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Conference 2013
- Resources Kit
The GFC and its ongoing fallout amply illustrates how quality of life in
retirement can be threatened when there is too much focus on maximising
the value of portfolios pre-retirement, and too little on managing the
very relevant risks.
Portfolio balances are simply a means to an end -
they contribute to the attainment of our goals and desires in life.
With the biggest cohort of investors now moving through
accumulation and into retirement and living longer than ever before,
better quality portfolio construction must take a whole of life focus, considering accumulation and decumulation
- and their profoundly complex mix of risks - as equally important
phases of one continuous process.
Conference 2013 will facilitate debate on the markets, strategies and
investing with particular focus on how to better construct portfolios
for the whole of an investor's life so that they are more likely to
achieve their goals.
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Quicklinks |
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This online Resources Kit is a key feature of the Conference program (in
fact, all our programs feature an online Resources Kit). It enables all
Members (whether or not they attended the live program) to experience
Conference and gain in-depth insights. It's an invaluable set of
continuing education material including the presentations, videos,
podcasts, and papers from the program. You can "attend" the jam-packed
program, access support material referred to during it, and review the
key takeouts and portfolio construction implications to better determine
actions you'll take to build better quality investor portfolios.
This Resources Kit includes the Conference Handbook, Issues Paper, and
the four components of the program content - the Crtiical Issues Forum,
Thougth Pieces, Due Diligence Forum and Masterclass. |
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Handbook
Issues Paper
Critical Issues Forum
Thought
Pieces
Due
Diligence Forum
Masterclass |
Download to see how the live program content was organised and choose
what interests you;
Core pre-reading for those wanting to get the most from the Conference
2013 program;
The 10 session plenary program featuring 20 leading
investment thinkers;
Short 5-10 minute thought pieces from some of the world's leading
investment minds;
The 20 session electives program featuring another 20 leading
investment experts;
The 8-hour, classroom/workshop-style program featuring selected subject
matter experts.
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Critical Issues Forum |
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About the
Critical Issues Forum |
The main two-day Conference program features the 10-hour,
plenary style Critical Issues Forum and 4-hour Due Diligence
Forum electives program.
The Critical Issues Forum plenary program is designed by our
specialist, experienced and independent team to cover two of our
three pillars – Markets and Strategies. It features more than 20
leading investment thinkers from around the world, presenting on
contemporary and emerging portfolio construction issues related
to the Conference theme.
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Critical Issues Forum 1 |
Strategies
I've been thinking about... lifecycle
investing
This thought-provoking and entertaining opening session
explained why
better quality portfolio construction must take a whole of life focus, considering accumulation and decumulation
- and their profoundly complex mix of risks - as equally important
phases of one continuous process.
- Graham Rich, Publisher,
PortfolioConstruction Forum
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Resources |
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Critical Issues Forum 2 |
Markets & Strategies
I’ve been thinking about… the macro
‘lifecycle’
Like people, economies and markets have lifecycles with three or
four distinct phases (expansion, collapse, stagnation and
recession) lasting 40 to 60 years.
So Conference starts with a big picture global macro economic,
geopolitical and market scene setter, looking at where we are in
the macro lifecycle and the implications for portfolios, as the
backdrop for delegates’ thinking for the rest of the two-day
lifecycle investing program.
The Hon. Dr Pippa Malmgren, Principalis Asset Management
(London)
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Resources |
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Critical Issues Forum 3 |
Strategies
I've been thinking about... four key lifecycle investing
challenges
Lifecyle investing differs from more traditional approaches to
financial planning in a number of important ways - and it is not
without its challenges. First and foremost is that the field is
still very much in its infancy in some respects and so although
there are a number of different strategies, products and tools
available to assist in applying the approach, there is still a
lot that needs to be developed for Australian practitioners and
investors. In this session, the focus is on four key lifecycle
investing challenges - real returns, lifecycle/glide paths vs
balanced funds, longevity solutions, and client communication.
David Bell, Principal, St Davids Rd Advisory (Sydney)
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Resources |
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Critical Issues Forum 4.1 |
Strategies
I've been thinking about... managing sequencing risk
Sequencing risk is the risk that the sequence of
portfolio returns does not provide optimal outcomes - in
particular, the risk of poor or negative returns occurring
around retirement age when an investor's portfolio is usually at
its largest and most vulnerable. A badly timed return of around
-20% in one year can raise the probability of running out of
money in retirement by 33% to 50%. Understanding and managing
sequencing risk is therefore a critical component of lifecycle
investing.
Prof. Michael Drew, Professor of Finance, Griffith Business
School (Brisbane)
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Resources |
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Critical Issues Forum 4.2 |
Strategies
I've been thinking about... safe withdrawal rates
In this session, the focus is on understanding and
managing how to fund a stable a stable income stream from a volatile
portfolio, while minimising the probability of running out of
money.
Michael Kitces, Partner & Rsh Dir, Pinnacle Advisory Group
(Washington DC)
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Resources |
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Critical Issues Forum 4.3 |
Strategies
I've been thinking about... managing longevity risk
In this session, the focus is on understanding and
managing the risk of a client running out of money or not
maintaining their desired standard of living in retirement
because they have lived longer than expected.
Tim Farrelly, Principal, farrelly's Investment Strategy (Sydney)
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Resources |
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Critical Issues Forum 5 |
Markets &
Strategies
I've been thinking about... the demographic wave
The developed world is going through a period of
population ageing that is without parallel in the history of
humanity, at the same time as the emerging middle class in the
developing world will push the global population to to nine
billion by 2050. Demographic shifts are arguably the
single most powerful investment force of our time.
Amlan Roy, Ph.D, Hd Gl Demographics & Pensions Rsh, Credit Suisse
(London)
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Resources |
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Critical Issues Forum 6 |
Strategies
I've been thinking about... enhancing clients' human capital
Human capital is the economic value of a person's
skill set. It equates to the amount that people can earn from
their labours over their lives. For most people, this is the
most important source of financial capital and consumption
through their lives. So, nurturing, managing and protecting
human capital is of paramount importance.
Rev Graham Long, CEO, The Wayside Chapel (Sydney)
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Resources |
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Critical Issues Forum 7 |
Markets
I’ve been thinking about… Asia, the
other big wave
Conference day two begins as usual with a debate about medium-
and long-term impacts of geopolitical forces and issues and
their investment implications. This year, the focus is
singularly on the Asia, the world's largest and most populous
continent, home to 60% of the global population. We focus on
Japan, China, and India, of course - but also the often
overlooked precincts of Southeast Asia.
I've been thinking about... China’s new proactive diplomacy
Linda Jakobson, Director East Asia
Program, The Lowy Institute (Sydney)
I've been thinking about...
South East Asia - the comeback kid
Manu Bhaskaran, Founding Dir & CEO, Centennial Asia Advisors
(Singapore)
I've been thinking about...
Japan & China - turning the tables
Louis-Vincent Gave, Founding Partner & CEO, GaveKal Research
(Hong Kong)
(Followed by a panel discussion which is available at the end of
the Japan & China presentation).
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Resources
Resources
Resources |
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Critical Issues Forum 8 |
Strategies
I’ve been thinking about… managing real
return risk
Lifecycle investing centres on taking the least amount of risk
necessary to reach the client's goals - real return outcomes are
the most crucial measure of investment outcomes for those saving
for retirement and those living off their retirement savings.
Managing real return risk involves thinking differently about
what risk means in a portfolio.
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Tim Farrelly, Principal, farrelly's Investment Strategy (Sydney)
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Resources |
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Critical Issues Forum 9 |
Markets, Strategies & Investing
I’ve been thinking about… lifecycle
investing - my key
takeouts
All of the Conference sessions are building blocks for
this session which helps delegates determine the key takeouts
from the jam-packed program and actions delegates should take
when building investor portfolios. Our Expert Panel will discuss
and debate their key takeouts followed by dedicated delegate Q&A
where you can raise your key questions.
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Tim Farrelly, Principal, farrelly's Investment Strategy (Sydney)
- Angela Ashton, Accreditation Editor,
PortfolioConstruction Forum (Sydney)
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David Bell, Principal, St Davids Rd Advisory (Sydney)
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Resources |
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Critical Issues Forum 10 |
Markets & Strategies
I’ve been thinking about…
what we’re not thinking about enough
We always finish Conference by
looking at an emerging investment trend that delegates may be
unlikely to be paying much attention to at present, but which
will have growing influence on markets, strategies and/or
investing in the decade ahead. e.g. way back in 2004, the topic
was China and in 2006 it was the US housing crisis. This final
Conference session has a very good track record for raising
issues that will really matter longer term!
I've been thinking about... the rise of Indonesia
Indonesia’s rise is one of the big stories of the
Asian century, a future great power in Asia, just behind China
and India. About three years ago, its GDP
overtook Australia’s and by 2030, it will have the tenth largest
economy in the world, at which point its GDP will be twice the
size of Australia's, according to PricewaterhouseCoopers. By
2050, it will be ranked seventh, with a GDP perhaps three times
Australia's. In the Asian century, Indonesia may matter to
Australia as much as China and the US.
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Manu Bhaskaran, Founding Dir & CEO, Centennial Asia Advisors
(Singapore)
I've been thinking about... what you
will do next - big data
There is a quiet revolution
going on around us, a revolution being led by statisticians,
computer scientists, and engineers. Our purchases, our browsing,
our tweets, our movements, our emails, our hopes, our dreams -
whether you know it or not, a growing army of data scientists is
mining patterns from a giant human sensor network. They want to
better understand you. They want to sell you things. They want
to give you information. And they want to predict your group
behavior - for example how you vote and how you invest. In this
presentation, Brad will look at some of the successes and
failures these data scientists are having, the implications for
different disciplines (investment included), and the kinds of
tools those of us who work in the space use as we try to better
predict what you will do next.
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Bradley Betts, Ph.D, Director (Equity
Research), BlackRock
(San Francisco)
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Resources
Resources |
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Thought pieces |
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About the Thought Pieces |
I've been thinking about... lifecycle
investing
Each of the following thought pieces, featuring some of the
world's leading investment minds, were filmed exclusively for
and released at PortfolioConstruction Forum Conference 2013.
Alan Brown,
Senior Adviser, Schroders Investment Management (London)
Larry Fink,
Chairman & CEO, BlackRock (New York)
Sonal Desai
Ph.D., Dir Rsh & PM Intl Bonds, Franklin Templeton (San Fransisco)
Prof. Jack
Gray, Adjunct Prof of Economics, UTS Business School (Sydney)
Prof. Robert
Merton, Resident Scientist, DFA (Cambridge)
Prof. Burton
Malkiel, Princeton University & Board Mbr, Vanguard Investments
David Saunders,
Co-Founder & CEO, K2 Advisors (Stanford) btyb Ironbark
Mohammed El-Erian
Ph.D., CEO, PIMCO (Newport Beach)
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Opinion
Opinion
Opinion
Opinion
Opinion
Opinion
Opinion
Opinion |
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Due Diligence
Forum |
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About the Due
Diligence Forum |
The main two-day Conference program features the 10-hour,
plenary style Critical Issues Forum and 4-hour Due Diligence
Forum electives program.
The Due Diligence Forum elective program focuses on Investing,
PortfolioConstruction Forum's third pillar. It features 20 more
international and local investment experts presenting
pre-approved Research Papers on specific investment issues.
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Due
Diligence Forum 1.1 |
Investing | Debt
The search for yield without compromising capital
Robert Mead, MD & Head of Australasian & Asia-Pac Credit, PIMCO
(Sydney)
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Resources |
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Due
Diligence Forum 1.2 |
Investing | Equity Specialty
Converting volatility to yield - managing your return profile
Jason Petras, Co-PM Equity Income, BT Investment Management
(Sydney)
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Resources |
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Due
Diligence Forum 1.3 |
Investing | Equity Global
Get the inside edge – accessing pure equity investments
Stefan Naef, Partner, Partners Group (Zug, Switzerland)
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Resources |
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Due
Diligence Forum 1.4 |
Investing | Multi Asset
GFC = -27%. Try again
Dan Farley, CIO Investment Solutions, State Street Global
Advisors (Boston)
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Resources |
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Due
Diligence Forum 1.5 |
Investing | Alternatives
Preserving income and capital during drawdown
Nick Langley, Director & Snr Portfolio Manager, RARE
Infrastructure (Sydney)
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Resources |
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Due
Diligence Forum 2.1 |
Investing | Strategies
Retirement monies - what to consider? What to do.
Aaron Minney, Head of Retirement Income
Research, Challenger (Sydney)
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Resources |
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Due
Diligence Forum 2.2 |
Investing | Equity Specialty
Asset Allocation in decumulation – can you ignore valuations?
Richard Carter, Head of Product Development, Allan Gray (Cape
Town)
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Resources |
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Due
Diligence Forum 2.3 |
Investing | Equity Global
Demographics - a powerful investment driver
Nicky Stafford, Portfolio Manager,
Fidelity Worldwide Investment (London)
Hilary Natoff, Portfolio Manager,
Fidelity Worldwide Investment (London)
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Resources |
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Due
Diligence Forum 2.4 |
Investing | Multi Asset
Portfolio construction post retirement - it’s not all about
income
Greg Cooper, CEO, Schroders Australia (Sydney)
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Resources |
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Due
Diligence Forum 2.5 |
Investing | Alternatives
A century of evidence of trend following investing
Gregor Andrade, Ph.D., Principal, AQR Capital Management
(Greenwich)
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Resources |
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Due
Diligence Forum 3.1
* Delegate's Pick * |
Investing |
Debt
Does lending to debtors make sense for bond investors?
Andy Seaman, Snr Partner &
Portfolio Manager, Stratton Street Capital (London)
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Awarded Delegate's Pick Award 2013 for best DDF Presentation *
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Resources |
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Due
Diligence Forum 3.2 |
Investing | Equity Specialty
The lure of simplicity - equities in an outcomes-based world
Rudi Minbatiwala, Snr PM, Core
Australian Eq, Colonial First State (Sydney)
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Resources |
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Due
Diligence Forum 3.3 |
Investing | Equity Global
Investing for a lifetime
Peter Wilmshurst, Portfolio
Manager, Franklin Templeton Investments (Sydney)
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Resources |
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Due
Diligence Forum 3.4 |
Investing | Multi Asset
Real return funds: are they better than traditional balanced
funds?
Anne Richards, CIO & Head of Solns,
Aberdeen Asset Management (Edinburgh)
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Resources |
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Due
Diligence Forum 3.5 |
Investing | Alternatives
The global agriculture equity opportunity
David Whitten, Portfolio Manager, 90 West Asset Management
(Sydney)
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Resources |
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Due
Diligence Forum 4.1
* Editor's Pick * |
Investing | Strategies
Tailoring exposures for the Australian investor
Michael Blayney, Head of
Diversified Strategies, Perpetual (Sydney)
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Awarded Editor's Pick Award 2013 for best DDF Research Paper *
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Resources |
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Due
Diligence Forum 4.2 |
Investing | Equity Specialty
ROEs, PEs and investment fallacies
John Abernethy, Executive Director & CIO, Clime (Sydney)
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Resources |
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Due
Diligence Forum 4.3 |
Investing | Strategies
Main St vs Wall St - fundamentals vs fads
Chris Brightman, MD & Head of Inv
Mgmt, Research Affiliates (Newport Beach)
in association with BetaShares Capital
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Resources |
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Due
Diligence Forum 4.4 |
Investing | Multi Asset
Absolute return investing – building a portfolio to last
Christopher Nichols, Inv Dir
Multi-Asset Investment, Standard Life Investments
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Resources |
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Due
Diligence Forum 4.5 |
Investing | Alternatives
The third dimension
Sam Mann, MD, K2
Advisors (Sydney)
in assoc with Ironbark Asset Management
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Resources |
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Masterclass |
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About the
Masterclass |
The Conference
Masterclass is an 8-hour, classroom/workshop-style program held
the day before the main Conference. It is presented by selected
subject matter experts and the emphasis is on an active-learning
environment featuring small, high-quality peer group interaction
where in-depth Socratic debate and active discussion is
encouraged (indeed, expected!).
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Briefing 1 |
Strategies
You can’t manage what you can’t see
Most, if not all, investors already have significant
exposure to equity markets. Australian investors, in particular,
have correlated portfolios and tend to take on far too much
investment risk at the end of their working lives. New methods
in alternative investments investing give a clearer
understanding of risks in portfolios, allowing investors the
ability to minimise losses. A properly structured alternative
investments portfolio should be able to complement their
existing risk profile, for example in dampening equity beta,
reducing portfolio volatility or extracting beta at a low cost.
Given the plethora of manager strategies available, and their
idiosyncratic correlations to the equity markets in different
economic environments, how can a diversified alternative
investments portfolio be ideally structured?
- David Saunders,
CEO, K2 Advisors in assoc with Ironbark Asset Management
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Slides |
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Case study 1 |
Strategies & Investing
Using risk factors to evaluate
investments and build portfolios
Lifecycle investing centres on taking the least amount of risk
necessary to reach the client's goals - so understanding the
risk of the investments you're using in portfolios is critical.
This practical session demonstrates the benefits of risk factors
in asset allocation as well as breaking down investment manager
performance into its smaller parts.
- Michael Furey, Managing
Director, Delta Research & Advisory
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Slides |
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Case study 2 |
Strategies & Investing
Objectives-based financial advice in practice
Lifecycle investing is based on a philosophy of consciously
constructing portfolios so that, over the whole of a person’s
life, acceptable standards of living and specific life goals are
more likely to be achieved consistently - with all the
complexity and tailoring that entails. This practical session
shows how
an objectives-based advice process requires a more
dynamic implemented portfolio approach. It highlights the
limitations of traditional financial planning models of risk
profiling and SAA portfolios in an objectives-based setting, and
show how liquidity buckets can be managed in a dynamic and less
constrained manner, including the role of the investment
committee, process and governance.
- Stephen Furness, Director, MGD
Wealth
- Dr Bart Dowling, Investment Strategist,
Select Asset Management
- Andrew Fairweather, Winston Capital
Partners
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Slides |
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Briefing 2 |
Strategies
I've been thinking about... managing retirement sequencing risk
What really does, and does not,
cause a retirement plan to run out of money?The true danger for
many is not a market crash or a black swan event, but rather the
risk that the sequence of portfolio returns does not provide
optimal outcomes, particularly the risk of poor or negative
returns occurring around retirement age, when an investor's
portfolio is usually at its largest and most vulnerable.
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Michael Kitces, Partner & Rsh Dir, Pinnacle Advisory Group
(Washington DC)
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Video
Slides |
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Case study 3 |
Strategies
Investment philosophy - maximising returns or minimising risk?
At the heart of lifecycle investing approach is the notion of
minimising or managing 'risk' given the client's specific goals.
This
practical session looks at two different philosophies -
the more traditional and prevalent current approach of
maximising client returns (creating portfolios based primarily
on the client's current risk profile and, in particular, the
client's risk tolerance) and the lifecycle investing approach of
trying to achieve client's objectives with minimum risk. The
different philosophies lead logically to different financial
planning processes.
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Tim Farrelly, Principal, farrelly's Investment Strategy (Sydney)
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Slides |
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Briefing 3 |
Investing
Perspectives on blending active and
index products
The low yield world has focused investors on the costs of
investing, while changing regulation is leading to greater
alignment between clients’ investment portfolio choices and
their risk-return profiles. Together these factors are
transforming the use of active management, indexing and the
blending of investment styles.
- Mark Oliver, Managing Director,
BlackRock
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Slides |
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Briefing 4 |
Markets, Strategies & Investing
Lifecycle investing at the coal
face
In this session, we hear from an adviser who has adopted a
lifecycle investing approach in his practice. He'll provide his
insights on the challenges and opportunities and,
ultimately, the rewarding experience that the lifecycle
investment approach affords him and his clients.
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Justin Hooper, Managing Director, Sentinel Wealth
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n/a - you had to be there |
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Key
takeouts |
Markets, Strategies & Investing
I’ve been thinking about…
my key takeouts
This session determined the key takeouts from the day's
program, and actions to take when building investor portfolios.
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Justin Hooper, Managing Director, Sentinel Wealth
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Tim Farrelly, Principal, farrelly's Investment Strategy (Sydney)
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Michael Furey, Managing Director, Delta Research & Advisory
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n/a - you had to be there |
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