Forum Fodder - Quarterly CE Alert!

Quarterly CE Alert! | December 2020
Our quarterly CE Alert! highlights our upcoming live continuing education programs, and all of the complimentary on-demand CE/CPD-accredited resources we’ve published over the past few months.

• The CE/CPD hours you earn can be used to help meet the CE/CPD requirements of 20 governing bodies (regulators, associations, and institutes), including ASIC, APRA, FASEA, AFA, FPA and CIMA CE/CPD requirements, to name a few.

• You can access your CE/CPD certificates via your complimentary Forum MyCE record where you can store, view, print and export your CE/CPD 27/7 earned via the Forum - as well as any CE/CPD hours you have earned from learning activities hosted our CE Accreditation Partners.

• Did you know you can now also upload any other CPD you earn (i.e. non-Forum accredited) to your Forum MyCE record so it becomes your “source of truth” learning record store of all your CE/CPD?

All the best for the next step in your continuing education - Graham

Strategies

Stop looking for labels and start buying the real assets
Live online, AEDT 9.00am-9.50am Friday 11 Dec 2020 | 0.75 CE/CPD hour
Infrastructure is in a whole new world. Decarbonisation and data growth will dominate every aspect of our lives for decades to come. Critical societal infrastructure has never been more critical nor has the demand for a greener planet. Real assets focused on these structural thematics provide greater alignment between asset ownership and consistency of returns through time. Now more than ever, successful investment management requires agility to adapt in this rapidly changing world. This involves broader category definitions that align with the world’s leading private markets infrastructure investors as opposed to restrictive and arbitrary benchmarks. If your infrastructure manager isn’t leveraging off these themes then you need to find a new one.
Featuring Jeremy Anagnos, CFA, CBRE Clarion (Philadelphia) |$0 for all Forum members | Register now!

Markets

Markets Summit 2021 “Back to the drawing board” | Mark your Diary - Wed 17 Feb 2021
Established in 2009, Markets Summit is THE investment markets scene setter of the year. Presented in Sydney each February, the face-to-face and online learning program features 20+ leading investment thinkers - geopolitical specialists, economists, market/asset class experts, and investment strategists - from around the world, offering their best high conviction ideas on the drivers of and outlook for the markets (on a three- to five-year view) in the context of the theme - and the implications for portfolios.
Meanwhile “attend” Markets Summit 2020 “Be Alert! High VUCA ahead” on-demand

Finology

Research Review: The impact of investor beliefs
Beliefs interact with investors’ biases and preferences to ultimately influence their behaviour. Two recent papers highlight the impact of individual investors’ beliefs about the future and the impact on portfolio behaviour and composition, as well as market returns.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read

Philosophy | Markets | Investing| As seen at Strategies Conference 2020

We are all sustainable investors now
In the past, ESG considerations were seen as a choice or a preference but, going forward, they are increasingly becoming a necessity in the evaluation of investment opportunities in a whole new world!
Michael LaBella, QS Investors | 0.50 CE | Read, Watch, Listen

Markets | Strategies | Investing | As seen at Strategies Conference 2020

Australia’s tech sector has been unfairly maligned
The tech-wreck of the early 2000s was ground zero for the birth of a succession of Australian technology companies that have disrupted markets and established themselves as global leaders.
Dushko Bajic, First Sentier Investors | 0.50 CE | Watch, Listen

Philosophy | Investing| As seen at Strategies Conference 2020

Believe it or not, you’ve always been an ESG investor
While it may not be a new approach, ESG investing creates risk-aware portfolios that are more likely to outperform over the long term.
Dom Giuliano, Magellan Asset Management | 0.50 CE | Watch, Listen

Markets | Strategies | Investing | As seen at Strategies Conference 2020

Convertible bonds must play a dedicated role in portfolios
For investors needing more from their fixed income allocation, global convertible bonds offer a whole new world of opportunity.
Arnaud Brillois, Lazard Asset Management | 0.50 CE | Read, Watch, Listen

Strategies | Finology | As seen at Strategies Conference 2020

It’s time to retire retirement
It turns out that 'retiring’ and withdrawing from productive life actually conflicts with our own natural drivers of well-being. The concept of ‘retirement’ is an obsolescent by-product of the industrial era that needs to be retired.
Michael Kitces, Buckingham Wealth Partners | 0.50 CE | Read, Watch, Listen

Finology

Greed, investing and ethical behaviour
Relatively little is known about what greed is and does. These two papers highlight the importance of greed in economic behaviour, and to a greater chance of engaging in ethically questionable behaviour.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read

Strategies | Investing | As seen at Strategies Conference 2020

The holy grail of factor timing is a poisoned chalice
Investors should not attempt to time, but rather allocate to well-diversified and balanced multi-factor portfolios and provide consistent exposure to targeted factors.
Simon Lansdorp, Robeco | 0.50 CE | Read, Watch, Listen

Markets | Investing | As seen at Strategies Conference 2020

There is no “new” normal for investing
Driven by Covid-19, 2020 saw economics 101 meet market psychology. Today, fear and greed set up a rich opportunity set on long and short sides.
Andrew Clifford, Platinum Asset Management | 0.50 CE | Watch, Listen

Markets | Strategies | As seen at Strategies Conference 2020

It’s an acceleration of the pre-Covid world, not a whole new world
The world today is an acceleration and escalation of the world that existed before Covid-19, rather than a whole new world. Broad, multidisciplinary thinking is essential.
Vikram Mansharamani, Harvard University | 0.50 CE | Watch, Listen

Markets | Strategies | As seen at Strategies Conference 2020

Markets are underestimating medium-term inflation risks
Post GFC, inflation risk skewed to the downside with central banks fighting against disinflation and deflation – and the market is potentially under-pricing inflation risks going forward.
Mark Kiely, Antares Capital | 0.50 CE | Watch, Listen

Markets | As seen at Strategies Conference 2020

Globalisation is dead - It IS a whole new world
The Covid-19 crisis has triggered a step change in policy, accelerated trends and transformed investment frameworks. Opportunities will arise out of dislocation – but a more regional view is required.
Paras Anand, Fidelity International | 0.50 CE | Read, Watch, Listen

Philosophy | Investing| As seen at Strategies Conference 2020

ESG fixed income investing is not enough
Unlike ESG investing, impact investing accelerates the allocation of capital to solve the world’s climate and social challenges.
Stephen Fitzgerald, Affirmative Investment Management | 0.50 CE | Watch, Listen

Finology

Research Review: Cultural distance and investing behaviour
Culture explains much about how we think, feel, and behave. These two papers explore the influence of culture and cultural distance in a financial context.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read

Markets | As seen at Strategies Conference 2020

It’s not a whole new recession in the US
In the US, a durable and economic bottom has formed, and global investors are well-served to re-frame their mindset towards the incipient economic expansion now underway.
Jeff Schulze, ClearBridge Investments | 0.50 CE | Read, Watch, Listen

Markets | As seen at Strategies Conference 2020

We’re at the beginnings of an epic but nominal global bull market
We are at the threshold of an epic bull market buoyed by the emerging Buenos Aires Consensus and desensitisation to Covid-19. But beware, inflation will eventually re-emerge.
Marko Papic, Clocktower Group | 0.50 CE | Read, Watch, Listen

Markets | As seen at Strategies Conference 2020

Washington has changed forever
On 3 November, US voters go to the polls. The presidency will be determined once again by 14 swing states and six of them really matter.
Libby Cantrill, PIMCO | 0.50 CE | Watch, Listen

Markets | Strategies | Investing | As seen at Strategies Conference 2020

This is not a tech bubble… (yet!)
Covid has accelerated tech adoption on an unprecedented scale and while the winners have been broad, not all are equal. Short-term investors with simple valuation techniques are missing the bigger picture.
Scott Berg, T. Rowe Price | 0.50 CE | Read, Watch, Listen

Finology

Research Review: Time preferences, present bias and financial behaviour
These two papers provide a more sophisticated, behavioural understanding of time discounting, to enable more nuanced conversations with clients about current and future consumption, and help mitigate the potentially negative impacts of present bias.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read

Philosophy | Strategies | Editor’s Pick!

A 60/40 “balanced” split will fail superannuants of the 2020s
Somehow the optimal growth/defensive asset split from the 1980s is still considered “balanced” today - never mind that for the first time since the 1930s, the cost of capital is stubbornly static at a negative real return.
Robert Prugue, Callidum Investment Research |0.25 CE | Watch, Listen

Finology

Research Review: Helping clients achieve their goals
These two research papers present insights into how advisers can better assess and guide how clients think about and structure goals - including savings goals.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read

Philosophy

All Things Considered… Market pricing
Market pricing goes to the heart of everything we do in constructing portfolios. But the risk-free rate is artificial as central bank manipulate interest rates to stimulate economies. The implications for asset allocation are significant.
John Coombe, Joe Fernandes, Tim Farrelly & Robert Prugue |1.00 CE | Watch

Philosophy

All Things Considered… We do not know what we do not know
The first All Things Considered webinar was foundational. Our panel of expert portfolio construction practitioners and academics made the case for questioning our investing activities, and identified some “sacred cows” that are most consequential to investment outcomes AND in greatest need of revision.
Joe Fernandes, Maroš Servátka & Robert Prugue |1.00 CE | Watch

Finology | Editor’s Pick!

New Word Order - It’s not what you say, it’s what they hear
The way investors respond to the language of financial services can be influenced by using the right words, avoiding others, and structuring messages to overcome skepticism
Gary DeMoss, Invesco Consulting | 0.50 CE | Watch, Listen

Finology

Research Review: Mental Accounting
Humans categorise and form stories about their world - including their financial lives. Two recent papers emphasise the implications of mental accounting, particularly for any investment professional in a client-facing role.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read

Philosophy | Markets | Investing | Editor’s Pick!

Research Review: SRI, ESG and controversial investing
Research finds that SRI funds perform as well as conventional funds, ESG equity investing has outperformed in the US, and controversial stocks do best in crises.
Ron Bird, Investment Management Research Program |1.00 CE | Read

Finology | Editor’s Pick!

Move over risk/return profiles: Values define client’s needs
Only by making the effort to understand and align investment beliefs with values can we get a sharper understanding of our clients’ true objectives and provide solutions that will really meet their needs.
Tassos Stassopoulos, Trinetra Investment Management | 0.50 CE | Watch, Listen

Markets | Strategies | Editor’s Pick!

When navigating uncertainty, breadth trumps depth
To succeed within the ever-shifting context in which investment decisions are made, investors should adopt a multi-lens approach. Context matters, and siloed thinking can be detrimental.
Vikram Mansharamani, Harvard University |1.00 CE | Watch, Listen

Markets| Editor’s Pick!

The case for a barbell investment strategy
What strategy should a rational investor, completely free of constraints, take to preserve wealth while making modest long-term gains? To do so will not be easy over the next two decades.
Woody Brock, SED | 1.00 CE | Read, Watch, Listen

Finology

Research Review: Regret
Two research papers exploring regret can help us improve how investment decision-making and outcomes are framed with clients and offer deeper insight into clients’ personal and financial goals and priorities.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read

Finology | Editor’s Pick!

Applying language research to real life conversations
Practitioners need to know what words to use and lose - and be able to apply that knowledge - to improve their conversations with clients about fees, regulations and investment strategies.
Gary DeMoss, Invesco Consulting | 1.50 CE | Watch, Listen

Finology

Research Review: The endowment effect
The endowment effect is the tendency for people who own a good to value it more than people who do not. Its economic impact is consequential. Two recent papers offer important and very useful insights for investment professionals.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read

Markets | Strategies | Editor’s Pick!

You are a factor investor
Whether they realise it or not, investors use factors every time they make an asset allocation decision. Combining multiple factors can help investors increase the chances for investment success.
Antonio Picca, Vanguard | 0.50 CE | Read, Watch, Listen

Strategies

The big picture of longevity planning
During accumulation, the concept of portfolio longevity is quite meaningless. Eventually, peak-wealth is achieved and withdrawals exceed investment gains. Managing portfolio longevity becomes critical.
Moshe Milevsky, York University | 0.50 CE | Watch

Markets | Strategies

Value investing will triumph over growth in the 2020s
The decade since the GFC has been a challenging period for value style equity investing. Not surprisingly, investors are questioning the value of value investing.
Expert Panel | 1.00 CE | Watch, Listen

Markets | Editor’s Pick!

We will have to choose between the US and China in the 2020s
In the increasingly intense strategic and economic competition between Washington and Beijing, it’s naive to think Australia can just sit on the sidelines.
Expert Panel | 0.75 CE | Watch, Listen

Philosophy | Investing| As seen at Strategies Conference 2020

Believe it or not, you’ve always been an ESG investor
While it may not be a new approach, ESG investing creates risk-aware portfolios that are more likely to outperform over the long term.
Dom Giuliano, Magellan Asset Management | 0.50 CE | Watch, Listen

Finology

Research Review: Confirmation bias
The line between “error” and “reasonable human functioning” is remarkably vague. This Research Review focuses on a widely-cited paper that thoroughly unpacks the various concepts under the umbrella of confirmation bias.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read

Strategies | Investing

Research Review: More about momentum
Despite difficult times in recent years, momentum has been the factor that has generated the highest returns over the past 50 years. Three new papers on the topic take us into largely new territory and improve our understanding on how markets operate.
Ron Bird, Investment Management Research Program | 1.00 CE | Read

Markets | Strategies | Editor’s Pick!

The race of our lives revisited (in a nutshell)
Climate change has moved faster than most thought possible. There will be exciting investment opportunities in companies focused on climate change mitigation and adaptation.
Jeremy Grantham, GMO | 1.00 CE | Read

Investing

Research Roundtable - UBS CBRE Global Real Assets
This Research Roundtable focused on the UBS CBRE Global Real Assets strategy, with 10 senior practitioners deciding, after briefings, Q&A and debate, their individual rating for the strategy and whether to include it on a hypothetical APL and/or multi-manager portfolios. Afterwards, the meeting is truncated and published for on-demand viewing by all members.
Portfolio Construction Forum | 1.00 CE | Read, Watch

Finology | Invitation to investment advisers

Complimentary self-assessment to benchmark your Client Care & Practice knowledge and skills
FASEA requires that financial advisers continually improve their client care and practice knowledge and skills - doing so makes obvious business sense, as well. Our new Finology Benchmarking Indices (FBI) self assessment tool helps you benchmark your investing biases, beliefs and behaviours versus peers, to further empower your “client care and practice” knowledge and skills. It’s complimentary to our members who give investment advice, while we continue to develop it.
Portfolio Construction Forum | 0.50 CE | Take the FBI self-assessment

Certified Investment Management Analyst^® (CIMA^®)

Stand for More in 2021! Are you involved in any aspect of constructing multi-manager portfolios?
CIMA certification is the peak, international technical portfolio construction certification program designed for investment management analysts – that is, those involved in any aspect of constructing multi-manager portfolios, whether practitioner or advocate.
Stand For More - more knowledge, skill and expertise - with CIMA certification.
Join us for a free info webinar | 12.30pm-1.15pm AEDT Friday 11 December | Register now

Forum CE Library - over 575CE/CPD accredited learning resources
Complimentary for all Forum members, the Forum’s online on-demand CE Library offers over 540 CE/CPD hours of accredited learning resources, to help members meet the CE/CPD requirements of 20 governing bodies (regulators, associations, and institutes)
including ASIC, APRA, FASEA, FMA, AFA, FPA and CIMA^® CE/CPD requirements, to name a few.
Earn CE/CPD hours

Forum CIMA CE Library - over 75 CE hours
This subset of the full Forum CE Library features just those learning resources that are accredited for CIMA CE hours, so CIMA certificants can more easily find learning resources to meet their recertification obligation (at the same time as meeting the CE/CPD requirements of other governing bodies e.g. ASIC, APRA, FASEA, FMA, etc).
Earn CIMA CE hours

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We also let my LinkedIn network know as soon as we release new articles on portfolioconstructionforum.edu.au and when registration opens for our face-to-face CE programs. If LinkedIn is more your thing than Twitter, I’d welcome you connecting. And of course, I’d welcome having an offline direct conversation with you any time.