Forum Fodder

PortfolioConstruction Forum


Our regular Forum Fodder email alerts Members to what's new on this site and with our live professional development progams. A sample of the Forum Fodder email is below.  Become a Member (with our compliments) to receive Forum Fodder and access our multi-media learning centre, (this site) featuring:
- Resources Kits - videos and podcasts of the sessions and accompanying papers from our live programs;
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- CPD Campus - our online portfolio construction learning and accreditation resource.


 Friday 20 February 2015

The independent professional development service for investment portfolio construction practitioners


Cyclical? Secular? Structural? Our new Backgrounder explains why that distinction is important to your thinking about the markets. It's another unique PortfolioConstruction Forum white paper, and was required pre-reading for those at our onstage Markets Summit 2015 program earlier this week - and, I'd suggest, for anyone who builds portfolios.

We're now working furiously on the online Markets Summit Resources Kit. From Monday, you'll be able to "attend" Markets Summit 2015 sessions and earn CPD even if you weren't able to be there. Meanwhile, for a great summary of ultimate key takeout, read Angela Ashton's write up of the end-of-day panel in which our 16 Faculty members debated whether to overweight international equities and underweight Australian equities in portfolios on a 2 to 3 year view.

The related issue is currency. Dom McCormick argues that easy currency gains from a falling Australian dollar may already have been had, but that's not a reason NOT to invest more globally. Jonathan Pain also prefers an overweight international exposure, as you'll see in his outlook for 2015

Lastly, Michael Kitces overviews new research on the science of spending - it turns out, money can actually buy happiness, it's all in how you spend it. If you deal with investors, you should be across this new research (and if you don't deal with investors, it's still fascinating for your own spending).

All the best for some great weekend learning! - Graham

P.S. Also check out theinstoreport's Markets Summit 2015 Wrap-up which covers the main topics from the program including Will Greece lead way to end of eurozone?; Secular trends to remain EM growth driver; In a world of low, low, low growth, the US stands out; and, Bond market liquidity evaporating for investors


Markets Summit 2015 Greate Debate - Intl vs Au equities
In this not-to-be-missed session of a not-to-be-missed program few prisoners were taken in debating the moot "overweight int'l equities, underweight Au equities".
Angela Ashton, PortfolioConstruction Forum

Currency tailwind losing force?
Investing globally is increasingly popular, with the expectation of a continued weak AUD being a big driver. But easy currency gains may have already been had.
Dominic McCormick, Select Asset Management

The science of spending (money can sometimes buy happiness)
New research suggests that sometimes, the best things we can do to improve our happiness may lie in NOT trying to maximise our wealth.
Michael Kitces, Pinnacle Advisory Group

All things considered - outlook for 2015
2015 has got off to an eventful start - we've seen dramatic changes only five weeks into the year. Here's where I see markets going in 2015. A couple of things really stand out.
Jonathan Pain, The Pain Report

Backgrounder: Cyclical? Structural? Secular?
This Backgrounder defines the terms "cyclical", "structural" and "secular" and provides examples, in order to increase the clarity of debate about what's really driving markets.
PortfolioConstruction Forum
White Paper

Member comments
Academy Summer Seminar - Key takeout

The Greeks probably feel like they are talking to the German coast guard at the moment... "Allo, Allo, vot are you zinking!!" Communication is so important - always be looking to getter a deeper understanding of our clients needs and concerns.
Pascal Julliard, Julliard Financial Services
More about Academy

As always, my over-riding philosophy remains "Buy in Gloom, Sell in Boom"
Whilst it is academically interesting to discuss the relative merits of alternative approaches to investing in Chinese equities, the reality is that at circa 3400, the Shanghai index is up almost 70% on where it stood at the start of FY15...  Comment


A primer on geopolitics and investing
Does geopolitics have investment implications? In short - yes - and this paper provides a clear understanding of both geopolitics and its clear link to investment markets.
Angela Ashton, PortfolioConstruction Forum
|  1.25CPD  |  

The price all investors pay for benchmarking
Could measuring and evaluating manager performance by comparing it to a market index be distorting prices across the whole market? That is the conclusion of a recent paper.
Michael Edesess, Fair Advisors

Dividends by another name
Share repurchases have recently been receiving a lot of press. We see dividends and share repurchases as equal ways of returning excess free cash flow to business owners.
Bill Priest, Epoch Investment Partners

The alleged missing link - wage inflation
The consensus of FOMC participants expects core inflation to revert toward the 2% target over the next two years. I think they will be wrong.
By Dr Robert Gay, Fenwick Advisers

Land of the (re)rising Sun
Japan has a history of changing dramatically, often when least expected. Under Abe's policies and reforms, Japan is well-positioned to reemerge as a global investment force.
Tim Griffen, Lazard Asset Management

Member comments
Academy Spring Seminar - Key takeout

Bubbles by definition appear when most participants concur with a particular view. Therefore whilst there remains a wide dispersion of views it would seem unlikely that a bubble could inflate. For those who correctly predict a bubble it is likely that you will look wrong for a period depending on how long it takes for others to come to your view. Nothing wrong with that, but it can be a lonely place for a while.
David Graham, McPhail HLG Financial Planning
More about Academy

China A shares emerging from the bear?
Replying to James Waggett...remember there is a big difference between AGF and any China index. Comment

Risk transfer vs risk retention
This excellent analysis really set me thinking. If we just talk about financial longevity risk it’s easy to overlook the other side of the longevity equation... Comment


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