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 - as part of a group at a live site, or via live stream! Our full hybrid model ensures the “show will go on” whatever the Covid circumstances!   Register now!

Graham Rich
Dean, Portfolio Construction Forum

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

What about Covid? The show will go on!

About the program  Introduction;  Theme;  Program at a glance;  Meet the Faculty

Register now  Registration options; Terms and conditions

Overview

Where:  Join us at a live site or via live stream

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

1. at a live site with a group
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 and NZ for Markets Summit 2021 and Strategies Conference 2021 and it works really well - you can enjoy the continuing education, camaraderie and networking without having to travel.

2. at your desk via live stream whereever you wish - - this is a very popular option with many of our members regardless of Covid restrictions (and the backup for any delegate who finds themselves caught up in a snap lockdown, or personal emergency, at the last minute).

  • If you’d like to get together with others near you at a live site and enjoy the continuing education along with camaraderie and networking, please contact us and we’ll put you in contact with a group near you.

3. at our studio in Sydney with 200 peers - we’ve suspended this option given the current Greater Sydney lockdown.

What about Covid?  The show will go on!

Our full live hybrid model means that if needed, we can move to virtual delivery for some or all of Finology Summit 2021 immediately - for some or all delegates, depending on the circumstances. We’re very comfortable that our hybrid model is robust and sustainable - so you can register with confidence!

  • Obviously, “plan A” is that everyone gets to attend according to their first preference – be that at our live studio (i.e. at Roundhouse UNSW), at a hosted live site in your city, or via lives stream from your desk.

  • But, if any part of Australia (or NZ or Asia - we have delegates there, too) goes into lockdown, or borders close, making attendance in the live studio or at a hosted live site impossible, you seamlessly transition to attending via live stream from your own desk. This is because every delegate has access to the live stream even if registered to attend at our live studio or a hosted live site. We send everyone live stream access details, just in case.

  • It’s already been tested and worked perfectly. The day prior to Markets Summit 2021 in March, Auckland went into a snap lockdown for three days and the delegates there who had been going to attend at a hosted live site already had their details to attend via live stream, so we just messaged them all to remind them of that. They were thrilled not to miss out. Of course, in the lead up to our Strategies Conference 2021 in August, various parts of Australia and New Zealand went into (and then, some went out of) lockdown. Despite the roller coaster of changes day by day, the show went on with over 1,000 delegates enjoying the program at a live site or via live stream from their desk.

  • If you’ve paid to attend in our live studio, we simply transition you to live stream and refund the difference in registration fee to you.

  • Finally, as an Education Provider (an essential service) even if Sydney is in lockdown, we are able to broadcast (as proven with Strategies Conference 2021 in August).

Where/When:  AEDT 9.00am-5.30pm Wednesday 13 October 2021

  • Where:  Right here on portfolioconstructionforum.edu.au - whether you’re attending at a live site with a group or via live stream at your desk, we’ll send you a link that’s unique to you. (If you’re attending at a live site, you’ll still need this link to join the elective sessions, and also to use the App.)
  • When:  Wednesday 13 October 2021
  • Arrive:  AEDT 8:15am-8:45am and enjoy the pre-opening from 8:45am
  • Starts:  AEDT 9.00am sharp
  • Ends:  AEDT 5:30pm sharp

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 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:  6.5 to 10.5 hours

By attending the live program (live in-studio or live stream) in full, you earn 6.50 CE hours - and after the program, you can earn a further 4.0 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 stream A$197.50+GST

Finology Summit 2021 is exceptional value for money for Practitioners, as defined below.

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 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 5.5-hour Critical Issues Forum (plenary) program and 1.33-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. Videos of all presentations are available within a few hours of them live streaming for delegates to view on-demand. The full microsite for each session - a page per presentation featuring sync’d video and slides, podcast, presentation slides and paper(s) and CE accreditation - are available within four weeks. So 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 implications to determine actions to take to build better quality investor portfolios.

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 stream registration includes:  one individual attending the Program live online on Wednesday 13 October 2021 via the live stream, 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 live stream 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.