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;
- Perspectives library - exclusive interviews, research papers, white papers, opinion papers and special interest
   subscription services from local and international investment professionals and subject matter experts; and,
- CPD Campus - our online portfolio construction learning and accreditation resource.


 Friday 17 April 2015

The independent professional development service for investment portfolio construction practitioners


After a few weeks off for Easter, Fodder kicks back off with a challenge from Dom McCormick to rethink gold's place in portfolios - as he writes, when even the gold bugs are giving up on gold, there's a fair chance we are not too far from the bottom.  Oliver Hartwich then mounts the argument for Germany to leave the eurozone (although he concedes the chances are near to zero).

You may have seen the recent SPIVA report finding that actively managed funds in Australia lagged their benchmarks to 31 December 2014. It follows similar findings for USA mutual funds. For those on the verge of writing off active management, we offer three pieces...

GaveKal's Charles Gave explains that indexation works only as long as no more than about 5% of assets are managed that way. However, today, indexing is the dominant asset management style, which he says creates an explosive-implosive system that swings wildly from booms to busts.

Active management veteran Bill Priest and his colleagues at Epoch Investment Partners then argue the case for active management. They show that the abnormally poor performance of quality stocks and abnormally large cash drag over the last three years (both as a result of QE) make it unsurprising that active managers lagged the market. Read the paper, complete the CPD quiz, and earn 1.00 CE.

The challenge is to find good quality active managers. On this, we offer two Financial Analyst Journal papers on the art of fund and fund manager analysis. As one analyst notes, "it's rare that very experienced people with thoughtful processes don't perform well over the long term."

Finally, we profile another top 10-rated presentation from Markets Summit 2015- BlackRock's Neeraj 

Seth's compelling insight into how India's investment markets are transforming (definitely not a market suited to an index approach). "Attend" online and earn CPD.

All the best for some great learning! - Graham

P.S. Join us for Symposium NZ 2015 (19/20 May). A mix of the formats of our Markets Summit, Conference and Academy programs, it's equally relevant to Australian Members. 


Gold may regain its shine
While it has offered a very bumpy and challenging ride in recent years, I suspect those prepared to buy and hold some gold exposure today will be well rewarded looking back a few years from now.
Dominic McCormick, Select Asset Management

Why Germany should leave the eurozone
Not only would a German exit from the eurozone give Germany the currency it deserves, but it would also leave the rest of the eurozone with the carcass of a currency well suited for its needs.
Oliver Hartwich, The New Zealand Initiative

Assessing manager risk & risk-adjusted performance
Even if it is never your intention to recommend individual stocks, understanding financial analysis - and ratios in particular - will enhance your ability to analyse equity funds.
Angela Ashton, PortfolioConstruction Forum
0.75 CPD Research

India's transformation: a compelling fixed income opportunity
As Indian capital markets develop, the macro picture improves, inflation is brought under control, and the economy continues to grow, India's credit and rates markets present a compelling opportunity for global fixed income investors.
Neeraj Seth, BlackRock
0.5 CE | Resources
* Rated in the top 10 presentations by Markets Summit 2015

The case for active management
Even the most skillful active managers will sometimes underperform. And, in some market environments, most active managers can be expected to underperform.
Bill Priest et al, Epoch Investment Partners
1.00 CPD White Paper

How indexation killed growth
Indexing, as I have written before, is a form of socialism, since capital is allocated not as it should be. It is hard to think of a more stupid way to allocate this scarce resource.
Charles Gave, GaveKal

Member comments
Academy Autumn Seminar - Key takeout

Peoples attitude to planning and seeking advice can be significantly impacted by the way they see their past...
James Brown, Dixon Advisory & Superannuation Services

Academy Autumn Seminar - Key takeout
China - the CCP has the utmost determination to stay in power and they plan well into the future. Crack down on corruption solves 2 issues...
Charlie Creswick, Ottomin Investment Group


Greece's madmen at work
Hardly a day passes that a Greek government official does not add a needless provocation to the bailout debate. Is this just madness? Or is there method in it?
Oliver Hartwich, The New Zealand Initiative

Greece - a case study for increasing Eurozone strain
2015 will be a year of huge uncertainty about the future of the Euro. These uncertainties are likely to pose a fundamental challenge to investing in the Eurozone.
Charles Dallara, Partners Group
* Rated in the top 5 presentations by Markets Summit 2015

Three regions, three strategies
Fundamentally, there are three ways to make money in financial markets. A well structured and well-diversified portfolio should encompass all three, across geographies.
Louis-Vincent Gave, GaveKal

Financial ratio analysis
Even if it is never your intention to recommend individual stocks, understanding financial analysis - and ratios in particular - will enhance your ability to analyse equity funds.
Angela Ashton, PortfolioConstruction Forum
1.25 CE Research

The end of an era
Now the Fed has opened the door to normalising interest, what constitutes "normal"? Take care in stretching for yield now the Fed is no longer making promises.
Dr Robert Gay, Fenwick Advisers

The investment implications of Fed tightening
After more than six years of near zero interest rates, the Fed appears set to embark upon the long journey back to more normal monetary policy, raising a host of questions about the investment implications.
Dr David Kelly et al,  JP Morgan Asset Management
1.25 CE
White Paper

Member comments

Interesting article... just one query. I thought markets were the consensus view???
Michael Furey

Markets more reliable than betting markets
At the races favourites win about 1/3rd of the time, however odds on favourites win about 59% of the time...
Chris Farley

Markets and consensus
My take is that markets set the clearing price based on the net views of the participants. These views may or may not form a strong consensus.
Tim Farrelly


Keep up to date - follow us @PortfolioForum
There's no need to wait until our weekly Forum Fodder email to know what's new with PortfolioConstruction Forum. Just follow us on Twitter to hear as soon as we release new articles on and registration opens for our live programs.



Join The Debate

Tweet this to your followers.

To hear as soon as we release new papers, videos, and CE quizzes:


Share this with your LinkedIn network.

Email a link to your colleagues.