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<br /> July/August 2015<br /> The Member Magazine for Investment Professionals<br /> Is shadow banking<br /> a threat to the system?<br /> <br /> July/August 2015<br /> 24<br /> 26 29<br /> “THE INDUSTRY IS CONFIDENT<br /> ABOUT ITS ABILITIES, BUT<br /> WHEN YOU SAY, ‘LET’S SHARE<br /> SOME OF THE DOWNSIDE,’<br /> IT IS A DIFFERENT MATTER.”<br /> 33<br /> 38<br /> COVER ILLUSTRATION<br /> Kelly Alder<br /> COVER STORY<br /> 24 Shadow Casting<br /> Misnamed and misunderstood,<br /> shadow banking has a highly visible<br /> (and vital) function. But does it also<br /> pose a systemic threat?<br /> By Maha Khan Phillips<br /> 29 The Quick and the Fed<br /> Research on how Federal Reserve<br /> policy influences financial markets<br /> has key findings for “astute”<br /> investors<br /> By Nathan Jaye, CFA<br /> 33 Fees and Ticks<br /> With fee structures under scrutiny,<br /> European fund manage<a title="July/August 2015 CFA Institute Magazine page 1" href="http://viewer.zmags.com/publication/4220baad?page=1"> </a> <a title="July/August 2015 CFA Institute Magazine page 2" href="http://viewer.zmags.com/publication/4220baad?page=2"> </a> <a title="July/August 2015 CFA Institute Magazine page 3" href="http://viewer.zmags.com/publication/4220baad?page=3"> July/August 2015 24 26 </a> <a title="July/August 2015 CFA Institute Magazine page 4" href="http://viewer.zmags.com/publication/4220baad?page=4"> WHY BUY A SINGLE STOCK WHEN YOU CAN INVEST IN </a> <a title="July/August 2015 CFA Institute Magazine page 5" href="http://viewer.zmags.com/publication/4220baad?page=5"> July/August 2015 12 13 CFA INSTITUTE NEWS </a> <a title="July/August 2015 CFA Institute Magazine page 6" href="http://viewer.zmags.com/publication/4220baad?page=6"> Made for Portfolio Managers Intelligence Deliver</a> <a title="July/August 2015 CFA Institute Magazine page 7" href="http://viewer.zmags.com/publication/4220baad?page=7"> IN SUMMARY Growing toward the Sun “I make manif</a> <a title="July/August 2015 CFA Institute Magazine page 8" href="http://viewer.zmags.com/publication/4220baad?page=8"> CFA INSTITUTE NEWS IN FOCUS We Have More Influ</a> <a title="July/August 2015 CFA Institute Magazine page 9" href="http://viewer.zmags.com/publication/4220baad?page=9"> CFA INSTITUTE NEWS EMEA VOICE London Recalling</a> <a title="July/August 2015 CFA Institute Magazine page 10" href="http://viewer.zmags.com/publication/4220baad?page=10"> CFA INSTITUTE NEWS APAC FOCUS Enhancing the Va</a> <a title="July/August 2015 CFA Institute Magazine page 11" href="http://viewer.zmags.com/publication/4220baad?page=11"> DISCIPLINARY NOTICES SUMMARY SUSPENSION On 9 Feb</a> <a title="July/August 2015 CFA Institute Magazine page 12" href="http://viewer.zmags.com/publication/4220baad?page=12"> CFA INSTITUTE NEWS ”A Real Impact on the Profes</a> <a title="July/August 2015 CFA Institute Magazine page 13" href="http://viewer.zmags.com/publication/4220baad?page=13"> THANK YOU The CFA and CIPM Program curricula woul</a> <a title="July/August 2015 CFA Institute Magazine page 14" href="http://viewer.zmags.com/publication/4220baad?page=14"> CFA INSTITUTE NEWS Hounds of Zeus versus the Re</a> <a title="July/August 2015 CFA Institute Magazine page 15" href="http://viewer.zmags.com/publication/4220baad?page=15"> VIEWPOINT Four Dangerous Myths about Best Execu</a> <a title="July/August 2015 CFA Institute Magazine page 16" href="http://viewer.zmags.com/publication/4220baad?page=16"> VIEWPOINT Myth #2. Venue choice isn’t a best-e</a> <a title="July/August 2015 CFA Institute Magazine page 17" href="http://viewer.zmags.com/publication/4220baad?page=17"> routing, ECNs, algorithms or alterna- tive tradin</a> <a title="July/August 2015 CFA Institute Magazine page 18" href="http://viewer.zmags.com/publication/4220baad?page=18"> PROFESSIONAL PRACTICE CAREER CONNECTION “A Wor</a> <a title="July/August 2015 CFA Institute Magazine page 19" href="http://viewer.zmags.com/publication/4220baad?page=19"> SHAPING CULTURES CFA charterholders have proved t</a> <a title="July/August 2015 CFA Institute Magazine page 20" href="http://viewer.zmags.com/publication/4220baad?page=20"> PROFESSIONAL PRACTICE ANALYST AGENDA Assurance</a> <a title="July/August 2015 CFA Institute Magazine page 21" href="http://viewer.zmags.com/publication/4220baad?page=21"> PRODUCT AND PRICE When the ACA initially took eff</a> <a title="July/August 2015 CFA Institute Magazine page 22" href="http://viewer.zmags.com/publication/4220baad?page=22"> PROFESSIONAL PRACTICE ANALYST AGENDA “We</a> <a title="July/August 2015 CFA Institute Magazine page 23" href="http://viewer.zmags.com/publication/4220baad?page=23"> Thank you for your membership. Thank you for r</a> <a title="July/August 2015 CFA Institute Magazine page 24" href="http://viewer.zmags.com/publication/4220baad?page=24"> PROFESSIONAL PRACTICE PRIVATE CLIENT CORNER Sh</a> <a title="July/August 2015 CFA Institute Magazine page 25" href="http://viewer.zmags.com/publication/4220baad?page=25"> In contrast to Parthenon’s approach, Garcia be</a> <a title="July/August 2015 CFA Institute Magazine page 26" href="http://viewer.zmags.com/publication/4220baad?page=26"> SHADOW CASTING Misnamed and misunderstood, shadow</a> <a title="July/August 2015 CFA Institute Magazine page 27" href="http://viewer.zmags.com/publication/4220baad?page=27"> In April 2015, the International Monetary Fun</a> <a title="July/August 2015 CFA Institute Magazine page 28" href="http://viewer.zmags.com/publication/4220baad?page=28"> THERE IS A LOT OF SCOPE FOR THE ASSET MANAGEMENT </a> <a title="July/August 2015 CFA Institute Magazine page 29" href="http://viewer.zmags.com/publication/4220baad?page=29"> Robert Mellor, partner in asset management</a> <a title="July/August 2015 CFA Institute Magazine page 30" href="http://viewer.zmags.com/publication/4220baad?page=30"> THE FOCUS HAS SHIFTED FROM SYSTEMIC RISKS TO THE </a> <a title="July/August 2015 CFA Institute Magazine page 31" href="http://viewer.zmags.com/publication/4220baad?page=31"> THE Research on how Federal Reser</a> <a title="July/August 2015 CFA Institute Magazine page 32" href="http://viewer.zmags.com/publication/4220baad?page=32"> because the Fed is adopting an expansive stance, </a> <a title="July/August 2015 CFA Institute Magazine page 33" href="http://viewer.zmags.com/publication/4220baad?page=33"> pronounced in expansive environments (that is, fi</a> <a title="July/August 2015 CFA Institute Magazine page 34" href="http://viewer.zmags.com/publication/4220baad?page=34"> Denmark, Norway, and Sweden had performance that </a> <a title="July/August 2015 CFA Institute Magazine page 35" href="http://viewer.zmags.com/publication/4220baad?page=35"> FEES With fee structures under scrutiny, European</a> <a title="July/August 2015 CFA Institute Magazine page 36" href="http://viewer.zmags.com/publication/4220baad?page=36"> THE INDUSTRY IS CONFIDENT ABOUT ITS ABILITIES, BU</a> <a title="July/August 2015 CFA Institute Magazine page 37" href="http://viewer.zmags.com/publication/4220baad?page=37"> in the financial world, especially in long-term p</a> <a title="July/August 2015 CFA Institute Magazine page 38" href="http://viewer.zmags.com/publication/4220baad?page=38"> in stone. Rebates achieved through negotiation re</a> <a title="July/August 2015 CFA Institute Magazine page 39" href="http://viewer.zmags.com/publication/4220baad?page=39"> but you have to work out how many miles you have </a> <a title="July/August 2015 CFA Institute Magazine page 40" href="http://viewer.zmags.com/publication/4220baad?page=40"> IN THE PASSING LANE “Of the large Asian ec</a> <a title="July/August 2015 CFA Institute Magazine page 41" href="http://viewer.zmags.com/publication/4220baad?page=41"> In the long run, I think expectations will be</a> <a title="July/August 2015 CFA Institute Magazine page 42" href="http://viewer.zmags.com/publication/4220baad?page=42"> Infrastructure is another theme. India is rea</a> <a title="July/August 2015 CFA Institute Magazine page 43" href="http://viewer.zmags.com/publication/4220baad?page=43"> very relationship-oriented economy. People care a</a> <a title="July/August 2015 CFA Institute Magazine page 44" href="http://viewer.zmags.com/publication/4220baad?page=44"> Attracting delegates from 54 countries, the CFA I</a> <a title="July/August 2015 CFA Institute Magazine page 45" href="http://viewer.zmags.com/publication/4220baad?page=45"> ETHICS AND STANDARDS MARKET INTEGRITY AND ADVOCAC</a> <a title="July/August 2015 CFA Institute Magazine page 46" href="http://viewer.zmags.com/publication/4220baad?page=46"> ETHICS AND STANDARDS MARKET INTEGRITY AND ADVOCAC</a> <a title="July/August 2015 CFA Institute Magazine page 47" href="http://viewer.zmags.com/publication/4220baad?page=47"> KNOW SOMEONE WHO NEEDS A SCHOLARSHIP? Access Sch</a> <a title="July/August 2015 CFA Institute Magazine page 48" href="http://viewer.zmags.com/publication/4220baad?page=48"> ETHICS AND STANDARDS MARKET INTEGRITY AND ADVOCAC</a> <a title="July/August 2015 CFA Institute Magazine page 49" href="http://viewer.zmags.com/publication/4220baad?page=49"> CFA Institute—EDHEC-Risk Institute Advances i</a> <a title="July/August 2015 CFA Institute Magazine page 50" href="http://viewer.zmags.com/publication/4220baad?page=50"> CHAPTER 10 WARNING: The editor general has determ</a> <a title="July/August 2015 CFA Institute Magazine page 51" href="http://viewer.zmags.com/publication/4220baad?page=51"> Why become an independent Advisor on Interactive </a> <a title="July/August 2015 CFA Institute Magazine page 52" href="http://viewer.zmags.com/publication/4220baad?page=52"> REAL-TIME CONTROL OF YOUR PORTFOLIO. </a>