Welcome to the CFALA e-newsletter, a periodic publication with stories about noteworthy events and programs sponsored or hosted by the society, guest articles by members, book reviews, and other items of interest to CFALA members. Click on the headlines below to read the full stories. And if you’d like to contribute a story suggestion or, even better, write an article, we’d love to hear from you. Please email Executive Director Laura Carney at laura@cfala.org.

*Please note that the content of this e-newsletter should not be construed as investment advice, nor do the opinions expressed necessarily reflect the views of  CFA Society Los Angeles.

In this issue ...

• CFA Society Los Angeles Recognizes Importance of an Early Start in Financial Literacy

• Financial Scandals, Scoundrels & Crises

• Women Fund Managers Are Scarce Worldwide

• CFA Institute Women’s Scholarships

• Fidelity Charitable Pushes United Way Out of Top Place in Ranking of the 400 U.S. Charities That Raise the Most

• A Short History Of The Most Important Economic Theory In Tech

• Fidget Cube Estimated delivery: February 2017

CFA Society Los Angeles Recognizes Importance of an Early Start in Financial Literacy

Benjamin Franklin once said, “An investment in knowledge pays the best interest." Members who have gone through the CFA program would likely wholeheartedly agree with such an assessment. Unfortunately, too often that investment doesn’t happen until college or even after that. CFA Society Los Angeles (CFALA) and the California Council on Economic Education (CCEE) are working to change that.
CCEE provides economics and financial literacy training and resources to K-12 teachers, students and their parents throughout California. CCEE’s overarching mission is to help California’s students gain a real world understanding of economics and personal finance, so they can make better decisions and compete and succeed in the global economy. CFALA contributes to the mission of CCEE by sponsoring the Financial Advisors Contest (FAC), something the society has done for over 10 years.
CFALA Past President and CCEE Board Member Asha Joshi, CFA adds some detail about the CFA Society Los Angeles contribution to the CCEE Financial Advisors Contest: “The contests are open to high school students who learn about our financial system and how to apply it to real life situations and finally compete in teams in front of a panel of judges. The final contest is usually held at the Federal Reserve in Los Angeles. In addition to financial support, CFALA has also provided volunteers to work with teachers and students to help them prepare. This year the FAC doubled participation with 20 teams competing in the finals at the Fed and 40 volunteers.”
CCEE President, Allysunn Walker-Williams shared how important it is to have a partner like CFA Society Los Angeles. “CFA Society Los Angeles has been a vital supporter of CCEE for many years, offering both dedicated and generous funding and volunteer and in-kind support in a variety of ways. CCEE works throughout California in K-12 schools, where we believe economics and personal finance is best taught. Students are a captive audience and there are many opportunities to support their education and provide experiences, curriculum and opportunities for them to not only learn but also practice the skills that will help them lead successful lives.”
CFALA Past President Kerry Rapanot, CFA helps coordinate the commitment from the CFA Society Los Angeles Board with the Forecast Dinner and CCEE. Rapanot and Joshi share the satisfaction one receives being involved with the CCEE. Rapanot said, “The greatest satisfaction is giving back to the community and seeing the difference we make. The ‘Teacher of the Year’ speaks at the Annual Economic and Investments Forecast Dinner and always has a motivating and appreciative speech.” Joshi added, “As a Past President of CFALA and a current board member of CCEE, I am very pleased that we are able to marry the support and expertise of the CFALA membership with the needs of California youth. It is so important that our kids understand how our financial system works as our society becomes increasingly complex. Many of our problems today of income inequality, high school dropout rates and at-risk kids can be reduced if kids and their families were more financially literate.”
According to CCEE, more than 65% of high school students fail economic reasoning and financial literacy tests the first time the tests are taken. The nonprofit focuses on reversing this trend of financial illiteracy by educating high school teachers to equip their students with a clear understanding of economic and financial dynamics that greatly impact their future livelihoods. Walker-Williams said, “CFA Society Los Angeles has also routinely and generously supported CCEE's student contests: including the Capital Markets Contest and the Financial Advisors Contest. CFALA supports both contests with their mentors who provide invaluable volunteer time to mentor student teams, share their experience and expertise, and act as judges, graders and support on Contest Day. We recently held the 2016 Financial Advisor Contest at the LA Federal Reserve Bank Branch, and had record participation from students and robust support from CFALA members.”
Like any program of this nature, it takes money to make things happen. The CFALA Annual Economic and Investments Forecast Dinner provides major funding for the CCEE. This year’s Forecast Dinner is scheduled for January 31st, 2017 at the Omni Hotel in Los Angeles. It is the Society’s premier event and over 400 attendees will be there to learn, network and also help spread financial literacy through the CCEE.
Looking forward to 2017, Joshi talked about plans and goals: “CCEE is aiming to reach 1800 adults, including 1600 teachers and 200 family members, as they expand their reach statewide. They also plan to offer an Economics Teacher Certificate for K-12 teachers. They will also continue to conduct workshops for low-income students.”
CCEE appreciates the help from CFA Society Los Angeles. Walker-Williams emphasized, “We appreciate them so very much. They are a wonderful corporate and funding partner.”
By Tom Derse, CFA Back To Top ^^

Financial Scandals, Scoundrels & Crises

If you're looking for quality analysis of some of the largest financial scandals, scoundrels and crises that altered the investment industry and financial markets, check out this new site created by the CFA Institute. Econcrises.org highlights the relevant investment principles for each of the featured cases and invites investment practitioners to comment on the analyses to help better understand and learn from these historical events. Each case is eligible for CE credit. Read more...  Back To Top ^^

Women Fund Managers Are Scarce Worldwide

Morningstar Quantitative Analyst Madison Sargis discusses the high level findings of a recent 56-country study she co-authored with Morningstar North America Practice Leader Laura Pavlenko Lutton. (The unrestricted access period for the US version of the article has expired, but it can still be viewed on Morningstar Asia's Malaysia site.) Read more... And more...  Back To Top ^^

CFA Institute Women’s Scholarships

In this YouTube video, Former CFA Institute Board of Governors Chair Beth Hamilton-Keen, CFA, announces CFA Institute "scholarships for women who have an interest in earning the CFA charter, and joining our profession." The application for the December 2017 exam will be available late January 2017. Read more... And more...  Back To Top ^^

Fidelity Charitable Pushes United Way Out of Top Place in Ranking of the 400 U.S. Charities That Raise the Most

The Chronicle of Philanthropy's Drew Lindsay, Peter Olsen-Phillips, and Eden Stiffman report on the rise of Fidelity Charitable within The Chronicle's annual fundraising rankings. In a separate article, The New Yorker's Vauhini Vara explores the potential social implications of the increasing popularity of donor-advised funds established and serviced by investment companies such as Fidelity, Schwab, and Vanguard. Read more...  And more... Back To Top ^^

A Short History Of The Most Important Economic Theory In Tech

Fast Company Editor At Large Rick Tetzeli looks back twenty years to recount the history of theoretical economist and Santa Fe Institute Fellow W. Brian Arthur's theory of increasing returns. According to Arthur, "(i)ncreasing returns are the tendency for that which is ahead to get further ahead, for that which loses advantage to lose further advantage." Read more... And more...  Back To Top ^^

Fidget Cube Estimated delivery: February 2017

In October we featured Antsy Labs' Fidget Cube. It turns out that unless you were a Kickstarter backer, you won't be able to receive the desk toy until February. But fear not -- a number of unaffiliated wholesalers are making remarkably similar toys (with remarkably similar names) available on the market in time for the holidays. Decreasing returns, anyone? Read more...  And more... Back To Top ^^