where investing meets investors


This is a special interest subsection of our wider Perspectives library in which we present finology perspectives.

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 past experiences.

Finology explores the relationship between human beings and money in our society. It is the emerging (and converging) research field covering the study of minds, customs and behaviours with respect to money. It incorporates behaviour finance and much, much more. 

At PortfolioConstruction Forum, our particular passion for finology is as it applies to the giving and receiving of quality investment advice. Finology complements our technical portfolio construction continuing education programs, and our philosophy of enabling better quality portfolio construction knowledge, wisdom and skills, to improve the financial well-being of individuals and help build healthier communities.

Watch - What is finology? (3 mins)
Graham Rich, Publisher, PortfolioConstruction Forum

our Finology Backgrounder
"What is finology?" by riskinfo
"Attitude to money impacts advice delivery" by Wouter Klijn
"Introducing financial planning 'finology'" by Simon Hoyle

our Chief Finology Officer, Dr David Lazenby

Finology library

  1. 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 emerging trend.

    Tassos Stassopoulos | 23-08-18 | 0.50 CE | More
  2. Why do older Australians save?

    A recent study gives us a better understanding into the decisions made by older Australians between consumption and saving.

    David Knox | 24-07-18 | More
  3. Research Review: Biases in recommendations

    Two recent academic papers focus on how advice provided to investors might be distorted. The first relates to the disposition effect; the second looks at the impact compensation on advice given.

    Ron Bird | 15-06-18 | 1.00 CE | More
  4. Masterclass NZ 2018 - resources

    Masterclass NZ is a post-graduate extension program focused on contemporary issues that are fundamental to building better quality portfolios. Each year, the one-day program features five research-based, active learning sessions.

    25-05-18 | More
  5. The difference for advice in retirement

    Many baby boomers are retiring with decent super balances and need advice on spending their retirement savings appropriately. Consuming capital for a higher standard of living is, after all, what super is for!

    Aaron Minney | 09-05-18 | More
  6. Understanding how people spend their money in retirement

    A retiree's spending will change over time. However, changes in spending profile over time are often ignored when it comes to retirement income planning.

    Aaron Minney | 12-04-18 | 2 comments | More
  7. Panel: Finology is central to the future of financial advice

    Against the backdrop of legislated increases in financial adviser education, standards and ethics, finology must be seen as central to the curriculum of what financial advisers learn and how they practice, for professionalism to be complete.

    Herman Brodie, Nick Hakes, Michael Kitces, Mia Taylor, Michael Ward | 14-02-18 | 0.75 CE | More
  8. Beware the trifecta of desire

    Practitioners demand a trifecta from fund managers - performance, simplicity, connection. But many great investments are contrarian and uncomfortable.

    Douglas Isles | 14-02-18 | 0.25 CE | More
  9. Ride the Managed Accounts tsunami

    Managed accounts have become increasingly popular with approximately A$40bn in assets. Prepare to ride the managed accounts tsunami or be left in its wake.

    George Walker | 14-02-18 | 0.50 CE | More
  10. 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.

    Herman Brodie | 14-02-18 | 0.25 CE | More
  11. 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.

    Tim Farrelly | 14-02-18 | 0.50 CE | More
  12. Robo-advisors are NOT the future (but technology is)

    While robo-advisors have been the big buzz as replacement humans, they’re not (and data proves it). Technology alone is not enough (otherwise everyone with a FitBit on their wrist would be healthy).

    Michael Kitces | 14-02-18 | 0.50 CE | More
  13. Behavioural biases lead to unrecognised risk-taking

    Behavioural biases - substitution, aggregation, and feedback risks, overconfidence, and limited attention and availability bias - distort money managers' perceptions and lead them to take risks they don’t see.

    Terrance Odean | 14-02-18 | 0.50 CE | More
  14. Downsize now and rejoice at leisure

    Government incentives may help to encourage downsizing but the decision itself may not be purely financial as recent research reveals.

    Joanne Earl | 14-02-18 | 0.50 CE | More
  15. The trust mandate is how asset managers win and keep clients

    Trust – 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.

    Herman Brodie | 14-02-18 | 1.00 CE | More
  16. The finologist of the future is a cyborg

    The combination of man and machine - tech-augmented humans or "cyborgs" - can be more effective than either alone, posing the greatest opportunity to human financial advisers in the long run.

    Michael Kitces | 14-02-18 | 0.50 CE | More
  17. Backgrounder: Finology

    Finology knowledge and skills will substantially enhances practitioners' ability to communicate with clients, and to manage portfolios more effectively. This Backgrounder seeks to foster greater understanding and interest in the field of Finology.

    Portfolio Construction Forum | 08-02-18 | More
  18. What cyborg chess can teach us about the future of financial planning

    Despite the view that computers will come to dominate certain areas within financial planning, the reality is that there are still ways that computer-human duos can be more effective than computers or humans alone.

    Michael Kitces | 08-02-18 | More
  19. Finology and finding the higher purpose

    While economics studies how humans allocate scarce resources, and psychology studies the human mind and behavior, there is a gap at the intersection between the two – an emerging new body of knowledge dubbed, "Finology".

    Michael Kitces | 08-02-18 | More