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 Friday 09 October 2015

Independent continuing education for investment portfolio construction practitioners

Geopolitics and the role of bonds in retirement portfolios
Fodder today offers two opposing perspectives on how best to build the debt side of retirees' portfolios. Tim Farrelly sees a place for bonds in his three box approach to building debt portfolios for accumulators and retirees - but Wade Pfau argues bonds serve no useful role in retiree portfolios. Marko Papic and Nouriel Roubini look at the investment implications of the (many) crises in the Middle East. And, we bring you Jonathan Pain's top 10-rated Conference presentation on China at the crossroads.
All the best for another great weekend's learning! - Graham


A three box approach to building debt portfolios
With interest rates at record lows, it's a good time to revisit how we build debt portfolios. A three box approach can really help in making and communicating investment decisions for the debt part of portfolios.
Tim Farrelly, farrelly's | 0.50 CE White Paper

Why bond funds don’t belong in retirement portfolios
The efficient frontier for retirement income generally consists of combinations of stocks and income annuities - perhaps surprisingly, bond funds don't serve a useful role in the optimal retirement income portfolio.
Wade Pfau, American College White Paper

The great migration - investment implications
Europe needs migrants from a purely economic perspective. Potential GDP growth rate is a function of productivity and labor force growth - and Europe is weak in both.
Marko Papic, BCA Research
| White Paper

The Middle East meltdown and global risk
With the US on the way to energy independence, there is a risk that America and its Western allies will consider the Middle East less strategically important. That is wishful thinking - a burning Middle East can destabilise the world economically and socially.
Nouriel Roubini, Roubini Global Economics

At the crossroads... Alpha & Smart Beta... fact, fallacy or fantasy?
China is a nation at the crossroads
The reformist credibility of the Chinese government has been severely damaged by its market intervention, which could be very serious for the ongoing transformation of the world’s most populous nation.
Jonathan Pain, The Pain Report | 0.50 CE Resources
* Rated in the top 10 of 40 presentations by Conference 2015 delegates

Member comments
Real Return of CPI+5% is not impossible
Michael refers to market returns which I concur with... but what about strategies that don't necessarily provide market return outcomes, but are uncorrelated or lowly correlated to equity market returns...
Fergus Hardingham, FM Financial Solutions


Faith in central bank omnipotence is fading fast
Markets have a habit of coming along and kicking you in the teeth when you least expect it - and often when you are most confident you know what you are doing. The bull market in central bank omnipotence is probably over..
Dominic McCormick, Select Asset Management

Crisis and complexity
Crisis and Complexity explores over a dozen economic and financial catastrophes since 1720, focusing on both the unique characters and historical events that shaped each crisis as well as their common recurring pattern.
Ross Barry, First State Super Opinion

At the crossroads... Retirement income certainty - is it an oxymoron?
3 strategies to manage retirement income uncertainty
The danger that “sequence of return risk” can devastate a retirement portfolio is both increasingly recognised and frequently misunderstood. Three concrete, research-driven strategies can help manage it.
Michael Kitces, Pinnacle Advisory Group | 1.00 CE Resources
* Rated in the top 10 of 40 presentations by Conference 2015 delegates

A widely accepted portfolio construction flaw
The typical approach to portfolio construction in the world of financial planning is a two-step process encompassing asset allocation and investment selection. It is the second step where a major flaw exists.
Michael Furey, Delta Research & Advisory

In defence of manager research
Three Oxford University professors wrote a research paper in 2013 severely criticising consultants for failing to pick winners via their fund manager research. The New York Times picked it up. But the fact that consultants couldn't identify gold medal winners in advance doesn't matter. Consistent silver is better than occasional gold.
Don Ezra, Russell Investments | Opinion

Member comments
Thanks for responses
I don't think I was implying that they're holding onto assets at all...
Michael Furey, Delta Research & Advisory

FOFA considerations
One of the big problems confronting advisers today is the massive level of compliance in relation to fund switching etc, under the FOFA rules.
Steve Blizard, Roxburgh Securities

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