CFA Society Chicago NewsBrief
Apr. 7, 2015

Investing: How the big guys are betting on the future
Chicago Tribune
Small companies aren't the only ones involved in the megatrends that are shaping the future. Titans of industry are there, too, in a big way. Investments in innovative businesses and strategies will ultimately benefit many big companies, making some of them good ways to invest indirectly in key trends.More

Systematic and objective approach to analyzing investments
CFA Chicago
The basic premise of the free enterprise system is to have an efficient allocation of capital to benefit society. Yacktman will present a systematic, objective approach to analyzing investments that generate cash and how this process interacts with our dual objectives of both protecting and growing capital over a long period of time.More

Latin America and long-term investing opportunities
CFA Chicago
Latin America represents an increasingly important economic region in the world. By 2020, the IMF predicts that Brazil and Mexico will rank among the top 10 GDP countries globally. The abundance of natural resources, growing and more educated populations with rising incomes, and capital market reforms in several countries, create potentially fertile areas for long-term investing opportunities.More

Professional financial training solutions
CFA Chicago
Balance sheet based companies, such as insurance companies, play by different rules and methodologies based on the unique nature of their business. Focus is placed on our insurance industry primer which dives deep into an insurance company's unique financial statement terminology and drivers.More

Does more regulation make investment products safer?
CFA Institute's Enterprising Investor
Regulated versus unregulated is a false dichotomy. Virtually no investment product or company is unregulated today, and offshore funds are rarely “unregulated.” So, we will discuss degrees of regulation. Onshore regulation, and that of retail products including pensions and insurance, can be more extensive and intrusive than offshore regulation and that of products restricted to accredited/sophisticated/institutional investors.More

Which is your best bet on Latin America: Banco Santander, SABMiller or Ocean Wilsons?
The Motley Fool
Latin America is one of the regions of the world investors based in developed countries look at with envy, due to its tremendous growth potential. If you’re interested in tapping into this potential, London-listed companies Banco Santander, SABMiller and Ocean Wilsons all have substantial exposure to Latin American markets. More

Overview of the fixed income market
ETF Trends
As we look at the high yield bond market, it is important to have an understanding of the fixed income marketplace and the investment options within it. The first thing to note is the sheer size, which is massive.More

Are fund pros who eat their cooking superior?
John Kimelman writes: With all the press in recent years about the dubious value of active stock-picking in the fund world, I was naturally intrigued by a big piece on Morningstar’s site this week that suggests there’s a way for fund managers to get a performance edge. The key is that they have to take big personal stakes in their funds.More

Mayor Rahm Emanuel and a billionaire Republican investor
The New York Times
At a news conference, Jesús G. Garcia, who is trying to unseat Rahm Emanuel as mayor of Chicago, accused the incumbent of allowing the city’s rich to “pay to play.” Then Garcia got personal. Standing in front of the offices of the $26 billion investment firm Citadel, the challenger accused the firm’s billionaire owner, Kenneth C. Griffin, of benefiting from a relationship with the mayor.More

For some bond investors, Chicago isn't their kind of town
The Wall Street Journal
A big pension shortfall is buffeting the Windy City. Fearing that the multibillion-dollar gap might undermine Chicago’s finances, some bond investors and credit-ratings firms are becoming wary. Four pension funds in the nation’s third-largest city are facing a combined funding gap of about $20 billion after years of underfunding and market losses during the recession. In comparison, Chicago has a $3.5 billion annual budget for general operating expenses.More

Loyola may dump fossil fuel investments
Chicago Sun-Times
Loyola University could become the first university in Illinois to dump its investments in fossil fuel companies. Administrators still must decide whether to follow a recommendation by the University Senate, which on Feb. 20 voted 15-1 to pass a resolution urging divestment within five years.More

Illinois 457 plan sets auto re-enrollment
Pensions & Investments
The Illinois State Board of Investment is automatically re-enrolling all 52,000 participants in the $4.1 billion Illinois State Employees' 457 Deferred Compensation Plan, Springfield, driving members out of the most popular investment option in the process.More

How Chicago has used financial engineering to paper over its massive budget gap
Yahoo Finance
Chicago made headlines at the end of February after Moody’s downgraded the city’s general obligation bond rating to Baa2. Moody’s has cut Chicago’s rating five notches in less than two years. This downgrade, however, placed the city’s credit below the termination triggers on some of its outstanding interest rate swaps. The city has been working to renegotiate the terms of those contracts with its counterparties.More

Balancing near-term risks with long-term goals: 3 strategies for savvy dividend investors
To reach their income goals, many investors have been tempted to simply survey the local U.S. market and buy the highest yielding stocks, but that strategy is not without its risks. Due to the popularity of dividend investing, some U.S. sectors, which are typically targeted for dividend yield, have exceeded their historical valuations over the last few years, meaning that investors may be overreaching and overpaying for yield.More