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PortfolioConstruction Forum







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Friday 27 April 2018


Specialist, independent investment continuing education & certification

Forum Fodder | Monday 17 September 2018
Man’s mind, once stretched by a new idea, never regains its original dimensions. - Oliver Wendell Holmes
All the best for another week's continuing education!
- Graham


The makings of a 2020 recession and financial crisis
As we mark the decennial of the collapse of Lehman Brothers, there are still ongoing debates about the causes and consequences of the GFC. By 2020, conditions will be ripe for a new financial crisis.
Nouriel Roubini & Brunello Rosa, Rosa & Roubini Associates |

Markets | Finology
Why we get it wrong - culture not companies dictate trends

Investors need to entirely rethink their processes, assumptions and research approach, to focus on the cultures of consumers in different markets. Only by thinking like new brands themselves, can investors identify and invest in the next powerful trend.
Tassos Stassopoulos, Trinetra Investment Management | 0.50 CE |

The Forum releases its submission to the FASEA CPD proposal
Portfolio Construction Forum's 23-page submission to FASEA in response to its proposed guidance on future CPD explains why the proposal is fundamentally flawed, and falls well short of any reasonable community expectation of FASEA and what drove its formation.
Graham Rich, Portfolio Construction Forum |

Research Review: Small portfolios are beautiful
Markowitz informed us of the risk-reduction advantages of diversification. But just how diversified does an investor have to be to realise almost all of the benefits of diversification?
Ron Bird, University of Technology Sydney | 1.00 CE |

Bonds are no longer a reliable risk diversifier
Simply holding bonds no longer diversifies an investment portfolio, with genuine risk diversification better achieved by exploiting currently under-priced risk premia in volatility and inflation markets.
Gopi Karunakaran, Ardea Investment Management | 0.25 CE |

Wayside Side by Side
Portfolio Construction Forum is proud to support the work of the Wayside Chapel. Late last year, many of our members took part in the launch of Side by Side (MC'd by the Forum's Dean, Graham Rich). This year, Side by Side 2018 is a long-table lunch and forum at the Bondi Pavilion, to discuss the cycle of inequality in Australia and explore what we can do to create a fair and equitable society. You will hear from special guests and Wayside's new CEO and Pastor. It is to be a highly interactive experience, where you and your children (ages 10+) can engage in discussions and activities to dig deeper into some of our society’s biggest challenges.
Wednesday 10 October 2018, Sydney | $0 | Register now!

Pension Funds the biggest risk
Interest rates need to normalise....the market is telling us this....but the economists and money managers have their heads securely in the sand...
Roy Todarello, Rocco Financial Planners | More


FASEA proposals fail to address the P and D of CPD
FASEA's proposed CPD standards will fail to lift the educational standards required of an emerging profession, as they only address the 'Continuing' aspect of CPD, and ignore the crucial 'Professional' and 'Development' elements.
Graham Rich, Portfolio Construction Forum |

Investment crystal balls: broken or imperfect
Investors have long relied on two crystal balls when predicting future returns: equity risk premium and the yield curve. Crystal balls have their place, so long as they are combined with an uncommon degree of common sense.
Amin Rajan, CREATE-Research |

Philosophy | Strategies
Future-proof portfolios are entirely achievable

Future-proofing isn’t about guaranteeing an outcome. No strategy can do that. It's about implementing strategies today that increase the likelihood that multiple objectives, often with different time horizons, can be all achieved.
Rudi Minbatiwala, Colonial First State Global Asset Management |

A future-proof portfolio should guard against pessimism
There will always be movements in markets that we need to be attentive to, and you should construct a portfolio that takes advantage of fear. But don't let that fear drive the dominating principles in your portfolio construction.
Tony Crescenzi, PIMCO |

Electric vehicles are not game changing
Consensus appears to assume that electric vehicle adoption rates will increase dramatically. This view is misplaced. The impact on the oil price and equity market leadership is not something that investors are positioned for.
Stephen Anness, Invesco| 0.25 CE |

QE turns 10

November 2018 will mark the tenth anniversary of quantitative easing - undoubtedly the boldest policy experiment in central banking modern history. There are five key lessons learned from QE.
Stephen Roach, Yale University |

Just how dumb are the bond markets?
If US bond rates go higher from here, it is likely to be in response to something we don't yet know, rather than what is already out there. Markets are not nearly as dumb as many suggest.
Tim Farrelly, farrelly's |
2 comments | More

The assumption of unendingly low interest rates is dangerous
Investors should focus more than ever on uncovering sources of idiosyncratic alpha, rather than relying on momentum or passive beta.
Jacob Mitchell, Antipodes Partners | 0.25 CE |

Does fixed income still diversify portfolio risk?
Re-evaluate the conventional assumption that owning government bonds is inherently defensive and risk diversifying. At best, it's an expensive choice and at worst, it won't work.
Gopi Karunakaran, Ardea Investment Management |

Markets | Investing
Passive is not the way to go when investing in Asia
Differences in regulation, politics, and transparency between Asian countries are all factors that cannot be captured by passive investing but which represent opportunities for active investors.
Peter Kim, Mirae Asset Daewoo |


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