1. The key global issues of the day

    It's not often you get an opportunity to listen to an investment expert of the calibre of The Honourable Dr Philippa Malmgren. A leading consultant on the global political and policy environment and the influence on financial markets and the global economy, she regularly visits with leading policy-makers among the offices of heads of government, the boards of central banks and elected and appointed officials among the G7 countries....

    Dr Pippa Malmgren | 24-10-07 | More
  2. Superior analysis - the key to avoiding credit failure?

    Credit failure season is upon us. Most recently, subprime mortgages, Bridgecorp and Basis Capital have been the stars of the show. Before them, it was Westpoint. Like cockroaches, you can be sure that for every one that rears it's head, there are dozens more lurking just out of sight. The critical issue is not whether advisers avoid credit failure, but how they manage it...

    Tim Farrelly | 01-10-07 | More
  3. 2007 Critical Issues Forum: Key Takeouts

    It would have been hard to pick a better time to bring together 500 of Australia's leading portfolio construction professionals. Conference came hard on the heels of the 30 June deadline for post-tax super contributions of up to $1 million and then, during conference week, the US subprime meltdown shaved 6% off global equities...

    Bob Veres, Inside Information | 10-09-07 | More
  4. 2007 Critical Issues Forum: Tomorrow's India, the risks and opportunities

    India remains a mystery to many Westerners, even as it is poised to become the world's third largest economy within a generation. Anand offers his insiders view on India's economic history, and perspectives on its reemergence as an economic superpower...

    Dr. Anand Sethi | 17-08-07 | More
  5. 2007 Due Diligence Forum: When great minds think alike

    When it comes to active management, two heads are better than one, and three heads are even better! Harnessing this insight to generate excess returns is a complex portfolio construction problem...

    Peter Gunning | 16-08-07 | More
  6. 2007 Due Diligence Forum: Planes, trains and ships - the investment community's best kept secret

    Operating leases over transport assets are one of the best kept secrets in the alternative asset space...

    Nick Goh | 16-08-07 | More
  7. 2007 Due Diligence Forum: Global investing – a whole world of opportunity

    This session explodes 10 myths, or common misconceptions, regarding the construction of international equity portfolios...

    Andrew Preston | 16-08-07 | More
  8. 2007 Due Diligence Forum: Infrastructure investment – crossing the divide

    This session looks at the benefits of including both listed and unlisted infrastructure assets in a client’s portfolio and how to determine the best combination of these assets to achieve an optimal portfolio structure...

    Paul Foster | 16-08-07 | More
  9. 2007 Due Diligence Forum: Extracting more juice from yesterday's heroes

    This session examines new and interesting ways of sourcing multi-alpha from traditional assets...

    Aaron Minney | 16-08-07 | More
  10. 2007 Due Diligence Forum: The changing face of global fixed interest

    Why bonds? This session explores major structural changes in fixed interest markets and how these relate to contemporary portfolio construction issues...

    Kumar Palghat | 16-08-07 | More
  11. 2007 Due Diligence Forum: Private equity – a world of opportunities

    Allocations to alternatives and private equity in particular are steadily increasing around the world. This session focuses on the benefits of private equity investments and the value proposition offered by experienced private equity managers...

    Simon Ford | 16-08-07 | More
  12. 2007 Due Diligence Forum: What do the global mega trends mean for your equity portfolios?

    This session addresses addresses a specialist investment approach looking to profit from one of the mega trends affecting global equity markets – global agribusiness...

    Paul Spence & Bill Barbour | 16-08-07 | More
  13. 2007 Due Diligence Forum: India – the rent-a-brain supermart

    In this session, Dr Sethi overviews the development of India from an IT outsourcing destination to its emergence as the world's R&D and design hub – the ultimate "rent-a-brain" supermart...

    Dr Anand Sethi | 16-08-07 | More
  14. 2007 Due Diligence Forum: Global shares that pay dividends – not such a novel idea after all

    This session examines the historical importance of including dividend-paying and dividend-growing companies in global portfolios and the impact on overall returns...

    Matthew Saddington | 16-08-07 | More
  15. 2007 Due Diligence Forum: Convergence in the funds industry – from mutual funds to private equity

    This session explores the shift to absolute return focused funds, the merger of long-only hedge funds with 130/30 funds and the acceptance of longer-term, less liquid strategies as a way of delivering alpha...

    Patrick Tuohy | 16-08-07 | More
  16. 2007 Due Diligence Forum: TAA – did you throw the baby out with the bath water?

    This session addresses the question of TAA value add from a practical, experiential viewpoint and outlines a TAA approach and process which has delivered superior returns on a consistent basis...

    Eric Siegloff | 16-08-07 | More
  17. 2007 Due Diligence Forum: Global listed infrastructure investments – in a class of their own

    As markets have developed, there are increasing opportunities for global investment in infrastructure, via the listed markets. This session explores the opportunities for investors in global infrastructure in today's market...

    Warryn Robertson | 16-08-07 | More
  18. 2007 Due Diligence Forum: Concentrated portfolios – why less is more

    There is a global trend towards concentrated portfolios. This session explores whether concentrated portfolios are appropriate for client portfolios...

    Hamish Douglass | 16-08-07 | More
  19. 2007 Due Diligence Forum: Absolute conviction – at what price?

    This session examines the benefits of concentrated portfolio management and the value that an absolute return focus adds to this strategy...

    Peter Constable | 16-08-07 | More
  20. 2007 Due Diligence Forum: Constructing an unlisted property portfolio

    This session examines the key assessments to consider when developing an asset allocation to unlisted property...

    Prof. Robert Officer & Ken Atchison | 16-08-07 | More
  21. 2007 Due Diligence Forum: The rise and rise of capital protected products

    This session explores the key characteristics of capital protected products to highlight the place these types of products have in most investors' portfolios....

    Russel Chesler | 16-08-07 | More
  22. 2007 Due Diligence Forum: Property securities – dead end or global beginning?

    This session examines the current state of play in the Australian securities market. We look at the prospects for total returns from property securities in the future...

    Chris Lepherd | 16-08-07 | More
  23. 2007 Due Diligence Forum: Defensive asset risk – a wolf in sheep's clothing

    The ability for global and Aussie markets to bounce back following prolonged periods of relatively poor returns is testimony to one of the most enduring, fundamental characteristics of bond returns – that is, bonds are naturally mean reverting assets...

    Jeff Springer | 16-08-07 | More
  24. 2007 Due Diligence Forum: When top down models went out of date – fixed income as an alpha source

    This session examines the emergence of new tools that allow managers to take advantage of new segments of the fixed income market and shows how managers with the right skills are equipped to uncover the dynamic opportunities of this once staid asset class...

    Peter Walsh | 16-08-07 | More
  25. 2007 Due Diligence Forum: Unconstrained global equity portfolios – when more stocks are better

    This session discusses how investors can potentially achieve more consistent and higher long-term returns by investing in more - not less - stocks...

    Greg Cooper | 16-08-07 | More
  26. 2007 Due Diligence Forum: An alternative investment solution for challenging times ahead

    This session explores the alternative investments universe – how alternative investments inter-relate with traditional markets, and their role in portfolio construction...

    Robert Graham-Smith | 16-08-07 | More
  27. 2007 Due Diligence Forum: Intangibles that create the competitive edge

    This session explains how companies that have a sustainable competitive edge, having created this by owning or operating assets that are difficult to replicate, can deliver superior returns over time...

    Callum Burns | 16-08-07 | More
  28. 2007 Due Diligence Forum: Performance persistency

    This session explores a recent study undertaken by State Street Global Advisers looking at the value added by specialist managers operating in the Australian institutional market across the Australian equities, international equities and listed property trusts sectors...

    Jonathan Shead, State Street Global Advisors | 16-08-07 | More
  29. An open letter to product research houses

    The meltdown of Basis Capital has highlighted the need for much greater clarity of communication from research houses – particularly when it comes to describing product risk. With the benefit of hindsight, it is fun to look back and see what the research houses were saying about the risk of the Basis Capital Yield fund before the event. We see nothing on the two pieces of information that really matter...

    Tim Farrelly | 15-08-07 | More
  30. Crockpot: History is all we have to go by

    Many planners still use long term historical returns to estimate future market returns on the basis that, if the historical period is long enough, everything smoothes out. This is pure bunk. In order to demonstrate this as conclusively as possible, we illustrate the impact of using 20 year historical returns as forecasts for the subsequent decade across six major equity markets over the past 107 years...

    Tim Farrelly | 01-06-07 | More
  31. Requiem for efficient

    In the next few weeks, the publishing industry will have given us two books that, paired together, blow the doors off of conventional market theory. Both acknowledge that if you want to study and understand the markets, instead of examining the movements of stock prices, you have to shift your attention to the people who are actually making the trades...

    Bob Veres, Inside Information | 14-05-07 | More
  32. On Study Tour in China

    You learn a vast amount in a week. Here are my key takeouts from Day 1...

    Deirdre Keown, PortfolioConstruction Forum | 02-04-07 | More
  33. Crockpot: The bubble of the decade

    Near the end of each decade, a bubble seems to emerge in financial markets...

    Tim Farrelly | 12-03-07 | More
  34. 2006 Conference - Due Diligence Forum Webcast

    Audio and Powerpoints from the 2006 PortfolioConstruction Conference Due Diligence Forum sessions...

    01-02-07 | More
  35. A high conviction approach to Australian equities

    A large number of high conviction or "concentrated" equity funds have been released in recent years, all promising higher returns than traditional funds by focusing on the strongest stock selection ideas of a manager. This paper examines the evolution of high conviction funds, looking at why they have been developed, their risk/return characteristics and the broader implications for portfolio management...

    Peter Gunning | 15-01-07 | More
  36. Resources - should I still be listening?

    Short of time? For each Journal issue, we highlight papers we feel you shouldn't miss - this is one. It investigates whether resources is a bubble ready to burst or whether they still represent an attractive investment proposition, and how best to incorporate resources into a portfolio...

    C Baker & M Webb | 15-01-07 | More
  37. Getting real about property investing

    This paper discusses balancing liquidity, income, valuation, risk and diversification objectives in building property portfolios. It examines the key questions currently confronting Australian investors – How should investors gain exposure to offshore assets? Which markets provide appropriate income levels? How can direct property be included in a portfolio without sacrificing liquidity? What are the current valuation conditions in markets? – and demonstrates the characteristics of an optimal property portfolio.

    Sean Murray | 15-01-07 | More
  38. Hybrids - why you are getting overpaid to invest

    Hybrids have delivered uncorrelated high returns combined with low volatility over the past five years. This paper explores why, despite some changes in the return equation, their reduced risk and still healthy returns make hybrids one of the most compelling income sub-sectors....

    Campbell Dawson | 15-01-07 | More
  39. Know your style - capacity in the Australian equity market

    In a small, concentrated market like Australian equities, fund capacity is an important consideration for investors. This paper discusses why the most important factor in determining capacity is an Australian equity manager's style and the best representation of style is actual performance and trading history...

    Simon Elimelakh | 15-01-07 | More
  40. India - all the Raj

    Short of time? This is one Journal paper you shouldn't miss. It examines why and how India should be a key component of investors’ exposure to emerging markets, arguing that investors should not limit themselves to just one leg of the BRIC/emerging markets story...

    Adrian Lim | 15-01-07 | More
  41. It's all about the way you built it

    A market-weighted approach has been the traditional way of constructing international equity portfolios – often because this is the type of benchmark index against which fund managers are measured. But is this the best approach? Building market cap-weighted portfolios is not the mantra of all active, large cap equity managers. This paper examines an alternative construct for an international equities portfolio that encapsulates potentially greater investment returns and a better way of assessing portfolio performance.

    Michael Price | 15-01-07 | More
  42. If the cap fits - diseconomies of scale in funds management

    In theory, funds management is a highly scaleable business where profit growth results from increased funds under management (FUM) while product quality (investment returns) remains unaffected – alpha creation is purely a function of portfolio construction through time and the size of the portfolio is irrelevant. However, there is reason to believe the product quality of a funds management business is not independent of FUM. The difference between the theoretical world and the real world relates to transaction costs. This paper describes transaction costs, and considers factors likely to influence the level of these costs, before turning to the impact of size and investment style on excess returns.

    Mark Arnold & Dr Irene Tuttici | 15-01-07 | More
  43. Global commodities – capturing the boom without the bust

    Global economic growth in Asia has produced unprecedented demand for commodities – and opportunity for investors. This paper examines the benefits of investing in commodities and discusses how an active approach to commodity investing may mitigate downside risk, and create alpha opportunities that are unavailable to passive commodity index investors.

    Brett Dobeson | 15-01-07 | More
  44. Gugai and other important reforms in China

    Chinese authorities have embarked on Gugai, the Mandarin word for share reform. This paper explains how the Chinese authorities are addressing inefficiencies in the country's share markets and the much-criticised banking system, as well as seeking relieve some of the social tensions and environmental pollution arising out of China's fast economic growth.

    Oliver Trusler | 15-01-07 | More
  45. The impact of emerging markets in the search for global alpha

    The search for global alpha should include developing economies on several levels. Recently, the role of emerging markets in the global food chain for the manufacturing and distribution of products and services has significantly increased. Investors monitoring this shift can find valuable information that could potentially drive stock prices of companies in different parts of the chain. This information may not be visible when viewed discretely from an individual country or even continent standpoint and provides global investors with a distinct advantage.

    Pedro Marcal | 15-01-07 | More
  46. Global equity investing reassessed

    This paper examines traditional approaches to buying international equities, highlighting some of the problems with capitalisation-weighted benchmarks, and suggesting that replicating a global index may no longer be the optimal solution for those investors with longer-term investment horizons. It looks at some of the new strategies available to capture beta and illustrates how diversification can be used to manage risk for investors in a less constrained portfolio.

    David Philpots | 15-01-07 | More
  47. Global listed property in a balanced portfolio

    Traditionally, investors have gained exposure to listed property via the Australian listed property trust market. However, the changing Australian property investment environment, combined with greater investment in global property assets, has resulted in the emergence of global property securities as a credible investment choice. Where and how does global listed property fit in a diversified portfolio?

    Dr Shane Oliver | 15-01-07 | More
  48. International bond diversification - still the right strategy?

    Over each of the past five years, the returns on a diversified international bond portfolio fully hedged back into Australian dollars have well exceeded the return realised on a typical Australian bond portfolio. As a result, many fixed interest clients are looking to increase allocations to international bonds. This paper examines some of the reasons why international bond portfolios have outperformed their Australian counterparts and asks whether this is likely to continue.

    Roger Bridges | 15-01-07 | More
  49. The role of infrastructure in an alternatives portfolio

    Short of time? Here's another Journal paper you shouldn't miss. It examines key infrastructure investment considerations, the risks of investing in infrastructure, valuations, and infrastructure's place and role in a targeted return portfolio...

    Gary Kalmin & Charles Hamieh | 15-01-07 | More
  50. Global investing in the new world

    The global equity benchmark excludes many opportunities as the industrial advantage shifts to the so-called emerging economies. This paper challenges the conventional belief that history is the best guide to determine the optimal composition of the international equities component of a portfolio. It examines why it makes sense to structure an investment portfolio that emphasises global themes and relationships, as opposed to geographic regions. It looks at how a thematic approach to investing identifies the major secular, cyclical and structural influences on the world’s stock markets, and how consistency, risk control and diversification are managed.

    Bill Barbour & Rebecca Jacques | 15-01-07 | More
  51. Made your money in equities? Keep your money in bonds

    Has the role of traditional fixed interest managers changed? This paper explores why it remains critical to have fixed interest in portfolios, both as a tool to lock in income and also as a defensive play. It asks "How do fixed interest managers keep pace with investor demand for greater returns, in a world where spreads are tight even in what are considered more risky securities?" Finally, it argues that with the prospect of rising inflation, declining GDP and a new Fed Chairman throwing uncertainty into the mix, perhaps locking in CPI + 4% isn’t a bad thing!

    Peter Dorrian | 15-01-07 | More