The rise of aSian - CFA Institute Reports... · 2016-01-14 · 2013 Recipients of the award will...

2 0 1 3 A n n u A l R e p o R t

The rise of

financeaSian

AnnuAl RepoRt 2013 4 cfa singapore

Mission To lead the investment community by setting the highest standards of ethics, education and professional excellence for the ultimate benefit of society.

Vision To inspire the Asian investment community to pursue life-long learning and align with the CFA code of conduct for the ultimate benefit of society.

our Values ● Trust

● integrity

● Professional excellence

● lifelong learning

sTraTegic objecTiVes● Provide leadership in continuing education and lifelong learning for

financial professionals

● Strengthen and expand CFA brand awareness with employers and other partners through reciprocal community relations

● Develop world-class services platform to support the Society’s mission

CFA SingApore

contentsBOARD MESSAGE

EXECUTIVE DIRECTOR’S MESSAGE

SECRETARIAT’S REPORT

KEYNOTE SPEAKERS

ELECTED BOARD & APPOINTED DIRECTORS

ADVISORS & COMMITTEE CHAIRS

EVENTS IN 2013

FINANCIAL CONTENT

0204060812131527


BOARD MessAge

AnnuAl RepORt 2013 02 cfA singApORe

Dear fellow members,

2012 was a milestone year for CFA Singapore, as we celebrated the 25th anniversary of the Society. We can all be proud that we followed that milestone year with yet another very historic one in 2013.

In 2013, Singapore had the honour to host the annual CFA conference. Not only was this the first time the conference was ever held in Asia, but also it was only the second time the conference was held outside of North America. Some 1,350 delegates from 60 countries attended the conference. There they renewed and established friendships, listened to over 40 speakers, and built on their professional knowledge.

The conference would not have been possible without the efforts of an army of volunteers. The CFA Singapore organizing committee did a tremendous job ensuring the conference would be the great success it turned out to be. The members of the committee are listed on page 24 of this report, and we thank them for all the work they have done for CFA Singapore and the CFA Institute.

CFA Singapore is blessed with a number of committed members who have volunteered in many capacities. As you will read in the pages that follow, a number of new committees such as Asset Management, Research and Social Enterprise Investment were formed in the past year. All of our committees are formed and run by our members. They function only as a result of the time spent by these volunteer members.

If there is a subject matter related to the mission of CFA Singapore that you don’t believe is being covered by an existing committee, please speak to any member of the Board about either joining a committee to push your idea forward or forming a new one. Similarly, each committee is always open to new volunteers and ideas, so if you’re interested in the work of an existing committee, please do approach them.

This all comes back to the fact that CFA Singapore is a member society that exists for the benefit of its members. It is also driven by its members, as the Society only has a skeleton staff to facilitate our processes an events. Accordingly, CFA Singapore’s impact is as good as the efforts expanded by all our members.

CFA Singapore is the 8th largest CFA society in the world, and one of the most active. Last year, CFA Singapore hosted 103 events, reaching 3,200 participants. You will read more about many of these events in the following pages.

The Board and staff of CFA Singapore strongly believe that a member focused and driven society enables us to fulfill our mission and vision. We hope you take advantage of all the Society has to offer, and indeed become involved in, and better still drive, some of the activities yourself in the year to come.

Sincerely,The Executive Committee

AnnuAl RepoRt 2013 03cfa singapore

The Next Investment Hub

ASiA

AnnuAl RepORt 2013 03cfA singApORe 03cfA singApOReAnnuAl RepORt 2013


Dear members,

The year 2013 will be remembered as very special and extraordinary. The 66th CFA Institute Annual Conference (which Singapore bid and won in 2007 hosting rights for)marked the first time that the global conference was held in Asia Pacific. Spanning 4 days from May 19 to 22 at the MBS Convention Centre with more than 40 speakers, including Singapore Deputy Prime Minister Tharman Shanmugaratnam making the keynote speech, the global conference saw 1,350 delegates from more than 60 countries participating.

Another milestone achieved by CFA Singapore was in organsing a record 103 events last year, reaffirming the Singapore chapter as the most active society in the Asia-Pacific region. Notable speakers at some of our events included Nobel Laureate Robert C Merton and Russell Napier.

At the launch seminar for our Code of Conduct for Investment Committees, long-time union leader Lim Boon Heng and long-time charities leader Gerard Ee shared their experiences with over 200 leaders from non-profit organizations.

Another new initiative that kicked off last year was the introduction of a mentoring programme. Past winners of the University Research Investment Challenge were career-coached by our Executive Committee members.

In response to members’ feedback, we increased the number of multi-day executive education workshops from 5 in 2012 to 14 in 2013. Topics covered ranged from soft-skills like critical thinking to technical skills such as advanced financial modelling. We also had highly popular workshop topics such as behavioral finance, real estate investment, private equity, M&A, risk management, strategic asset allocation, FX and options trading.

The combination of professional development, executive workshops and networking yielded 49 events collectively, with nearly half of all programmes organised by the Society. The total attendance of 3,204 compared to 2,339 from last year represented an increase of 37% in participation rate. This is indicative of the greater traction as the Society sought out higher quality programmes. For the talk by Robert Merton, nearly 300 tickets were taken up within 24 hours.

We expect that 2014 will be another eventful year with a full calendar of relevant and interesting events. We encourage you to fully leverage on these programmes.

On behalf of the Board, the management and staff at CFA Singapore thank you for your past support. I wish you a fulfilling and successful year ahead.

Sincerely, francis erexecutive Director

executive DiRectOR’s MessAge

YearProfessional Development Talks

Networking Events

Work-shops

Total

2012 1,557 731 51 2,339

2013 1,982 978 244 3,204

An extRAORDinARy yeAR...


AnnuAl RepoRt 2013 05cfa singaporeAnnuAl RepORt 2013 05cfA singApORe

we exist for the benefit of our memberS


secRetARiAt’s RepORt

CFA Singapore Members: 2012-2013

2013

28877

2,7063,071

Affiliate 77 Total 3,071Regular 2,706

2012

Global

SingaporeGlobal

04 05 06 07 08 09 10 11 12 13

Singapore

120,000

100,000

80,000

60,000

40,000

20,000

0

3,000

2,500

2,000

1,500

1,000

500

0

CFA Charterholders

Global

SingaporeGlobal

04 05 06 07 08 09 10 11 12 13

Singapore

CFA Candidates

CFA candidates in Singapore and globally are 5,889 and 212,129 for the year 2013 (6,302 and 217,629 respectively for 2012).

FICS/Candidate ProgramsEnrolment for our FICS programs at all three levels saw a decrease from 272 candidates in 2012 to 211 in 2013 (June and December semesters). Profits from the CFA preparatory classes decreased from $202,171 to $177,510 because of lower enrolment numbers. We continued to organise free lunches for our members taking the CFA examinations at the Singapore Expo on examination days

in June and December.

CFA Singapore Access Scholarship 2013Recipients of the award will have their CFA Programme enrolment fee and exam registration fee waived. The recipient can apply the scholarship to the June exam (Level I, II and III) or December exam (Level I only) in 2014.

In 2013, CFA Singapore awarded 62 access scholarships based on the following selection criteria:-

• Membership or participation in the CFA Singapore FICS and Review Programme

• Scholastic abilities

• Financial need

• An interview by CFA Singapore Candidate Programs Committee

• Writing the 2014 CFA examination

CFA Singapore Gold MedalOur society awarded Gold Medals for Academic Year 2012/2013 to top finance/business students in each of the local universities. The current recipients are as follows:

• Nanyang Technological University (NTU):

Nguyen Hoang Duy

• National University of Singapore (NUS):

Nguyen Thuy an & mitchell Chan

• Singapore Management University (SMU):

benjamin ong

• SIM University (UniSIM):

Neo Yen ling

Number of Members as of 31 January

250,000

200,000

150,000

100,000

50,000

0

9,000

8,000

7,000

6,000

5,000

4,000

3,000

2,000

1,000

0

The number of Charterholders who are CFA Singapore members and globally are 2,756 and 112,602 respectively in February 2014 (2,589 and 105,930 respectively in February 2013).

Associate 288

52348

2,6303,030


CFA InstituteCFA Singapore members continue to play an active role in the following manner:

Aaron H.W. Low, CFA • Research Foundation Board of Trustees

• Board of Governors• SFMI Advisory Council

Sharon Craggs, CFA • Presidents Council Representative - Asia-Pacific

Gerard Lee, CFA • Annual Conference Advisory Group

Manu Bhaskaran, CFA • Research Foundation Board of Trustees

Peter Foo Moo Tan, CFA • Capital Markets Policy Council

Alida Carcano, CFA • Education Advisory Committee• European Investment

Conference Advisory Group

Eelco R.W. Fiole, CFA • Disciplinary Review Committee• Annual Conference Advisory

Group

Joseph Lim, CFA • Education Advisory Committee

Kanol Pal, CFA • Education Advisory Committee

Peng Lian Wee, CFA • Standards of Practice Council

The Society’s Financial PerformanceThe financial year 2013 saw an increase in members’ funds to $1,708,889, with a higher surplus of $76,754 due to higher profits from CFA preparatory classes, conferences and workshops. For 2013, the Board had continued to budget for additional activities and members were able to attend many Professional Development and Networking activities free of

charge or at a nominal fee – an approach adopted since 2004.

AppreciationOur appreciation goes to the sponsors:

• Singapore Exchange, Saxo Capital Markets, VinaCapital Investment Management Singapore, MSCI, Vanguard Investments Singapore for their generous support for the Investment Forum and Annual Forecast Dinner as well as the various Professional Development talks.

• Bloomberg and STOXX for their invaluable support in the University Investment Research Challenge and Risk Management Night

• State Street Global Advisors, EFG Asset Management, Crystal Times, Transview, and Munich Automobile for their generous support for the Annual Golf Challenge.

Much appreciation also goes to all volunteers and industry professionals who have taken their time and effort to speak to our members and guests at various seminars, lectures and activities.

CFA Institute Top 10 Societies

10,319

7,9257,879

5,558

Total Members as of 1 February 2014

New York

Toronto

UK

Hong Kong

boston

Chicago

san francisco

singapore

switzerland

montreal

5,1403,950

3,0813,071

2,3992,259

Net SurplusMembers’ Funds2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

1,800,000

1,600,000

1,400,000

1,200,000

1,000,000

800,000

600,000

400,000

200,000

0

CFA Singapore Financial Performance (SGD)

557,406 618,979 670,860756,840 786,209

995,346

1,397,815

1,614,855

40,447

61,573

51,880

85,980

29,369

209,137

402,469

217,040

1,632,135

17,280

1,708,889

76,754


KeynOte speAKeRs

At the 66th Annual Conference of the CFA Institute on May 19-22, about 50 members of the top echelon of the business and finance community converged in Singapore to speak at the global financial summit.

AnnuAl ConferenCe 1. Aswath Damodaran, best-selling author of academic and

practitioner texts on Valuation, Corporate Finance, and Investment Management, spoke on the uncertainties that affect equity valuation using the discounted cashflow model.

2. Nobel Prize Winner Thomas Sargent at book-signing ceremony after he spoke on Risk, Ambiguity, and Investment Decision Making.

3. Notable academic and former Singaporean diplomat Kishore Mahbubani spoke on the importance of global co-operation.

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1


3

4

4. Zambian-born award winning economist Dambisa Moyo spoke on the opportunities that Africa offers as a frontier market.


AnnuAl ConferenCe

1. Paul Smith, CFA - CFA Institute APAC Managing Director

2. John Rogers, CFA - CFA Institute CEO3. Michael Woodford – former CEO of

Olympus, recounted his experience of exposing more than US$1 billion of financial fraud committed by top Olympus executives before his was removed from his position.

3

2

1

KeynOte speAKeRs


At the launch seminar for CFA Singapore’s Code of Conduct for Investment Committees, long-time union leader Lim Boon Heng (right) and long-time charities leader Gerard Ee (left) addressed over 200 leaders from non-profit organizations.

Finance industry veterans (L-R) Victor Lye, Aje Saigal, CFA, and Peter Lai, CFA, share their experiences as members of investment committees.

Asset MAnAgeMentCFA Singapore’s Code of Conduct for Investment Committees, a set of best practices and guidelines targeted at those outside the financial industry with fiduciary duties over funds, was launched at a seminar on 4 October 2013.


electeD BOARD

PresidentTan Chin Hwee, CFA, CA (Singapore)

Deputy PresidentPaul Bernard, CFA2

SecretaryLim Liying, CFA3

TreasurerMarcus Lam, CFA, FCA (Singapore)

BOARD MEMBERSOFFICE BEARERS DIRECTORS

Executive DirectorFrancis Er13

Director, Corporate DevelopmentTan Hock Meng, CFA14

(until July 2013)

Secretariat DirectorTh’ng Beng Hooi, CFA15

Daniel Schaefer, CFA5

Gary Ng, CFA, CA (Singapore)6

Keoy Soo Earn, CFA, FCA (Singapore)7

Jan Richards, CFA8

Joseph Poon, CFA9

Seow Hock Hin, CFA10

Lutfey Siddiqi, CFA11

Daryl Liew, CFA12

13. 15.14.

AppOinteD DiRectORs

Office Bearers and Board Members are volunteers. Office Bearers are elected by the Board, who are in turn elected by members at a General Meeting.

1. 2. 3. 4.

5. 6. 7. 8.

9. 10. 11. 12.


advisory Council Gerard Lee, CFA16 TK Yap, CFA17

Aje Saigal, CFA18

annual ConferenceGerard Lee, CFA

advocacyDaryl Liew, CFA

asset managementLim Liying, CFA

auditKeoy Soo Earn, CFA, FCA (Singapore) Joseph Poon, CFA

16. 17. 18. 20.

ADvisORs & cOMMittee cHAiRs

fICs-Candidate Programmes Tolmas Wong, CFA19

Career Development / University outreachKanol Pal, CFA (Co-Chair - Career Development)20 Kevin Gin, CFA (Co-Chair - University Outreach)21

Tolmas Wong, CFA

education/ConferencesJoseph Poon, CFA

membership Paul Bernard, CFA

NetworkingSeow Hock Hin, CFA

NominatingJoseph Poon, CFA

Professional DevelopmentGary Ng, CFA, CA (Singapore) (Chair)Victor Ong, CFA (Co-Chair)22

Alex Ho, CFA (Co-Chair) 23

researchKevin Gin, CFA (Co-Chair)Roshan Padamadan, CFA (Co-Chair)24

senior membersJan Richards, CFA

social enterprise InvestmentLutfey Siddiqi,CFA

social mediaDan Schaefer, CFA

ADVISORS, COMMITTEE CHAIRPERSONS & CO-CHAIRPERSONS

Board Members 2012 - 2013

Twelve Regular members served on the Board of the Society. Six Board members will retire at the 28th AGM in April 2014: Paul Bernard, CFA; Keoy Soo Earn, CFA, FCA (Singapore); Joseph Poon, CFA; Daniel Schaefer, CFA; Seow Hock Hin, CFA; and Lutfey Siddiqi, CFA.

The remaining six Regular members on the Board, having been elected at the 27th AGM in April 2013 will serve until the 29th AGM in 2015: Marcus Lam Hock Choon, CFA, FCA (Singapore); Daryl Liew Hsien, CFA; Lim Liying, CFA; Gary Ng Jit Meng, CFA, CA (Singapore); Jan Marie Richards, CFA and Tan Chin Hwee, CFA, CA (Singapore)

Auditors & Secretariat

The Society has transitioned from having honorary auditors since its inception in 1987 until 2009. From 2009, the Society appointed Robert Tan & Co as external auditors. Since 2010, the accounts were audited solely by external auditors.

Managing the Secretariat office are Francis Er, Executive Director; Th’ng Beng Hooi, CFA, Secretariat Director.

21. 22.

Advisors and committee members are volunteers appointed by the Board.

23. 24.

19.


the ultimate benefit of soCiety

for


Date Details speaker

21 Jan

Investment Fundamentals Forums - Part 3“Equities – Essential Concepts & Outlook”

Dr. Tony Tan Boon Leng, CFAMr Th’ng Beng Hooi, CFAMr. Suan Teck Kin, CFAMr. Mark Tan, CFAMr. Ong Tek Khoan, CFADr Shinya Tsujimoto, CFA

23 AprInvestment Fundamentals Forums - Part 4 “Equity Instruments”

Mr Tolmas Wong, CFA Mr Eric Pascal, CFAMr Ogar Widjaja, CFAMr Chua I-Min, CFAMr Gerard Low, CFA

20 AugInvestment Fundamentals Forums - Part 5 “Fixed Income”

Mr Ng Kheng Siang, CFAMr Tolmas Wong, CFAMr Olaf Stier, CFAMr Phoon Chiong Tuck, CFAMr Peter Sengelman, CFA Ms Heidi Cai

21 OctInvestment Fundamentals Forums - Part 6 “Derivatives”

Mr Kanol Pal, CFAMs Patricia LauMr Alex PohMr Daniel Schaefer, CFAMs Jean Chia

EVENTS SUMMARY

events in 2013

1. ADVOCACYDuring the year, four CFA-SGX Investment Fundamentals Forums were organized in collaboration with SGX. The topics discussed were: Equities – Essential Concepts & Outlook, Equity Instruments, Fixed Income and Derivatives.

aDVoCaCY CommITTee● Daryl Liew, CFA (Chair)● Chua Keng Woon, CFA● Tolmas Wong, CFA● Werner Schlossmacher, CFA● Olaf Stier, CFA● Keoy Soo Earn, CFA, FCA (Singapore)

● Hon Shin-Ming, CFA● Hwang Nian Huei, CFA● Tan Lay Hoon, CFA● Seow Shin Horng, CFA● Noel Neo, CFA● Shinya Tsujimoto, CFA

Panelists at the 3rd CFAS-SGX Investment Forum on 21 January 2013 were experts on investment markets in ASEAN, China and Japan.

AnnuAl RepORt 2013 15cfA singApORe



OctPublication: Code of Conduct for Investment Committees

Asset Management Committee

4 OctSeminar: Code of Conduct for Investment Committees – Non-profit Organizations

Gerard EeLim Boon HengLim Liying, CFAVictor Lye, CFAAje Saigal, CFAPeter Lai, CFAThomas Lim, CFAAniruddha Das, CFAJohnny HengArun Kelshiker, CFAAshish Goyal, CFAMelvin Tan, CFA

EVENTS SUMMARY

2. ASSET MANAGEMENTThe Asset Management Committee was established by CFA Singapore to further our mission and vision with respect to the asset management sector in Singapore.

The Committee’s work centred around creating and publishing The Code of Conduct for Investment Committees (“IC Code”). We also set up a platform to link volunteers from the investment industry with non-profit organizations. Much effort and work went into preparing the content and organizing the launch seminar of the IC Code.

We hope the body of knowledge in the IC Code will benefit organizations managing their investments, so that they may be better able to further

their missions.

asseT maNaGemeNT CommITTee● Lim Liying, CFA (Chair)● Evelyn Fong, CFA● Ashish Goyal, CFA● Johnny Heng● Arun Kelshiker, CFA● Annie Koh● Nicholas Kong● Peter Lai, CFA● Soon Kian Lee, CFA● Thomas Lim, CFA● Simon Ng, CFA● Freddy Orchard● Melvin Tan, CFA● Tan Yin Hoon, CFA● Alvin Tay● Teo Jwee Liang● Patrick Yeo, CFA● Yoon Wai Nam

1. L-R: Gerard Ee; Lim Li Ying, CFA; Lim Boon Heng

2. Over 200 leaders from non-profit organizations attended our launch seminar for the Code of Conduct for Investment Committees on 4 October 2013.

1

2

events in 2013


For more information on the Asset Management Committee and available resources, please do visit http://www.cfasociety.org/singapore/Pages/AssetManagementCommittee.aspx.


3. CAREER DEVELOPMENT & UNIVERSITY OUTREACH

University Outreach activities included active engagement of local universities through the CFA Institute Investment Research Challenge hosted by CFA Singapore.

Team Oriental Capital from Singapore Management University (SMU) was the overall champion of the highly competitive University Investment Research Competition (UIRC) held on 12 January 2013. The team comprised of students Lim Wei (Captain), Naing Ye Lin, Adam Tan, Tan Yong Yi and Teo Jie Xiang who went on to the Asia Pacific regional finals in February 2013. At the Regional finals in Kuala Lumpur, our team managed to advance to the final stage but lost to the winning team from India.

The following mentors contributed invaluable hours guiding participating teams for the past two competitions:

1. Mr Kevin Gin, CFA – Director, Alpha Capital

2. Mr Deng Jiewen, CFA – Managing Director, ArkOne Capital Management

3. Mr Pratik B Ray, CFA – Senior Property Analyst for South East Asia at HSBC Global Research

4. Mr Tan Chee How, CFA – Analyst with Lonsdale Capital

5. Mr Benjamin Goh, CFA – Vice President, Discretionary Investment Unit at CIMB Securities (Singapore) Pte Ltd

We would like to thank the judges for their time and dedication throughout the competition and the mentors for their guidance in the student teams’ preparation for the IRC finals. Special thanks also go to Thomson Reuters for sponsoring the use of their system to aid participants in their research.

Career DeVeloPmeNT & UNIVersITY oUTreaCH CommITTee● Tolmas WONG, CFA (Chair)● Kanol PAL, CFA (Co-Chair - Career Development)● Kevin GIN, CFA (Co-Chair - University Outreach)● Simon Deng, CFA● Simon Ng, CFA


12 JanUniversity Investment Research Challenge 2013 – Singapore Finals

NA

23 Jan Career Event with HeadHuntGary LaiGrant Torrens

4 Jul The Evolving Role of the Chief Investment Officer

Edmund Siah

13 Aug Make an Impact Josh Goh

14 Sep University Investment Research Challenge Kick-off Meeting

Paul Bernard, CFA

14 Nov Risk Management NightCraig PatersonPakwing ChungPrashant Kotian

EVENTS SUMMARY

1. University Investment Research Challenge Chairperson Tan Chin Hwee, CFA, CA (first from left) with winning team from SMU, L-R: Tan Yong Yi, Lim Wei, Naing Ye Lin, Teo Jie Xiang, Adam Tan.

2. L-R: Chong Yoon Chou, CFA (Director at Aberdeen Asset Management Asia); Mark Tan, CFA; Cheong Mun Fai, CFA, CAIA (Portfolio Specialist at Eastspring Investments, Singapore)

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EVENTS SUMMARY

4. NETWORKINGThe Networking Committee organised 18 activities in 2013, averaging about 1.5 events a month. Highlights of the year included the 66th Annual Conference 2013 Cocktail Event, Annual Golf Challenge and the Movie Night.

The committee strives to organise a wide range of events to cater to the different needs of our members. On average, an event typically draws about 30-50 participants. Going forward, the committee will continue to gather feedback from our members so that we would continue to organise events that are relevant to our members. We would like to take this opportunity to acknowledge the effort put in by our volunteers in the committee. They are Seow Hock Hin, Tolmas Wong, Benjamin Goh, Joyce Xu, Michelle Hu, Peter Chen, Mervyn Chew, Ethan Lim, Sunand Razu, Sulabh Jhajharia, Neeti Goyal, Yanny Young and Laxmi Deepak Bandarupalli.


26 JanChinese New Year Cookie Baking Workshop

NA

31 JanX’citing Thursday @ Beer Market NA

27 Feb Whisky Appreciation NA

5 Mar NW session (Good Health Without Medicines)

Vijay K. Bansal

18 Apr JP Morgan Corporate Challenge NA

18 Apr X’citing Thursday NA

2 May Golf Clinic NA

20 May66th Annual Conference 2013 Cocktail event

NA

22 May Annual Golf Challenge NA

3 Jul X’citing Thursday NA

25 JulX’citing Thursday Talk - Investing In International Real Estate

Doris Tan David Neubronner

1 Aug F-Type Test Drive Experience NA

29 Aug X’citing Thursday NA

26 Sep Beer Tasting NA

30 Sep Bowling Session NA

24 Oct Movie Night NA

21 Nov X’citing Thursday NA

19 Dec Year-end Party NA


NeTworKING CommITTee● Seow Hock Hin, CFA (Chair)● Tolmas Wong, CFA● Benjamin Goh, CFA, ● Joyce Xu, CFA● Michelle Hu, CFA, ● Peter Chen● Mervyn Chew, CFA, ● Ethan Lim● Sunand Razu● Sulabh Jhajharia, CFA● Neeti Goyal, CFA● Yanny Young, CFA● Laxmi Deepak Bandarupalli, CFA

1. Launch of CLARITAS at Annual Conference cocktail

2. Annual Golf Challenge

1

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events in 2013


EVENTS SUMMARY5. PROFESSIONAL DEVELOPMENT

The aim of the CFA Singapore Professional Development Committee is to organize events that contribute to the continuing development of CFA members. To further encourage commitment to continuing development among our members, our events now qualify attendees for CFA Institute Continuing Education (“CE”) credits.

Over 1,500 members attended 26 events organized by the committee in 2013, which exceeded the target of 24 events set by the society.

Highlights of the year included the Annual Forecast Dinner, Japan exports deflation: Sell equities by Russell Napier, Skyful of Lies and Black Swans: Who Controls Shifting Information Power in Crises? by Nick Gowing, and An Evening with Robert Merton.

We thank participants and speakers for their continued support which contributed significantly to the success of our events. We also thank our volunteer committee members for their hard work in the past year. The committee will continue to organize interesting and educational events in the coming year.

We invite interested CFA members to join our committee and senior members to volunteer their time as speakers.

ProfessIoNal DeVeloPmeNT CommITTee● Gary Ng, CFA, CA (Chair)● Victor Ong, CFA (Co-Chair)● Alex Ho, CFA (Co-Chair)● Sri Prihadi, CFA● Chew Zhuan Qi, CFA● Koh Boon Pin, CFA● May Sng Yong See, CFA● William Ang, CFA● Kum Soek Chin, CFA● Noel Neo, CFA● Alankar Joshi, CFA


24 JanStructured Bond Solutions for Commercial Real Estate

Peeyush Pallav, CFA

26 Feb Methods and Challenges to Achieve and Maintain Trusted Advisor Status

Jan Richards, CFA

1 Mar Annual Forecast Dinner

Steen JakobsenAshish Goyal, CFATommy Lueng, CFAPeter Lai, CFALim Liying, CFA

25 Mar Practical Challenges in Foreign ExchangeLutfey Siddiqi, CFA

22 AprDoing Deals in Southeast Asia, Common Issues and Possible Solutions

Keoy Soo Earn, CFA

3 May Asset Managers and their Clients Lim Liying, CFA

10 May Singapore Residential – A Soft Policy EraDr Chua Yang Liang

27 May Credit Markets Since the Crisis

Anand Thiagarajan Pardha Viswanadha

18 Jun Japan Exports Deflation: Sell Equities Russell Napier

19 Jun Doing Business in Myanmar Lim Hwee Seng

18 JulCurrent Developments in Commodities Markets: Major Factors Influencing Commodities Futures

Greg Smith

22 JulAsian Exchange Traded Funds: Product Design and Management Challenges

Hon Cheung

2 AugFinancial Crisis and the Global Economic Outlook Seminar

Dr Michael Ivanovitch

5 AugGoodbye to the “New Normal”: Why the U.S. Economy is Set for Strength in 2014 and Beyond

Dr Ian Shepherdson

19 AugMonte-Carlo Approach to Valuing Exploration Portfolio

Justin Anderson, CFA

30 AugPrivate Equity Investment Opportunities in ASEAN Region

Andy Ho

5 Sep Manager Crowding and Portfolio Construction Oleg Ruban

20 SepSkyful of Lies and Black Swans: Who Controls Shifting Information Power in Crises?

Nick Gowing

26 SepRenminbi FX 101: Current Instruments and Debates around it

Suprita Vohra

30 SepGlobal Market and Economic Outlook: Timeless Investment Strategies Amidst Strengthening Global Economy

Dr Roger A. Aliaga-Díaz

1 Oct Family Office Investment Priorities Richard Wilson

23 Oct An Evening with Robert Merton Robert Merton

31 Oct Commercial Real Estate in Multi-Asset Portfolios Guy Tcheau

19 NovInvestment Risk in Emerging Markets - What To Look For

Ian Roberts

9 Dec The Future of European BanksDr Alessandro Santoni



1. Nobel Prize laureate Robert Merton on “Sustainable Sources of Alpha”

2. 2013 Annual Forecast Dinner panelists: L-R:

* Steen Jakobsen (Saxo Bank’s Chief Economist)

* Tommy Leung, CFA (MD of UBS in FICC)

* Lim Liying, CFA (moderator, Chief Investment Officer for Singapore Labor Foundation)

* Peter Lai Hock Meng, CFA (founder and chairman of HML Consulting Group)

* Ashish Goyal, CFA, (CIO of Asia and Global Emerging Market Equities at Eastspring Investments (S’pore))

3. Economist, Dr Michael Ivanovitch

4. Salman Partners energy research analyst, Justin Anderson, CFA, on how to use Monte Carlo valuation on exploration portfolios.

1

2 4

events in 2013


3



31 Jan-1 Feb Treasury Risk Management Workshop Lawrence Ho

6-7 Feb Masterclass: Excellence in Private Equity Workshop Arvind P. Mathur, CFA, FRM

21-22 Feb Investment Risk Management Workshop A/Prof Frank Ashe

6 Mar Advances in Strategic Asset Allocation Workshop Prof Ralf Zurbruegg

11-13 Mar Advanced Financial Modelling Series Hamilton Lin, CFA

16-18 Apr Mastering FX Options Workshop Dr Izzy Nelken

27-28 Jun Fixed Income Instruments Workshop Lawrence Ho

3 Jul Quant Workshop Nick Wade

9 10 Jul Critical Thinking & Reasoning Workshop Lim How

16 Aug Seeking Alpha - Momentum Investing with ETFs Workshop Pradeep Verma, CFA

19 Aug From Theory to Practice: the Monte Carlo Approach to Valuing Exploration Portfolios Justin Anderson, CFA

17-18 Sept Behavioural Finance Workshop Frank Ashe

7 8 Oct Asia Real Estate Investment and Finance Workshop Roy Ling, CFA

16-18 Oct Advanced Financial Modelling Series Hamilton Lin, CFA

14-15 Nov Masterclass in M&A Workshop Arvind Mathur, CFA

EXECUTIVE EDUCATION PROGRAMMES

6. RESEARCHThe Committee organized a roundtable to discuss how analysts and academicians can help improve the quality of research in Singapore. There were subsequent meetings with MAS and CFA Institute on some joint ventures - more news in 2014 expected.

The Committee started work on a regional economic and financial markets sentiment survey. We seek to bring to members research which is independent, groundbreaking, useful and innovative.

We intend to leverage on the existing vast body of knowledge outside the Society rather than fund new research. One way of tapping on this external knowledge is to increase our interaction with universities and other academic bodies. In this regard, we had a meeting with NUS and its academic heads.

researCH CommITTee● Kevin Gin, CFA (Co-Chair)● Roshan Padamadan, CFA (Co-Chair)● Paul Bernard, CFA● Noel Neo, CFA● Dr Joseph Lim, CFA● Manu Bhaskaran, CFA

5 PROFESSIONAL DEVELOPMENT (continued)



7. SENIOR MEMBERS / MEMBERSHIP

The Senior Members Committee was reformed in 2013 with a mission to more fully engage more experienced members who have been CFA charterholders for at least 15 years. The aim is to provide exclusive events that appeal to this part of the membership and also capitalize on opportunities where they can share their knowledge and experience with other CFA Singapore society members and/or the local financial community.

In April, the committee hosted a roundtable luncheon discussion on private equity opportunities in Latin America and Africa led by Lorenzo Nogales, and in October hosted a cocktail session with Professor Robert Merton.

It also took advantage of an opportunity to invite a number of senior members to FWA’s Senior Executive Women’s Luncheon also held in October. The committee already has a number of events planned for 2014 and is compiling feedback from a recent survey to organize more relevant events and opportunities going forward.

seNIor membersHIP CommITTee● Jan Richards, CFA (Chair)● Rasik Ahuja, CFA● Aje Saigal, CFA● Lay Hoon Tan, CFA


30 AprLatin America & Africa in context: Private Equity in Focus

Lorenzo Nogales

23 Oct An Evening with Robert Merton Robert Merton

28 Nov Charter Award Ceremony Dr Tony Tan, CFA

membersHIP CommITTee● Paul Bernard, CFA (Chair)

EVENTS SUMMARY – SENIOR MEMBERSHIP / MEMBERSHIP

1. Venture capitalist Lorenzo Nogales spoke on private equity in Latin America and Africa

2. Dr Tony Tan, CFA presents Maria Hernendez, CFA with her CFA Charter certificate at the Charter Award Recognition dinner.

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events in 2013


EVENTS SUMMARY

8. SOCIAL ENTERPRISE INVESTMENT

2013 was the inaugural year for the newly established Social Enterprise committee chaired by Lutfey Siddiqi, CFA.

The first event we organized was a talk on Sustainable Investment and the Future of Finance by Robert Urwin.

We also were also part of the PRI-NUS Asia Pacific Responsible Investment Forum.

soCIal eNTerPrIse INVesTmeNT CommITTee● Lutfey Siddiqi, CFA (Chair)


16 May Sustainable Investment and the Future of Finance Robert Urwin

20 Nov PRI-NUS Asia Pacific Responsible Investment Forum Various

soCIal meDIa CommITTee● Daniel Schaefer, CFA (Chair)● Rasik Ahuja, CFA● Ong Peng Wee, CFA● Hiten Dhruv, CFA

Roger Urwin, member of CFA Institute Board of Governors, receives a token of appreciation from CFA Singapore Society President Tan Chin Hwee, CFA, CPA after his talk on the Future of Finance.

9. FICS-CANDIDATE PROGRAMS

Information sessions were held for each level of the CFA Programme one to two months prior to the start of each class. Each session saw approximately 30 to 40 sign-ups. We would like to take this opportunity to thank the following speakers for their time and effort at each info session:

● Tolmas Wong, CFA (Chair)● Daryl Liew, CFA● Joanna Tsang, CFA● Benjamin Goh, CFA● Darren DeGraaf, CFA● Thomas Robinson, CFA● SS Sandhu, FCA● Irene Yap, CFA

We also provided free CFA Exam Day Lunches (sandwiches and drinks) for members taking the June and December exams.

The number of candidates taking our classes totaled 211 for June and December intakes in 2013, a lower number compared to 272 in 2012.

fICs-CaNDIDaTe ProGrams CommITTee● Tolmas Wong, CFA (Chair)● Paul Bernard, CFA


10. SOCIAL MEDIAThe committee oversees the planning of a more active use of social media via CFA Singapore LinkedIn webpage and the CFA Singapore Facebook Group.


EVENTS SUMMARY

66th Cfa Institute annual Conference organizing Committee● Gerard Lee, CFA (Chair) ● Dan Schaefer, CFA● Seow Hock Hin, CFA● Gary Ng, CFA● Elizabeth Chau, CFA● Rasik Ahuja,CFA● Joyce Chua● Francis Er● Tan Hock Meng, CFA


19 to 22 May

66th Annual Conference 2013

Thomas J SargentNg Kok SongJonathan AndersonJ Kyle BassBrenda BenceJeremy BollandPeter BrooksAswath DamodaranSatyajit DasNick French; George FriedmanFred HuKyung Wook Hur, CFALim Chow Kiat, CFAKishore MahbubaniVikram MansharamaniMark McCombeAxel MerkTharman ShanmugaratnamGlenn Silverman, CFAChristopher TanRamin TolouiBruce Tomlinson, CFAWong Kok Hoi, CFAMichael WoodfordWu ShangzhiJoseph YamYang Lan

11. ANNUAL CONFERENCE

In early March, we received news from Suntec City that their renovation project would not be completed in time for the conference. Suntec was the preferred venue of CFA Institute instead of Marina Bay Sands as CFAI felt that MBS, being a casino, would not sit well with some charter holders.

We had also known that Deutsche Bank was having a big conference at the same time as us and MBS was their venue. What other choices of location do we have with just two months to go – Changi Expo, Raffles City, Resorts World Sentosa?

Fortunately, MBS has another floor available for our event. As it turned out, I suspect the high score that many of the delegates gave to the Organising Committee was due to the “wow” factor of MBS’ great facilities and location of MBS rather than the great organization of the event per se.

In early May, just two weeks before the event, when we were sending out invitations for the Monday VIP cocktail hosted by CFA Singapore, we discovered that CFAI was hosting a dinner for speakers at the same time.

Some of us felt that if we couldn’t invite the speakers, not many of our guests would show up, but it was also not possible for CFAI to reschedule their event. We took the risk of proceeding with both events concurrently and, as they say, the rest is history.

The turnout at the VIP cocktail was overwhelming as many non-invited delegates gate-crashed. Fortunately we had enough food for everyone. Many left that evening contented – stomach filled and instant photographs in hand to remind them of the new contacts they made that night.

Our Guest of Honour, DPM Tharman, being a very popular politician was booked solid even a year ago. He was not able to accept our invitation initially, but after we deployed our “invisible hand”, he agreed to grace the occasion but only for 15 minutes to make some welcome remarks.


events in 2013

AnnuAl RepoRt 2013 25cfa singaporeAnnuAl RepORt 2013 25cfA singApORe

For those of you who were at the opening session on Monday, you would have known that DPM Tharman spoke off the cuff for a good half an hour on the macro risks affecting financial systems around the world.

Many of our overseas audience remarked that it was one of the best and insightful speeches they have heard from a politician in a long while. That opening speech really set the tone for the rest of the speakers from Singapore who made equally impressive presentations.

About nine months before the conference, we were delighted to have secured the “Oprah Winfrey” of China, Yang Lan, to kick off the conference by being the first speaker on Sunday evening.

Unfortunately, just two weeks before 19 May, she informed us that she had to pull out. It was disappointing news as we had been counting on her to not only give an interesting opening session but to also give the conference an Asian flavour right from the start.


1. GIC GIO Lim Chow Kiat, CFA spoke at the annual conference

2. Annual Conference Organizing Committee, L-R: Tan Hock Meng, CFA; Joyce Chua; Tan Chin Hwee, CFA, CA; Gerard Lee, CFA; Elizabeth Chau, CFA; Seow Hock Hin, CFA; Dan Schaefer, CFA; Francis Er

Fortunately, CFAI has a very impressive list of stand-by speakers and we ended up with an award-winning journalist from the Economist magazine. From the feedback that we received he did a wonderful job as evidenced by the long queue at his book-signing session right after his speech.

Tuesday night’s cocktail at the Gardens by the Bay was another memorable feature of this year’s annual conference. Part of the experience was the 400m walk from MBS to the Gardens.

If you recall, that late afternoon, the sky was threatening to give way but someone did “some talking to the sun.” Imagine, if it had rained, we wouldn’t know where to find a thousand umbrellas to shelter our delegates.

Of course, not everything had turned out in our favour. One of our biggest misses was not being able to deliver on a company visit on Wednesday afternoon and a tour of Iskandar on Thursday. We had been working with a broker-dealer who had agreed to sponsor and organize the post-conference events.

Unfortunately, towards the latter part of our collaboration, the broker’s level of commitment declined. Not wanting to risk offering half-baked outings, we decided to call off both excursions. It was really unfortunate that we couldn’t take some of our delegates to have an on-the-ground feel of some of their potential investments.

So there you go – several near misses. But as you probably agree, chances favour the prepared; we in the Organising Committee felt very gratified that our hard work for the last 15 months had paid off. It was a rare privilege to have been involved in such a historic occasion – the first ever CFA Annual Conference in Asia Pacific.

Many of us in the Organising Committee know that this was probably the first and last time in our career that we get to organize this prestigious event. By the next time it comes around to Singapore, it would be our children doing the organization.

Let me thank the following people for journeying with me – Dan, Francis, Seow, Elizabeth, Joyce, Rasik, Gary and Hock Meng.

Gerard Lee, CFAChairmanOrganising CommitteeCFA Annual Conference 2013

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events in 2013


Statement by board memberS

Independent audItor’S report

Statement of comprehenSIve Income

Statement of changeS In fund

Statement of fInancIal poSItIon

Statement of caSh flowS

noteS to fInancIal StatementS

fInancIal content

28

29

30

31

32

33

34


Statement by board memberS

In our opinion, the financial statements set out on pages 5 to 15 are drawn up so as to give a true and fair view of the state of affairs of CFA SINGAPORE as at 31 December 2013 and of the results, changes in fund and cash flows of the Society for the year ended on that date.

On behalf of the Board Members,

paul bernard, cfadeputy preSIdent

marcuS lam, cfa, fcatreaSurer


Independent audItor’S report

Report on the Financial Statements

We have audited the accompanying financial statements of CFA SINGAPORE, which comprise the statement of financial position as at 31 December 2013, and the statement of comprehensive income, statement of changes in fund and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory notes.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Societies Act, Cap. 311 (the “Act”) and Singapore Financial Reporting Standards, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair statements of comprehensive income and financial position and to maintain accountability of assets.

Auditor’s Responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Singapore Standards on Auditing. Those Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements are properly drawn up in accordance with the provisions of the Act and Singapore Financial Reporting Standards so as to give a true and fair view of the state of affairs of CFA SINGAPORE as at 31 December 2013 and of the results, changes in fund and cash flows of the Society for the year ended on that date.

Report on Other Legal and Regulatory Requirements

In our opinion, the accounting and other records required by the regulations enacted under the Act to be kept by the Society have been properly kept in accordance with those regulations.

Robert Tan & Co.

Public Accountants and Chartered Accountants, Singapore

for the year ended 31 december 2013


Statement of comprehenSIve Incomefor the year ended 31 december 2013

note 2013 2012$ $

Income Members’ fees 185,134 200,180Joining fees 40,100 41,080Conferences & workshops 265,112 61,288FICS/CFA Review 834,698 929,665CFA Institute Society Funding 130,406 99,788Sponsorship 62,000 11,670Programming activities 7,327 6,210Networking activities 25,217 20,004University relations 33,159 22,198Special Employment Credit 1,400 -Advocacy 3,729 -Social enterprise investment 238 -Write-back of scholarship payable 8,369 -Interest income 12,057 4,846Other income 4,077 3,112

1,613,023 1,400,041Deduct : Expenditure Affiliation fee 2,000 2,107Allowance for doubtful debt (1,926) -Audit fee - Current year 3,000 3,000

- Prior year - (1,000)Bank charges 7,661 3,869Candidate programmes 15,526 21,078Conference & workshop 184,909 57,302Depreciation 1,001 1,001Employee benefits 3 223,309 157,043Exchange loss - 614FICS/CFA review expenses 657,188 727,494General expenses 17,545 15,788Insurance 5,000 1,250Medical fee 527 330Meeting expenses - International 4,591 15,021Members activities & General meetings 229,399 197,745Professional fee 19,550 16,400Public Awareness & Advocacy 50,341 65,597Rental of premises 23,322 19,234Secretariat services 51,632 42,267Skill development levy 209 165Training & development - 2,253University relations expenses 37,439 34,305

1,532,223 1,382,863

Surplus before tax 80,800 17,178Income tax expense - Current year 4 (3,900) (131)

- Prior year (146) 233

Surplus for the year transferred to General fund 76,754 17,280Other comprehensive income - -

Total comprehensive income for the year 76,754 17,280

The attached notes to financial statements form an integral part of these financial statements.


Statement of changeS In fundfor the year ended 31 december 2013

General fund$

Balance at 31 December 2011 1,614,855

Total comprehensive income for 2012 17,280


Total comprehensive income for 2013 76,754



Statement of fInancIal poSItIonaS at 31 december 2013

note 2013 2012$ $

ASSETSNon-current assets 5 1,002 2,003Computer

Current assets Fees receivable 6 97,847 118,998Other receivables 7 9,464 150,767Other receivables 8 1,500,000 1,500,000Cash & bank balances 493,633 294,076

2,100,944 2,063,841

Total assets 2,101,946 2,065,844

FUND AND LIABILITIESAccumulated surplusBalance at beginning of year 1,632,135 1,614,855Surplus for the year 76,754 17,280

Balance at end of year 1,708,889 1,632,135

Current liabilitiesExpenses payable 9 97,800 78,424Advance course fees received 291,357 314,502Advance sponsorship received - 40,652Income tax payable 3,900 131

393,057 433,709

Total fund and liabilities 2,101,946 2,065,844



Statement of caSh flowSfor the year ended 31 december 2013

2013 2012$ $

CASH FLOWS FROM OPERATING ACTIVITIESSurplus before tax 80,800 17,178Adjustments for :

Depreciation 1,001 1,001Interest income (12,057) (4,846)

Operating surplus before working capital changes 69,744 13,333Changes in working capital :Fees receivable 21,151 49,571Other receivables 139,702 (146,136)Expenses payables 19,376 (139,946)Advance course fees & sponsorship received (63,797) (70,755)

Cash generated from/(used in) operations 186,176 (293,933)Income tax paid (277) (20,169)

Net cash from/(used in) operating activities 185,899 (314,102)

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of computer - (3,003)Interest received 13,658 375

Net cash from/(used in) investing activities 13,658 (2,628)

CASH FLOWS FROM FINANCING ACTIVITIES - -

NET INCREASE/(DECREASE) IN FIXED DEPOSITS, CASH & BANK BALANCES 199,557 (316,730)

FIXED DEPOSITS, CASH & BANK BALANCES AT BEGINNING OF YEAR 1,794,076 2,110,806

FIXED DEPOSITS, CASH & BANK BALANCES AT END OF YEAR 1,993,633 1,794,076



noteS to fInancIal StatementS

1. GENERAL

The Society is registered in Singapore under the Societies Act, Cap. 311 and its registered office is situated at 10 Shenton Way, #13-02 MAS Building, Singapore 079117. The financial statements are expressed in Singapore dollars and are authorised for issue by the Board Members on the date stated on the Statement by Board Members on page 2.

The principal activities and objectives of the Society are to encourage and promote professionalism among financial analysts and fund managers in Singapore by providing educational and informative programmes.

2. SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of accounting

The financial statements of the Society have been prepared under the historical cost convention except as disclosed in the accounting policies below. The fair values of financial assets and liabilities approximate their carrying amounts recorded in the financial statements.

The financial statements of the Society comply with Singapore Financial Reporting Standards (FRS). During the year, the Society adopted, where applicable, the new or revised FRS and Interpretations to FRS (INT FRS) that are effective for the current accounting period. The adoption did not result in any change in accounting policies. For new FRS and INT FRS that are not yet mandatory, there is no impact on the financial statements.

(b) Accounting estimates and judgements

The preparation of financial statements in conformity with FRS requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are reviewed on an on-going basis and are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making the judgements about carrying amounts of assets and liabilities that are not readily apparent from other sources. These estimates and assumptions are not expected to have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

(c) Income recognition

(i) Members’ fees Income is recognised in the financial statements on an accrual basis. (ii) Joining fees Income is recognised on the date members joined. (iii) Conference, workshop & seminar Income is recognised when the event takes place. (iv) Interest income

Interest income is recognised on the time-proportioned basis using the effective interest method. (v) Course fees Income is recognised over the period of instruction.

(d) Computer

All items of computer are initially recorded at cost. The cost of an item is recognised as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the Society and the cost of the item can be measured reliably. Subsequent to recognition, computer are measured at cost less accumulated depreciation and accumulated impairment losses.

Depreciation begins when the assets are available for use and is calculated on the straight line basis over its estimated useful life of 3 years.

31 december 2013


noteS to fInancIal StatementS noteS to fInancIal StatementS

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Assets costing less than $1,000 are expensed in the year of acquisition.

The useful lives, residual values and depreciation method are reviewed at the end of each reporting period and adjusted prospectively, if appropriate. The carrying values of computer are reviewed for impairment when events or changes in circumstances indicate that the carrying values may not be recoverable. Impairment losses or reversal of previously recognised impairment losses are recognised as loss or profit in the statement of comprehensive income.

An item of computer is derecognised upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss on derecognition of the asset is included in the statement of comprehensive income in the year the asset is derecognised.

(e) Trade and other receivables

Trade and other receivables are classified and accounted for as loans and receivables under FRS 39 and are initially recognised at invoiced values or amounts paid and, where applicable, subsequently measured at amortised cost using the effective interest method except that short-duration non-interest bearing receivables are not usually re-measured unless the effect of imputing interest would be significant. An allowance is made for uncollectible amounts when there is objective evidence that the Society will not be able to collect the debt. Bad debts are written off when identified.

(f) Payables

Payables are initially recognised at invoiced values or amounts estimated to be payable and are not usually re-measured as their settlement is short-term.

(g) Provisions

Provisions are recognised when the Society has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made.

Provisions are reviewed at the end of each reporting period and adjusted to reflect the current best estimates. If it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision is reversed.

(h) Employeebenefits

Defined contribution plan

The Society contributes to Central Provident Fund (“CPF”), a defined contribution plan regulated and managed by the Singapore Government. The Society’s obligation in regard to CPF is limited to the amount it has to contribute to it. CPF contributions are recognised as an expense in the same period as the employment that gives rise to the contributions.

(i) Income tax

Income tax for the financial year comprises current and deferred tax. Income tax is recognised in the statement of financial activities except to the extent that it relates to items recognised directly in equity, in which case it is recognised in equity.

Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the end of the reporting period.

31 december 2013


noteS to fInancIal StatementS31 december 2013

2. SIGNIFICANT ACCOUNTING POLICIES (continued)

Deferred tax is provided in full, using the liability method, on all significant temporary differences. Deferred tax asset is recognised to the extent that it is probable that future taxable profit will be available against which the temporary differences, unused tax losses and credits can be utilised.

3. EMPLOYEE BENEFITS

The expenses for the year include the following amounts paid to key management personnel as follows :-

2013 2012$ $

Salaries & bonus 204,205 146,003Provident fund contributions 19,104 11,040

223,309 157,043

4. INCOME TAX EXPENSE

The following is a reconciliation of tax expense and the product of accounting profit multiplied by the applicable tax rate :-

2013 2012$ $

Accounting profit 80,800 17,178

Income tax at the applicable tax rate of 17% 13,700 2,931Tax effect of non-taxable credits (2,000) -

Tax effect of productivity & innovation credit - (1,500)

Tax effect of exempt amount (6,300) (100)

Tax effect of 2.5 times tax deduction on approved donations - (900)

Tax rebate (1,600) -

Changes in deferred tax liability, not recognised 100 (300)

Tax expense based on results for the year 3,900 131

Deferred tax liability in respect of the following temporary differences has not been recognised as the amount is not material.

2013 2012$ $

Excess of carrying amount over tax base of qualified computer 1,000 2,000

Deferred tax liability at applicable corporate tax rate of 17%, not recognised 200 300



5. COMPUTER


$CostAt 31.12.11 2,419Additions 3,003

At 31.12.12 & 31.12.13 5,422

Accumulated depreciationAt 31.12.11 2,418

Depreciation charge for 2012 1,001

At 31.12.12 3,419

Depreciation charge for 2013 1,001

At 31.12.13 4,420

Net carrying amountAt 31.12.13 1,002

At 31.12.12 2,003

6. FEES RECEIVABLE


2013 2012$ $

Fees receivable 108,761 131,838

Less : Allowance for doubtful debt 10,914 12,84097,847 118,998

Fees receivable are interest-free and include course fees which are payable upon registration or partly upon registration and balance within 7 days of exam date for CFA-FICS Research program course. Course fees of $50,634 is payable in June 2014 (2012 : $91,348 payable in June 2013). All other receivables are on 30 days term.


7. OTHER RECEIVABLES

The expenses for the year include the following amounts paid to key management personnel as follows :-

2013 2012$ $

Deposit & prepayment 6,594 9,496Tickets relating to 66th CFA Institute Annual Conference - 136,800

Fixed deposit interest receivable 2,870 4,4719,464 150,767

8. FIXED DEPOSITS

Fixed deposits are placed for periods of between 3 to 12 (2012 : 3 to 13) months and earn interest at 1% to 1.1% (2012 : 0.7088% to 1%) p.a.

9. EXPENSES PAYABLE

This consists mainly of course fees and event expenses.

10. FINANCIAL RISKS AND MANAGEMENT

(i) Interest rate risk The Society has bank balances placed as fixed deposits with reputable financial institutions. Those deposits are

generally with short term maturities to provide the Society the flexibility to meet its working capital requirement. The Society does not have interest-bearing borrowings.

Sensitivity analysis for interest rate risk As the interest rate on fixed deposits moves within a very narrow range, any reasonable possible change thereof will not have any significant impact on the Society’s results.

(ii) Credit risk The Society has no significant concentration of credit risk. There are procedures in place to ensure on-going

credit evaluation and active account monitoring.

The age analysis of trade receivables that were past due but not impaired at the end of the reporting period is as follows :-



noteS to fInancIal StatementS noteS to fInancIal StatementS31 december 2013

10. FINANCIAL RISKS AND MANAGEMENT (continued)

2013 2012$ $

Past due :0 to 30 days 8,750 3,432

31 to 90 days 10,000 8,100

More than 90 days 6,360 3,67825,110 15,210

(iii) Foreign exchange risk The Society has no exposure to foreign exchange risk.

(iv) Liquidity risk The Society monitors and maintains sufficient working capital to fund its operations.

11. CAPITAL MANAGEMENT

The Society is not subject to any externally imposed capital requirements.

The primary objectives of the Society’s capital management are to ensure that it maintains an optimal fund structure to support its operations and maximise member value by services commensurate with the level of risk. The Society manages its accumulated fund and makes adjustments to it, in the light of changes in economic conditions and the risk characteristics of the underlying assets. To maintain or adjust the fund structure, the Society takes a cautious approach in deploying its assets so as to maximise their returns.

No changes were made in the objectives, policies or processes during the years ended 31 December 2013 and 31 December 2012.

This page has been intentionally left blank.


This annual report is published by CFA Singapore for distribution to its members

10 Shenton Way, #13-02 MAS Building, Singapore 079117Tel: (65) 6323-6679 Fax: (65) 6323-7657 [email protected]

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