In our society, it’s critical that every individual has a clear perspective about money, and the role that it plays in their present and future well-being. But money means different things to different people. People also have different perspectives on money, based on their experiences.

Finology is the emerging (and converging) research field covering the study of minds, customs and behaviours with respect to money. It is a unique mix of behavioural finance and economics, and psychology. The Forum's particular focus on finology is as it relates to investment portfolio construction, incorporating the relationships between people and money, behavioural economics, and behaviour change.

Finology knowledge and skills enable us all to better understand how our own preferences, biases and perspectives influence our portfolio construction philosophy and practices - and to better uncover and understand the preferences, needs and objectives of individual investors to help them achieve their goals. It's where investing meets investors.

Finology Summit 2018 will help you better understand the preferences, needs and objectives of individual investors, to further improve the way you relate with them and help them achieve their goals.



Overview & Registration  When, where, where to stay, who it's suited to | Registration options, terms and conditions

Program & Prep - Timetable, Faculty, Topics, and Prep materials (pre-reading, pre-viewing)

Why not also join us for Markets Summit?  Debating the drivers of and outlook for the markets (the day before Finology Summit)



Finology Summit 2018 features an exceptional and eclectic international faculty of behavioural finance, behavioural economics, and psychology experts covering various aspects of finology with particular focus on the implementation challenges, tools and opportunities faced by practitioners.


Where investing meets investors
Finology knowledge and skills enable us all to better understand how our own preferences, biases and perspectives influence our portfolio construction philosophy and practices - and to better uncover and understand the preferences, needs and objectives of individual investors to help them achieve their goals. It's where investing meets investors.
- Graham Rich, Managing Partner & Dean, Portfolio Construction Forum (Sydney)
- Finology Backgrounder


The finologist of the future is a cyborg
The future is not one of humans OR technology, but rather tech-augmented humans – cyborgs. The problems of finology are just too complex for humans to manage along (there’s too much to calculate), or for computers to calculate (it doesn’t help when people can’t articulate their goals in the first place!). The man vs. machine framing of the role that technology will play in the future of delivering financial advice is too narrow. Instead, the combination of man and machine (i.e., the “cyborg adviser”) can be more effective than either alone, posing the greatest opportunity to human advisors in the long run – and threat to those who lag behind.
- Michael Kitces, Partner & Director of Wealth Management, Pinnacle Advisory Group (Columbia, Maryland)
- Finology and finding the higher purpose
- What cyborg chess can teach us about the future of financial planning

The trust mandate is how asset managers win and keep clients
Trust – defined as the belief that those to whom we are vulnerable are both willing and able to act in our interests – is the no.1 factor in the decision to select and retain an asset manager. Research on the way people form those beliefs about others, suggests not only that the judgment of willingness is the first to be made, but it is also the more important of the two. Indeed, the greater the vulnerability, or risk, the more it becomes essential for clients to be convinced of potential managers’ intentions, rather than of their abilities.
- Herman Brodie, Founder, Prospecta Limited (Birmingham)
- Understanding how clients select their asset managers

- Not so different after all: A cross-discipline view of trust
- Warmth and Competence As Universal Dimensions of Social Perception
- Money Doctors



Downsize now. Rejoice at leisure.
Government incentives may help to encourage downsizing but the decision itself may not be purely financial. Recent research exploring the opinions from a psychological perspective of 350 people who downsized over the last five years reveals that despite one third describing it as a difficult decision and 70% reporting some levels of stress, only 9% reported it to be worse than expected. Most people take ownership for their decisions, nominating physical health and finances as the top two impetuses to move. Only about 19% reported regrets, with these classified mainly as emotional and social.
- Joanne Earl, PhD, Director of the Professional Psychology Program, Macquarie University (Sydney)
- Downsize now. Rejoice at leisure.

Behavioural biases lead to unrecognised risk-taking
Behavioural biases lead money managers to take risks they don’t see. Substitution, aggregation, and feedback risks are often ignored in financial modelling. Successful managers become overconfident. Limited attention and the availability bias distort our perceptions of probability. And confirmation bias leads us to underestimate the likelihood that we are wrong.
- Terrance Odean, PhD, Rudd Family Foundation Professor of Finance, Haas School of Business, University of California, Berkeley (San Francisco)
- Boys will be boys - Gender, overconfidence, and common stock investment
- Bubbling with excitement
- Trading is hazardous to your wealth
- Learning to be overconfident

12.30PM-1.15PM: LUNCH


Robo-advisors are NOT the future (but technology is)
While robo-advisors have been the big buzz as replacement humans, in reality they’re not (and US data proves it). In fact, robo-advisors are pivoting to become human advisor platforms. Technology is augmenting the financial advisory process in the US, from assessing risk tolerance, to gathering client data, to allowing for interactive financial planning, and providing financial dashboards. But while technology is great, it’s not enough alone (otherwise everyone with a FitBit on their wrist would be healthy). The role of the adviser is to help clients NOT go with the herd and to figure out what their goals are in the first place.
- Michael Kitces, Partner & Director of Wealth Management, Pinnacle Advisory Group & Publisher, (Columbia, Maryland)


Featuring three concurrent breakouts – in each, one speaker presents followed by Q&A.

Is it relevant? Is it understandable? We can all do much better….
Too much of our communication with end investors is either irrelevant, unintelligible to the average investor - or worse still, both. We can all do a much better job of connecting with investors by focussing on two key questions: do they really need to know this?; and, will they understand what I am saying? Relevance and understandability are key.
- Tim Farrelly, Principal, farrelly's Investment Strategy (Sydney)

Ride the Managed Accounts tsunami
In an ever changing regulatory environment and increasing pressure to deliver quality investment solutions to clients, Managed Accounts have become increasingly popular with approximately A$40bn in assets. According to the Institute of Managed Accounts, it’s no longer enough to be a highly capable practitioner. To maintain your position in the industry, you need to embrace technology and a rigorous ongoing educational program. Managed accounts have proved themselves to be a cost-effective way to help streamline back office processes and create a tailored and transparent investment portfolio, liberating practitioners to spend more time engaging with clients so they can achieve their goals. Prepare to ride the managed accounts tsunami or be left in its wake.
- Peter Chun, FIAA, General Manager Distribution, Colonial First State (Sydney)

Successful practitioners are caring practitioners
“Nobody cares how much you know, until they know how much you care,” cautioned Theodore Roosevelt. This is especially true when risk is involved. Practitioners can reveal how much they ‘care’ for their clients in the contracts and incentives they insist on, in the education and information they provide, and in their interest in the client’s wellbeing beyond the transaction. Practitioners should start, though, by trusting their clients.
- Herman Brodie, Founder, Prospecta Limited (Birmingham)



Beware the trifecta of desire
Behavioural impacts on investment decisions are well understood but human conditioning also impacts investment communication. Practitioners demand a trifecta from fund managers - performance, simplicity, connection - opening up risks. Performance chasing in fund selection leads to sub-optimal client outcomes, while assessing processes and outcomes is hard and has parallels with stock selection. Simplicity and Connection expose recipients to powerful risks of influence; these “tools of selling” contradict “tools of investing”. Disagreement is a barrier to persuasion yet many great investments are contrarian and uncomfortable, while an investment process simple enough to codify will inevitably be replaced by a cheaper automated alternative.
- Douglas Isles, Investment Specialist, Platinum Investment Management (Sydney)

Finology is central to the future of financial advice
The debate around professionalism gets louder by the day against the backdrop of legislated increases in education, standards and ethics set by the new government body, FASEA. Finology must be seen as central to the curriculum of what financial advisers learn and how they practice, for professionalism to be complete.
- Nick Hakes, General Manager Member Services, Partnerships & Campus AFA, Association of Financial Advisers (Melbourne)
- Michael Kitces, Partner & Director of Wealth Management, Pinnacle Advisory Group & Publisher, (Columbia, Maryland)
- Herman Brodie, Founder, Prospecta Limited (Birmingham)
- Mia Taylor, Personal Financial Adviser, Evalesco Financial Services (Sydney)
- Michael Ward, Director & Personal Financial Planner, Maxim Private Wealth (Perth)

Keep hope alive!
There was a time in my recent life when I was a lonely, homeless woman in one of the most expensive cities of the world. Everyone said it would cost me a lot when I moved to Sydney. As it turned out, it cost me everything I had - my family, my friends, my money, my health, my dignity and my belief in myself… simply, everything. Sydney is an expensive city, yes, but there are also generous people in the expensive city, if you look through the right lens. Some of these generous people have invested in me. Their investment has not been in the form of money. Instead, they’ve invested by giving me hope, love, time and energy. They saw in me the potential to renew a hope for the future, showed me how to have love conquer hate, how to move forward, and how not to look backwards. Today, this hope is more alive than ever, and I want to share it with you. As I do, my confidence in the future will continue to grow. And perhaps I can encourage you with the gift of hope that you can gift to others.