Gb08_engl Umschlag:GB 2005 - DVFA

Annual Report 2008 

Society of Investment Professionals in Germany

Annual Report 2008_ 


Imprint 

Publisher: DVFA e.V. 

Einsteinstraße 5 

D-63303 Dreieich 

Tel.: 06103 | 5833-0 

Fax: 06103 | 5833-33 

Mail: info@dvfa.de 

Web: www.dvfa.de 

Development and Text: DVFA GmbH 

Chief Editor: Ralf Frank | Dr. Peter König 

Editing: Natascha Bingenheimer 

Design: ReichDesign | Frankfurt/M. 

Print: Ph. Reinheimer | Darmstadt 

This publication and all parts thereof 

are copyrighted. Any use beyond the 

scope of the German Copyright Act 

(Urheberrechtsgesetz - UrhG) without 

the express permission of the DVFA 

is prohibited and punishable by law. 

This applies in particular to copying, 

translating, microfilming and 

electronic storage and processing.

content 

DVFA e.V. 

Table of Contents_ 

The Board 

Report of the Board ______________________________________________________________________________ 05 

Members of the Board ____________________________________________________________________________ 07 

The Society 

Members of the Advisory Board ________________________________________________________________ 08 

Corporate Sponsors of DVFA ____________________________________________________________________ 08 

DVFA Representatives and Honorary Members ______________________________________________ 09 

Overview ___________________________________________________________________________________________ 10 

Activities of the Committees 

Equities ____________________________________________________________________________________________ 11 

Feature: DVFA Clubs ______________________________________________________________________________ 14 

Fixed Income ______________________________________________________________________________________ 16 

Feature: The role of rating agencies __________________________________________________________ 18 

Asset Management _______________________________________________________________________________ 22 

Feature: Press reactions to the DVFA financial papers series _____________________________ 24 

Panel on Financial Market Communication __________________________________________________ 27 

Panel on Financial Market Regulation _________________________________________________________ 28 

Feature: Members’ Meeting and Garden Party ______________________________________________ 30 

EFFAS 

EFFAS AGM in Paris _______________________________________________________________________________ 31 

EFFAS Summer School ___________________________________________________________________________ 33 

DVFA e.V. Annual Financial Statements _______________________________________________________ 34 

DVFA GmbH 

Report of the Management _____________________________________________________________________ 36 

Feature: DVFA graduation ceremony ___________________________________________________________ 38 

Feature: DVFA establishes alumni network ____________________________________________________ 39 

Feature: Symposium Wealth Management ____________________________________________________ 40 

Feature: 6.SCC_ Small Cap Conference _______________________________________________________ 41 

DVFA GmbH Annual Financial Statements ____________________________________________________ 42 

03

Dealing with the financial crisis will require 

investment in professional qualification as well 

as deliberate and sustainable implementation 

of ethical standards.

the board 

Ladies and Gentlemen, Dear Members, 

Report of the Board_ 

In these trying times, being an investment professional is no easy task. The imbalances 

in the structure, trading and distribution of certain complex products have unleashed a 

crisis that resulted not only in a severe strain on the financial industry itself, but has 

impacted nearly every other sector of the economy as well. In the wake of this, the entire 

world is now experiencing the greatest economic crisis in more than 50 years. 

Government and citizenry have been called upon to step in and rescue the banking and 

financial system from collapse, as mutual trust, especially within the financial system, 

has broken down completely over the past several months. 

We expect the steps taken towards stabilization to prove effective. The governments 

and central banks have largely been proportionate in their response. The mistakes 

made during the Depression era of the 1930s have not been repeated. And, lessons 

have also been drawn from the situation in Japan over the past 20 years. Of course, it 

was a cardinal error to stand idly by as Lehman Brothers failed. 

Nevertheless, it must be remembered that the financial industry was responsible for 

the crisis, in conjunction with misguided deregulation and easy-money policy. Thus, 

the financial industry is now called upon to rebuild mutual trust among its members, 

along with the confidence of their customers and, most importantly, the faith of society 

in the financial system as a whole. A key element in this context will be to bring the 

relation between risk and reward into balance, for both the customer and the financial 

services provider. Consequently, the focus must be on methodological and ethical 

standards for professionals in the industry. 

DVFA, as a professional association, along with its members and Committees, seeks to 

contribute as much as possible to this effort. We can only repeat what was stated last year 

at this point: "We believe that market participants and investment professionals will have 

to place greater emphasis on addressing informational deficits and attaining a comprehensive 

understanding of the interactions, interrelationships and risks of global markets 

going forward. Dealing with the financial crisis will require investment in professional 

qualification as well as deliberate and sustainable implementation of ethical standards." 

In 2008, our Committees worked on the topics: rating standards, performance measurement 

standards, fairness opinions and REITs legislation. The Committees met regularly 

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the board 

Report of the Board_ 

and prepared publications. Our Standards for Fairness Opinions were expanded; the 

financial paper on REITs legislation was published. The fourth annual Fixed Income 

Forum held last May in Stuttgart focused on the subprime crisis and its effects. The 

CRUF Germany, German Corporate Reporting User Forum, is leading the way in issues 

of accounting; it met a total of four times in 2008. The asset management forum was 

established successfully in December. 

There were also four DVFA Club events in 2008. The first Club event in February focused 

on the topic "Credit derivatives and the ongoing crisis". In June 2008, "Certificates" 

were on the agenda. In September, there was a lively discussion on "The role and 

methods of rating agencies". The year was rounded out in December with the Club 

dedicated to "The role and activities of the FREP - the German Financial Reporting 

Enforcement Panel”. All Clubs were successful and had good attendance from the 

members of the industry. 

In December 2008, DVFA had 1,203 individual members and 18 corporate sponsors. 

The DVFA e.V. 2008 annual financial statements were audited by Ebner Stolz Mönning 

Bachem GmbH & Co. KG, Frankfurt am Main, and received an unqualified opinion. 

The Board thanks all of the Committees for their good work as well as the employees 

of the DVFA administrative headquarters for their commitment. As always, we invite all 

members and friends of DVFA, as well as all of our colleagues in the industry, to join us 

in 2009 and contribute to improvement of the methodological and ethical foundations 

of the profession, so that we may once again present ourselves as a reliable, solid and 

stable community of professionals. 

Dreieich, March 2008 DVFA e.V. Board

the board 

Fritz H. Rau 

DVFA e.V., Chairman, 

Financial Market Regulation 

Klaus Holschuh 

DZ BANK AG 

Treasurer, Fixed Income 

Frank K lein 

DB Advisors 

Asset Management 

Dr. Peter Merk 

LB Baden-Württemberg 

Deputy Chairman, Fixed Income 

Winfried Becker 

Oppenheim Research GmbH 

Equities 

Ingo Mainert 

cominvest GmbH 


Members of the Board_ 

Andreas Heinrichs 

Vontobel Securities AG 

Secretary, Equities 

Ernst-Ludwig Drayß 

Berlin & Co. AG 


Gunnar Miller 

Allianz Global Investors KAG 

Equities 

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the society 

Members of the Advisory Board 

Claus Döring 

Börsen-Zeitung, Chief Editor 

Norbert Enste 

B. Metzler seel. Sohn & Co. KGaA, Partner 

Nils Frowein 

AWD Holding AG, Deputy Chairman 

Prof. Dr. Wolfgang Gerke 

Bayrisches Finanz Zentrum e.V., President 

Lars Hille 

DZ BANK AG, Management Board 

Prof. Dr. Jan Pieter Krahnen 

Center for Financial Studies, Director 

Dieter Pfundt 

Sal. Oppenheim jr. & Cie KGaA, Partner 

Dr. Lutz R. Raettig 

Morgan Stanley AG, Supervisory Board Chairman 

Dr. Hans Reckers 

Deutsche Bundesbank, Executive Board 

Peter Roemer 

Advisory Board & Corporate Sponsors_ 

Deutsche Asset Management Investment GmbH, 

Speaker of the Management Board 

Dr. Zeno Staub 

Bank Vontobel AG, Management Board 

Wolfgang Stertenbrink 

Alte Leipziger-Hallesche, Management Board Chairman 

Hans-Joachim Strüder 

LB Baden-Württemberg, Management Board 

Werner Taiber 

WestLB AG, Management Board 

Andreas Utermann 

Allianz Global Investors AG, Management Board 

DVFA Corporate Sponsors 

� Bayerische Landesbank Girozentrale 

� BHF-BANK AG 

� Commerzbank AG 

� Deutsche Apotheker- & Ärztebank eG 

� Deutsche Bank AG 

� Deutsche Börse AG 

� Dresdner Bank AG 

� DWS GmbH 

� DZ BANK AG 

� HSBC Trinkaus & Burkhardt KG 

� Jungheinrich AG 

� Landesbank Baden-Württemberg 

� Landesbank Berlin AG 

� R+V Versicherung 

� RCM Allianz Global Investors AG 

� SAP AG 

� Vossloh AG 

� West LB AG

the society 

Representatives National 

Representatives International 

Representatives ACIIA 

Representatives EFFAS 

Representatives ILPIP 

Internal Dispute Settlement 

Honorary Members of DVFA 

DVFA Representatives & Honorary Members_ 

Exchange Council of the Frankfurt Stock Exchange ____________________ Heinz-Jürgen Schäfer 

DRSC - German Standardization Council ________________________________________ Norbert Barth 

DRSC - Working Group on Pensions ___________________________________________________ Ralf Frank 

DRSC - Working Group on Classification of items as equity or liabilities _____ Sigrid Krolle 

DRSC - Working Group Fair Value ____________________________________________ Michael Schickling 

Federal Financial Supervisory Authority (BaFin) Advisory Committee ______ Dr. Peter König 

GAMSC - German Asset Management Standards Committee _________________ Dr. Peter König 

XBRL e.V. __________________________________________________________________________________ Ralf Frank 

European Investment Performance Committee (EIPC) ____________________ Martin Schliemann 

IASB Insurance Working Group ____________________________________________________ Norbert Barth 

IASCF XBRL Advisory Committee _______________________________________________________ Ralf Frank 

XBRL International Best Practice Board _______________________________________________ Ralf Frank 

IASB Joint International Group on Performance Reporting _______________ Hans-Joachim Pilz 

EFRAG Insurance Accounting Working Group (IAWG) ______________________ Dr. Carsten Zielke 

ACIIA Council ____________________________________________________________________________ Fritz H. Rau 

International Examinations Committee (IEC) __________________________ Prof. Raimond Maurer 

Committee on Intellectual Capital (CIC) _______________________________________________ Ralf Frank 

Commission on ESG Environmental, Social, Governance Issues (CESG) __________ Ralf Frank 

Executive Management Committee (EMC) until 28.06.2008: _____________________ Fritz H. Rau 

Market Structure Group (MSG) _______________________ Dr. Peter König, Dr. Otto Graf Praschma 

Training and Qualification Committee (TQC) ___________________________________ Dr. Peter König 

ILPIP Council _____________________________________________________________________________ Fritz H. Rau 

Arbitration Panel: 

Dr. h.c. Gerd Nobbe ___________ Chairman 

Judge (Ret.) German Fed. Court of Justice 

Dr. Jürgen Callies __________________ Arbiter 

Helmut Mader _________ ____________ Arbiter 

Margot Schoenen _________ Deputy Arbiter 

Christian Strenger ________ Deputy Arbiter 

Prof. Dr. Carsten P. Claussen, Michael Hauck, Dr. Peter Maurer 

Ethics Panel: 

Thomas Sagebiel ______________ Chairman 

Presiding Justice Darmstadt Regional Court 

Thomas Neisse ____________ Panel Member 

Bruno Hidding ____ Deputy Panel Member 

Dr. Lars Slomka ___ Deputy Panel Member 

Rudolf Symmank _________ Panel Member 

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the society 

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EQUITIES FIXED INCOME ASSET MANAGEMENT 

CRUF Germany 

[Corporate Reporting User Forum] 

Expert Groups Financial Reporting 

[Banks, Insurance, Real Estate] 

Expert Group Valuation 

Expert Group Fairness Opinions 

FAC 

[Financial Accounting Committee] 

Committee Life Science 

Committee on Standards 

for Investment Research 

Overview of DVFA Committees & Expert Groups_ 

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Fixed Income Forum 

Committee Rating Standards 

Expert Group: Rating-relevant 

aspects of mezzanine financing 

Expert Group: Rating-relevant 

aspects of IFRS adoption 

Expert Group: Rating standards 

for ABS 

Expert Group: Use of rating scales 

FINANCIAL MARKET COMMUNICATION PANEL 

Committee on Effective Financial 

Market Communication 

FINANCIAL MARKET REGULATION PANEL 

Corporate Governance 

Committee 

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Asset Management Forum 

Committee Investment 

Performance Standards 

Expert Group: Leverage 

Expert Group: Assets under 

management 

Committee for 

Non-Financials 

Code Committee

activities of the committees 

CRUF Germany 2008 

For more than a year, the members of CRUF Germany have met every six to eight weeks 

after the inaugural events of Fortis Investments and Allianz Global Investors at the DVFA 

Center, to discuss current amendments to accounting rules and analyse changes under 

IFRS. In particular, the tireless efforts of PwC have contributed to prompt examination 

and evaluation of all topics of interest to the IASB and the investment community, thus 

giving analysts and portfolio managers the ability to incorporate accounting changes 

into their workflows at an early stage. 

One highlight of 2008 was the presentation by Dr. Herbert Meyer, President of the FREP - 

Financial Reporting Enforcement Panel. 

Committee Financial Accounting 

The Committee Financial Accounting was founded in November 2007 as a steering group 

for the DVFA Expert Groups and Committees in the center-of-competence Equities. Representatives 

of the FAC also work in a variety of other industry groups, such as the IASB, 

DRSC, CRUF to name but a few. 

Expert Group Banks 

Equities_ 

This Expert Group met once last year. After the international rating agencies came 

under criticism in the context of the financial market crisis, an analyst from S&P was 

brought in to instruct our Expert Group on the basics of rating methodology for banks 

in a lecture with subsequent discussion. Afterwards, Prof. Löw from KPMG gave a talk 

on the requirements for segment reporting under IFRS 8. To close the meeting, Mr. 

Weigel of PwC made a presentation on the most important elements of Germany’s 

Accounting Law Modernization Act (Bilanzrechtsmodernisierungsgesetz - BilMoG). The 

Banks Expert Group plans to meet at least once a year in the future as well. 

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Expert Group Real Estate Financial Reporting 

This Expert Group concentrated on three areas during its six meetings and accompanying 

activities in 2008: One focus was completion of the book “Real Estate as a Capital Market 

Product”, which offers a comparative analysis of public real estate firms and REITs vs. 

open-ended real estate funds (and derivatives) from the point-of-view of a capital market 

analyst or investor. The more than 600-page volume was published in January 2009. 

The group’s second priority was an intensive examination of a position paper, published 

as part of the DVFA financial papers of series, on the REIT-G and its weaknesses. The 

third area of activity for the Expert Group Real Estate Financial Reporting was development 

of an index for measuring and assessing the transparency of listed real estate firms. The 

initial results of this work are to be presented in the course of 2009. 

Expert Group Fairness Opinions 

Equities_ 

In September 2007, the Expert Group Fairness Opinions published its “Standards for 

Fairness Opinions”, with the objective of establishing best practice standards for the 

content of fairness opinions and proper handling of potential conflicts of interest. The 

principles contained in this publication were aimed at fairness opinions for the boards of 

target companies in a takeover bid, the most common form found in Germany. In this case, 

section 27 of the German Securities Acquisition and Takeover Act (Wertpapiererwerbsund 

Übernahmegesetz - WpÜG) requires an assessment of the financial appropriateness 

of the consideration offered. This assessment is often supported by the fairness opinion. 

In 2008, the Expert Group also drafted recommendations for bidder companies, and 

the revised Standards for Fairness Opinions (now expanded for the boards of target 

and bidder companies) were published in November 2008. At the bidder company, just 

as at the target company, the fairness opinion can serve as proof that the management 

board has acted in accordance with its obligations. The new standards for bidder companies 

are focussed primarily on the proper handling of conflicts of interest. The work 

of the Expert Group Fairness Opinions will be transferred in 2009 to the Corporate 

Transaction & Valuation Expert Group, which began its work in January 2009 under the 

chairmanship of Prof. Schwetzler and Dr. Christian Aders.


Expert Group Financial Reporting Valuation 

The tasks of the Expert Group Valuation include the drafting of recommendations on 

topics of valuation methodology. Most recently, their work was focused on valuation of 

pension provisions using the DCF method. 

In its further work, the Expert Group Valuation will look at the three most common DCF 

approaches (equity, entity and APV). The entity approach - a.k.a. WACC approach - is more 

prevalent in investment banking and will be given greater attention than the other two. 

In addition to general issues, such as the alignment of capital costs and relevant cash 

flow definitions, or the determination of risk premiums, specific questions will be 

examined, e.g. taking into account different tax systems and personal income tax of 

the investor, or valuation of deferred tax losses and intangible assets. 

Committee Life Science 

Equities_ 

DVFA was once again media partner of the life science journal ‘transcript”, published 

by BIOCOM AG, for a feature edition entitled “Biotech: Capital and Equity” in mid-May 

2008. This special issue was aimed at interested capital market players and copies of 

it were sent by DVFA to its members who are active in the biotech sector. 

The institutions represented on the Committee Life Science played an active role, contributing 

articles like “To sell or not to sell?”, “Company financing via the capital market” 

and “Every euro invested outside of the US is at my own risk”. Preparations are currently 

underway for the 2009 special edition, in connection with which DVFA will again 

act as media partner. In the first quarter of 2008, an informational article “White biotechnology” 

was also completed and published. 

On 02 June 2008, a symposium held in Frankfurt on “M&A and licensing in the life science 

market” was met with great interest. In light of the success enjoyed by the first DVFA 

Life Science Symposium, another one-day event in Frankfurt is scheduled for the summer 

of 2009, to address the topic “From molecular diagnostics to personalised medicine”. 

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featu DVFA Club +++ DVFA Club +++ DVFA Equities_ Club 

The DVFA Club was introduced in 2007 as a new event format focusing on current capital market 

topics, which serves primarily as a networking opportunity. 

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DVFA Club “Credit derivatives and the current crisis” February 2008 

On 19 February, a Club evening was held focussing on “Credit derivatives and the current 

crisis". The event coincided with the European Bond Commission meeting at the DVFA 

Center, which meant that a number of guests from other countries were in attendance. 

Dr. Thomas Klepsch of State Street, Klaus Holschuh from DZ BANK and Uwe Burkert, 

Head of Credit Research at LBBW spoke about products incorporating credit derivatives, 

the specific effects of the crisis on liquidity and the probability of a recession in the US. 

DVFA Club “Certificates” June 2008 

Certificates are a relatively new asset class that is currently enjoying a boom in popularity. 

But, it is becoming progressively more difficult to keep track of the high number 

of products available. The third DVFA Club on 09 June 2008 therefore focused on the 

topic of “Certificates”. 

The high degree of creative flexibility in the construction of new structured products 

makes it particularly important that investors be qualified and informed. Given the 

diversity of product names and features, they must actively follow developments in the 

market. To this end, DVFA invited two experienced bank managers to talk about the 

topic. Ralf Frank hosted the evening. 

Lars Hille, member of the DZ BANK AG Management Board, is responsible for equity and 

retail securities business at DZ Bank. He is also a member of the DVFA Board. In addition 

to his position as Managing Director of NewMark Finanzkommunikations GmbH, Hubertus 

Väth has various university teaching engagements. His areas of expertise include a 

specialisation in derivative financial products. After the presentation, there was an 

active discussion, primarily about the future of the certificate industry.

featu DVFA Club +++ DVFA Club +++ DVFA Equities_ Club 

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DVFA-Club “The role of ratings and rating agencies” September 2008 

With more than 70 participants, the DVFA Club on “The role and methods of rating 

agencies" was a good success. Prof. Jens Leker of the Westfälische Wilhelms Universität, 

in Münster held a talk entitled “Financial rating systems - model development and 

assessment”. Frank Cerveny, ABS & Structured Credit Research, also spoke about the 

"Role and methods of rating agencies". 

The follow-up discussion with the participants was very lively, given the acute relevance 

of the topic. It was concluded that a differentiation of rating categories in the investment 

grade sector is impossible and/or statistically irrelevant. The determination of ratings 

without historical data was also deemed extremely problematic. This, in conjunction with 

conflicts of interest at rating agencies, was seen as a significant factor in the emergence 

of the subprime crisis. 

DVFA-Club “Role and activities of the FREP” December 2008 

On 15 December, Dr. Herbert Meyer, President of the FREP, offered participants of the 

fifth DVFA Club a comprehensive insight into the German Financial Reporting Enforcement 

Panel. The FREP is a privately sponsored association, which audits the annual and 

consolidated financial statements and management reports of capital market-oriented 

companies as part of the two-tier enforcement process in Germany. 

Response to the fifth DVFA CLUB was outstanding. Ralf Frank, DVFA Managing Director, 

introduced the speaker and spoke about the importance and necessity of generally 

accepted accounting standards in company financial reports. 

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Meeting of the European Bond Commission in DVFA Center 

The year began for the center-of-competence Fixed Income with the meeting of the 

European Bond Commission (EBC) of the European Federation of Financial Analysts’ 

Societies (EFFAS) on 18 and 19 February 2008. 

The ongoing credit crisis was the number one topic at the meeting. “Is the US heading 

for recession?” was the central question addressed in a debate between Con Keating 

of Brighton Rock and Klaus Holschuh of DZ BANK. Other presentations dealt with the 

transparency of rating agencies and money market rates. In this context, the experts 

criticised the theoretical nature of the LIBOR, which is not based on actual transaction 

data. The EBC was thus prompted to initiate a project for publication of market-relevant 

money market rates. Dr. Thomas Klepsch, Vice Chairman of the EBC, presented the 

results of the discussion and the working paper "Liquidity and efficient markets" drafted 

at the Fixed Income Forum. 

Fixed Income Forum 

Fixed Income_ 

The DVFA Fixed Income Forum provides a platform for professionals from the areas of fixed 

income and credit research and members interested in these areas to remain informed 

about the activities of the Society, as well as helping to set the direction for new initiatives 

and projects. Participants prepare presentations on current topics as a basis for 

discussions. The Forum is organised by the two DVFA Board members in charge of Fixed 

Income and meets as often as twice each year. The Chairman of the Forum is Dr. Helmut 

Kaiser, Chief Investment Strategist in Private Wealth Management at Deutsche Bank. 

At the fourth Forum, which met on 06 May 2008 upon an invitation by LBBW (Landesbank 

Baden-Württemberg) in Stuttgart, Dr. Helmut Kaiser spoke about “The US subprime 

crisis and its effects”, Alfred Anner, Senior ABS Analyst at Bayern LB presented his 

“Outlook for European ABS - is there any future for the market?” and Dr. Michael Stein, 

Credit Analyst at LBBW addressed the group on “Structured credit products - a critical 

look at quantitative models”. The presentations are available for download on the 

DVFA website. There was also a report by Prof. Harald Krehl of DATEV relating to the 

work of the Rating Standards Committee.


Committee Rating Standards 

Fixed Income_ 

The financial crisis meant a heavy workload for our members over the course of last year, 

a fact that was not without effect on the activities of this Committee. Nonetheless, the 

results of their work received a positive assessment at the meeting in December, as the 

members looked forward to the 15th anniversary of the CCrA Course, the popularity of 

which is thriving despite - or perhaps because of - the financial crisis, as well as release 

of the recently published book “Credit Analyst” and the DVFA Club on “Rating Agencies”. 

Expert Group 1 (Rating-relevant aspects of mezzanine financing) published the results of 

its work in 2007 as part of the DVFA financial paper 05/07 “Forms of mezzanine financing 

and the balance sheet rating”. This publication was received very well by the professional 

public, and has triggered a number of follow-up discussions. Consequently, Expert Group 

1 will remain assembled, in order to follow new developments in the constantly changing 

mezzanine market and address them in a new or revised publication. Expert Group 2 

(Rating-relevant aspects of IFRS adoption) began its work in 2007, to develop a crossregime 

(HGB and IFRS) scheme for financial statements. Its activities are currently on 

hold until the changes resulting from the Accounting Law Modernization Act (Bilanzrechtsmodernisierungsgesetz 

- BilMoG) are known. Two new Expert Groups are to begin work 

in 2009: Expert Group 3 (Rating standards for ABS products) and Expert Group 4 

(Interpretation and practice of rating scales), under the chairmanship of Dr. Everling. 

New book: “Credit Analyst” published by Oldenbourg Verlag 

In December 2008, German publishing group Oldenbourg Verlag released a new textbook 

entitled “Credit Analyst”. On nearly 400 pages, the book provides a collection of 

important information and materials relating to qualification for the postgraduate programme 

“Certified Credit Analyst” (CCrA). The editors, Dr. Oliver Everling, Klaus 

Holschuh and Prof. Jens Leker, were engaged by the publishing house to put together 

the volume using articles contributed by DVFA instructors. It offers a good foundation 

in readying for the DVFA postgraduate CCrA programme, and is a handy guide for participants 

throughout the course. It also serves as a source for graduates of the course 

to refresh their knowledge of the materials and as a general reference for intensification 

of financial industry knowledge in the area of credit anaylsis. 

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featu The role of rating agencies_ 

Equities_ 

The role of rating agencies and the discussion about a suitable regulatory framework 

In the context of the discussion about a market-compatible regulatory framework for the activities of rating agencies, a 

number of public consultations have taken place over the past several years. A key role in this was played by the various 

associations of securities regulators. These include the Committee of European Securities Regulators (CESR) and the 

International Organization of Securities Commissions (IOSCO). 

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IOSCO measures for regulation of rating agencies 

At the end of 2008, the IOSCO amended its Code of Conduct for Credit Rating Agencies. 

The IOSCO Code has been in effect since 2004 and contains voluntary minimum standards 

as well as rules of conduct for rating agencies. According to the revised version of the 

IOSCO Code, rating agencies should provide more information about the methods and 

assumptions used to arrive at the ratings they issue. Moreover, they must ensure an 

objective decision-making process in the context of regular ratings reviews. This is to 

be accomplished through establishment of an independent function for regular assessment 

of rating methods and models. In the case of unsolicited ratings, the IOSCO Code 

calls for more transparency through publicly accessible information referencing the 

fact that the rating process was not initiated at the request of the issuer. 

The most important change is the prohibition of advice relating to products that are the 

subject of a rating. According to this, CRAs may not rate financial products without sufficient 

historical data on which to base a credit rating. To prevent conflicts of interest, 

rating agencies are prohibited from providing advice on the design of structured products 

that the agency rates. There is particular potential for conflicts of interest when 

the agency provides so-called “rating assessment services” to the issuer. This refers to 

analyses provided by the agencies to the issuers on the effects of a theoretical event - e.g. 

a merger - on the rating. Especially in the context of structured products, the communication 

between issuer and agency about the consequences of certain events has a 

determining impact on the structuring of individual tranches of the product. 

A weakness of the IOSCO Code continues to be its lack of legally binding rules of conduct 

for rating agencies. Furthermore, there is no independent body in place to monitor implementation 

of and compliance with the more stringent requirements of the Code, and IOSCO 

continues to rely on voluntary compliance with the rules of conduct by the rating agencies.


Equities_ 

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European Union measures for regulation of rating agencies 

In reaction to the crisis on the international financial markets, the European Commission 

also initiated an assessment of the role played by rating agencies. To this end, the 

CESR held a consultation in March 2008 and urged improvements in the area of structured 

financial products. This was followed at the end of July 2008 with a consultation 

process by the European Commission on the regulatory proposals, which were oriented 

on the IOSCO Code, but called for statutory regulation of the rating agencies. The 

result of this consultation is a draft Regulation proposed by the Commission on 12 

November 2008. Adoption of the Regulation is expected in the spring of 2009. The 

Commission intends for the Regulation to become a global standard. 

The most important element is a supervisory system for registration and monitoring of 

rating agencies by European regulators. Monitoring of the agencies is to be performed 

by the national supervisory authorities already responsible for regulation of the financial 

markets. Applications for registration, on the other hand, are to be centrally administrated 

by the CESR, which will also be in charge of ensuring uniform procedures in all member 

states of the European Union. Moreover, the proposal sets forth a rule that only (external) 

ratings provided by EU-based rating agencies registered in accordance with the Regulation 

may be used for regulatory and bank supervision purposes. 

Other provisions relate to the handling of conflicts of interest, quality assurance for 

rating methods and ratings, as well as measures to ensure greater transparency. For 

instance, the agencies will be required to disclose the methods, models and underlying 

assumptions for their ratings. This is meant to ensure transparency of ratings, and 

allow investors to adequately assess risk. Rating agencies must also guarantee that 

the ratings are not influenced by conflicts of interest. Thus, advisory services in the 

area of product development should not be mixed with product assessment. A rotation 

system for employees of rating agencies will be introduced to eliminate or reduce the 

risk of conflicts of interest. For structured financial instruments, the Commission conceives 

of stricter rules than those applicable to corporate bonds. 

The rating agencies must either employ different classifications for structured financial 

instruments, or provide specific information on the risks involved with them. Additionally, 

the ratings of structured financial instruments must be subjected to continuous 

monitoring. The supervisory board or board of directors of rating agencies must also 

include at least three independent members, whose remuneration is not based on the 

business performance of the rating agency. 

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Equities_ 

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Overview of the new rules 

1. Independence and prevention or at least appropriate handling of conflicts of interest 

in the rating process 

� Disclosure of conflicts of interest that could threaten the independence of the rating 

agency or its employees involved in the rating process 

� Limitation of activities to rating and ancillary services; no advisory services 

� Implementation of internal policies to prevent conflicts of interest and ensure integrity 

and thoroughness 

� Rotation arrangements for employees 

2. Improvement of methodological and rating quality 

� Sound analysis of credit risk of a borrower or issuer 

� Disclosure of methodologies, models and key assumptions 

� Allocation of a sufficient number of employees with appropriate knowledge and experience 

to credit rating activities 

� Establishment of internal control mechanisms to monitor the quality of ratings, and 

continuous monitoring and updating of rating methods 

� Disclosure of modifications to rating methods, as well as information on which ratings 

could be affected by them and calculation of the new ratings 

3. Increased transparency through disclosure requirements 

� Specific disclosure requirements for unsolicited ratings 

� Publication of a transparency report 

4. Introduction of a registration requirement and creation of a regulatory framework 

for credit rating agencies


Equities_ 

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Outlook 

The further discussion with respect to regulation of rating agencies will likely be influenced 

by whether stricter regulation of rating agencies is introduced worldwide, and 

how far any such tightening of the rules will go. The US will play a major role in this. 

Since June 2007, rating agencies in the United States are subject to supervision by the 

Securities and Exchange Commission (SEC). In December 2008, the SEC introduced 

more stringent regulatory requirements for rating agencies. Similar to the measures to 

be implemented by the European Union, the changes relate to prevention of conflicts 

of interest and improvement of transparency in the rating process. 

For instance, the list of prohibited conflicts of interest was expanded along with the 

requirements for transparency of rating methods. The new rules also require disclosure 

of information on earlier ratings. Furthermore, rating agencies are prohibited from providing 

advice to their clients on the structuring of financial instruments that are to be 

assessed by the agency afterwards. Such obvious conflicts of interest have already 

come under criticism by the US Congress. 

21

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Asset Management Forum 

Asset Management_ 

The appointment of Ingo Mainert (cominvest) and Frank Klein (DB Advisors) to the DVFA 

Board on 29 May 2008 brings the number of Board members responsible for Asset 

Management, together with Ernst-Ludwig Drayß (Berlin & Co. AG), to three. 

For the first time, there is now a body within the DVFA organisation that covers the entire 

asset management industry, focussing on issues such as standardisation, performance 

measurement, etc.: the “Asset Management Forum”, established in the autumn of 2008. The 

aim of the Forum is to provide a platform for the regular exchange of ideas between selected 

representatives of the asset management community, from investment firms, independent 

financial advisors, banks, insurance firms, pension funds, hedge funds and family offices. 

The industry is to come together in the Forum two or three times each year. The consensus 

among participants was that, especially in the current capital market environment, the 

Forum can fulfil an important function. 

Another area of discussion in 2008 was the distortion of Germany’s DAX index resulting 

from price irregularities relating to Volkswagen shares. The VW-share price movements, 

which were entirely disconnected from broader economic conditions, sector/market 

developments and fundamental valuation criteria, are without precedent in the history 

of the German market. This anomaly has led some to question the status of the DAX as 

a representative and investable market index for Germany. The ad hoc changes made 

by Deutsche Börse AG to certain index rules served to rectify some problems in the 

view of the investment industry - but the reaction by the index sponsor also raised 

some new questions. 

In light of the uncertainty among those who manage products based on the DAX and 

other German indices, DVFA called together a new Working Group in the autumn of the 

year. In two meetings in November and December, the group initially prepared two opinions, 

which DVFA together with the Bundesverband Investment und Asset Management 

e.V. (BVI) introduced into discussions with Deutsche Börse AG.


Committee Investment Performance Standards 

Asset Management_ 

In 2008, the Committee Investment Performance Standards (IPS) of the “Germany Asset 

Management Standards Committee” continued to focus on the German translation of the 

GIPS, and on revision of the standards themselves. 

Work on translation of the GIPS into German was successfully completed in 2008. The 

Executive Committee of the international GIPS organisation approved the translation 

on 08 December 2008. 

A complete revision of the Global Investment Performance Standards is set to enter into 

force on 01 January 2011, under the name GIPS 2010. In addition to the international 

GIPS subcommittees, other bodies such as national performance commissions were 

involved in the revision. In a first step, five working groups within the Investment Performance 

Standards Committee (IPS) of the German Asset Management Standards 

Committee (GAMSC) completed a full review of the GIPS. The resulting amendment proposals 

of the working groups were then discussed in several phases, and presented as 

a table comparing the existing version and the proposed changes. The amendments 

were submitted to the GAMSC for approval, and subsequently forwarded by the GAMSC 

to the Executive Committee of the GIPS organisation. 

After completion of this work, the IPS created two working groups (“Leverage” and “Assets 

under Management”), to address enquiries from the asset management industry. In a 

sense, the two topics are closely related to one another, because the basis for performance 

measurement is not always clearly defined, especially for leverage products. At 

the same time, however, there are significant differences in the areas of focus, since 

the definition of “assets under management” is imprecise, both in relation to leverage 

products and other constructions. 

23

24 

featuPress reactions to the DVFA financial papers Equities_ series_ 

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Financial Paper: Fairness Opinions 

Fairness opinions are statements by external advisors on the financial appropriateness 

of a merger or acquisition. In Germany, they are usually drafted for, and at the behest of, 

the management and supervisory boards of target and bidder companies in connection 

with a takeover bid. A fairness opinion comprises two parts: The valuation memorandum, 

in which the transaction is described in detail, along with the informational basis, the 

valuation process and the procedure used to arrive at the opinion. And the opinion letter, 

which summarizes the transaction and contains the final opinion. 

The importance of fairness opinions is growing within the German M&A market. Nonetheless, 

there has until recently been a lack of standards with respect to the content, 

form and (if applicable) publication of fairness opinions, as well as the proper handling 

of potential conflicts of interest. In September 2007, the DVFA Fairness Opinions Expert 

Group developed standards for fairness opinions for the boards of target companies in a 

takeover bid, in connection with which section 27 WpÜG of the German Securities Acquisition 

and Takeover Act (Wertpapiererwerbs- und Übernahmegesetz - WpÜG) requires an 

assessment of the financial appropriateness of the consideration offered. This assessment 

is often supported by the fairness opinion. 

In November 2008, under the chairmanship of Prof. Bernhard Schwetzler, the Fairness 

Opinions Expert Group published the financial paper: “Fairness Opinions for the Management 

and Supervisory Boards of Target and Bidder Companies (Fairness Opinions) - in conjunction 

with offers for acquisition of securities in accordance with the German Securities 

Acquisition and Takeover Act (WpÜG)”, which expands the standards to include the 

perspective of the bidder companies. The new version of the financial paper provides a 

complete set of rules for the assessment of M&A transactions. For the bidder company, 

just as for the target company, the fairness opinion can serve as proof that the management 

board has acted in accordance with its obligations. 

The new standards for bidder companies are focussed primarily on the proper handling of 

conflicts of interest: here as well, the principle of transparency requires full disclosure of 

all potential conflicts of interest on the part of the fairness opinion author. This is especially 

relevant when the author advises the company with respect to the appropriateness 

of the transaction in exchange for a performance fee. The substantive requirements for 

fairness opinions in the case of (voluntary) disclosure are significantly less stringent 

than those requirements applicable to the target company: General information on the


u 

valuation methods are sufficient, as detailed public disclosure with respect to calculation 

of the offer price would weaken the negotiating position of the bidder in relation to the 

target company, and is therefore counterproductive. 

Prof. Bernhard Schwetzler is the Chairman of the Fairness Opinions Expert Group at the 

Society of Investment Professionals in Germany (DVFA). The press reaction confirms the 

importance and current relevance of the topic of fairness opinions: For instance, Börsenzeitung 

published a major article in January 2009, in which Christian Strenger and Bernhard 

Schwetzler emphasized that the DVFA standards are “good examples of best practice”. 

Similarly, Finanzbetrieb’s annual Fairness Monitor made detailed references to the new 

version of the financial paper, predicting that “these principles could establish themselves 

as standards for publication and transparency of fairness opinions.” In its March issue, the 

respected magazine, Die Bank, published an article about the growing importance of fairness 

opinions. The new financial paper is available under: www.dvfa.de/fairness-opinions 

Financial Paper: Position Paper on the German REIT Act 

The Real Estate Expert Group at DVFA has been intensively working on issues surrounding 

the German REIT Act, which entered into force in June 2007. In its financial 

paper, released in November 2008, the Expert Group argues in favour of a revision of 

the REIT Act. It considers the law to be well-crafted in many respects, but sees a need 

for optimisation in three areas: 

1. Better protection of REIT status against outside actions 

2. Rectification of unintended double taxation problems 

3. Creation of provisions enabling REIT takeovers 

The focus is on improved safeguarding of the REIT status against activities by third parties. 

Under the current legislation, REIT shareholders can endanger the status of a REIT 

by deliberately violating the 10% rule, and acquiring more than 10% of the REIT shares. 

This has the potential to cause substantial harm, subjecting the REIT to damage claims 

by its shareholders. The REIT and its management are powerless to prevent such 

actions. The same applies to violations of the free-float requirement by one or more 

shareholders. In the opinion of the Real Estate Expert Group, REITs must be protected 

against such outside actions through an amendment of the law. 

25

26 


Furthermore, there are various scenarios, unintended by the lawmakers, under which double 

taxation may occur as a result of the parallel application of REIT taxation and the halfincome 

method at investor level. Finally, the law should permit participation by REITs in 

other REITs, or a takeover of REITs by other REITs, in order to ensure efficient use of capital. 

The Expert Group suggests using the current phase of capital market turbulence to 

optimise these issues in the REIT Act, to create improved conditions for the subsequent 

emergence of a functional REIT market in Germany. 

The press has reacted with interest to the aims of the Expert Group under Chairman 

Prof. Rehkugler. Börsenzeitung, for example, ran the following headline on 23 October: 

“Financial analysts seek to help REITs”. The industry journal, REITs, commented on the 

new financial paper in its 22 October 2008 issue: “In particular, the penalisation of 

non-compliant shareholder structures is in need of revision. The experts are also calling 

for provisions allowing non-listed REITs and inclusion of residential properties.” Going- 

Public sums up the topic as follows: “The Expert Group has suggested that the current 

phase of capital market turbulence should be used to rectify the various inadequacies of 

the REIT Act, in order to improve conditions for the subsequent emergence of a functional 

German REIT market.”


Financial Market Communication_ 

Panel on Financial Market Communication 

The Principles for Effective Financial Communication, which were introduced in 2006, 

underwent a revision in 2008 and were presented to the public in Frankfurt as Version 3.0 

at the DIRK Annual Conference last May. The majority of the changes related to improving 

the language, since the substance of the Principles had already become well established 

in the industry. The Perception Profiles, based on the previous survey of roughly 500 

investment professionals, were also revised. An analysis of the results showed that the 

Principles for Effective Financial Communication reveal a number of general problems 

in financial communication - e.g. with respect to the way in which input from investment 

professionals is incorporated. Additionally, the members of the Financial Market 

Communication Panel provided intensive support to the Committee for Non-financials 

in the definition of KPIs for environmental, social and governance (ESG) issues. 

Committee for Non-Financials 

In March 2009, the DVFA Committee for Non-financials published its “Key Performance 

Indicators (KPIs) for ESG”. The paper introduces quantifiable figures as standards for 

corporate reporting in the areas of environment, social commitment and corporate 

governance. The publication was preceded by an approximately two-year phase of data 

collection and validation of topics by the Committee. Based on the results of a worldwide 

survey of investors in 2007, KPIs were defined on individual topics in dialogue with companies 

and industry associations. 

In May 2008, the DVFA standards received an endorsement from EFFAS, the European 

Federation of Financial Analysts Societies. In October 2009, an additional round of talks 

was held in Frankfurt with the CSR Alliance, a joint initiative between the EU and European 

industry associations. The DVFA KPIs for ESG have since been adopted by the CSR Alliance 

as an integral component of its work in the CSR Laboratory on Extra-financial Reporting. 

In March 2008, EFFAS and DVFA teamed up to host the second “Taking ESG into Account 

Conference” in Frankfurt. 150 investment professionals from Europe took part in the 

conference to discuss integration of extra-financial and non-financial indicators on ESG 

(environmental, social and governance) issues, sustainability, corporate governance and 

risk management in conventional company valuation and investment decision making. 

27

28 


Financial Market Regulation _ 

Regulatory Initiative 

Regulation of credit rating agencies 

Investment management amendment 

KWG and WpHG 

Panel on Financial Market Regulation 

The emphasis of the Panel in 2008 was on the discussion about a suitable regulatory 

framework for rating agencies. In this context, a total of three position papers were 

submitted to the International Organization of Securities Commissions (IOSCO), the 

Committee of European Securities Regulators (CESR) and the European Commission. 

The consultation processes related to the handling of conflicts of interest by rating 

agencies, the transparency of their activities and quality requirements for the rating 

process. In particular, the IOSCO consultation focused on an assessment of the impact 

from the financial crisis and the adaptation of the existing code of conduct to the present 

market realities. In the consultation processes of the CESR and European Commission, the 

role of rating agencies within the financial markets was examined in the context of the 

financial crisis, in particular with respect to the rating of structured financial instruments. 

DVFA involved its Committee Rating Standards in the preparation of the position papers. 

The papers themselves are available under: http://www.dvfa.de/cras 

An overview of the submitted position papers is provided on page 20. This report also 

contains a feature summarising the current proposals for regulation of rating agencies. 

DVFA/EFFAS position papers and participation in hearings 

DVFA-Activities 

1 position paper (31.03.08) 




Institution 

Committee of European Securities Regulators (CESR) 

International Organization of Securities Commissions (IOSCO) 

European Commission 

Federal Ministry of Finance (BMF)


Financial Market Regulation _ 

Committee Corporate Governance 

The Committee Corporate Governance, which works under the auspices of the DVFA 

Committee for Non-financials, was responsible for development of the Scorecard for 

German Corporate Governance © - a DVFA evaluation scheme based on the German 

Corporate Governance Code. 

As a result of the close substantive linkages between the two groups, members were 

significantly involved with the Committee Non-financials, given the important role of 

corporate governance in the context of ESG (environmental, social and governance) as 

a thematic focus of non-financial reporting. A detailed report on this work is available 

in the section on the Committee for Non-financials. 

In 2009, the Committees will focus on the significance of corporate governance for 

investment professionals, as well as the future informational requirements for companies 

in this context. 

Committee on Standards for Investment Research 

With implementation of the EU Markets in Financial Instruments Directive (MiFID) on 01 

November 2007, new rules came into effect for those who prepare and communicate 

financial analysis. 

In this context, the German Federal Financial Supervisory Authority (BaFin) published an 

official interpretation of section 31 (2) sentence 4 and section 34b WpHG, which replaces 

the existing interpretations of section 34b WpHG dated 16 December 2003, 01 August 

2005 and 08 February 2006. 

The Committee on Standards for Investment Research took this as an opportunity to 

present the information contained in the new official interpretation to members of 

DVFA e.V. in the form of a circular, and introduce the different types of financial analysis 

and the requirements to be fulfilled by those preparing and/or communicating 

financial analysis. 

29

30 

featu DVFA Members’ Meeting and Garden Equities_ Party_ 

u 

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DVFA Annual Members’ Meeting 

The regular Members’ Meeting, under the chairmanship of Mr. Fritz H. Rau, was held at 

the DVFA Center in the Signaris building on 29 May. The focus of the meeting was on 

election of the Ethics Panel and the Arbitration Panel, as well as election of the Board, 

which takes place every two years. 

Mr. Markus Plümer, Dr. Herold C. Rohweder and Mr. Michael Schubert withdrew from the 

Board. The current Board members nominated Ingo Mainert, cominvest Asset Management 

GmbH, Gunnar T. Miller, RCM - Allianz Global Investors AG and Frank Klein, DB 

Advisors, as candidates for election to the Board. The following candidates were on the 

ballot for election as executive members of the Board: Fritz H. Rau, Chairman, Dr. Peter 

Merk, Deputy Chairman, Andreas Heinrichs, Secretary, and Klaus Holschuh, Treasurer. 

Winfried Becker and Ernst-Ludwig Drayß were up for election to other Board positions. 

DVFA Garden Party 

The DVFA garden party on 29 May 2008 was a great success. DVFA hosted more than 200 

guests at the end of a fully packed day organised around the annual Members' Meeting. 

The casual summer event was held 

in the beautifully landscaped courtyard 

of the DVFA Center in the heart 

of Frankfurt. 

“The enormous turnout and positive 

response confirms to us that the 

garden party should become a regular 

event,” said Dr. Peter König. 

Ralf Frank added: “The inauguration 

of our new Center in Frankfurt's 

banking district was the occasion 

for our ‘housewarming party’ last 

year. It was a good idea - the gettogether 

has proved very popular.”

EFFAS 

The new EFFAS Executive 

Management Committee: 

Giampaolo Trasi (I) 

Chairman 

René Willemsen (NL) * 

Gonzalo Milans del Bosch (E) ** 

Vincent Bazi (F) 

Friedrich Mostböck (A) 

Marianne Flink (S) 

* Stepped down in December 2008. Kees de 

Vaan (NL) was appointed as successor. 

** Stepped down in July 2008. Jésus López 

Zaballos (E) was appointed as successor. 

EFFAS is the European umbrella organisation for more than 14,000 investment professionals 

represented in 25 national associations. EFFAS e.V. is a non-profit organisation 

registered in Frankfurt/Main, the offices of which are located in the direct vicinity 

of DVFA, to promote close cooperation between the two organisations. Germany is 

represented within EFFAS by DVFA. Two major events dominated the organisation's 

activities in 2008: the Annual General Meeting in June and the EFFAS Summer School. 

EFFAS AGM in Paris 

EFFAS AGM in Paris_ 

The EFFAS Annual General Meeting took place on 28 June 2008. The agenda included 

presentation of the financial year 2007 annual report, adoption of the Governance 

Model as the basis for future EFFAS activities and approval of the 2009 budget, with 

pioneering financial assistance for Central and Eastern European countries. The main 

focus of the meeting in Paris was on election of the new EFFAS Chairman. 

Fritz H. Rau, who gave up the chairmanship after serving eight years at the head of EFFAS, 

emphasised that the pan-European organisation had found a Chairman in Giampaolo 

Trasi who exhibits outstanding individual and professional qualities. 

31

32 

EFFAS 

Since 2000, when Fritz H. Rau took over as Chairman, significant strides have been made 

by EFFAS: At the start, there were only 17 member associations. The organisation’s charter 

made no differentiation between the general assembly and the board, and EFFAS suffered 

from inflated administrative costs and membership fees. Only three commissions were 

actively working to address topics important to investment professionals. Since then, a 

new charter has been drafted, creating the Executive Management Committee and an 

ethics panel. The headquarters of the organisation has been moved to Frankfurt, and all 

three of its other former offices closed. The budget has been cut by roughly 60%, and 

membership fees are now more transparent and approximately 30% lower. A newsletter 

and the EFFAS website contribute to improved communication with the associations, their 

members and interested third parties. New members have been recruited, particularly 

in the countries of Eastern Europe - there are now a total of 25 associations offering the 

CIIA and CEFA programmes. The number of active commissions has been increased to six, 

with a focus on non-financials and governance issues. Moreover, EFFAS now has a voice 

at the EU in Brussels and with the CESR, thanks to the Market Structure Commission 

(MSC), which has had decisive support from DVFA. Also thanks to DVFA support, EFFAS 

now has a presence within the XBRL community. Collaboration with other international 

organisations (e.g. IASB, EFRAG, CFAI, ECMI) has been expanded and improved. 

Statistics CEFA/CIIA (as of Dezember 2008) 

18.000 

16.000 

14.000 

12.000 

10.000 

8.000 

6.000 

4.000 

2.000 

0 

CIIA 

CEFA 

EFFAS AGM in Paris_ 

'92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08

EFFAS 

European associations of 

investment professionals 

have grown together over 

the past eight years, 

and are cooperating more 

closely than ever before. 

This must be upheld. 

Cooperation with ACIIA is producing results, and the number of CIIA holders in Europe 

continues to grow. A joint platform for CIIA study materials was created in partnership with 

ILPIP, spelling an end to the era of “provincialism”, in which every association produced 

its own manuals with different sources and levels of quality. This step was taken at the 

initiative of Switzerland's SFAA. In July 2008, with the help of efforts by Spain's IEAF, the 

first EFFAS Summer School was held, and the Governance Model creates new prospects 

for the future activities of EFFAS and licensing of training and qualification programmes. 

EFFAS Summer School 

EFFAS Summer School_ 

From 09 - 11 July 2008, the first EFFAS Summer School was held by the European umbrella 

organisation of financial analysts and asset managers in Santander City near Madrid. More 

than 150 participants from the alumni organisations of the EFFAS member associations came 

together to discuss issues, the primary of which was the impact of the current financial crisis. 

The keynote address was held by Prof. Norbert Walter, Chief Economist at Deutsche 

Bank. In his speech entitled “The risk of unstable inflation expectations", Professor Walter 

emphasised the importance of solidifying inflation outlooks among market participants. 

We would like to thank Prof. Walter for his support, which was lent at the invitation of DVFA. 

33

34 

DVFA e.V. annual financial statements 

Balance Sheet_ 

Balance Sheet 

as at 31 December 2008 (in EUR, rounded) 

ASSETS 2008 2007 

EUR EUR 

Fixed Assets 

Participation 


20,452 20,452 

Current Assets 

Accounts Receivable 75,452 69,330 

Liquid Assets 397,707 370,916 

Total Assets 493,611 460,697 

The total assets of the society were EUR 33k higher year-on-year in 2008, at EUR 494k 

(2007: EUR 461k). The receivables totaling EUR 75k (2007: EUR 69k) in financial year 

2008 include EUR 9k due from society members and sponsors (2007: EUR 20k) and 

other assets in the amount of EUR 66k. Cash and equivalents as well as other liquid 

securities total EUR 398k (2007: EUR 371k). 

The liabilities totaling EUR 65k (2007: EUR 50k) comprise EUR 58k due to companies in 

which a participating interest is held (2007: EUR 47k) and other liabilities in the amount 

of EUR 6k (2007: EUR 3k). Equity increased by EUR 22k to EUR 422k, bringing the equity 

ratio to 86%. 

LIABILITIES 2008 2007 

EUR EUR 

Equity Capital 

as at 01 Jan 2008 400,054 391,142 

Net Income 2008 22,106 8,979 

as at 31 Dec 2008 422,160 400,054 

Provisions 

External Funds 

6,302 8,979 

Liabilities 65,149 51,664 

(incl. PRA) 

Total Assets 493,611 460,697

DVFA e.V. annual financial statements 

Profit & Loss Statement_ 

Profit & Loss Statement 

as at 31 December 2007 (in EUR rounded) 

The profit and loss statement illustrates net revenues (turnover) of EUR 269k against total 

expenditures of EUR 259k. Taking into account net interest income of EUR 12k, this results in 

a net profit for the year of EUR 22k (2006: EUR 9k). In financial year 2008, membership dues, 

received sponsorship payments and other income totaled EUR 269k (2007: EUR 321k). The 

operating expenses comprise other expenses in the amount of EUR 259k (2007: EUR 322k). 

The other expenses include expenditures for public relations measures totaling EUR 64k 

(2007: EUR 55k), travel and hospitality costs of €21k (2007: EUR 14k), legal and consulting 

fees amounting to EUR 8k (2007: EUR 77k), the costs arising from the service 

agreement for administrative and organizational activities by DVFA GmbH totaling EUR 

146k (2007: EUR 164k) and other expenditures in the amount of EUR 20k (2007: EUR 12k). 

The 2008 annual financial statements were audited by Ebner Stolz Mönning Bachem 

GmbH & Co. KG, Frankfurt am Main, and received an unqualified opinion. 

P + L 2008 2007 

EUR EUR 

Member Dues 211,200 232,346 

Sponsor Dues 53,676 79,236 

Other Income 4,000 9,513 

Other Expenses 259,169 321,534 

Net Interest Income 12,399 9,353 

Annual Net Profit 22,106 8,913 

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36 


DVFA GmbH is a wholly-owned subsidiary of DVFA e.V., and acts as a service provider to the society. In addition to coordinating 

the activities of the society’s committees and preparing position papers on financial market regulation, DVFA 

GmbH is in charge of two further business areas: training and professional development for capital market experts, and 

the organisation of conferences and workshops relating to financial market communication. In each of these areas, DVFA 

GmbH is among the leading institutions in Germany. The DVFA GmbH 2007 annual financial statements were audited by 

Dr. Ebner, Dr. Stolz und Partner GmbH and received an unqualified opinion. 

Financial Communication 

The Financial Communication segment had a successful year in 2008 as a host of analyst 

conferences. Growth was achieved in all areas with respect to the number of conference 

participants. There was also growth in the four large DVFA forums that provide small 

and medium sized companies with a platform for company presentations. In particular 

the SCC Small Cap Conference, which was held for the sixth time last year, demonstrated 

how well established the DVFA forums have become within the capital markets, hosting 

more than 61 issuers over three days. 

The second conference on extra-financials, Taking ESG in Account, was enhanced through 

an expanded programme, including presentation of the ESG Award. 103 companies took 

part in the conference. 

The third DVFA Real Estate Conference built on the success of the first two events. As it did 

last year, DVFA organised more than 1,400 one-on-ones between issuers and participants 

at Deutsche Börse AGs German Equity Forum in November. The society has established 

itself as a capital market institution when it comes to organising one-on-ones. 

In 2008, the following forums were held: 

� 3rd DVFA Real Estate Conference (Frankfurt/Main) 

� CeBIT 2008 IT/Telco Small & MidCap Day, (Hannover) 

� 2nd Taking ESG into Account (Frankfurt/Main) 

� 6th SCC_ Small Cap Conference ® (Frankfurt/Main) 

Report of the Management _


Finance Academy 

Report of the Management _ 

The training and qualification of DVFA offers four postgraduate programmes, one compact 

programme and a number of basis and expert seminars. In all, classes were held 

more than 200 days throughout 2008. A total of 12 topics are now covered in various 

courses and modules: 

� Portfolio theory & management 

� Equity analysis & management 

� Bond analysis & management 

� Derivatives, instruments & strategies 

� Financial accounting & corporate finance 

� Wealth & relationship management 

� Capital market law, taxation & ethics 

� Economics 

� Investment products 

� Financial mathematics and statistics 

� Credit analysis, rating and credit portfolio management 

� Real estate valuation and real estate portfolio management 

DVFA works in these areas with more than 130 experienced professionals and academics 

who instruct the various courses. We would like to thank our instructors for their great 

commitment to training and qualification within DVFA. 

Demand remained very high for our training and qualification programmes in 2008. 

Although the expert seminars saw some initial negative impact from the financial crisis, 

the flagship programme CIIA in particular has established itself as a central qualification 

for asset managers, bankers and analysts. This fact made establishment of an alumni 

network a logical step. The new network is designed to provide CIIA graduates and 

alumni of the predecessor programmes, CEFA and DVFA Investment Analyst, with the 

ability to remain in contact and regularly exchange ideas and views. 

On the occasion of the graduation ceremony for 2008 graduates, the names of the 

graduates in 2009 were also published for the first time in Börsenzeitung. DVFA 

warmly congratulates the graduates on their success and wishes them all the best in 

their further careers. 

37

38 

featu Training and Qualification_ Equities_ 

Gerlinde Abraham, CIIA, CEFA 

Joachim Alt, CIIA, CEFA 

Patrik Andre, CIIA, CEFA 

Sven Bartel, CIIA, CEFA 

Patrick Bastian, CIIA, CEFA 

Markus Beck, CIIA 

Tim Behrens, CIIA, CEFA 

Melanie Bischoff, CIIA, CEFA 

Michael Bissinger, CIIA, CEFA 

Robin Blokland, CIIA 

Gerd Bomans, CIIA, CEFA 

Frank Borchers, CIIA 

Christoph Boßmann, CIIA, CEFA 

Martin Bremers, CIIA 

Michael Busch, CIIA, CEFA 

Christian Chrobok, CIIA, CEFA 

Marius Gero Daheim, CIIA, CEFA 

Christof Danz, CIIA, CEFA 

Wolfgang Deschka, CIIA, CEFA 

Andreas Dimopoulos, CIIA, CEFA 

Dr. Georg Dönges, CIIA, CEFA 

Kai Eberhard, CIIA 

Iris Eckardt, CIIA, CEFA 

Benjamin Eichenberger, CIIA, CEFA 

Jens Fischer, CIIA, CEFA 

Joakim Albrecht, CeFM 

Pierre Barckhan, CIWM, CeFM 

Frank Baumhöfer, CeFM 

Dirk Biederbeck, CeFM 

Bastian Bohl, CIWM, CeFM 

Danilo Böttcher, CIWM, CeFM 

Dr. Peter Braun, CIWM, CeFM 

Tobias Beck, CCrA 

Martin Becker, CCrA 

Markus Behnke, CCrA 

Florian Breunig, CCrA 

Claus Eikam, CCrA 

Rainer Füller, CCrA 

Patrick Gerber, CCrA 

Christian Güntzel, CCrA 

Michael Hanhoff, CCrA 

Anja Heurich, CCrA 

Andreas Bannick, CREA 

Sven Bartram, CREA 

Christian Behrend, CREA 

Enrico Blanke, CREA 

Carsten Boell, CREA 

Michael Bohne, CREA 

Dirk Braun, CREA 

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2008 Graduates of the DVFA Qualification Programmes: 

Christoph Frank, CIIA, CEFA 

Christian Franzen, CIIA, CEFA 

Oliver Fuchs, CIIA 

René Gärtner, CIIA 

David Gaschik, CIIA, CEFA 

Oliver Girzick, CIIA, CEFA 

Stefan Goerke, CIIA 

Stefan Groeters, CIIA, CEFA 

Markus Gross, CIIA, CEFA 

Uwe Haberkorn, CIIA, CEFA 

Sonja Hack, CIIA, CEFA 

Timo Häber, CIIA, CEFA 

Tobias Häßler, CIIA 

Steffen Hahn, CIIA, CEFA 

Johannes Hahnemann, CIIA, CEFA 

Michael Hanisch, CIIA, CEFA 

Sören Hein, CIIA, CEFA 

Peter Henssen, CIIA, CEFA 

Melina Herr, CIIA, CEFA 

Marc Herres, CIIA 

Luzia Hetjens, CIIA, CEFA 

Katja Himmelhuber, CIIA, CEFA 

Alexander Hipp, CIIA, CEFA 

Mark Höpfner, CIIA, CEFA 

Penny Jackson, CIIA, CEFA 

Alexander Brumnic, CeFM 

Christian Burzin, CIWM, CeFM 

Mario Carstens, CIWM, CeFM 

Jurgen Dettling, CIWM, CeFM 

Thomas Gotta, CeFM 

Ute Gronwald, CIWM, CeFM 

Otmar Grunbeck, CeFM 

CIIA - Certified International Investment Analyst 

Anke Junge, CIIA, CEFA 

Walter Kaltenberger, CIIA, CEFA 

Jens Keller, CIIA 

Melanie Kiene, CIIA, CEFA 

Jan King, CIIA 

Christian Kinker, CIIA 

Jurgen Klaus, CIIA, CEFA 

Christian Klee, CIIA, CEFA 

Andreas Klemm, CIIA, CEFA 

Stephan Klinke, CIIA, CEFA 

Ingo Koeppen, CIIA, CEFA 

David Kunz, CIIA, CEFA 

Thomas Lachmann, CIIA 

Önder Lale, CIIA, CEFA 

Philipp Lehner, CIIA, CEFA 

Roland Lehnertz, CIIA, CEFA 

Jörn Ligges, CIIA, CEFA 

Dragan Martinovic, CIIA, CEFA 

Jurgen Matthei, CIIA, CEFA 

Tobias Meier, CIIA, CEFA 

Helge Stefan Michael, CIIA, CEFA 

Christoph Milde, CIIA, CEFA 

Mario Muller, CIIA, CEFA 

Mathias Muller, CIIA, CEFA 

Gero Nitschke, CIIA, CEFA 

Rene Hermanns, CeFM 

Gerald Hespelt,CIWM,CeFM 

Claus Huber, CIWM, CeFM 

Gunter Ingenfeld, CIWM, CeFM 

Mark Killinger, CeFM 

Guido Klett, CIWM, CeFM 

Michio Kobayashi, CeFM 

Markus Ofschonka, CIIA, CEFA 

Oliver Ogrizek, CIIA 

Stefan Philippi, CIIA, CEFA 

Sascha Pinger, CIIA, CEFA 

Thomas Pohontsch, CIIA, CEFA 

Holger Porath, CIIA, CEFA 

Maximilian Post, CIIA, CEFA 

Alexander Prochnow, CIIA, CEFA 

Guido Wolf Reichert, CIIA, CEFA 

Sascha Reininger, CIIA, CEFA 

Sebastian Reuter, CIIA, CEFA 

Jens Richter, CIIA, CEFA 

Mario Rinken, CIIA, CEFA 

Mario Röhrer, CIIA, CEFA 

Christian Schaette, CIIA 

Holger Schick, CIIA, CEFA 

Markus Schmidt, CIIA, CEFA 

Thomas Schmitt, CIIA, CEFA 

Meike Schneider, CIIA 

Till Schneider, CIIA, CEFA 

Christian Schreiner, CIIA 

Stefan Schulz, CIIA, CEFA 

Tobias Max Schutze, CIIA, CEFA 

Robert Schwegler, CIIA, CEFA 

Frank-Max Seifert, CIIA, CEFA 

CIWM - Certified International Wealth Manager | CeFM - Certified Financial Manager 

Murat Kaptanoglu, CCrA 

Roland Keich, CCrA 

Markus Konrad, CCrA 

Jens Köstle, CCrA 

Frank Kreuzhagen, CCrA 

Daniel Kuhnen, CCrA 

Steffen Leitsch, CCrA 

Gerald Lieb, CCrA 

Daniela Lucic-Slamic, CCrA 

Thorsten Manns, CCrA 

Christof Busch, CREA 

Ulrich Denk, CREA 

Karl-H. Goedeckemeyer, CREA 

Benjamin Gutgesell, CREA 

Jens Janke, CREA 

Danny Kiesslich, CREA 

Dirk Krupper, CREA 

CCrA - Certified Credit Analyst 

Julia Katarina Manz, CCrA 

Kerstin Michaelis, CCrA 

Ralph Mosen, CCrA 

Melanie Neubert, CCrA 

Nathalie Neumann, CCrA 

Kerstin Nietsch, CCrA 

Benjamin Nink, CCrA 

Marco Alexander Plass, CCrA 

Dominik Reiter, CCrA 

Elisabeth Rieder, CCrA 

CREA - Certified Real Estate Investment Analyst 

Sascha Kurzidem, CREA 

Manfred Mader, CREA 

Julian Mittag, CREA 

Taskin Mutlu, CREA 

Thomas Ostermann, CREA 

Dominique Pfrang, CREA 

Dr. Hans-Jürgen Riese, CREA 

Guido Middendorf, CIWM, CeFM 

Jörg Mönkemöller, CeFM 

Jens Mudder, CIWM, CeFM 

Patrick Schäfers, CeFM 

Dr. Bernd Schnarr, CIWM, CeFM 

Sven Schollmeyer, CeFM 

Michael Schreiber, CeFM 

Jan Rosendahl, CCrA 

Sandra Scharfenstein, CCrA 

Marco Schenke, CCrA 

Ulrike Schindler, CCrA 

Olaf Schwaninger, CCrA 

Renate Segbers, CCrA 

Iris Streit, CCrA 

Anja Vierke, CCrA 

Dirk Völker, CCrA 

Julia Vonhoff, CCrA 

Burkhard Sawazki, CREA 

Stefan Scharff, CREA 

Henrik Schindler, CREA 

Thomas Spulak, CREA 

Ralf Streckfuß, CREA 

Matthias Thoms, CREA 

Ingmar Tripunovic, CREA 

Hristo Shtarbov, CIIA, CEFA 

Karin Sittler, CIIA, CEFA 

Marcin Siuda, CIIA, CEFA 

Robin Stemann, CIIA, CEFA 

Felix Steuer, CIIA, CEFA 

Guenter Stibbe, CIIA 

Christian Strätz, CIIA, CEFA 

Jeannette Strauß, CIIA, CEFA 

Christian Timmann, CIIA, CEFA 

Frank Ullrich, CIIA, CEFA 

Sonja Vilsmeier, CIIA, CEFA 

Sven von Aderkass, CIIA, CEFA 

Sebastian von Koss, CIIA, CEFA 

Margarita Walterskirchen, CIIA, CEFA 

Alexander Wenzel, CIIA, CEFA 

Christina Wettstein, CIIA, CEFA 

Ronald Wiegand, CIIA, CEFA 

Tobias Windmeier, CIIA, CEFA 

Dr. Martin Wolburg, CIIA 

Moritz Wrede, CIIA, CEFA 

Anne-Kristin Yasuda, CIIA, CEFA 

Loki Zanini, CIIA, CEFA 

Georg Zimmermann, CIIA, CEFA 

Tina Zöttl, CIIA, CEFA 

Eduard Zvinchuk, CIIA, CEFA 

Daniel M. Schwarz, CIWM, CeFM 

Stephan Simon, CIWM, CeFM 

Karsten Stockmann, CeFM 

Jessica Stolz, CeFM 

Jörg Thranberend, CIWM, CeFM 

Marina Wagner, CCrA 

Christian Weber, CCrA 

Jördis Wegener, CCrA 

Sandra Wehner, CCrA 

Andreas Weis, CCrA 

Christian Wilhelm, CCrA 

Markus Wilhelm, CCrA 

Alexander von Boehm-Bezing, 

CREA 

Julia Walsh, CREA 

Anke Weinreich, CREA 

Marc Weisener, CREA 

Hanno Wolfensberger, CREA 

Carsten Wottawa, CREA


u 

u 

Graduation ceremony at Deutsche Bundesbank 

On 23 January 2009, the graduation ceremony for the DVFA postgraduate programmes 

took place at Deutsche Bundesbank. Ingo Ralf Mainert, Managing Director at cominvest 

Asset Management GmbH and member of the Board at the DVFA e.V., joined Dr. 

Peter König, Managing Director of DVFA GmbH, in greeting the graduates and guests. 

The keynote address was presented by Claus Döring, Editor-in-chief of Börsenzeitung. 

He entertained the audience with a trenchant speech on the differences and similarities 

between analysts and journalists - highlighted, of course, in the context of the current 

financial market situation. 

Afterwards, the diplomas were awarded personally to the postgraduates. Fritz H. Rau, 

Chairman of DVFA e.V., along with all of the various academic advisors congratulated 

them on their success. 

DVFA establishes alumni network 

On 23 January 2009, DVFA established a new alumni organisation. Members of this network 

are the graduates and tutors of the CIIA/CEFA training programme. In Germany, 

more than 2,500 graduates have received the CIIA and CEFA professional diplomas over 

the past 20 years. The total in all of Europe is more than 15,000. 

Olaf Liebeskind of Deutsche Bank AG was appointed as Chairman of the alumni organisation, 

with Andreas Deeng of HelabaTrust as Deputy Chairman. The two chairpersons 

have announced their intention to shortly introduce a programme of suggestions for 

events and other activities of the alumni organisation. 

"The alumni network is ideal in these times, when the right network, in addition to good 

qualification, is key for success in the financial world," said Dr. Peter König, who was 

in charge of founding the organisation on behalf of DVFA. And he added: “The CEFA/CIIA 

programme now has so many graduates that creation of the network was a logical next 

step. But graduates of the other programmes are also warmly invited to establish similar 

groups. DVFA will be glad to lend its support for this.” 

39

40 


u 

New event series: DVFA Wealth Management Symposium 

The first DVFA Wealth Management Symposium, focusing on the topics “Strategies” 

and “Products”, was held on 17 June 2008 in Frankfurt. Around 100 participants came 

together in the DVFA Center, including numerous senior managers from banks and 

independent asset management firms. 

Two keynotes kicked off the event: in the first, Dr. Ulrich Stephan of Deutsche Bank 

presented “Panic or performance: current developments on the capital market and 

the behaviour of German investors". The second was a speech given in cooperation by 

Dr. Marc Breidenbach from Berenberg Bank and Prof. Markus Rudolph, who heads the 

Center of Private Banking at WHU - Otto Beisheim School of Management, on "Holistic 

asset management”. 

The second DVFA Wealth Management Symposium, entitled “Wealth Management is 

Change Management”, took place on 21 October 2008. Once more, the event attracted 

an impressive number of participants in light of the situation then prevailing in the 

industry, as more than 100 investment professionals were in attendance. The topics 

covered included the current crisis and the impact of the new comprehensive capital 

gains tax (Abgeltungssteuer) on investor behaviour. 

Dr. Hendrik Leber von Acatis gave the opening lecture on the causes of the crisis and 

the likely effects on the real economy. With a view to what can be expected down the 

road, he said: “I don’t know whether we have already seen the worst of the crisis, or 

there is worse yet to come. But, I am utterly convinced that German equities will have 

gained substantially in value within the next 2 years.” The Symposium ended with a panel 

discussion on “The Abgeltungssteuer as a tax on alpha: impacts on investor behaviour”. 

With the DVFA Wealth Management Symposia, DVFA has continually offered a forum 

since 2008, in which current topics can be discussed at a professional level between 

leading representatives of the industry. On 6 May 2009, the event series will continue 

with the third DVFA Wealth Management Symposium, “Investor psychology and investor 

behaviour". Further information is available online at: www.dvfa.de/symposium

featu Impressions from the Equities_ 6th SCC_ 

The central focus of 

the event, which has 

gained international 

prominence over the 

past several years, 

was on 61 individual 

presentations by the 

participating SMEs. 

u 

6. DVFA Small Cap Conference from 25 to 27 August 2008 

There was an overwhelming response to last year's three-day Small Cap Conference at 

the DVFA Center in the Signaris building. 61 small and medium-sized companies were 

in attendance to seek contact with the capital market. Roughly 360 buy and sell-side 

analysts, institutional investors, asset managers and advisers also came together in 

the DVFA event space. 

Well over 400 one-on-one interviews are proof of the high expectations shared by the 

companies and the attending investors. Ralf Frank, Managing Director of DVFA GmbH 

commented: “The SCC is an excellent platform for small and medium-sized companies, 

as it provides a place for small caps to show their real innovation potential. This is now 

the sixth time that we have brought companies and investors together - and with great 

success. The SSC gives investment decision-makers insight into the strategies and financial 

data of the participating companies.” 

SCC_ 2008: Presenting companies 

4SC AG 

adesso AG 

Advanced Vision Technology Ltd 

Altira AG 

Aragon AG 

Beate Uhse AG 

Bio-Gate AG 

biolitec AG 

BIOPETROL INDUSTRIES AG 

Business Media China AG 

Centrotec Sustainable AG 

CeWe Color Holding AG 

CFC Industriebeteiligungen GmbH 

CompuGROUP Holding AG 

DESIGN Bau AG 

DF Deutsche Forfait AG 

Dresdner Factoring AG 

EquityStory AG 

FHR Finanzhaus AG 

FJA AG 

GESCO AG 

GROUP Technologies AG 

Heliad Equity Partners GmbH 

IFM Immobilien AG 

Impreglon AG 

Integralis AG 

InVision Software AG 

ISRA VISION AG 

KTG Agrar AG 

KWG Kommunale Wohnen AG 

Lloyd Fonds AG 

LPKF Laser & Electronics AG 

Magnat Real Estate Opportunities 

GmbH & Co. KGaA 

MeVis Medical Solutions AG 

MIV Therapeutics Inc. 

MOBOTIX AG 

MWB Wertpapierhandelsbank AG 

NanoFocus AG 

Nanostart AG 

Neue Sentimental Film AG 

OPENLIMIT Holding AG 

Olympia Flexgroup AG 

paragon AG 

PETROTEC AG 

Primion Technology AG 

RCM Beteiligungs AG 

Rücker AG 

SAF AG 

S.A.G. Solarstrom AG 

Schaltbau Holding AG 

SEVEN PRINCIPLES AG 

SILICON SENSOR International AG 

SNP AG 

Studio Babelsberg AG 

Sunways AG 

syzygy AG 

update software AG 

UR Holding S.p.A. 

Viscom AG 

vwd Vereinigte Wirtschaftsdienste AG 

Westag & Getalit AG 

Zapf Creation AG 

41

42 

DVFA GmbH annual financial statements 

Balance Sheet_ 

Balance Sheet 

as at 31 December 2008 (in EUR) 

ASSETS 2008 2007 

EUR EUR 

Fixed Assets 213,730.51 254,743.51 

Current Assets 3,161,592.40 3.327.399,72 

of which 

treasury stocks 0.00 450,000.00 

Accruals 23,092.14 22,081.13 

Total Assets 3,398,415.05 3,604,224.36 

The 2008 financial statements mark the close of the company’s 18th year. Total assets 

declined by EUR 206k year-on-year, to EUR 3,398k. Fixed assets were reduced through 

scheduled depreciation by EUR 41k to EUR 214k. Current assets were down EUR 166k. 

Shares were cancelled in the amount of EUR 450k. Receivables and other assets increased 

by EUR 79k and cash and liquid securities were EUR 205k higher. 

Equity declined to EUR 1,893k, through liquidation of the reserve for own shares in the 

amount of EUR 450k and retention of the EUR 182k net profit. The equity ratio is now at 

56%. Provisions were down by EUR 69k. Liabilities increased by EUR 55k. The amount 

recognized under accruals and deferred income was EUR 77k higher at EUR 319k, and 

stems from training program fees received in 2008 for courses to be held in 2009. 

LIABILITIES 2008 2007 

EUR EUR 

Subscribed Capital 30,677.51 30,677.51 

Profit Accrurals for own 

participating interests 0.00 450,000.00 

Retained Earnings 1,680,625.65 1,371,607.90 

Net Profit 181,856.96 309,017.75 

Equity Capital 1,893,160.12 2,161,303.16 

Provisions 928,033.97 997,521.27 

Liabilities 258,381.96 203,814.93 

Accruals 318,839.00 241,585.00 

Total Assets 3,398,415.05 3,604,224.36

DVFA GmbH annual financial statements 

Profit & Loss Statement 

as at 31 December 2008 (in EUR, rounded) 

Profit & Loss Statement_ 

The profit and loss statement for financial year 2008 reflects net revenues (turnover) of 

EUR 3,838k (2007: EUR 4,122k), equating to a decline of 7%. Turnover was generated 

primarily by the areas: training and professional development, conferences and forums. 

The company received its contractual 75% share of membership dues and joining fees 

received by DVFA e.V. as payment for its organisational and administrative services. 

Material expenditures declined by EUR 1k to EUR 1,293k. The largest outlays within 

material expenditures are attributable to instructors’ fees, marketing and event costs. 

Personnel expenses were EUR 32k (2%) higher, at EUR 1,734k. Depreciation costs totalled 

EUR 67k (2007: EUR 83k). Other operating expenses were down by EUR 23k (3%) to EUR 

638k. After taxes, this results in net profit for the year of EUR 182k (2007: EUR 309k). 

The 2008 annual financial statements were audited by Ebner Stolz Mönning Bachem 

GmbH & Co. KG, Wirtschaftsprüfungsgesellschaft, Steuerberatungsgesellschaft, Frankfurt 

am Main, and received an unqualified opinion. 

P + L 2008 2007 

EUR EUR 

Turnover 3,838,354 4,121,548 

Other Operating Revenues 37,915 41,234 

Material Expenditure 1,292,529 1,294,078 

Personnel Expenditure 1,733,623 1,701,767 

Depreciations 67,188 83,082 

Other Operating Expenditure 637,996 661,271 

Net Interest Income 104,236 75,672 

Operating income 249,169 498,256 

Taxes on Earnings 67,313 189,238 

Net profit 181,856 309,018 

43

Gb08_engl Umschlag:GB 2005 - DVFA

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