90 Years 1925 - 2015 Table of Contents
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CELEBRATING 90 YEARS 1925 - 2015 TABLE OF CONTENTS CFA Society Chicago Chairman’s Message............. 1 CFA Institute Chairman’s Message.......................... 3 Timeline...................................................................... 5 Founders...................................................................... 12 History by Decade...................................................... 25 M. Dutton Morehouse, CFA............................ 37 William C. Norby, CFA................................... 47 1963 Annual Convention................................ 49 1st Annual Dinner............................................. 59 Annual Dinner through the Years........................... 71 Hortense Friedman, CFA, Award for Excellence... 73 CFA Society Chicago Past Chairmen....................... 87 Charterholder Anniversaries.................................... 89 Trust and Savings Bank of Chicago, Illinois in the early 1900s. Cover: The Chicago Board of Trade building, circa 1930. Photograph by Hedrich-Blessing. Courtesy of Chicago History Museum. In 1963, the professional designation Chartered Financial Analyst was developed and the testing program was established. Since that time CFA Chicago has supported the education of investment professionals. Our work here broadens each year: organizing CFA exam study groups, offering scholarships to candidates, teaching Claritas preparatory courses, providing continuing education opportunities through our Education Advisory Group, and hosting our annual dinner featuring such celebrated speakers as Senator Bob Dole, Secretary of Education Bill Bennett, authors Michael Lewis and Steven Leavitt, Governor Jon Huntsman, Jr., and CFA SOCIETY Chicago Mohamed El-Erian. th 90 Anniversary To help build a better investment profession, we partner with CFA Institute to promote and Chairman’s Message uphold its Investor Bill of Rights, Future of Finance, Investment Research Challenge, and Women in Investment Management initiatives. In 2012, CFA Chicago hosted the CFA Institute’s Kerry Jordan, CFA 65th Annual Conference which attracted charterholders from around the globe. In 2016, CFA Chairman of CFA Society Chicago Chicago will host the 10th annual Global Investment Research Challenge. We strive to be of help to our community and to be a valuable resource for investors. Our Society Chicago ranks as one of the world’s top ten financial centers. It is home to twenty-nine Fortune was first among all societies to create the Leadership Council, established to engage Chicago’s 500 companies and five major financial exchanges. To serve as Chairman of the city’s premier top business and civic leaders. Our Society has partnered with the Federal Reserve Bank of investment management society is an honor. To introduce this commemorative book is a Chicago to provide content for its MoneySmart Week program. We also have met with city and privilege. state legislators to share with them the meaning and value of the CFA designation and to raise our mutual understanding and awareness that professional and ethical behavior is the Founded in 1925, CFA Society Chicago is the oldest CFA Institute member society worldwide; cornerstone of our future success. with more than 4,400 members, it is one of the largest. This year we celebrate our 90th an- niversary with pride and gratitude. Our Society has grown from its origins as the Investment Over the past ninety years, dedicated Society members have volunteered their time to organize Analysts Club of Chicago, a small group of 16 investment professionals with a mutual interest events, serve on the Board of Directors, lead Advisory Groups, write articles for our newsletter in bond analysis and ratings, to our status today as the premier resource for financial and blog, enhance our reputation, and develop our network. On behalf of the current Board, professionals in the region, and a leader among CFA Institute societies globally. Throughout I extend my heartfelt gratitude to those who have helped the Society become what it is today. our history, members past and present have shared a common purpose—to build a better Their collective effort has built a strong foundation from which current and future members can investment profession. make their own contributions to the profession and to society. In the later 1920s, the founding members gathered for lunch at the Morrison Hotel to exchange Please enjoy this 90th anniversary book and feel proud of our Society’s rich history. The investment ideas. Occasionally, outside speakers from leading local universities were invited to recollections and thoughts that we have gathered from past and present leaders describe the discuss business conditions. Today the Society hosts over one hundred events per year and obstacles we have overcome and the achievements we have celebrated. I look forward to the attracts renowned speakers from around the world. Membership is at an all-time high. Then next ten years and celebrating our 100th anniversary in 2025. and now, our Society has contributed to the development of the investment profession by promoting high ethical and professional standards, educating investment professionals, and My best regards, putting investors first. Kerry Jordan, CFA Chairman of the Board of Directors 1 CFA Society Chicago 2 At CFA Institute, we aspire to build and to lead the investment man- CFAI CHAIRMAN’S MESSAGE agement profession. To do this we must do more than prepare and continuously educate highly competent professionals to operate at the Celebrating 90 Years of the Highest Standards cutting edge of their profession. We must also build partnerships with of Knowledge, Ethics, and Excellence institutions to raise standards of practice and aptitude at all levels of the industry—and continue to stand together for what is right, and in investors’ best interests. It is impossible to look at the roots of the investment management profession without recogniz- This means leading the conversation on policy, research, standards, ing the deeply influential contributions of our founding leaders and the impactful achievements and industry change, and equipping our members to manage and of CFA Society Chicago. impact industry practice wherever they serve. That is our key chal- In 1925, sixteen men and women formed the Investment Analysts Club of Chicago. The over- lenge: to have more measurable impact—with the industry, regulators, Paul Smith, President and riding impetus was to provide some formality to the periodic gathering of a small group of investment firms, investors, and society. CEO of CFA Institute “statisticians” to exchange ideas and information. To advance the investment management profession globally and create impact with all that we Miss Hortense Friedman, a founding member, said the group believed “the growing business do, we must create and adopt high quality codes and standards; promote thought leadership of investment management and analysis required some organization where speakers could be designed to demonstrate the value of the profession; seek professional recognition from inves- invited to discuss the big picture, not just the day-to-day Dow Jones.” tors; and challenge industry participants to shape fair and trustworthy financial markets. Over a 65-cent lunch at a local hotel, they would meet to share knowledge and discuss the Our industry is at a crossroads and the work of CFA Societies is more important than ever business issues of the time. No “security salesmen” were allowed—or, as Hortense once put it, before. CFA Societies are connecting the profession to its clients at the local level and proving “our general thought was that we had more in common with those doing investment research.” our value to them by putting their interests at the forefront of everything we do. We want to empower CFA Society Chicago and all of our CFA Societies to achieve our common mission and Despite the hardships of the Depression and World War II, the group continued to meet. Even- amplify our impact around the world. tually, membership grew. Through the Dean of the School of Business at the University of Chicago, the Society hosted educational speakers. Later, they organized seminars on ethical As we commit to and advance these priorities, we are confident that this pursuit will deliver conduct and standards. tangible long-term benefits for the professionals we represent, the investors we serve, and the society we aim to benefit. Thank you for your leadership, volunteer time, and expertise to date, All of this because a group of investment analysts knew they wanted to become a profession. and for your professional guidance with local members and candidates. Working together, we This intrinsic drive for higher levels of competency, knowledge, and standards became central can build a better investment management industry and capital markets that truly serve inves- to the development of today’s CFA charter, and the Investment Analysts Society of Chicago tors. emerged as not only a model for others to follow, but also as one of four founding societies of the National Federation of Financial Analyst Societies, known today as CFA Institute. Heartiest congratulations on your 90th anniversary. On behalf of investment professionals ev- erywhere, thank you for your efforts to advance the profession. CFA Society Chicago and its 4,400 members stand apart for helping shape the standards of the future investment professional by leading best-in-class educational, ethical, and professional Paul Smith, CFA events for local