Gb08_engl Umschlag:GB 2005 - DVFA
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Annual Report 2008<br />
Society of Investment Professionals in Germany
Annual Report 2008_<br />
Society of Investment Professionals in Germany
Imprint<br />
Publisher: <strong>DVFA</strong> e.V.<br />
Einsteinstraße 5<br />
D-63303 Dreieich<br />
Tel.: 06103 | 5833-0<br />
Fax: 06103 | 5833-33<br />
Mail: info@dvfa.de<br />
Web: www.dvfa.de<br />
Development and Text: <strong>DVFA</strong> GmbH<br />
Chief Editor: Ralf Frank | Dr. Peter König<br />
Editing: Natascha Bingenheimer<br />
Design: ReichDesign | Frankfurt/M.<br />
Print: Ph. Reinheimer | Darmstadt<br />
This publication and all parts thereof<br />
are copyrighted. Any use beyond the<br />
scope of the German Copyright Act<br />
(Urheberrechtsgesetz - UrhG) without<br />
the express permission of the <strong>DVFA</strong><br />
is prohibited and punishable by law.<br />
This applies in particular to copying,<br />
translating, microfilming and<br />
electronic storage and processing.
content<br />
<strong>DVFA</strong> e.V.<br />
Table of Contents_<br />
The Board<br />
Report of the Board ______________________________________________________________________________ 05<br />
Members of the Board ____________________________________________________________________________ 07<br />
The Society<br />
Members of the Advisory Board ________________________________________________________________ 08<br />
Corporate Sponsors of <strong>DVFA</strong> ____________________________________________________________________ 08<br />
<strong>DVFA</strong> Representatives and Honorary Members ______________________________________________ 09<br />
Overview ___________________________________________________________________________________________ 10<br />
Activities of the Committees<br />
Equities ____________________________________________________________________________________________ 11<br />
Feature: <strong>DVFA</strong> Clubs ______________________________________________________________________________ 14<br />
Fixed Income ______________________________________________________________________________________ 16<br />
Feature: The role of rating agencies __________________________________________________________ 18<br />
Asset Management _______________________________________________________________________________ 22<br />
Feature: Press reactions to the <strong>DVFA</strong> financial papers series _____________________________ 24<br />
Panel on Financial Market Communication __________________________________________________ 27<br />
Panel on Financial Market Regulation _________________________________________________________ 28<br />
Feature: Members’ Meeting and Garden Party ______________________________________________ 30<br />
EFFAS<br />
EFFAS AGM in Paris _______________________________________________________________________________ 31<br />
EFFAS Summer School ___________________________________________________________________________ 33<br />
<strong>DVFA</strong> e.V. Annual Financial Statements _______________________________________________________ 34<br />
<strong>DVFA</strong> GmbH<br />
Report of the Management _____________________________________________________________________ 36<br />
Feature: <strong>DVFA</strong> graduation ceremony ___________________________________________________________ 38<br />
Feature: <strong>DVFA</strong> establishes alumni network ____________________________________________________ 39<br />
Feature: Symposium Wealth Management ____________________________________________________ 40<br />
Feature: 6.SCC_ Small Cap Conference _______________________________________________________ 41<br />
<strong>DVFA</strong> GmbH Annual Financial Statements ____________________________________________________ 42<br />
03
Dealing with the financial crisis will require<br />
investment in professional qualification as well<br />
as deliberate and sustainable implementation<br />
of ethical standards.
the board<br />
Ladies and Gentlemen, Dear Members,<br />
Report of the Board_<br />
In these trying times, being an investment professional is no easy task. The imbalances<br />
in the structure, trading and distribution of certain complex products have unleashed a<br />
crisis that resulted not only in a severe strain on the financial industry itself, but has<br />
impacted nearly every other sector of the economy as well. In the wake of this, the entire<br />
world is now experiencing the greatest economic crisis in more than 50 years.<br />
Government and citizenry have been called upon to step in and rescue the banking and<br />
financial system from collapse, as mutual trust, especially within the financial system,<br />
has broken down completely over the past several months.<br />
We expect the steps taken towards stabilization to prove effective. The governments<br />
and central banks have largely been proportionate in their response. The mistakes<br />
made during the Depression era of the 1930s have not been repeated. And, lessons<br />
have also been drawn from the situation in Japan over the past 20 years. Of course, it<br />
was a cardinal error to stand idly by as Lehman Brothers failed.<br />
Nevertheless, it must be remembered that the financial industry was responsible for<br />
the crisis, in conjunction with misguided deregulation and easy-money policy. Thus,<br />
the financial industry is now called upon to rebuild mutual trust among its members,<br />
along with the confidence of their customers and, most importantly, the faith of society<br />
in the financial system as a whole. A key element in this context will be to bring the<br />
relation between risk and reward into balance, for both the customer and the financial<br />
services provider. Consequently, the focus must be on methodological and ethical<br />
standards for professionals in the industry.<br />
<strong>DVFA</strong>, as a professional association, along with its members and Committees, seeks to<br />
contribute as much as possible to this effort. We can only repeat what was stated last year<br />
at this point: "We believe that market participants and investment professionals will have<br />
to place greater emphasis on addressing informational deficits and attaining a comprehensive<br />
understanding of the interactions, interrelationships and risks of global markets<br />
going forward. Dealing with the financial crisis will require investment in professional<br />
qualification as well as deliberate and sustainable implementation of ethical standards."<br />
In 2008, our Committees worked on the topics: rating standards, performance measurement<br />
standards, fairness opinions and REITs legislation. The Committees met regularly<br />
05
06<br />
the board<br />
Report of the Board_<br />
and prepared publications. Our Standards for Fairness Opinions were expanded; the<br />
financial paper on REITs legislation was published. The fourth annual Fixed Income<br />
Forum held last May in Stuttgart focused on the subprime crisis and its effects. The<br />
CRUF Germany, German Corporate Reporting User Forum, is leading the way in issues<br />
of accounting; it met a total of four times in 2008. The asset management forum was<br />
established successfully in December.<br />
There were also four <strong>DVFA</strong> Club events in 2008. The first Club event in February focused<br />
on the topic "Credit derivatives and the ongoing crisis". In June 2008, "Certificates"<br />
were on the agenda. In September, there was a lively discussion on "The role and<br />
methods of rating agencies". The year was rounded out in December with the Club<br />
dedicated to "The role and activities of the FREP - the German Financial Reporting<br />
Enforcement Panel”. All Clubs were successful and had good attendance from the<br />
members of the industry.<br />
In December 2008, <strong>DVFA</strong> had 1,203 individual members and 18 corporate sponsors.<br />
The <strong>DVFA</strong> e.V. 2008 annual financial statements were audited by Ebner Stolz Mönning<br />
Bachem GmbH & Co. KG, Frankfurt am Main, and received an unqualified opinion.<br />
The Board thanks all of the Committees for their good work as well as the employees<br />
of the <strong>DVFA</strong> administrative headquarters for their commitment. As always, we invite all<br />
members and friends of <strong>DVFA</strong>, as well as all of our colleagues in the industry, to join us<br />
in 2009 and contribute to improvement of the methodological and ethical foundations<br />
of the profession, so that we may once again present ourselves as a reliable, solid and<br />
stable community of professionals.<br />
Dreieich, March 2008 <strong>DVFA</strong> e.V. Board
the board<br />
Fritz H. Rau<br />
<strong>DVFA</strong> e.V., Chairman,<br />
Financial Market Regulation<br />
Klaus Holschuh<br />
DZ BANK AG<br />
Treasurer, Fixed Income<br />
Frank K lein<br />
DB Advisors<br />
Asset Management<br />
Dr. Peter Merk<br />
LB Baden-Württemberg<br />
Deputy Chairman, Fixed Income<br />
Winfried Becker<br />
Oppenheim Research GmbH<br />
Equities<br />
Ingo Mainert<br />
cominvest GmbH<br />
Asset Management<br />
Members of the Board_<br />
Andreas Heinrichs<br />
Vontobel Securities AG<br />
Secretary, Equities<br />
Ernst-Ludwig Drayß<br />
Berlin & Co. AG<br />
Asset Management<br />
Gunnar Miller<br />
Allianz Global Investors KAG<br />
Equities<br />
07
08<br />
the society<br />
Members of the Advisory Board<br />
Claus Döring<br />
Börsen-Zeitung, Chief Editor<br />
Norbert Enste<br />
B. Metzler seel. Sohn & Co. KGaA, Partner<br />
Nils Frowein<br />
AWD Holding AG, Deputy Chairman<br />
Prof. Dr. Wolfgang Gerke<br />
Bayrisches Finanz Zentrum e.V., President<br />
Lars Hille<br />
DZ BANK AG, Management Board<br />
Prof. Dr. Jan Pieter Krahnen<br />
Center for Financial Studies, Director<br />
Dieter Pfundt<br />
Sal. Oppenheim jr. & Cie KGaA, Partner<br />
Dr. Lutz R. Raettig<br />
Morgan Stanley AG, Supervisory Board Chairman<br />
Dr. Hans Reckers<br />
Deutsche Bundesbank, Executive Board<br />
Peter Roemer<br />
Advisory Board & Corporate Sponsors_<br />
Deutsche Asset Management Investment GmbH,<br />
Speaker of the Management Board<br />
Dr. Zeno Staub<br />
Bank Vontobel AG, Management Board<br />
Wolfgang Stertenbrink<br />
Alte Leipziger-Hallesche, Management Board Chairman<br />
Hans-Joachim Strüder<br />
LB Baden-Württemberg, Management Board<br />
Werner Taiber<br />
WestLB AG, Management Board<br />
Andreas Utermann<br />
Allianz Global Investors AG, Management Board<br />
<strong>DVFA</strong> Corporate Sponsors<br />
� Bayerische Landesbank Girozentrale<br />
� BHF-BANK AG<br />
� Commerzbank AG<br />
� Deutsche Apotheker- & Ärztebank eG<br />
� Deutsche Bank AG<br />
� Deutsche Börse AG<br />
� Dresdner Bank AG<br />
� DWS GmbH<br />
� DZ BANK AG<br />
� HSBC Trinkaus & Burkhardt KG<br />
� Jungheinrich AG<br />
� Landesbank Baden-Württemberg<br />
� Landesbank Berlin AG<br />
� R+V Versicherung<br />
� RCM Allianz Global Investors AG<br />
� SAP AG<br />
� Vossloh AG<br />
� West LB AG
the society<br />
Representatives National<br />
Representatives International<br />
Representatives ACIIA<br />
Representatives EFFAS<br />
Representatives ILPIP<br />
Internal Dispute Settlement<br />
Honorary Members of <strong>DVFA</strong><br />
<strong>DVFA</strong> Representatives & Honorary Members_<br />
Exchange Council of the Frankfurt Stock Exchange ____________________ Heinz-Jürgen Schäfer<br />
DRSC - German Standardization Council ________________________________________ Norbert Barth<br />
DRSC - Working Group on Pensions ___________________________________________________ Ralf Frank<br />
DRSC - Working Group on Classification of items as equity or liabilities _____ Sigrid Krolle<br />
DRSC - Working Group Fair Value ____________________________________________ Michael Schickling<br />
Federal Financial Supervisory Authority (BaFin) Advisory Committee ______ Dr. Peter König<br />
GAMSC - German Asset Management Standards Committee _________________ Dr. Peter König<br />
XBRL e.V. __________________________________________________________________________________ Ralf Frank<br />
European Investment Performance Committee (EIPC) ____________________ Martin Schliemann<br />
IASB Insurance Working Group ____________________________________________________ Norbert Barth<br />
IASCF XBRL Advisory Committee _______________________________________________________ Ralf Frank<br />
XBRL International Best Practice Board _______________________________________________ Ralf Frank<br />
IASB Joint International Group on Performance Reporting _______________ Hans-Joachim Pilz<br />
EFRAG Insurance Accounting Working Group (IAWG) ______________________ Dr. Carsten Zielke<br />
ACIIA Council ____________________________________________________________________________ Fritz H. Rau<br />
International Examinations Committee (IEC) __________________________ Prof. Raimond Maurer<br />
Committee on Intellectual Capital (CIC) _______________________________________________ Ralf Frank<br />
Commission on ESG Environmental, Social, Governance Issues (CESG) __________ Ralf Frank<br />
Executive Management Committee (EMC) until 28.06.2008: _____________________ Fritz H. Rau<br />
Market Structure Group (MSG) _______________________ Dr. Peter König, Dr. Otto Graf Praschma<br />
Training and Qualification Committee (TQC) ___________________________________ Dr. Peter König<br />
ILPIP Council _____________________________________________________________________________ Fritz H. Rau<br />
Arbitration Panel:<br />
Dr. h.c. Gerd Nobbe ___________ Chairman<br />
Judge (Ret.) German Fed. Court of Justice<br />
Dr. Jürgen Callies __________________ Arbiter<br />
Helmut Mader _________ ____________ Arbiter<br />
Margot Schoenen _________ Deputy Arbiter<br />
Christian Strenger ________ Deputy Arbiter<br />
Prof. Dr. Carsten P. Claussen, Michael Hauck, Dr. Peter Maurer<br />
Ethics Panel:<br />
Thomas Sagebiel ______________ Chairman<br />
Presiding Justice Darmstadt Regional Court<br />
Thomas Neisse ____________ Panel Member<br />
Bruno Hidding ____ Deputy Panel Member<br />
Dr. Lars Slomka ___ Deputy Panel Member<br />
Rudolf Symmank _________ Panel Member<br />
09
10<br />
the society<br />
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EQUITIES FIXED INCOME ASSET MANAGEMENT<br />
CRUF Germany<br />
[Corporate Reporting User Forum]<br />
Expert Groups Financial Reporting<br />
[Banks, Insurance, Real Estate]<br />
Expert Group Valuation<br />
Expert Group Fairness Opinions<br />
FAC<br />
[Financial Accounting Committee]<br />
Committee Life Science<br />
Committee on Standards<br />
for Investment Research<br />
Overview of <strong>DVFA</strong> Committees & Expert Groups_<br />
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Fixed Income Forum<br />
Committee Rating Standards<br />
Expert Group: Rating-relevant<br />
aspects of mezzanine financing<br />
Expert Group: Rating-relevant<br />
aspects of IFRS adoption<br />
Expert Group: Rating standards<br />
for ABS<br />
Expert Group: Use of rating scales<br />
FINANCIAL MARKET COMMUNICATION PANEL<br />
Committee on Effective Financial<br />
Market Communication<br />
FINANCIAL MARKET REGULATION PANEL<br />
Corporate Governance<br />
Committee<br />
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Asset Management Forum<br />
Committee Investment<br />
Performance Standards<br />
Expert Group: Leverage<br />
Expert Group: Assets under<br />
management<br />
Committee for<br />
Non-Financials<br />
Code Committee
activities of the committees<br />
CRUF Germany 2008<br />
For more than a year, the members of CRUF Germany have met every six to eight weeks<br />
after the inaugural events of Fortis Investments and Allianz Global Investors at the <strong>DVFA</strong><br />
Center, to discuss current amendments to accounting rules and analyse changes under<br />
IFRS. In particular, the tireless efforts of PwC have contributed to prompt examination<br />
and evaluation of all topics of interest to the IASB and the investment community, thus<br />
giving analysts and portfolio managers the ability to incorporate accounting changes<br />
into their workflows at an early stage.<br />
One highlight of 2008 was the presentation by Dr. Herbert Meyer, President of the FREP -<br />
Financial Reporting Enforcement Panel.<br />
Committee Financial Accounting<br />
The Committee Financial Accounting was founded in November 2007 as a steering group<br />
for the <strong>DVFA</strong> Expert Groups and Committees in the center-of-competence Equities. Representatives<br />
of the FAC also work in a variety of other industry groups, such as the IASB,<br />
DRSC, CRUF to name but a few.<br />
Expert Group Banks<br />
Equities_<br />
This Expert Group met once last year. After the international rating agencies came<br />
under criticism in the context of the financial market crisis, an analyst from S&P was<br />
brought in to instruct our Expert Group on the basics of rating methodology for banks<br />
in a lecture with subsequent discussion. Afterwards, Prof. Löw from KPMG gave a talk<br />
on the requirements for segment reporting under IFRS 8. To close the meeting, Mr.<br />
Weigel of PwC made a presentation on the most important elements of Germany’s<br />
Accounting Law Modernization Act (Bilanzrechtsmodernisierungsgesetz - BilMoG). The<br />
Banks Expert Group plans to meet at least once a year in the future as well.<br />
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12<br />
activities of the committees<br />
Expert Group Real Estate Financial Reporting<br />
This Expert Group concentrated on three areas during its six meetings and accompanying<br />
activities in 2008: One focus was completion of the book “Real Estate as a Capital Market<br />
Product”, which offers a comparative analysis of public real estate firms and REITs vs.<br />
open-ended real estate funds (and derivatives) from the point-of-view of a capital market<br />
analyst or investor. The more than 600-page volume was published in January 2009.<br />
The group’s second priority was an intensive examination of a position paper, published<br />
as part of the <strong>DVFA</strong> financial papers of series, on the REIT-G and its weaknesses. The<br />
third area of activity for the Expert Group Real Estate Financial Reporting was development<br />
of an index for measuring and assessing the transparency of listed real estate firms. The<br />
initial results of this work are to be presented in the course of 2009.<br />
Expert Group Fairness Opinions<br />
Equities_<br />
In September 2007, the Expert Group Fairness Opinions published its “Standards for<br />
Fairness Opinions”, with the objective of establishing best practice standards for the<br />
content of fairness opinions and proper handling of potential conflicts of interest. The<br />
principles contained in this publication were aimed at fairness opinions for the boards of<br />
target companies in a takeover bid, the most common form found in Germany. In this case,<br />
section 27 of the German Securities Acquisition and Takeover Act (Wertpapiererwerbsund<br />
Übernahmegesetz - WpÜG) requires an assessment of the financial appropriateness<br />
of the consideration offered. This assessment is often supported by the fairness opinion.<br />
In 2008, the Expert Group also drafted recommendations for bidder companies, and<br />
the revised Standards for Fairness Opinions (now expanded for the boards of target<br />
and bidder companies) were published in November 2008. At the bidder company, just<br />
as at the target company, the fairness opinion can serve as proof that the management<br />
board has acted in accordance with its obligations. The new standards for bidder companies<br />
are focussed primarily on the proper handling of conflicts of interest. The work<br />
of the Expert Group Fairness Opinions will be transferred in 2009 to the Corporate<br />
Transaction & Valuation Expert Group, which began its work in January 2009 under the<br />
chairmanship of Prof. Schwetzler and Dr. Christian Aders.
activities of the committees<br />
Expert Group Financial Reporting Valuation<br />
The tasks of the Expert Group Valuation include the drafting of recommendations on<br />
topics of valuation methodology. Most recently, their work was focused on valuation of<br />
pension provisions using the DCF method.<br />
In its further work, the Expert Group Valuation will look at the three most common DCF<br />
approaches (equity, entity and APV). The entity approach - a.k.a. WACC approach - is more<br />
prevalent in investment banking and will be given greater attention than the other two.<br />
In addition to general issues, such as the alignment of capital costs and relevant cash<br />
flow definitions, or the determination of risk premiums, specific questions will be<br />
examined, e.g. taking into account different tax systems and personal income tax of<br />
the investor, or valuation of deferred tax losses and intangible assets.<br />
Committee Life Science<br />
Equities_<br />
<strong>DVFA</strong> was once again media partner of the life science journal ‘transcript”, published<br />
by BIOCOM AG, for a feature edition entitled “Biotech: Capital and Equity” in mid-May<br />
2008. This special issue was aimed at interested capital market players and copies of<br />
it were sent by <strong>DVFA</strong> to its members who are active in the biotech sector.<br />
The institutions represented on the Committee Life Science played an active role, contributing<br />
articles like “To sell or not to sell?”, “Company financing via the capital market”<br />
and “Every euro invested outside of the US is at my own risk”. Preparations are currently<br />
underway for the 2009 special edition, in connection with which <strong>DVFA</strong> will again<br />
act as media partner. In the first quarter of 2008, an informational article “White biotechnology”<br />
was also completed and published.<br />
On 02 June 2008, a symposium held in Frankfurt on “M&A and licensing in the life science<br />
market” was met with great interest. In light of the success enjoyed by the first <strong>DVFA</strong><br />
Life Science Symposium, another one-day event in Frankfurt is scheduled for the summer<br />
of 2009, to address the topic “From molecular diagnostics to personalised medicine”.<br />
13
14<br />
featu <strong>DVFA</strong> Club +++ <strong>DVFA</strong> Club +++ <strong>DVFA</strong> Equities_ Club<br />
The <strong>DVFA</strong> Club was introduced in 2007 as a new event format focusing on current capital market<br />
topics, which serves primarily as a networking opportunity.<br />
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<strong>DVFA</strong> Club “Credit derivatives and the current crisis” February 2008<br />
On 19 February, a Club evening was held focussing on “Credit derivatives and the current<br />
crisis". The event coincided with the European Bond Commission meeting at the <strong>DVFA</strong><br />
Center, which meant that a number of guests from other countries were in attendance.<br />
Dr. Thomas Klepsch of State Street, Klaus Holschuh from DZ BANK and Uwe Burkert,<br />
Head of Credit Research at LBBW spoke about products incorporating credit derivatives,<br />
the specific effects of the crisis on liquidity and the probability of a recession in the US.<br />
<strong>DVFA</strong> Club “Certificates” June 2008<br />
Certificates are a relatively new asset class that is currently enjoying a boom in popularity.<br />
But, it is becoming progressively more difficult to keep track of the high number<br />
of products available. The third <strong>DVFA</strong> Club on 09 June 2008 therefore focused on the<br />
topic of “Certificates”.<br />
The high degree of creative flexibility in the construction of new structured products<br />
makes it particularly important that investors be qualified and informed. Given the<br />
diversity of product names and features, they must actively follow developments in the<br />
market. To this end, <strong>DVFA</strong> invited two experienced bank managers to talk about the<br />
topic. Ralf Frank hosted the evening.<br />
Lars Hille, member of the DZ BANK AG Management Board, is responsible for equity and<br />
retail securities business at DZ Bank. He is also a member of the <strong>DVFA</strong> Board. In addition<br />
to his position as Managing Director of NewMark Finanzkommunikations GmbH, Hubertus<br />
Väth has various university teaching engagements. His areas of expertise include a<br />
specialisation in derivative financial products. After the presentation, there was an<br />
active discussion, primarily about the future of the certificate industry.
featu <strong>DVFA</strong> Club +++ <strong>DVFA</strong> Club +++ <strong>DVFA</strong> Equities_ Club<br />
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<strong>DVFA</strong>-Club “The role of ratings and rating agencies” September 2008<br />
With more than 70 participants, the <strong>DVFA</strong> Club on “The role and methods of rating<br />
agencies" was a good success. Prof. Jens Leker of the Westfälische Wilhelms Universität,<br />
in Münster held a talk entitled “Financial rating systems - model development and<br />
assessment”. Frank Cerveny, ABS & Structured Credit Research, also spoke about the<br />
"Role and methods of rating agencies".<br />
The follow-up discussion with the participants was very lively, given the acute relevance<br />
of the topic. It was concluded that a differentiation of rating categories in the investment<br />
grade sector is impossible and/or statistically irrelevant. The determination of ratings<br />
without historical data was also deemed extremely problematic. This, in conjunction with<br />
conflicts of interest at rating agencies, was seen as a significant factor in the emergence<br />
of the subprime crisis.<br />
<strong>DVFA</strong>-Club “Role and activities of the FREP” December 2008<br />
On 15 December, Dr. Herbert Meyer, President of the FREP, offered participants of the<br />
fifth <strong>DVFA</strong> Club a comprehensive insight into the German Financial Reporting Enforcement<br />
Panel. The FREP is a privately sponsored association, which audits the annual and<br />
consolidated financial statements and management reports of capital market-oriented<br />
companies as part of the two-tier enforcement process in Germany.<br />
Response to the fifth <strong>DVFA</strong> CLUB was outstanding. Ralf Frank, <strong>DVFA</strong> Managing Director,<br />
introduced the speaker and spoke about the importance and necessity of generally<br />
accepted accounting standards in company financial reports.<br />
15
16<br />
activities of the committees<br />
Meeting of the European Bond Commission in <strong>DVFA</strong> Center<br />
The year began for the center-of-competence Fixed Income with the meeting of the<br />
European Bond Commission (EBC) of the European Federation of Financial Analysts’<br />
Societies (EFFAS) on 18 and 19 February 2008.<br />
The ongoing credit crisis was the number one topic at the meeting. “Is the US heading<br />
for recession?” was the central question addressed in a debate between Con Keating<br />
of Brighton Rock and Klaus Holschuh of DZ BANK. Other presentations dealt with the<br />
transparency of rating agencies and money market rates. In this context, the experts<br />
criticised the theoretical nature of the LIBOR, which is not based on actual transaction<br />
data. The EBC was thus prompted to initiate a project for publication of market-relevant<br />
money market rates. Dr. Thomas Klepsch, Vice Chairman of the EBC, presented the<br />
results of the discussion and the working paper "Liquidity and efficient markets" drafted<br />
at the Fixed Income Forum.<br />
Fixed Income Forum<br />
Fixed Income_<br />
The <strong>DVFA</strong> Fixed Income Forum provides a platform for professionals from the areas of fixed<br />
income and credit research and members interested in these areas to remain informed<br />
about the activities of the Society, as well as helping to set the direction for new initiatives<br />
and projects. Participants prepare presentations on current topics as a basis for<br />
discussions. The Forum is organised by the two <strong>DVFA</strong> Board members in charge of Fixed<br />
Income and meets as often as twice each year. The Chairman of the Forum is Dr. Helmut<br />
Kaiser, Chief Investment Strategist in Private Wealth Management at Deutsche Bank.<br />
At the fourth Forum, which met on 06 May 2008 upon an invitation by LBBW (Landesbank<br />
Baden-Württemberg) in Stuttgart, Dr. Helmut Kaiser spoke about “The US subprime<br />
crisis and its effects”, Alfred Anner, Senior ABS Analyst at Bayern LB presented his<br />
“Outlook for European ABS - is there any future for the market?” and Dr. Michael Stein,<br />
Credit Analyst at LBBW addressed the group on “Structured credit products - a critical<br />
look at quantitative models”. The presentations are available for download on the<br />
<strong>DVFA</strong> website. There was also a report by Prof. Harald Krehl of DATEV relating to the<br />
work of the Rating Standards Committee.
activities of the committees<br />
Committee Rating Standards<br />
Fixed Income_<br />
The financial crisis meant a heavy workload for our members over the course of last year,<br />
a fact that was not without effect on the activities of this Committee. Nonetheless, the<br />
results of their work received a positive assessment at the meeting in December, as the<br />
members looked forward to the 15th anniversary of the CCrA Course, the popularity of<br />
which is thriving despite - or perhaps because of - the financial crisis, as well as release<br />
of the recently published book “Credit Analyst” and the <strong>DVFA</strong> Club on “Rating Agencies”.<br />
Expert Group 1 (Rating-relevant aspects of mezzanine financing) published the results of<br />
its work in 2007 as part of the <strong>DVFA</strong> financial paper 05/07 “Forms of mezzanine financing<br />
and the balance sheet rating”. This publication was received very well by the professional<br />
public, and has triggered a number of follow-up discussions. Consequently, Expert Group<br />
1 will remain assembled, in order to follow new developments in the constantly changing<br />
mezzanine market and address them in a new or revised publication. Expert Group 2<br />
(Rating-relevant aspects of IFRS adoption) began its work in 2007, to develop a crossregime<br />
(H<strong>GB</strong> and IFRS) scheme for financial statements. Its activities are currently on<br />
hold until the changes resulting from the Accounting Law Modernization Act (Bilanzrechtsmodernisierungsgesetz<br />
- BilMoG) are known. Two new Expert Groups are to begin work<br />
in 2009: Expert Group 3 (Rating standards for ABS products) and Expert Group 4<br />
(Interpretation and practice of rating scales), under the chairmanship of Dr. Everling.<br />
New book: “Credit Analyst” published by Oldenbourg Verlag<br />
In December 2008, German publishing group Oldenbourg Verlag released a new textbook<br />
entitled “Credit Analyst”. On nearly 400 pages, the book provides a collection of<br />
important information and materials relating to qualification for the postgraduate programme<br />
“Certified Credit Analyst” (CCrA). The editors, Dr. Oliver Everling, Klaus<br />
Holschuh and Prof. Jens Leker, were engaged by the publishing house to put together<br />
the volume using articles contributed by <strong>DVFA</strong> instructors. It offers a good foundation<br />
in readying for the <strong>DVFA</strong> postgraduate CCrA programme, and is a handy guide for participants<br />
throughout the course. It also serves as a source for graduates of the course<br />
to refresh their knowledge of the materials and as a general reference for intensification<br />
of financial industry knowledge in the area of credit anaylsis.<br />
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featu The role of rating agencies_<br />
Equities_<br />
The role of rating agencies and the discussion about a suitable regulatory framework<br />
In the context of the discussion about a market-compatible regulatory framework for the activities of rating agencies, a<br />
number of public consultations have taken place over the past several years. A key role in this was played by the various<br />
associations of securities regulators. These include the Committee of European Securities Regulators (CESR) and the<br />
International Organization of Securities Commissions (IOSCO).<br />
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IOSCO measures for regulation of rating agencies<br />
At the end of 2008, the IOSCO amended its Code of Conduct for Credit Rating Agencies.<br />
The IOSCO Code has been in effect since 2004 and contains voluntary minimum standards<br />
as well as rules of conduct for rating agencies. According to the revised version of the<br />
IOSCO Code, rating agencies should provide more information about the methods and<br />
assumptions used to arrive at the ratings they issue. Moreover, they must ensure an<br />
objective decision-making process in the context of regular ratings reviews. This is to<br />
be accomplished through establishment of an independent function for regular assessment<br />
of rating methods and models. In the case of unsolicited ratings, the IOSCO Code<br />
calls for more transparency through publicly accessible information referencing the<br />
fact that the rating process was not initiated at the request of the issuer.<br />
The most important change is the prohibition of advice relating to products that are the<br />
subject of a rating. According to this, CRAs may not rate financial products without sufficient<br />
historical data on which to base a credit rating. To prevent conflicts of interest,<br />
rating agencies are prohibited from providing advice on the design of structured products<br />
that the agency rates. There is particular potential for conflicts of interest when<br />
the agency provides so-called “rating assessment services” to the issuer. This refers to<br />
analyses provided by the agencies to the issuers on the effects of a theoretical event - e.g.<br />
a merger - on the rating. Especially in the context of structured products, the communication<br />
between issuer and agency about the consequences of certain events has a<br />
determining impact on the structuring of individual tranches of the product.<br />
A weakness of the IOSCO Code continues to be its lack of legally binding rules of conduct<br />
for rating agencies. Furthermore, there is no independent body in place to monitor implementation<br />
of and compliance with the more stringent requirements of the Code, and IOSCO<br />
continues to rely on voluntary compliance with the rules of conduct by the rating agencies.
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European Union measures for regulation of rating agencies<br />
In reaction to the crisis on the international financial markets, the European Commission<br />
also initiated an assessment of the role played by rating agencies. To this end, the<br />
CESR held a consultation in March 2008 and urged improvements in the area of structured<br />
financial products. This was followed at the end of July 2008 with a consultation<br />
process by the European Commission on the regulatory proposals, which were oriented<br />
on the IOSCO Code, but called for statutory regulation of the rating agencies. The<br />
result of this consultation is a draft Regulation proposed by the Commission on 12<br />
November 2008. Adoption of the Regulation is expected in the spring of 2009. The<br />
Commission intends for the Regulation to become a global standard.<br />
The most important element is a supervisory system for registration and monitoring of<br />
rating agencies by European regulators. Monitoring of the agencies is to be performed<br />
by the national supervisory authorities already responsible for regulation of the financial<br />
markets. Applications for registration, on the other hand, are to be centrally administrated<br />
by the CESR, which will also be in charge of ensuring uniform procedures in all member<br />
states of the European Union. Moreover, the proposal sets forth a rule that only (external)<br />
ratings provided by EU-based rating agencies registered in accordance with the Regulation<br />
may be used for regulatory and bank supervision purposes.<br />
Other provisions relate to the handling of conflicts of interest, quality assurance for<br />
rating methods and ratings, as well as measures to ensure greater transparency. For<br />
instance, the agencies will be required to disclose the methods, models and underlying<br />
assumptions for their ratings. This is meant to ensure transparency of ratings, and<br />
allow investors to adequately assess risk. Rating agencies must also guarantee that<br />
the ratings are not influenced by conflicts of interest. Thus, advisory services in the<br />
area of product development should not be mixed with product assessment. A rotation<br />
system for employees of rating agencies will be introduced to eliminate or reduce the<br />
risk of conflicts of interest. For structured financial instruments, the Commission conceives<br />
of stricter rules than those applicable to corporate bonds.<br />
The rating agencies must either employ different classifications for structured financial<br />
instruments, or provide specific information on the risks involved with them. Additionally,<br />
the ratings of structured financial instruments must be subjected to continuous<br />
monitoring. The supervisory board or board of directors of rating agencies must also<br />
include at least three independent members, whose remuneration is not based on the<br />
business performance of the rating agency.<br />
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Overview of the new rules<br />
1. Independence and prevention or at least appropriate handling of conflicts of interest<br />
in the rating process<br />
� Disclosure of conflicts of interest that could threaten the independence of the rating<br />
agency or its employees involved in the rating process<br />
� Limitation of activities to rating and ancillary services; no advisory services<br />
� Implementation of internal policies to prevent conflicts of interest and ensure integrity<br />
and thoroughness<br />
� Rotation arrangements for employees<br />
2. Improvement of methodological and rating quality<br />
� Sound analysis of credit risk of a borrower or issuer<br />
� Disclosure of methodologies, models and key assumptions<br />
� Allocation of a sufficient number of employees with appropriate knowledge and experience<br />
to credit rating activities<br />
� Establishment of internal control mechanisms to monitor the quality of ratings, and<br />
continuous monitoring and updating of rating methods<br />
� Disclosure of modifications to rating methods, as well as information on which ratings<br />
could be affected by them and calculation of the new ratings<br />
3. Increased transparency through disclosure requirements<br />
� Specific disclosure requirements for unsolicited ratings<br />
� Publication of a transparency report<br />
4. Introduction of a registration requirement and creation of a regulatory framework<br />
for credit rating agencies
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Outlook<br />
The further discussion with respect to regulation of rating agencies will likely be influenced<br />
by whether stricter regulation of rating agencies is introduced worldwide, and<br />
how far any such tightening of the rules will go. The US will play a major role in this.<br />
Since June 2007, rating agencies in the United States are subject to supervision by the<br />
Securities and Exchange Commission (SEC). In December 2008, the SEC introduced<br />
more stringent regulatory requirements for rating agencies. Similar to the measures to<br />
be implemented by the European Union, the changes relate to prevention of conflicts<br />
of interest and improvement of transparency in the rating process.<br />
For instance, the list of prohibited conflicts of interest was expanded along with the<br />
requirements for transparency of rating methods. The new rules also require disclosure<br />
of information on earlier ratings. Furthermore, rating agencies are prohibited from providing<br />
advice to their clients on the structuring of financial instruments that are to be<br />
assessed by the agency afterwards. Such obvious conflicts of interest have already<br />
come under criticism by the US Congress.<br />
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activities of the committees<br />
Asset Management Forum<br />
Asset Management_<br />
The appointment of Ingo Mainert (cominvest) and Frank Klein (DB Advisors) to the <strong>DVFA</strong><br />
Board on 29 May 2008 brings the number of Board members responsible for Asset<br />
Management, together with Ernst-Ludwig Drayß (Berlin & Co. AG), to three.<br />
For the first time, there is now a body within the <strong>DVFA</strong> organisation that covers the entire<br />
asset management industry, focussing on issues such as standardisation, performance<br />
measurement, etc.: the “Asset Management Forum”, established in the autumn of 2008. The<br />
aim of the Forum is to provide a platform for the regular exchange of ideas between selected<br />
representatives of the asset management community, from investment firms, independent<br />
financial advisors, banks, insurance firms, pension funds, hedge funds and family offices.<br />
The industry is to come together in the Forum two or three times each year. The consensus<br />
among participants was that, especially in the current capital market environment, the<br />
Forum can fulfil an important function.<br />
Another area of discussion in 2008 was the distortion of Germany’s DAX index resulting<br />
from price irregularities relating to Volkswagen shares. The VW-share price movements,<br />
which were entirely disconnected from broader economic conditions, sector/market<br />
developments and fundamental valuation criteria, are without precedent in the history<br />
of the German market. This anomaly has led some to question the status of the DAX as<br />
a representative and investable market index for Germany. The ad hoc changes made<br />
by Deutsche Börse AG to certain index rules served to rectify some problems in the<br />
view of the investment industry - but the reaction by the index sponsor also raised<br />
some new questions.<br />
In light of the uncertainty among those who manage products based on the DAX and<br />
other German indices, <strong>DVFA</strong> called together a new Working Group in the autumn of the<br />
year. In two meetings in November and December, the group initially prepared two opinions,<br />
which <strong>DVFA</strong> together with the Bundesverband Investment und Asset Management<br />
e.V. (BVI) introduced into discussions with Deutsche Börse AG.
activities of the committees<br />
Committee Investment Performance Standards<br />
Asset Management_<br />
In 2008, the Committee Investment Performance Standards (IPS) of the “Germany Asset<br />
Management Standards Committee” continued to focus on the German translation of the<br />
GIPS, and on revision of the standards themselves.<br />
Work on translation of the GIPS into German was successfully completed in 2008. The<br />
Executive Committee of the international GIPS organisation approved the translation<br />
on 08 December 2008.<br />
A complete revision of the Global Investment Performance Standards is set to enter into<br />
force on 01 January 2011, under the name GIPS 2010. In addition to the international<br />
GIPS subcommittees, other bodies such as national performance commissions were<br />
involved in the revision. In a first step, five working groups within the Investment Performance<br />
Standards Committee (IPS) of the German Asset Management Standards<br />
Committee (GAMSC) completed a full review of the GIPS. The resulting amendment proposals<br />
of the working groups were then discussed in several phases, and presented as<br />
a table comparing the existing version and the proposed changes. The amendments<br />
were submitted to the GAMSC for approval, and subsequently forwarded by the GAMSC<br />
to the Executive Committee of the GIPS organisation.<br />
After completion of this work, the IPS created two working groups (“Leverage” and “Assets<br />
under Management”), to address enquiries from the asset management industry. In a<br />
sense, the two topics are closely related to one another, because the basis for performance<br />
measurement is not always clearly defined, especially for leverage products. At<br />
the same time, however, there are significant differences in the areas of focus, since<br />
the definition of “assets under management” is imprecise, both in relation to leverage<br />
products and other constructions.<br />
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featuPress reactions to the <strong>DVFA</strong> financial papers Equities_ series_<br />
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Financial Paper: Fairness Opinions<br />
Fairness opinions are statements by external advisors on the financial appropriateness<br />
of a merger or acquisition. In Germany, they are usually drafted for, and at the behest of,<br />
the management and supervisory boards of target and bidder companies in connection<br />
with a takeover bid. A fairness opinion comprises two parts: The valuation memorandum,<br />
in which the transaction is described in detail, along with the informational basis, the<br />
valuation process and the procedure used to arrive at the opinion. And the opinion letter,<br />
which summarizes the transaction and contains the final opinion.<br />
The importance of fairness opinions is growing within the German M&A market. Nonetheless,<br />
there has until recently been a lack of standards with respect to the content,<br />
form and (if applicable) publication of fairness opinions, as well as the proper handling<br />
of potential conflicts of interest. In September 2007, the <strong>DVFA</strong> Fairness Opinions Expert<br />
Group developed standards for fairness opinions for the boards of target companies in a<br />
takeover bid, in connection with which section 27 WpÜG of the German Securities Acquisition<br />
and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz - WpÜG) requires an<br />
assessment of the financial appropriateness of the consideration offered. This assessment<br />
is often supported by the fairness opinion.<br />
In November 2008, under the chairmanship of Prof. Bernhard Schwetzler, the Fairness<br />
Opinions Expert Group published the financial paper: “Fairness Opinions for the Management<br />
and Supervisory Boards of Target and Bidder Companies (Fairness Opinions) - in conjunction<br />
with offers for acquisition of securities in accordance with the German Securities<br />
Acquisition and Takeover Act (WpÜG)”, which expands the standards to include the<br />
perspective of the bidder companies. The new version of the financial paper provides a<br />
complete set of rules for the assessment of M&A transactions. For the bidder company,<br />
just as for the target company, the fairness opinion can serve as proof that the management<br />
board has acted in accordance with its obligations.<br />
The new standards for bidder companies are focussed primarily on the proper handling of<br />
conflicts of interest: here as well, the principle of transparency requires full disclosure of<br />
all potential conflicts of interest on the part of the fairness opinion author. This is especially<br />
relevant when the author advises the company with respect to the appropriateness<br />
of the transaction in exchange for a performance fee. The substantive requirements for<br />
fairness opinions in the case of (voluntary) disclosure are significantly less stringent<br />
than those requirements applicable to the target company: General information on the
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valuation methods are sufficient, as detailed public disclosure with respect to calculation<br />
of the offer price would weaken the negotiating position of the bidder in relation to the<br />
target company, and is therefore counterproductive.<br />
Prof. Bernhard Schwetzler is the Chairman of the Fairness Opinions Expert Group at the<br />
Society of Investment Professionals in Germany (<strong>DVFA</strong>). The press reaction confirms the<br />
importance and current relevance of the topic of fairness opinions: For instance, Börsenzeitung<br />
published a major article in January 2009, in which Christian Strenger and Bernhard<br />
Schwetzler emphasized that the <strong>DVFA</strong> standards are “good examples of best practice”.<br />
Similarly, Finanzbetrieb’s annual Fairness Monitor made detailed references to the new<br />
version of the financial paper, predicting that “these principles could establish themselves<br />
as standards for publication and transparency of fairness opinions.” In its March issue, the<br />
respected magazine, Die Bank, published an article about the growing importance of fairness<br />
opinions. The new financial paper is available under: www.dvfa.de/fairness-opinions<br />
Financial Paper: Position Paper on the German REIT Act<br />
The Real Estate Expert Group at <strong>DVFA</strong> has been intensively working on issues surrounding<br />
the German REIT Act, which entered into force in June 2007. In its financial<br />
paper, released in November 2008, the Expert Group argues in favour of a revision of<br />
the REIT Act. It considers the law to be well-crafted in many respects, but sees a need<br />
for optimisation in three areas:<br />
1. Better protection of REIT status against outside actions<br />
2. Rectification of unintended double taxation problems<br />
3. Creation of provisions enabling REIT takeovers<br />
The focus is on improved safeguarding of the REIT status against activities by third parties.<br />
Under the current legislation, REIT shareholders can endanger the status of a REIT<br />
by deliberately violating the 10% rule, and acquiring more than 10% of the REIT shares.<br />
This has the potential to cause substantial harm, subjecting the REIT to damage claims<br />
by its shareholders. The REIT and its management are powerless to prevent such<br />
actions. The same applies to violations of the free-float requirement by one or more<br />
shareholders. In the opinion of the Real Estate Expert Group, REITs must be protected<br />
against such outside actions through an amendment of the law.<br />
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Furthermore, there are various scenarios, unintended by the lawmakers, under which double<br />
taxation may occur as a result of the parallel application of REIT taxation and the halfincome<br />
method at investor level. Finally, the law should permit participation by REITs in<br />
other REITs, or a takeover of REITs by other REITs, in order to ensure efficient use of capital.<br />
The Expert Group suggests using the current phase of capital market turbulence to<br />
optimise these issues in the REIT Act, to create improved conditions for the subsequent<br />
emergence of a functional REIT market in Germany.<br />
The press has reacted with interest to the aims of the Expert Group under Chairman<br />
Prof. Rehkugler. Börsenzeitung, for example, ran the following headline on 23 October:<br />
“Financial analysts seek to help REITs”. The industry journal, REITs, commented on the<br />
new financial paper in its 22 October 2008 issue: “In particular, the penalisation of<br />
non-compliant shareholder structures is in need of revision. The experts are also calling<br />
for provisions allowing non-listed REITs and inclusion of residential properties.” Going-<br />
Public sums up the topic as follows: “The Expert Group has suggested that the current<br />
phase of capital market turbulence should be used to rectify the various inadequacies of<br />
the REIT Act, in order to improve conditions for the subsequent emergence of a functional<br />
German REIT market.”
activities of the committees<br />
Financial Market Communication_<br />
Panel on Financial Market Communication<br />
The Principles for Effective Financial Communication, which were introduced in 2006,<br />
underwent a revision in 2008 and were presented to the public in Frankfurt as Version 3.0<br />
at the DIRK Annual Conference last May. The majority of the changes related to improving<br />
the language, since the substance of the Principles had already become well established<br />
in the industry. The Perception Profiles, based on the previous survey of roughly 500<br />
investment professionals, were also revised. An analysis of the results showed that the<br />
Principles for Effective Financial Communication reveal a number of general problems<br />
in financial communication - e.g. with respect to the way in which input from investment<br />
professionals is incorporated. Additionally, the members of the Financial Market<br />
Communication Panel provided intensive support to the Committee for Non-financials<br />
in the definition of KPIs for environmental, social and governance (ESG) issues.<br />
Committee for Non-Financials<br />
In March 2009, the <strong>DVFA</strong> Committee for Non-financials published its “Key Performance<br />
Indicators (KPIs) for ESG”. The paper introduces quantifiable figures as standards for<br />
corporate reporting in the areas of environment, social commitment and corporate<br />
governance. The publication was preceded by an approximately two-year phase of data<br />
collection and validation of topics by the Committee. Based on the results of a worldwide<br />
survey of investors in 2007, KPIs were defined on individual topics in dialogue with companies<br />
and industry associations.<br />
In May 2008, the <strong>DVFA</strong> standards received an endorsement from EFFAS, the European<br />
Federation of Financial Analysts Societies. In October 2009, an additional round of talks<br />
was held in Frankfurt with the CSR Alliance, a joint initiative between the EU and European<br />
industry associations. The <strong>DVFA</strong> KPIs for ESG have since been adopted by the CSR Alliance<br />
as an integral component of its work in the CSR Laboratory on Extra-financial Reporting.<br />
In March 2008, EFFAS and <strong>DVFA</strong> teamed up to host the second “Taking ESG into Account<br />
Conference” in Frankfurt. 150 investment professionals from Europe took part in the<br />
conference to discuss integration of extra-financial and non-financial indicators on ESG<br />
(environmental, social and governance) issues, sustainability, corporate governance and<br />
risk management in conventional company valuation and investment decision making.<br />
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activities of the committees<br />
Financial Market Regulation _<br />
Regulatory Initiative<br />
Regulation of credit rating agencies<br />
Investment management amendment<br />
KWG and WpHG<br />
Panel on Financial Market Regulation<br />
The emphasis of the Panel in 2008 was on the discussion about a suitable regulatory<br />
framework for rating agencies. In this context, a total of three position papers were<br />
submitted to the International Organization of Securities Commissions (IOSCO), the<br />
Committee of European Securities Regulators (CESR) and the European Commission.<br />
The consultation processes related to the handling of conflicts of interest by rating<br />
agencies, the transparency of their activities and quality requirements for the rating<br />
process. In particular, the IOSCO consultation focused on an assessment of the impact<br />
from the financial crisis and the adaptation of the existing code of conduct to the present<br />
market realities. In the consultation processes of the CESR and European Commission, the<br />
role of rating agencies within the financial markets was examined in the context of the<br />
financial crisis, in particular with respect to the rating of structured financial instruments.<br />
<strong>DVFA</strong> involved its Committee Rating Standards in the preparation of the position papers.<br />
The papers themselves are available under: http://www.dvfa.de/cras<br />
An overview of the submitted position papers is provided on page 20. This report also<br />
contains a feature summarising the current proposals for regulation of rating agencies.<br />
<strong>DVFA</strong>/EFFAS position papers and participation in hearings<br />
<strong>DVFA</strong>-Activities<br />
1 position paper (31.03.08)<br />
1 position paper (25.04.08)<br />
1 position paper (05.09.08)<br />
1 position paper (03.09.08)<br />
Institution<br />
Committee of European Securities Regulators (CESR)<br />
International Organization of Securities Commissions (IOSCO)<br />
European Commission<br />
Federal Ministry of Finance (BMF)
activities of the committees<br />
Financial Market Regulation _<br />
Committee Corporate Governance<br />
The Committee Corporate Governance, which works under the auspices of the <strong>DVFA</strong><br />
Committee for Non-financials, was responsible for development of the Scorecard for<br />
German Corporate Governance © - a <strong>DVFA</strong> evaluation scheme based on the German<br />
Corporate Governance Code.<br />
As a result of the close substantive linkages between the two groups, members were<br />
significantly involved with the Committee Non-financials, given the important role of<br />
corporate governance in the context of ESG (environmental, social and governance) as<br />
a thematic focus of non-financial reporting. A detailed report on this work is available<br />
in the section on the Committee for Non-financials.<br />
In 2009, the Committees will focus on the significance of corporate governance for<br />
investment professionals, as well as the future informational requirements for companies<br />
in this context.<br />
Committee on Standards for Investment Research<br />
With implementation of the EU Markets in Financial Instruments Directive (MiFID) on 01<br />
November 2007, new rules came into effect for those who prepare and communicate<br />
financial analysis.<br />
In this context, the German Federal Financial Supervisory Authority (BaFin) published an<br />
official interpretation of section 31 (2) sentence 4 and section 34b WpHG, which replaces<br />
the existing interpretations of section 34b WpHG dated 16 December 2003, 01 August<br />
<strong>2005</strong> and 08 February 2006.<br />
The Committee on Standards for Investment Research took this as an opportunity to<br />
present the information contained in the new official interpretation to members of<br />
<strong>DVFA</strong> e.V. in the form of a circular, and introduce the different types of financial analysis<br />
and the requirements to be fulfilled by those preparing and/or communicating<br />
financial analysis.<br />
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<strong>DVFA</strong> Annual Members’ Meeting<br />
The regular Members’ Meeting, under the chairmanship of Mr. Fritz H. Rau, was held at<br />
the <strong>DVFA</strong> Center in the Signaris building on 29 May. The focus of the meeting was on<br />
election of the Ethics Panel and the Arbitration Panel, as well as election of the Board,<br />
which takes place every two years.<br />
Mr. Markus Plümer, Dr. Herold C. Rohweder and Mr. Michael Schubert withdrew from the<br />
Board. The current Board members nominated Ingo Mainert, cominvest Asset Management<br />
GmbH, Gunnar T. Miller, RCM - Allianz Global Investors AG and Frank Klein, DB<br />
Advisors, as candidates for election to the Board. The following candidates were on the<br />
ballot for election as executive members of the Board: Fritz H. Rau, Chairman, Dr. Peter<br />
Merk, Deputy Chairman, Andreas Heinrichs, Secretary, and Klaus Holschuh, Treasurer.<br />
Winfried Becker and Ernst-Ludwig Drayß were up for election to other Board positions.<br />
<strong>DVFA</strong> Garden Party<br />
The <strong>DVFA</strong> garden party on 29 May 2008 was a great success. <strong>DVFA</strong> hosted more than 200<br />
guests at the end of a fully packed day organised around the annual Members' Meeting.<br />
The casual summer event was held<br />
in the beautifully landscaped courtyard<br />
of the <strong>DVFA</strong> Center in the heart<br />
of Frankfurt.<br />
“The enormous turnout and positive<br />
response confirms to us that the<br />
garden party should become a regular<br />
event,” said Dr. Peter König.<br />
Ralf Frank added: “The inauguration<br />
of our new Center in Frankfurt's<br />
banking district was the occasion<br />
for our ‘housewarming party’ last<br />
year. It was a good idea - the gettogether<br />
has proved very popular.”
EFFAS<br />
The new EFFAS Executive<br />
Management Committee:<br />
Giampaolo Trasi (I)<br />
Chairman<br />
René Willemsen (NL) *<br />
Gonzalo Milans del Bosch (E) **<br />
Vincent Bazi (F)<br />
Friedrich Mostböck (A)<br />
Marianne Flink (S)<br />
* Stepped down in December 2008. Kees de<br />
Vaan (NL) was appointed as successor.<br />
** Stepped down in July 2008. Jésus López<br />
Zaballos (E) was appointed as successor.<br />
EFFAS is the European umbrella organisation for more than 14,000 investment professionals<br />
represented in 25 national associations. EFFAS e.V. is a non-profit organisation<br />
registered in Frankfurt/Main, the offices of which are located in the direct vicinity<br />
of <strong>DVFA</strong>, to promote close cooperation between the two organisations. Germany is<br />
represented within EFFAS by <strong>DVFA</strong>. Two major events dominated the organisation's<br />
activities in 2008: the Annual General Meeting in June and the EFFAS Summer School.<br />
EFFAS AGM in Paris<br />
EFFAS AGM in Paris_<br />
The EFFAS Annual General Meeting took place on 28 June 2008. The agenda included<br />
presentation of the financial year 2007 annual report, adoption of the Governance<br />
Model as the basis for future EFFAS activities and approval of the 2009 budget, with<br />
pioneering financial assistance for Central and Eastern European countries. The main<br />
focus of the meeting in Paris was on election of the new EFFAS Chairman.<br />
Fritz H. Rau, who gave up the chairmanship after serving eight years at the head of EFFAS,<br />
emphasised that the pan-European organisation had found a Chairman in Giampaolo<br />
Trasi who exhibits outstanding individual and professional qualities.<br />
31
32<br />
EFFAS<br />
Since 2000, when Fritz H. Rau took over as Chairman, significant strides have been made<br />
by EFFAS: At the start, there were only 17 member associations. The organisation’s charter<br />
made no differentiation between the general assembly and the board, and EFFAS suffered<br />
from inflated administrative costs and membership fees. Only three commissions were<br />
actively working to address topics important to investment professionals. Since then, a<br />
new charter has been drafted, creating the Executive Management Committee and an<br />
ethics panel. The headquarters of the organisation has been moved to Frankfurt, and all<br />
three of its other former offices closed. The budget has been cut by roughly 60%, and<br />
membership fees are now more transparent and approximately 30% lower. A newsletter<br />
and the EFFAS website contribute to improved communication with the associations, their<br />
members and interested third parties. New members have been recruited, particularly<br />
in the countries of Eastern Europe - there are now a total of 25 associations offering the<br />
CIIA and CEFA programmes. The number of active commissions has been increased to six,<br />
with a focus on non-financials and governance issues. Moreover, EFFAS now has a voice<br />
at the EU in Brussels and with the CESR, thanks to the Market Structure Commission<br />
(MSC), which has had decisive support from <strong>DVFA</strong>. Also thanks to <strong>DVFA</strong> support, EFFAS<br />
now has a presence within the XBRL community. Collaboration with other international<br />
organisations (e.g. IASB, EFRAG, CFAI, ECMI) has been expanded and improved.<br />
Statistics CEFA/CIIA (as of Dezember 2008)<br />
18.000<br />
16.000<br />
14.000<br />
12.000<br />
10.000<br />
8.000<br />
6.000<br />
4.000<br />
2.000<br />
0<br />
CIIA<br />
CEFA<br />
EFFAS AGM in Paris_<br />
'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08
EFFAS<br />
European associations of<br />
investment professionals<br />
have grown together over<br />
the past eight years,<br />
and are cooperating more<br />
closely than ever before.<br />
This must be upheld.<br />
Cooperation with ACIIA is producing results, and the number of CIIA holders in Europe<br />
continues to grow. A joint platform for CIIA study materials was created in partnership with<br />
ILPIP, spelling an end to the era of “provincialism”, in which every association produced<br />
its own manuals with different sources and levels of quality. This step was taken at the<br />
initiative of Switzerland's SFAA. In July 2008, with the help of efforts by Spain's IEAF, the<br />
first EFFAS Summer School was held, and the Governance Model creates new prospects<br />
for the future activities of EFFAS and licensing of training and qualification programmes.<br />
EFFAS Summer School<br />
EFFAS Summer School_<br />
From 09 - 11 July 2008, the first EFFAS Summer School was held by the European umbrella<br />
organisation of financial analysts and asset managers in Santander City near Madrid. More<br />
than 150 participants from the alumni organisations of the EFFAS member associations came<br />
together to discuss issues, the primary of which was the impact of the current financial crisis.<br />
The keynote address was held by Prof. Norbert Walter, Chief Economist at Deutsche<br />
Bank. In his speech entitled “The risk of unstable inflation expectations", Professor Walter<br />
emphasised the importance of solidifying inflation outlooks among market participants.<br />
We would like to thank Prof. Walter for his support, which was lent at the invitation of <strong>DVFA</strong>.<br />
33
34<br />
<strong>DVFA</strong> e.V. annual financial statements<br />
Balance Sheet_<br />
Balance Sheet<br />
as at 31 December 2008 (in EUR, rounded)<br />
ASSETS 2008 2007<br />
EUR EUR<br />
Fixed Assets<br />
Participation<br />
<strong>DVFA</strong> GmbH<br />
20,452 20,452<br />
Current Assets<br />
Accounts Receivable 75,452 69,330<br />
Liquid Assets 397,707 370,916<br />
Total Assets 493,611 460,697<br />
The total assets of the society were EUR 33k higher year-on-year in 2008, at EUR 494k<br />
(2007: EUR 461k). The receivables totaling EUR 75k (2007: EUR 69k) in financial year<br />
2008 include EUR 9k due from society members and sponsors (2007: EUR 20k) and<br />
other assets in the amount of EUR 66k. Cash and equivalents as well as other liquid<br />
securities total EUR 398k (2007: EUR 371k).<br />
The liabilities totaling EUR 65k (2007: EUR 50k) comprise EUR 58k due to companies in<br />
which a participating interest is held (2007: EUR 47k) and other liabilities in the amount<br />
of EUR 6k (2007: EUR 3k). Equity increased by EUR 22k to EUR 422k, bringing the equity<br />
ratio to 86%.<br />
LIABILITIES 2008 2007<br />
EUR EUR<br />
Equity Capital<br />
as at 01 Jan 2008 400,054 391,142<br />
Net Income 2008 22,106 8,979<br />
as at 31 Dec 2008 422,160 400,054<br />
Provisions<br />
External Funds<br />
6,302 8,979<br />
Liabilities 65,149 51,664<br />
(incl. PRA)<br />
Total Assets 493,611 460,697
<strong>DVFA</strong> e.V. annual financial statements<br />
Profit & Loss Statement_<br />
Profit & Loss Statement<br />
as at 31 December 2007 (in EUR rounded)<br />
The profit and loss statement illustrates net revenues (turnover) of EUR 269k against total<br />
expenditures of EUR 259k. Taking into account net interest income of EUR 12k, this results in<br />
a net profit for the year of EUR 22k (2006: EUR 9k). In financial year 2008, membership dues,<br />
received sponsorship payments and other income totaled EUR 269k (2007: EUR 321k). The<br />
operating expenses comprise other expenses in the amount of EUR 259k (2007: EUR 322k).<br />
The other expenses include expenditures for public relations measures totaling EUR 64k<br />
(2007: EUR 55k), travel and hospitality costs of €21k (2007: EUR 14k), legal and consulting<br />
fees amounting to EUR 8k (2007: EUR 77k), the costs arising from the service<br />
agreement for administrative and organizational activities by <strong>DVFA</strong> GmbH totaling EUR<br />
146k (2007: EUR 164k) and other expenditures in the amount of EUR 20k (2007: EUR 12k).<br />
The 2008 annual financial statements were audited by Ebner Stolz Mönning Bachem<br />
GmbH & Co. KG, Frankfurt am Main, and received an unqualified opinion.<br />
P + L 2008 2007<br />
EUR EUR<br />
Member Dues 211,200 232,346<br />
Sponsor Dues 53,676 79,236<br />
Other Income 4,000 9,513<br />
Other Expenses 259,169 321,534<br />
Net Interest Income 12,399 9,353<br />
Annual Net Profit 22,106 8,913<br />
35
36<br />
<strong>DVFA</strong> GmbH<br />
<strong>DVFA</strong> GmbH is a wholly-owned subsidiary of <strong>DVFA</strong> e.V., and acts as a service provider to the society. In addition to coordinating<br />
the activities of the society’s committees and preparing position papers on financial market regulation, <strong>DVFA</strong><br />
GmbH is in charge of two further business areas: training and professional development for capital market experts, and<br />
the organisation of conferences and workshops relating to financial market communication. In each of these areas, <strong>DVFA</strong><br />
GmbH is among the leading institutions in Germany. The <strong>DVFA</strong> GmbH 2007 annual financial statements were audited by<br />
Dr. Ebner, Dr. Stolz und Partner GmbH and received an unqualified opinion.<br />
Financial Communication<br />
The Financial Communication segment had a successful year in 2008 as a host of analyst<br />
conferences. Growth was achieved in all areas with respect to the number of conference<br />
participants. There was also growth in the four large <strong>DVFA</strong> forums that provide small<br />
and medium sized companies with a platform for company presentations. In particular<br />
the SCC Small Cap Conference, which was held for the sixth time last year, demonstrated<br />
how well established the <strong>DVFA</strong> forums have become within the capital markets, hosting<br />
more than 61 issuers over three days.<br />
The second conference on extra-financials, Taking ESG in Account, was enhanced through<br />
an expanded programme, including presentation of the ESG Award. 103 companies took<br />
part in the conference.<br />
The third <strong>DVFA</strong> Real Estate Conference built on the success of the first two events. As it did<br />
last year, <strong>DVFA</strong> organised more than 1,400 one-on-ones between issuers and participants<br />
at Deutsche Börse AGs German Equity Forum in November. The society has established<br />
itself as a capital market institution when it comes to organising one-on-ones.<br />
In 2008, the following forums were held:<br />
� 3rd <strong>DVFA</strong> Real Estate Conference (Frankfurt/Main)<br />
� CeBIT 2008 IT/Telco Small & MidCap Day, (Hannover)<br />
� 2nd Taking ESG into Account (Frankfurt/Main)<br />
� 6th SCC_ Small Cap Conference ® (Frankfurt/Main)<br />
Report of the Management _
<strong>DVFA</strong> GmbH<br />
Finance Academy<br />
Report of the Management _<br />
The training and qualification of <strong>DVFA</strong> offers four postgraduate programmes, one compact<br />
programme and a number of basis and expert seminars. In all, classes were held<br />
more than 200 days throughout 2008. A total of 12 topics are now covered in various<br />
courses and modules:<br />
� Portfolio theory & management<br />
� Equity analysis & management<br />
� Bond analysis & management<br />
� Derivatives, instruments & strategies<br />
� Financial accounting & corporate finance<br />
� Wealth & relationship management<br />
� Capital market law, taxation & ethics<br />
� Economics<br />
� Investment products<br />
� Financial mathematics and statistics<br />
� Credit analysis, rating and credit portfolio management<br />
� Real estate valuation and real estate portfolio management<br />
<strong>DVFA</strong> works in these areas with more than 130 experienced professionals and academics<br />
who instruct the various courses. We would like to thank our instructors for their great<br />
commitment to training and qualification within <strong>DVFA</strong>.<br />
Demand remained very high for our training and qualification programmes in 2008.<br />
Although the expert seminars saw some initial negative impact from the financial crisis,<br />
the flagship programme CIIA in particular has established itself as a central qualification<br />
for asset managers, bankers and analysts. This fact made establishment of an alumni<br />
network a logical step. The new network is designed to provide CIIA graduates and<br />
alumni of the predecessor programmes, CEFA and <strong>DVFA</strong> Investment Analyst, with the<br />
ability to remain in contact and regularly exchange ideas and views.<br />
On the occasion of the graduation ceremony for 2008 graduates, the names of the<br />
graduates in 2009 were also published for the first time in Börsenzeitung. <strong>DVFA</strong><br />
warmly congratulates the graduates on their success and wishes them all the best in<br />
their further careers.<br />
37
38<br />
featu Training and Qualification_ Equities_<br />
Gerlinde Abraham, CIIA, CEFA<br />
Joachim Alt, CIIA, CEFA<br />
Patrik Andre, CIIA, CEFA<br />
Sven Bartel, CIIA, CEFA<br />
Patrick Bastian, CIIA, CEFA<br />
Markus Beck, CIIA<br />
Tim Behrens, CIIA, CEFA<br />
Melanie Bischoff, CIIA, CEFA<br />
Michael Bissinger, CIIA, CEFA<br />
Robin Blokland, CIIA<br />
Gerd Bomans, CIIA, CEFA<br />
Frank Borchers, CIIA<br />
Christoph Boßmann, CIIA, CEFA<br />
Martin Bremers, CIIA<br />
Michael Busch, CIIA, CEFA<br />
Christian Chrobok, CIIA, CEFA<br />
Marius Gero Daheim, CIIA, CEFA<br />
Christof Danz, CIIA, CEFA<br />
Wolfgang Deschka, CIIA, CEFA<br />
Andreas Dimopoulos, CIIA, CEFA<br />
Dr. Georg Dönges, CIIA, CEFA<br />
Kai Eberhard, CIIA<br />
Iris Eckardt, CIIA, CEFA<br />
Benjamin Eichenberger, CIIA, CEFA<br />
Jens Fischer, CIIA, CEFA<br />
Joakim Albrecht, CeFM<br />
Pierre Barckhan, CIWM, CeFM<br />
Frank Baumhöfer, CeFM<br />
Dirk Biederbeck, CeFM<br />
Bastian Bohl, CIWM, CeFM<br />
Danilo Böttcher, CIWM, CeFM<br />
Dr. Peter Braun, CIWM, CeFM<br />
Tobias Beck, CCrA<br />
Martin Becker, CCrA<br />
Markus Behnke, CCrA<br />
Florian Breunig, CCrA<br />
Claus Eikam, CCrA<br />
Rainer Füller, CCrA<br />
Patrick Gerber, CCrA<br />
Christian Güntzel, CCrA<br />
Michael Hanhoff, CCrA<br />
Anja Heurich, CCrA<br />
Andreas Bannick, CREA<br />
Sven Bartram, CREA<br />
Christian Behrend, CREA<br />
Enrico Blanke, CREA<br />
Carsten Boell, CREA<br />
Michael Bohne, CREA<br />
Dirk Braun, CREA<br />
u<br />
2008 Graduates of the <strong>DVFA</strong> Qualification Programmes:<br />
Christoph Frank, CIIA, CEFA<br />
Christian Franzen, CIIA, CEFA<br />
Oliver Fuchs, CIIA<br />
René Gärtner, CIIA<br />
David Gaschik, CIIA, CEFA<br />
Oliver Girzick, CIIA, CEFA<br />
Stefan Goerke, CIIA<br />
Stefan Groeters, CIIA, CEFA<br />
Markus Gross, CIIA, CEFA<br />
Uwe Haberkorn, CIIA, CEFA<br />
Sonja Hack, CIIA, CEFA<br />
Timo Häber, CIIA, CEFA<br />
Tobias Häßler, CIIA<br />
Steffen Hahn, CIIA, CEFA<br />
Johannes Hahnemann, CIIA, CEFA<br />
Michael Hanisch, CIIA, CEFA<br />
Sören Hein, CIIA, CEFA<br />
Peter Henssen, CIIA, CEFA<br />
Melina Herr, CIIA, CEFA<br />
Marc Herres, CIIA<br />
Luzia Hetjens, CIIA, CEFA<br />
Katja Himmelhuber, CIIA, CEFA<br />
Alexander Hipp, CIIA, CEFA<br />
Mark Höpfner, CIIA, CEFA<br />
Penny Jackson, CIIA, CEFA<br />
Alexander Brumnic, CeFM<br />
Christian Burzin, CIWM, CeFM<br />
Mario Carstens, CIWM, CeFM<br />
Jurgen Dettling, CIWM, CeFM<br />
Thomas Gotta, CeFM<br />
Ute Gronwald, CIWM, CeFM<br />
Otmar Grunbeck, CeFM<br />
CIIA - Certified International Investment Analyst<br />
Anke Junge, CIIA, CEFA<br />
Walter Kaltenberger, CIIA, CEFA<br />
Jens Keller, CIIA<br />
Melanie Kiene, CIIA, CEFA<br />
Jan King, CIIA<br />
Christian Kinker, CIIA<br />
Jurgen Klaus, CIIA, CEFA<br />
Christian Klee, CIIA, CEFA<br />
Andreas Klemm, CIIA, CEFA<br />
Stephan Klinke, CIIA, CEFA<br />
Ingo Koeppen, CIIA, CEFA<br />
David Kunz, CIIA, CEFA<br />
Thomas Lachmann, CIIA<br />
Önder Lale, CIIA, CEFA<br />
Philipp Lehner, CIIA, CEFA<br />
Roland Lehnertz, CIIA, CEFA<br />
Jörn Ligges, CIIA, CEFA<br />
Dragan Martinovic, CIIA, CEFA<br />
Jurgen Matthei, CIIA, CEFA<br />
Tobias Meier, CIIA, CEFA<br />
Helge Stefan Michael, CIIA, CEFA<br />
Christoph Milde, CIIA, CEFA<br />
Mario Muller, CIIA, CEFA<br />
Mathias Muller, CIIA, CEFA<br />
Gero Nitschke, CIIA, CEFA<br />
Rene Hermanns, CeFM<br />
Gerald Hespelt,CIWM,CeFM<br />
Claus Huber, CIWM, CeFM<br />
Gunter Ingenfeld, CIWM, CeFM<br />
Mark Killinger, CeFM<br />
Guido Klett, CIWM, CeFM<br />
Michio Kobayashi, CeFM<br />
Markus Ofschonka, CIIA, CEFA<br />
Oliver Ogrizek, CIIA<br />
Stefan Philippi, CIIA, CEFA<br />
Sascha Pinger, CIIA, CEFA<br />
Thomas Pohontsch, CIIA, CEFA<br />
Holger Porath, CIIA, CEFA<br />
Maximilian Post, CIIA, CEFA<br />
Alexander Prochnow, CIIA, CEFA<br />
Guido Wolf Reichert, CIIA, CEFA<br />
Sascha Reininger, CIIA, CEFA<br />
Sebastian Reuter, CIIA, CEFA<br />
Jens Richter, CIIA, CEFA<br />
Mario Rinken, CIIA, CEFA<br />
Mario Röhrer, CIIA, CEFA<br />
Christian Schaette, CIIA<br />
Holger Schick, CIIA, CEFA<br />
Markus Schmidt, CIIA, CEFA<br />
Thomas Schmitt, CIIA, CEFA<br />
Meike Schneider, CIIA<br />
Till Schneider, CIIA, CEFA<br />
Christian Schreiner, CIIA<br />
Stefan Schulz, CIIA, CEFA<br />
Tobias Max Schutze, CIIA, CEFA<br />
Robert Schwegler, CIIA, CEFA<br />
Frank-Max Seifert, CIIA, CEFA<br />
CIWM - Certified International Wealth Manager | CeFM - Certified Financial Manager<br />
Murat Kaptanoglu, CCrA<br />
Roland Keich, CCrA<br />
Markus Konrad, CCrA<br />
Jens Köstle, CCrA<br />
Frank Kreuzhagen, CCrA<br />
Daniel Kuhnen, CCrA<br />
Steffen Leitsch, CCrA<br />
Gerald Lieb, CCrA<br />
Daniela Lucic-Slamic, CCrA<br />
Thorsten Manns, CCrA<br />
Christof Busch, CREA<br />
Ulrich Denk, CREA<br />
Karl-H. Goedeckemeyer, CREA<br />
Benjamin Gutgesell, CREA<br />
Jens Janke, CREA<br />
Danny Kiesslich, CREA<br />
Dirk Krupper, CREA<br />
CCrA - Certified Credit Analyst<br />
Julia Katarina Manz, CCrA<br />
Kerstin Michaelis, CCrA<br />
Ralph Mosen, CCrA<br />
Melanie Neubert, CCrA<br />
Nathalie Neumann, CCrA<br />
Kerstin Nietsch, CCrA<br />
Benjamin Nink, CCrA<br />
Marco Alexander Plass, CCrA<br />
Dominik Reiter, CCrA<br />
Elisabeth Rieder, CCrA<br />
CREA - Certified Real Estate Investment Analyst<br />
Sascha Kurzidem, CREA<br />
Manfred Mader, CREA<br />
Julian Mittag, CREA<br />
Taskin Mutlu, CREA<br />
Thomas Ostermann, CREA<br />
Dominique Pfrang, CREA<br />
Dr. Hans-Jürgen Riese, CREA<br />
Guido Middendorf, CIWM, CeFM<br />
Jörg Mönkemöller, CeFM<br />
Jens Mudder, CIWM, CeFM<br />
Patrick Schäfers, CeFM<br />
Dr. Bernd Schnarr, CIWM, CeFM<br />
Sven Schollmeyer, CeFM<br />
Michael Schreiber, CeFM<br />
Jan Rosendahl, CCrA<br />
Sandra Scharfenstein, CCrA<br />
Marco Schenke, CCrA<br />
Ulrike Schindler, CCrA<br />
Olaf Schwaninger, CCrA<br />
Renate Segbers, CCrA<br />
Iris Streit, CCrA<br />
Anja Vierke, CCrA<br />
Dirk Völker, CCrA<br />
Julia Vonhoff, CCrA<br />
Burkhard Sawazki, CREA<br />
Stefan Scharff, CREA<br />
Henrik Schindler, CREA<br />
Thomas Spulak, CREA<br />
Ralf Streckfuß, CREA<br />
Matthias Thoms, CREA<br />
Ingmar Tripunovic, CREA<br />
Hristo Shtarbov, CIIA, CEFA<br />
Karin Sittler, CIIA, CEFA<br />
Marcin Siuda, CIIA, CEFA<br />
Robin Stemann, CIIA, CEFA<br />
Felix Steuer, CIIA, CEFA<br />
Guenter Stibbe, CIIA<br />
Christian Strätz, CIIA, CEFA<br />
Jeannette Strauß, CIIA, CEFA<br />
Christian Timmann, CIIA, CEFA<br />
Frank Ullrich, CIIA, CEFA<br />
Sonja Vilsmeier, CIIA, CEFA<br />
Sven von Aderkass, CIIA, CEFA<br />
Sebastian von Koss, CIIA, CEFA<br />
Margarita Walterskirchen, CIIA, CEFA<br />
Alexander Wenzel, CIIA, CEFA<br />
Christina Wettstein, CIIA, CEFA<br />
Ronald Wiegand, CIIA, CEFA<br />
Tobias Windmeier, CIIA, CEFA<br />
Dr. Martin Wolburg, CIIA<br />
Moritz Wrede, CIIA, CEFA<br />
Anne-Kristin Yasuda, CIIA, CEFA<br />
Loki Zanini, CIIA, CEFA<br />
Georg Zimmermann, CIIA, CEFA<br />
Tina Zöttl, CIIA, CEFA<br />
Eduard Zvinchuk, CIIA, CEFA<br />
Daniel M. Schwarz, CIWM, CeFM<br />
Stephan Simon, CIWM, CeFM<br />
Karsten Stockmann, CeFM<br />
Jessica Stolz, CeFM<br />
Jörg Thranberend, CIWM, CeFM<br />
Marina Wagner, CCrA<br />
Christian Weber, CCrA<br />
Jördis Wegener, CCrA<br />
Sandra Wehner, CCrA<br />
Andreas Weis, CCrA<br />
Christian Wilhelm, CCrA<br />
Markus Wilhelm, CCrA<br />
Alexander von Boehm-Bezing,<br />
CREA<br />
Julia Walsh, CREA<br />
Anke Weinreich, CREA<br />
Marc Weisener, CREA<br />
Hanno Wolfensberger, CREA<br />
Carsten Wottawa, CREA
featu Training and Qualification_ Equities_<br />
u<br />
u<br />
Graduation ceremony at Deutsche Bundesbank<br />
On 23 January 2009, the graduation ceremony for the <strong>DVFA</strong> postgraduate programmes<br />
took place at Deutsche Bundesbank. Ingo Ralf Mainert, Managing Director at cominvest<br />
Asset Management GmbH and member of the Board at the <strong>DVFA</strong> e.V., joined Dr.<br />
Peter König, Managing Director of <strong>DVFA</strong> GmbH, in greeting the graduates and guests.<br />
The keynote address was presented by Claus Döring, Editor-in-chief of Börsenzeitung.<br />
He entertained the audience with a trenchant speech on the differences and similarities<br />
between analysts and journalists - highlighted, of course, in the context of the current<br />
financial market situation.<br />
Afterwards, the diplomas were awarded personally to the postgraduates. Fritz H. Rau,<br />
Chairman of <strong>DVFA</strong> e.V., along with all of the various academic advisors congratulated<br />
them on their success.<br />
<strong>DVFA</strong> establishes alumni network<br />
On 23 January 2009, <strong>DVFA</strong> established a new alumni organisation. Members of this network<br />
are the graduates and tutors of the CIIA/CEFA training programme. In Germany,<br />
more than 2,500 graduates have received the CIIA and CEFA professional diplomas over<br />
the past 20 years. The total in all of Europe is more than 15,000.<br />
Olaf Liebeskind of Deutsche Bank AG was appointed as Chairman of the alumni organisation,<br />
with Andreas Deeng of HelabaTrust as Deputy Chairman. The two chairpersons<br />
have announced their intention to shortly introduce a programme of suggestions for<br />
events and other activities of the alumni organisation.<br />
"The alumni network is ideal in these times, when the right network, in addition to good<br />
qualification, is key for success in the financial world," said Dr. Peter König, who was<br />
in charge of founding the organisation on behalf of <strong>DVFA</strong>. And he added: “The CEFA/CIIA<br />
programme now has so many graduates that creation of the network was a logical next<br />
step. But graduates of the other programmes are also warmly invited to establish similar<br />
groups. <strong>DVFA</strong> will be glad to lend its support for this.”<br />
39
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featu Training and Qualification_ Equities_<br />
u<br />
New event series: <strong>DVFA</strong> Wealth Management Symposium<br />
The first <strong>DVFA</strong> Wealth Management Symposium, focusing on the topics “Strategies”<br />
and “Products”, was held on 17 June 2008 in Frankfurt. Around 100 participants came<br />
together in the <strong>DVFA</strong> Center, including numerous senior managers from banks and<br />
independent asset management firms.<br />
Two keynotes kicked off the event: in the first, Dr. Ulrich Stephan of Deutsche Bank<br />
presented “Panic or performance: current developments on the capital market and<br />
the behaviour of German investors". The second was a speech given in cooperation by<br />
Dr. Marc Breidenbach from Berenberg Bank and Prof. Markus Rudolph, who heads the<br />
Center of Private Banking at WHU - Otto Beisheim School of Management, on "Holistic<br />
asset management”.<br />
The second <strong>DVFA</strong> Wealth Management Symposium, entitled “Wealth Management is<br />
Change Management”, took place on 21 October 2008. Once more, the event attracted<br />
an impressive number of participants in light of the situation then prevailing in the<br />
industry, as more than 100 investment professionals were in attendance. The topics<br />
covered included the current crisis and the impact of the new comprehensive capital<br />
gains tax (Abgeltungssteuer) on investor behaviour.<br />
Dr. Hendrik Leber von Acatis gave the opening lecture on the causes of the crisis and<br />
the likely effects on the real economy. With a view to what can be expected down the<br />
road, he said: “I don’t know whether we have already seen the worst of the crisis, or<br />
there is worse yet to come. But, I am utterly convinced that German equities will have<br />
gained substantially in value within the next 2 years.” The Symposium ended with a panel<br />
discussion on “The Abgeltungssteuer as a tax on alpha: impacts on investor behaviour”.<br />
With the <strong>DVFA</strong> Wealth Management Symposia, <strong>DVFA</strong> has continually offered a forum<br />
since 2008, in which current topics can be discussed at a professional level between<br />
leading representatives of the industry. On 6 May 2009, the event series will continue<br />
with the third <strong>DVFA</strong> Wealth Management Symposium, “Investor psychology and investor<br />
behaviour". Further information is available online at: www.dvfa.de/symposium
featu Impressions from the Equities_ 6th SCC_<br />
The central focus of<br />
the event, which has<br />
gained international<br />
prominence over the<br />
past several years,<br />
was on 61 individual<br />
presentations by the<br />
participating SMEs.<br />
u<br />
6. <strong>DVFA</strong> Small Cap Conference from 25 to 27 August 2008<br />
There was an overwhelming response to last year's three-day Small Cap Conference at<br />
the <strong>DVFA</strong> Center in the Signaris building. 61 small and medium-sized companies were<br />
in attendance to seek contact with the capital market. Roughly 360 buy and sell-side<br />
analysts, institutional investors, asset managers and advisers also came together in<br />
the <strong>DVFA</strong> event space.<br />
Well over 400 one-on-one interviews are proof of the high expectations shared by the<br />
companies and the attending investors. Ralf Frank, Managing Director of <strong>DVFA</strong> GmbH<br />
commented: “The SCC is an excellent platform for small and medium-sized companies,<br />
as it provides a place for small caps to show their real innovation potential. This is now<br />
the sixth time that we have brought companies and investors together - and with great<br />
success. The SSC gives investment decision-makers insight into the strategies and financial<br />
data of the participating companies.”<br />
SCC_ 2008: Presenting companies<br />
4SC AG<br />
adesso AG<br />
Advanced Vision Technology Ltd<br />
Altira AG<br />
Aragon AG<br />
Beate Uhse AG<br />
Bio-Gate AG<br />
biolitec AG<br />
BIOPETROL INDUSTRIES AG<br />
Business Media China AG<br />
Centrotec Sustainable AG<br />
CeWe Color Holding AG<br />
CFC Industriebeteiligungen GmbH<br />
CompuGROUP Holding AG<br />
DESIGN Bau AG<br />
DF Deutsche Forfait AG<br />
Dresdner Factoring AG<br />
EquityStory AG<br />
FHR Finanzhaus AG<br />
FJA AG<br />
GESCO AG<br />
GROUP Technologies AG<br />
Heliad Equity Partners GmbH<br />
IFM Immobilien AG<br />
Impreglon AG<br />
Integralis AG<br />
InVision Software AG<br />
ISRA VISION AG<br />
KTG Agrar AG<br />
KWG Kommunale Wohnen AG<br />
Lloyd Fonds AG<br />
LPKF Laser & Electronics AG<br />
Magnat Real Estate Opportunities<br />
GmbH & Co. KGaA<br />
MeVis Medical Solutions AG<br />
MIV Therapeutics Inc.<br />
MOBOTIX AG<br />
MWB Wertpapierhandelsbank AG<br />
NanoFocus AG<br />
Nanostart AG<br />
Neue Sentimental Film AG<br />
OPENLIMIT Holding AG<br />
Olympia Flexgroup AG<br />
paragon AG<br />
PETROTEC AG<br />
Primion Technology AG<br />
RCM Beteiligungs AG<br />
Rücker AG<br />
SAF AG<br />
S.A.G. Solarstrom AG<br />
Schaltbau Holding AG<br />
SEVEN PRINCIPLES AG<br />
SILICON SENSOR International AG<br />
SNP AG<br />
Studio Babelsberg AG<br />
Sunways AG<br />
syzygy AG<br />
update software AG<br />
UR Holding S.p.A.<br />
Viscom AG<br />
vwd Vereinigte Wirtschaftsdienste AG<br />
Westag & Getalit AG<br />
Zapf Creation AG<br />
41
42<br />
<strong>DVFA</strong> GmbH annual financial statements<br />
Balance Sheet_<br />
Balance Sheet<br />
as at 31 December 2008 (in EUR)<br />
ASSETS 2008 2007<br />
EUR EUR<br />
Fixed Assets 213,730.51 254,743.51<br />
Current Assets 3,161,592.40 3.327.399,72<br />
of which<br />
treasury stocks 0.00 450,000.00<br />
Accruals 23,092.14 22,081.13<br />
Total Assets 3,398,415.05 3,604,224.36<br />
The 2008 financial statements mark the close of the company’s 18th year. Total assets<br />
declined by EUR 206k year-on-year, to EUR 3,398k. Fixed assets were reduced through<br />
scheduled depreciation by EUR 41k to EUR 214k. Current assets were down EUR 166k.<br />
Shares were cancelled in the amount of EUR 450k. Receivables and other assets increased<br />
by EUR 79k and cash and liquid securities were EUR 205k higher.<br />
Equity declined to EUR 1,893k, through liquidation of the reserve for own shares in the<br />
amount of EUR 450k and retention of the EUR 182k net profit. The equity ratio is now at<br />
56%. Provisions were down by EUR 69k. Liabilities increased by EUR 55k. The amount<br />
recognized under accruals and deferred income was EUR 77k higher at EUR 319k, and<br />
stems from training program fees received in 2008 for courses to be held in 2009.<br />
LIABILITIES 2008 2007<br />
EUR EUR<br />
Subscribed Capital 30,677.51 30,677.51<br />
Profit Accrurals for own<br />
participating interests 0.00 450,000.00<br />
Retained Earnings 1,680,625.65 1,371,607.90<br />
Net Profit 181,856.96 309,017.75<br />
Equity Capital 1,893,160.12 2,161,303.16<br />
Provisions 928,033.97 997,521.27<br />
Liabilities 258,381.96 203,814.93<br />
Accruals 318,839.00 241,585.00<br />
Total Assets 3,398,415.05 3,604,224.36
<strong>DVFA</strong> GmbH annual financial statements<br />
Profit & Loss Statement<br />
as at 31 December 2008 (in EUR, rounded)<br />
Profit & Loss Statement_<br />
The profit and loss statement for financial year 2008 reflects net revenues (turnover) of<br />
EUR 3,838k (2007: EUR 4,122k), equating to a decline of 7%. Turnover was generated<br />
primarily by the areas: training and professional development, conferences and forums.<br />
The company received its contractual 75% share of membership dues and joining fees<br />
received by <strong>DVFA</strong> e.V. as payment for its organisational and administrative services.<br />
Material expenditures declined by EUR 1k to EUR 1,293k. The largest outlays within<br />
material expenditures are attributable to instructors’ fees, marketing and event costs.<br />
Personnel expenses were EUR 32k (2%) higher, at EUR 1,734k. Depreciation costs totalled<br />
EUR 67k (2007: EUR 83k). Other operating expenses were down by EUR 23k (3%) to EUR<br />
638k. After taxes, this results in net profit for the year of EUR 182k (2007: EUR 309k).<br />
The 2008 annual financial statements were audited by Ebner Stolz Mönning Bachem<br />
GmbH & Co. KG, Wirtschaftsprüfungsgesellschaft, Steuerberatungsgesellschaft, Frankfurt<br />
am Main, and received an unqualified opinion.<br />
P + L 2008 2007<br />
EUR EUR<br />
Turnover 3,838,354 4,121,548<br />
Other Operating Revenues 37,915 41,234<br />
Material Expenditure 1,292,529 1,294,078<br />
Personnel Expenditure 1,733,623 1,701,767<br />
Depreciations 67,188 83,082<br />
Other Operating Expenditure 637,996 661,271<br />
Net Interest Income 104,236 75,672<br />
Operating income 249,169 498,256<br />
Taxes on Earnings 67,313 189,238<br />
Net profit 181,856 309,018<br />
43
Society of Investment Professionals in Germany