Council. Although some of us had some difficulty keeping up with Larry, his detailed presentation was a great primer on portfolio protection for all in attendance.

On February 20, 2014, Preston Athey, CFA, CIC, Vice President of T. Rowe Price Group and President of their Small-Cap Value fund, made an impactful presentation about how public investors can make an impact and influence management to “do the right thing” for all shareholders. We were joined at that luncheon by the senior management team from Kite Realty Investments and by a large contingent of MBA students from Dr. Rachel Smith’s class at University of Indianapolis. Many people commented on our good fortune to be able to hear from someone with Preston’s acumen and experience.

The 2014 CFA Indianapolis Investment Forum was held on Tuesday, March 18th, at the Ritz Charles in Carmel. We welcomed six outstanding speakers to the event. Alex Pollock of the American Enterprise Institute gave an informative presentation about housing finance. Alex was formerly President and CEO of the Federal Home Loan Bank of Chicago before joining AEI. You may read from Alex in his book “Boom and Bust: Financial Cycles and Human Prosperity”.

Our second speaker was Kathleen Gaffney, CFA,

SECRETARY’S REPORTBradley Ferguson, CFA

The secretary is responsible for maintaining all records of meetings and communication with the appropriate members, officers, and board members. FY2014’s activities also included:

· Supporting the Programming Chair with events, primarily with e-mail announcements related to events

· Recording the proceedings of all meetings of the members and of the board, and notifying the members and the directors of all meetings in accordance with the bylaws. · Maintaining and filing all corporate registrations at the local, state, and national governmental bodies and agencies, including an annual change in officer form.

· Speaking to finance students about the CFA charter and career advancement at both Ball State University and Wabash College events

· Presenting “10 Questions to Ask Your Financial Advisor” at a Money Smart Week event

· Assisting the External Affairs & Sponsorship Committees

· Updating the website (www.cfaindy.org)

· Managing email distribution list, providing final review/editing for emails, etc. (currently through Constant Contact)

speak about investing in a rising interest rate environment, the actions of central banks, and how currencies’ low correlation to the S&P 500 can provide diversification benefits.

Thank you to past and current Officers and Society members who helped me secure speakers for this year’s speaker series and thanks to all Society members for your attendance at this year’s events.

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MINUTES FROM 2013 ANNUAL MEETINGLOCATION: Maggiano’s, 3550 E. 86th St. Indianapolis, IN 46240

ATTENDED:51 members of the society Jim Bergstrom, CFA, President of the society, made opening remarks. 12:10PM, meeting was officially started.

Minutes from the 2012 meeting were reviewed. Motion made to approve the minutes, motion seconded, and then motion passed unanimously.

Treasury Report was reviewed. Programming update for 2012-2013 fiscal year and 2013-2014 fiscal year was provided. Secretary report and member satisfaction survey result were provided. Details of these reports can be found in the 2012-2013 annual report, which can be provided upon request. (Please email info@indianapolis.cfasociety.org). Technology Chair and Scholarship Chair provided updates. Technology was working on email and website as the primary ways to reach to our members. Scholarship Chair informed members that the application is now handled by CFA Institute and the deadline is September every year.

The Nominating Committee of the CFA Society of Indianapolis respectfully submits the following individuals for the 2013-2014 officer and board positions:

OFFICERSPresident Todd Sears, CFA Vice President Tim Voegele, CFA, CFPTreasurer Ryan Fuhrmann, CFA Secretary Brad Ferguson, CFA

BOARD OF DIRECTORS Mitch DePoy, CFA, CPA* Brad Ferguson, CFA Ryan Fuhrmann, CFA Sunjay Goel, CFA Tony Huang, CFA

W. Travis Koldus, CFA Charlotte Lippert, CFA Rachel McGuire, CFA* Sunil Mohandas, CFA Todd Sears, CFATimothy Voegele, CFA, CFPWilliam Wendling, CFAGeorge Wild, CFA* *New board members

Motion made to approve the nominees, motion seconded, and then motion passed unanimously. 81 members also cast their absentee ballots online ahead of the annual meeting. All 81 voted to approve the nominees.

President Bergstrom made a few closing remarks and passed the Presidency to Todd Sears, CFA.

NOMINATING COMMITTEE REPORTCharlotte Lippert, CFA

The CFA Society of Indianapolis Board Nominating Committee presents the following officer slate for the 2014-2015 term: President: Tim Voegele, CFA, CFPVice President: Brad Ferguson, CFA Treasurer: Mitch Depoy, CFA, CPA Secretary: Andrew Thorne, CFA The CFA Society of Indianapolis Board Nominating Committee presents the following board slate for the 2014-2015 term:

Anthony Bykovsky, CFA*Mitch Depoy, CFA, CPABrad Ferguson, CFARyan Furhmann, CFA Sunjay Goel, CFAJames Glueck, CFA, PRM*Matthew Henry, CFA*Zhohua “Tony” Huang, CFARachel McGuire, CFAAndy Thorne, CFA*Dan Sailer, CPA, CFA*Todd Sears, CFATim Voegele, CFA, CFPWilliam Wendling, CFAGeorge Wild, CFA*New board member. Bio provided.

Anthony Bykovsky, CFAAnthony Bykovsky, CFA, is an Associate Portfolio Manager at Bedel Financial Consulting, an Indianapolis based investment advisory firm. Anthony was previously a Financial Analyst at City Real Estate Advisors (CREA), a full-service tax syndicator specializing in low income housing tax credits (LIHTC). He graduated from Anderson University with a Bachelor of Arts degree in Business Management and Economics and received his MBA in Finance in 2009 from Ball State University.

James Glueck, CFA, PRMVice President, Model Risk Management GroupPNC

James is a results-oriented financial risk management professional with more than 16 years of experience serving financial institutions in the areas asset liability management, interest rate risk management, liquidity management, balance sheet management, income forecasting, margin management, risk-based capital adequacy, model risk, model governance, and regulatory compliance. His specialties include ALM theory and practice, IRR measurement and management, balance sheet management and forecasting, margin management, funds and liquidity management, risk-based capital assessment and management, financial risk model validation and process verification, and model governance and regulatory compliance.

Matthew S. Henry, CFAVice President, Portfolio ManagerOld National Wealth Management

Matt Henry came to Old National in 2008 with experience in personal finance, retirement planning, annuities, and life insurance. Mr. Henry graduated cum laude from the Honors College at Ball State University and holds a B.A. from the Miller College of Business with a concentration in Finance. Native to Muncie, Mr. Henry is a Lilly Endowment scholar and a member of the honorary business fraternity Beta Gamma Sigma. Mr. Henry is a Chartered Financial Analyst (CFA) charterholder and is a member of the CFA Institute®. In addition, Mr. Henry volunteers with Indiana Sports Corporation and Wheeler Mission.

Dan Sailer, CPA, CFASenior Analyst Katz, Sapper, & Miller

Dan Sailer is a Senior Analyst in the Business ValuationServices Group at Katz, Sapper & Miller. Dan provides valuation and business advisory services for various purposes, including valuations for estate and gift, merger and acquisition, employee stock ownership programs (ESOPs), and litigation support. Prior to joining KSM Business Services, Inc., Dan served over seven years with an Indianapolis-based corporate financial advisory firm specializing in workouts, turnarounds and restructurings. Prior to that, Dan’s experiences included roles in public accounting and serving as controller for a retail automotive group.

Dan received a Bachelor’s of Science degree in Business Administration from Indiana University in Bloomington, Indiana. He is a CPA and also holds the Chartered Financial Analyst (CFA) designation.

Andy Thorne, CFAAssistant Vice President, Funding and DerivativesFederal Home Loan Bank of Indianapolis

In his role at the Federal Home Loan Bank, Andy leads OTC Derivatives Clearing efforts, manages relationships with Futures Commissions Merchants (FCM’s). He partners with internal and external counsel to negotiate ISDA Master/CSA and execution agreements with trading counterparties and executing brokers. He manages the funding on two mortgage securities portfolios and works with senior sales, capital markets,

legal and risk management to price bank products. He also oversees derivatives collateral and manages derivatives counterparty exposure and risk.

CANDIDATE AFFAIRS/SCHOLARSHIP COMMITTEE REPORTRachel McGuire, CFA, and William Wendling, CFAThe scholarship process outlined by the CFA Institute changed last year to a more needs based system. In 2013, scholarship applicants were required to submit financial information, including an income statement and a balance sheet. Applicants were also given a chance to provide a personal statement.

Upon reviewing the 13 applications, the committee concluded that 7 applicants met the qualification of being a needs based applicant. Without this scholarship, these seven people would be unable to afford the exam. This is coincidentally convenient as we only had 7 scholarships to award. The committee went through the applicant list on two separate occasions. Each time, we reviewed each person’s qualifications and indicated whether they should be eligible or would be ineligible due to financial resources. Both reviews yielded the same results.

There are likely rejected applicants that could use the scholarship, but they do not financially qualify and can afford to pay for the scholarship on their own. CFA Institute’s policy may be flawed in that we do not give much weight to qualitative factors, but their policy probably does come close to maximizing their scholarship pool of funds. Thanks to everyone who helped make this a successful year.

TECHNOLOGY COMMITTEEZhohua “Tony” Huang, CFA

For FY2014, the technology committee would like to provide the following updates for the members of CFA Indy:

1. Connecting members via Linkedin: The CFA Indy’s Linkedin group currently has over 250 members. It continues to be the most active online space where members and friends of the society connect to each other. If you are not a member of our Linkedin group, make sure you look it up at https://www.linkedin.com/groups?home=&gid=3123181&trk=anet_ug_hm.

2. Communicating to members via Constant Contact: This is the second fiscal year we use Constant Contact as the email and event registration platform. It continues to work well for us to broadcast news and manage event registration.

3. Providing relevant information via www.cfaindy.org. The website is updated with latest events, society leadership, newsletters and job postings.

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EXTERNAL AFFAIRS COMMITTEE REPORT

Derek Riemenschnieder, CFA

The committee has accomplished the

following during FY2014:

Money Smart Week - Hosted three events

for the Chicago Fed’s Money Smart Week

which featured guest speakers including

Indiana Secretary of State Connie Lawson,

the Chief Deputy Securities Commissioner,

and the Deputy Director for the Indiana

Attorney General.

Charitable Giving - Distributed 13

requests for proposal to central Indiana

charities and received 6 proposals

which the committee has reviewed and

recommended for CFA Indy’s second

annual grant to promote financial literacy

in central Indiana.

Survey - Distributed CFA Indy survey for

legislative issues and university relations

information. The committee will be using

this information next year to increase

advocacy with the Secretary of State and

Securities Commissioner and to provide

valuable industry feedback to future

investment professionals through the

university relations function.

AUDIT COMMITTEE REPORTMitch Depoy, CFA, CPA

The Audit Committee was a newly formed board function for the FY2014. While CFA Indy has no history of financial impropriety, as a result of membership growth, event attendance and the scope of the organization as a whole, the board recognized the need for additional oversight and accountability of the financial record keeping and reporting processes of the society. The financial reporting function continues to be administered on a volunteer basis by the Treasurer of the society.

The members of the new audit committee, Mitch DePoy, CFA, CPA, and Sunjay Goel, CFA, conducted a review of the society’s financial reporting processes and identified strengths and weaknesses. Overall, it was concluded that CFA Indy maintained an effective set of internal controls and in a few instances, ideas to address potential risks were identified and presented to the board. Two notable process improvements were the implementation of an internal financial statement audit (conducted on a semi-annual basis) and the usage of a mobile payment system to collect door payments at events.

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CFA SOCIETY OF INDIANAPOLISP. O. BOX 1225

CARMEL, IN 46082