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Fodder
kicks off with a Guide written by practitioner
Jerome Lander and funds management exec Andrew
Fairweather, addressing the most fundamental
portfolio construction issue - creating an
Investment Policy Framework that encapsulates your
investment philosophy. Anatole Kaletsky argues we
may be seeing a major structural shift in economic
doctrine, to overcome the failures of market
fundamentalism so starkly exposed by the GFC. We
highlight Prof Moshe Milesvky top-rated lecture from
Conference 2015 on integrating human capital into
portfolio construction. It's part 1 of the lecture
series that Moshe will continue at
our upcoming Strategies Conference (23-24 Aug)
in which he'll argue the importance of using
"biological age" (not chronological age) in
retirement planning. We feature PIMCO's Rob Mead
on the biggest portfolio
risk ahead. And we end with a lecture from Berkeley
Professor Shachar Kariv on
observing how a client makes financial trade-offs as
a more accurate measure of their risk preferences.
-
All the best
for another great week's continuing education -
Graham
P.S.
PortfolioConstruction Forum
Strategies Conference 2017 (23-24 August) - It all
adds up! Early bird savings end Thursday 27 Jul |
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QUOTE OF THE WEEK... |
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Learning is not a spectator sport. -
Anonymous |
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LATEST... |
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Philosophy
A Guide to forming an Investment Policy Framework
This Guide aims to assist practitioners develop
their own investment policy framework by providing a
helpful checklist of issues to consider, and
publicly available examples from institutions in
Australia and globally.
Andrew Fairweather & Jerome Lander |
More
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Markets
A "Macroneconomic" Revolution?
Next month will mark the tenth anniversary of the
GFC. Why have so few of the policies that might have
ameliorated economic conditions and alleviated
public resentment been implemented since?
Anatole Kaletsky, GaveKal
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More
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Strategies | Finology
A client's life is a mix of stocks & bonds -
allocate around it
It is time to properly account for risk
characteristics of client’s most valuable asset -
their human capital. This isn’t easy to implement
and places practitioners in a difficult situation.
Moshe Milevsky, York University | 1.50 CE |
More
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Markets | Strategies
Don't confuse the winds of change with "hot air"
The biggest portfolio risk in 2017 will be over
confidence in assigning scenario probabilities.
Don't confuse the winds of change with "hot air"
when it comes to portfolio construction.
Robert Mead, PIMCO | 0.25 CE |
More
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Finology
Achieve client goals with minimum discomfort
Actually observing how a client makes financial
trade-offs can provide a more accurate measure of
their risk preferences than if we simply ask them
questions about what they think they would do.
Shachar Kariv, University of California, Berkeley
| 1.00
CE |
More
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A small rise in rates may have little impact
In terms of the impact to changes in interest rates
from here, I’m not sure the suggestion that the
“economy's sensitivity to interest rate changes has
also doubled” holds true in general terms.
Brad Matthews, Brad Matthews Investment Strategies |
More
What about asset price inflation?
Call me nuts but the lowest interest rates in the
history of mankind still gives me great
consternation.
Doug Turek, Professional Wealth |
More
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RECENTLY... |
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Markets
Policy rules versus discretion
The use of discretion in setting monetary policy has
had a somewhat checkered history. Ironically, the
debate about rules versus discretion is just heating
up as the FOMC sets a steady course for unwinding
its extraordinary policy measures.
Dr Robert Gay, Fenwick Advisers |
More
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Markets
The G20's misguided globalism
This
year's G20 summit in Hamburg promises to be among
the more interesting in recent years. The knee-jerk
globalism that suffuses G20 meetings feeds into the
populists' narrative.
Dani Rodrik, Harvard University |
1 comment |
More
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Finology
What do we know about investor irrationality?
It has become conventional wisdom that
underperformance is due to the irrational investment
behavior of individuals. It is time to question
whether the conventional wisdom has even a scintilla
of meaning.
Michael Edesess, EDHEC-Risk Institute |
More
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Markets
Cycles in a low growth world
In a low
growth, low inflation, low interest rate and low
yield environment, a cyclical economic upturn
presents opportunities in asset classes such as
equities and real estate.
Andrew Milligan, Standard Life Investments |
More
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Markets | Investing
Bonds are the "walking dead" - time to rotate into
loans
Bond investors have enjoyed a multi-decade bull run
in yields, fuelled by unsustainable post-GFC
stimulus, but "the times they are a-changing".
Jeffrey Reemer, Invesco
| 0.25
CE | |
More
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The changing world
The economic world has not changed - it is like
gravity. The current outcome (e.g. low interest rates)
has changed because the relative inputs are
different...
Michael Chamberlain, MCA NZ
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More
Demographics seem to be the key
I
suspect that you are right and that slowing
demographics are behind the slowing of growth and
low interest rates...
Tim Farrelly, farrelly's
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More
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