Finology Summit 2021  Behavioural FINance & investor psychOLOGY

Finology is the interesting and unique mix of behavioural finance (“fin”) and investor psychology (“ology”) as it relates to understanding the investor mindset and giving investment advice. The finology discipline focuses on identifying investing biases, beliefs and behaviours and the investment implications. In other words, finology is where investing meets investors™.

In colloquial summary, “behavioural finance” is about what normal investors actually do, and “investor psychology” is about what normal investors could do, with appropriate behaviour change. Connecting behavioural finance with investor psychology helps ensure your investment philosophy spans “know the markets”, “know yourself” and “know your clients”.

Finology Summit will help you better identify and understand how your own and other people’s investing biases, beliefs and behaviours impact investment markets and portfolio construction - and therefore, investment decisions and outcomes - to help you build better quality investor portfolios and client relationships.

We’d welcome you joining us - live in-studio or via livestream!  Register now!

Graham Rich
Dean, Portfolio Construction Forum

Overview  Where; When; Aim; Most suited to; CE/CPD accreditation; Cost

About the program  Introduction; Theme; Program; Meet the Faculty

Register now  Registration options; Terms and conditions

Overview

Where:  Join us live in-studio or via our livestream

Like Markets Summit in early March, Finology Summit is a “hybrid” program. What’s “hybrid”? Essentially, it means flexible i.e. you choose how and where it best suits you to participate:

1. join us live in-studio in Sydney
Mix and network with Faculty and fellow delegates by joining us at our iTV studio at the University of New South Wales campus (seats 210).

2. attend via the livestream with a group that gets together in an offsite location
Organise a group of your colleagues, or accept an invitation to join a group organised by one of our Faculty Partners, and attend the live broadcast together at an offsite location (e.g. boardroom or hotel meeting room). We had many groups do this around Australia for Strategies Conference 2020 and Markets Summit 2021 and it works really well, with attendees enjoying the continuing education, camaraderie and networking without having to travel.

  • If you wish to facilitate a group, please contact us.

3. attend via the livestream on your own from the comfort of your desk
This is a popular option with our members in boutique firms and/or more remote locations (and the backup for any delegate who finds themselves caught up in a snap lockdown, or personal emergency, at the last minute).

When:  AEDT 8.30am-5.30pm Wednesday 13 October 2021

Attending live in-studio?

- Where:  Roundhouse, University of New South Wales, Anzac Parade, Kensington, Sydney
- Arrive:  AEDT 7:30am-8:00am to check-in and enjoy the pre-opening from 8:15am
- Starts:  AEDT 8:30am sharp
- Ends:  AEDT 5:30pm - followed by a relaxed Networking Reception to AEDT 7:00pm

Attending via livestream?

- Where:  Right here on portfolioconstructionforum.edu.au - we’ll send you a link that’s unique to you
- Arrive:  AEDT 8:00am-8:30am and enjoy the pre-opening from 8:15am
- Starts:  AEDT 8:30am sharp
- Ends:  AEDT 5:30pm

Aim

Finology Summit will help you better identify and understand how your own and other people’s investing biases, beliefs and behaviours impact investment markets and portfolio construction - and therefore, investment decisions and outcomes - to help you build better quality investor portfolios and client relationships.

Most suited to:  All wealth management professionals

Finology Summit is is relevant to all wealth management professionals because we all have a responsibility to understand how our own and other people’s different investing biases, beliefs and behaviours impact investment markets and portfolio practices - and therefore investment outcomes. Finology Summit is essential for those whose primary day-to-day role is focused on giving investment advice or supporting those who do.

CE/CPD Accreditation:  7 to 11 hours

By attending the live program (live in-studio or livestream) in full, you earn 7 CE hours - and after the program, you can earn a further 4 CE hours by “attending” (online on-demand) the Special Interests Forum (elective) sessions you didn’t catch at the live program.

CE hours earned can be used to help 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 just a few.

Cost (Practitioners):  Live in-studio A$655+GST / Livestream A$245+GST

Finology Summit is exceptional value for money for Practitioners, as defined below. Of course, the registration fee differs for attending live in-studio or via livestream.

We also welcome Advocates attending and have a range of registration options available. For more information, please contact us.

About the program

Established in 2016, Finology Summit is THE behavioural finance ('fin") and investor psychology (“ology”) program of the year. The program is designed and curated by our specialist, experienced and independent team and features an exceptional Faculty of experts from around the world, each offering their best high conviction insights on investing biases, beliefs and behaviours and the investment implications in the context of the program theme, “Behavioural FINance & investor psychOLOGY - understanding the investor mindset”.

Knowledge Domain:  Finology

The Forum’s subject matter focus is on five Knowledge Domains – Philosophy, Markets, Strategies, Investing and Finology. As its name implies, Finology Summit is focused primarily on our “Finology” knowledge domain.

Finology - identifying investing biases, beliefs and behaviours and the investment implications
Finology is the interesting and unique mix of behavioural finance (“fin”) and investor psychology (“ology”) as it relates to giving investment advice to individual investors. Finology is where investing meets investors. Finology builds on core investing principles to connect behavioural finance and investor psychology by encompassing “know the markets”, “know yourself” and “know your clients” with their biases, beliefs and behaviours. Finology knowledge and skills help us better identify and understand how people’s different investing biases, beliefs and behaviours impact investment markets and portfolio construction practices – and, therefore, investment decisions and outcomes – to enable better quality investor relationships, thereby improving the financial wellbeing of individuals.

Theme:  Behavioural FINance and investor psychOLOGY - understanding the investor mindset

Academic studies and financial media abound with stories of investors behaving badly due to cognitive errors, emotionality, ignorance, or a blend of each. Financial literacy studies show that people often struggle with financial concepts, including relatively simple ideas such as interest rates, while simultaneously over-estimating their level of financial knowledge. Apparent anomalies in financial markets are often attributed to “noise traders” and “dumb money” who behave badly, move in herds, and are easily misled and prone to swinging between fear and greed.

"The economist may attempt to ignore psychology, but it is a sheer impossibility for him to ignore human nature… If the economist borrows his concept of man from the psychologist, his constructive work may have some chance of remaining purely economic in character. But if he does not, he will not thereby avoid psychology. Rather, he will force himself to make his own, and it will be bad psychology.” - John Maurice Clark

In colloquial summary:

  • conventional finance is about what rational investors should do. Conventional finance frameworks share several underlying assumptions about individual human behaviour, generally summarised by the notion of the “rational agent.” In commonplace usage, the term “rational” refers to a person whose beliefs reasonably reflect the information available to them, whose goals and values seem reasonable in their particular environment, and whose actions seem reasonably effective for realising their goals and values.

  • behavioural finance is about what normal investors actually do. In giving investment advice, it is critically important that advisers understand how investment markets work in theory and in practice - and why there is a difference between “rational investors” and “normal investors”, resulting from an individual’s and a group’s biases. Finology encompasses behavioural finance including the concepts and impacts of biases, beliefs and behaviours, the consequences for market prices, returns, and resource allocation and the investment implications and exploitable investment opportunities.

  • investor psychology is about what normal investors could do, with appropriate behaviour change. In giving investment advice, in addition to having specifically relevant behavioural finance knowledge, it is also critical that advisers practically and literally identify and understand their own and their clients’ biases, beliefs and behaviours when it comes to investing, to help clients understand their biases, beliefs and behaviours and the investment implications - and to identify where and how behaviour change is needed in order to achieve goals. Finology therefore applies behavioural finance models and investor psychology approaches to help explain “the real person".

Of course, all of us - through our professional and social interactions - build up a set of “rules of thumb” to understand how people behave in different situations. Successful investment advisers use their experience and people skills to build strong, meaningful client relationships. As a result, much of finology may seem like common sense. But that misses the point. Finology is important because it allows us to formalise and systematise our rules of thumb, providing a broad structural framework for our already well developed understanding of human nature - so that we can identify the “why”, as well as the “how”. Attaining this deeper level of comprehension of why investment markets are behaving the way they are, of ourselves and, of our clients is crucial, given the ever-changing nature of investment portfolio construction and ever-growing regulatory oversight of financial advice.

Wealth management professionals face an important and challenging task as they seek to develop a modern, evidence-based understanding of how financial markets function (i.e., one that sufficiently accounts for “human factors”) and to guide clients in understanding and improving their investment decision-making.

Finology Summit will help you better identify and understand how your own and other people’s investing biases, beliefs and behaviours impact investment markets and portfolio construction - and therefore, investment decisions and outcomes - to help you build better quality investor portfolios and client relationships.

Program structure

Like all our blended live and online continuing education programs, Finology Summit is an integrated learning program with preparation, participation and review.

Before - Prepare

To maximise learning, you are provided with pre-reading aimed at boosting your knowledge and getting you thinking about the issues to be addressed in the program. The preparation is assumed prior knowledge.

During - Participate

The one-day program is designed and curated by our specialist, experienced and independent team. It is comprised of the 5.75-hour Critical Issues Forum (plenary) program and 1.25-hour Special Interests Forum (elective) program. In these, our exceptional Faculty of experts from around the world offer their best high conviction insights on investing biases, beliefs and behaviours and the investment implications in the context of the program theme, “Behavioural FINance & investor psychOLOGY - understanding the investor mindset”.

Finology Summit is not just a talk-fest. You are challenged to decide whether you agree or disagree with each high conviction thesis presented, which ones you’ll investigate further, and which you’ll put into practice when building investor portfolios.

After - Review

After the live program, your learning continues. All the presentations are available for on-demand viewing – a page per presentation featuring the sync’d video and slides, podcast, presentation slides and paper(s). You can revisit the sessions you attended, “attend” the SIF sessions you didn’t catch at the live program (and earn further CE hours), and review your key takeouts and the portfolio construction implications to determine actions to take to build better quality investor portfolios.

Meet the Faculty

The program is designed and curated by our specialist, experienced and independent team and features an exceptional Faculty of experts from around the world, each offering their best high conviction insights on investing biases, beliefs and behaviours and the investment implications, in the context of the program theme, “Behavioural FINance & investor psychOLOGY - understanding the investor mindset”.

Dafna Eylon

Dafna Eylon, PhD, President, Eylon Associates (Israel)
Dafna specialises in developing senior executives and management teams to enhance leadership and organisational effectiveness. She has taught at Wharton’s Aresty Institute for Executive Education at the University of Pennsylvania, and is a former Senior Fellow at Wharton. She previously served as the F. Carlyle Tiller Chair of Business at the Robins School of Business and Associate Professor of Psychology at the University of Richmond. Dafna has extensive experience in organisational consulting and executive coaching and works with global clients across multiple industries including Deloitte, FAO United Nations, IBM, General Electric, Merrill Lynch, Organization for Economic Co-operation and Development (OECD), and the World Trade Organization (WTO). She is the recipient of numerous professional awards including the State Council of Higher Education for Virginia Outstanding Faculty Award, and her work has been profiled in the highly regarded multi-disciplinary journal, Science. Dafna earned her PhD in Organizational Behavior from the University of British Columbia.

Adam Ferrier

Adam Ferrier, Founder, Thinkerbell (Sydney)
Adam is one of the leading consumer psychologists in Australia, and an authority on behavioural economics. He is the founder of Thinkerbell, a multi-award winning, independent creative agency that brings together marketing science and hard core creativity. Adam sits on the boards of TRIBE (social influence), the Public Interest Journalism Initiative (PIJI), and Good Thnx. He’s the author of The Advertising Effect and ‘Stop Listening to the Customer: Try hearing your brand instead’, part of The Australian Creatives’ ‘Power 20’; and a regular on the Gruen Transfer, 7’s Sunrise, and 10’s The Project. He writes for TIME, The Australian, Mumbrella, B&T, Fast Company, The Guardian and the Wall Street Journal. Adam holds a Bachelor of Commerce (Marketing) and a Bachelor of Arts (Psychology) from Murdoch University, and a Masters of Clinical Psychology from University of Western Sydney.

Joanne Earl

Joanne Earl, PhD, Professor, Macquarie University (Sydney)
Joanne is a Professor in the Department of Psychology at Macquarie University. Previously, she worked at UNSW for nine years and spent two years at Flinders University in South Australia. Joanne is an endorsed Organisational Psychologist and Registered as a Psychologist in Australia. She is a Member of the NSW Ministerial Advisory Council on Ageing and a member of the ASIC Financial Capability Research Steering Committee. Joanne’s research lab is focused on factors affecting retirement decision-making, looking in particular at retirement planning and retirement adjustment, producing research which is regularly published in leading international scientific journals. Joanne regularly consults to industry, working with partners including Portfolio Construction Forum, and the NGO, National Seniors Australia. In 2016, she was awarded a three-year ARC grant with Professor Hazel Bateman at UNSW applying Time Perspective to improve retirement planning behaviour. In 2020, she was awarded an ARC Linkage grant partnering with Allianz Retire+ exploring Holistic Models Advice to Improve Retirement Planning with Professor Paul Gerrans at UWA and Associate Professor Chanaka Wijeratne at UNSW. Joanne holds a PhD in Psychology from UNSW Australia.

Herman Brodie

Herman Brodie, Founder, Prospecta (Birmingham)
Herman educates and advises professional investors in the use of behavioural finance, helping them improve their individual and group decision-making, their client relationship management, and their asset pricing. In 2013, Herman founded Prospecta, which unites scientists and industry experts to bring the most valuable insights of behavioural economics research to the service of professional decision-makers. He is author of “The Trust Mandate”. Previously, he held investment banking roles in London, Paris and Frankfurt. Herman has a BSc in Management Sciences from University of Manchester.

Plus another 12+ leading behavioural finance, investor psychology and investment professionals from around the world.

Register now

By registering for Portfolio Construction Forum Finology Summit 2021 (the “Program”), you agree you have read, understood and agree to be bound by our Portfolio Construction Forum Program Terms and Conditions, including but not limited to the CE and Cancellations terms, and the following registration inclusions:

  • Live in-studio registration includes:  one individual attending the Program on AEDT Wednesday 13 October 2021 as part of the studio audience at UNSW, including morning tea, lunch, afternoon tea and networking drinks, as well as online on-demand access to the Program webcasts published after the program. Any costs related to attending the program including but not limited to travel, accommodation, and parking are not included. The registration fee is A$ ex-GST per person.

  • Livestream registration includes:  one individual attending the Program live online on Wednesday 13 October 2021 via the livestream, as well as online on-demand access to the Program webcasts published after the program. Any costs related to attending the Program, including but not limited to an adequate internet connection to watch the livestream are not included. The registration fee is A$ ex-GST per person.

Practitioner registration options

Before registering using these links, please check whether you meet our Practitioner definition below.

Advocate registration options

We also welcome Advocates attending and have a range of registration options available. For more information, please contact us.

Are you a Practitioner or Advocate?

Practitioners

Practitioners are those whose primary day-to-day role is focused within the spectrum of issues involved in designing and building investment portfolios using (but not necessarily limited to) managed funds from a range of firms, whether institutional or wholesale, including:

  • investment advisers, researchers/analysts and portfolio managers from private wealth management companies;
  • fund analysts and asset consultants from fund research and fund investment consulting firms;
  • fund researchers/analysts and portfolio managers from multi-manager funds management, superannuation, and investment platform companies; and,
  • investment professionals managing private investment funds (e.g. private corporate super funds, endowment funds, government departments, universities, etc.

Advocates

If our Practitioner definition (above) doesn’t describe your primary day-to-day role, then you’re an Advocate. Advocates include business and non-investment professionals from any firm. We recognise and respect the invaluable role of Advocates and welcome them attending, too. However to retain a primary focus on Practitioners, we tightly manage to a 5:1 ratio of Practitioners to Advocates attending the live online program.