The Academy Spring Seminar 2013 featured four sessions: Mock FOMC meeting; The state of economics/investing and of long-term expectations; A global perspective to bottom-up fundamental research, an Insurance sector case study; and, Investing in property.
This article contends that some arguments used to validate alternative indexing can be easily proven false.
Conventional wisdom is that retirees should reduce their equity exposure in retirement as their time horizon shortens - in reality, the ideal may actually be the exact opposite.
A growing army of data scientists is mining patterns from our online activity. What are the implications for investment?
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.
Multi-asset absolute return investing offers more certainty of achieving the right outcome for clients and portfolios which are more sustainable through an investor’s life stages.
Real return funds with their more dynamic and go-anywhere structures are designed to be able to navigate through difficult and normal times. Can they really deliver?
Simplifications taken in building Australian equity strategies may result in a portfolio that doesn't achieve what it's been designed to do, particularly in relation to income and volatility.
The world is going through a period of demographic shift that is without parallel in history - with six investment sectors advantaged.
Managing sequencing risk - the risk of poor or negative returns near or around retirement age when a portfolio is at its largest and most vulnerable - is a critical component of lifecycle investing.
Is the strong performance of trend-following strategies a statistical fluke of the last few decades or a more robust phenomenon over a wide range of economic conditions?
Yield hungry investors would do well to take stock of their real investment objectives before making the headlong plunge into rapidly appreciating high yielding stocks and bonds.
Today's younger generation will become tomorrow's older generation. This predictability makes demographic shifts the single most powerful investment force of our time.
In constructing a portfolio to help clients meet their retirement goals, practitioners need to factor in the three most significant risks. A logical, valuation-based approach can help.
Australian investors can get better returns and increase the transparency of the companies they invest in, by including unlisted equity in portfolios.
Traditional unit trust structures can be disadvantageous to clients seeking higher income. New options better manage this from both an investment and structure perspective.
Australia faces big economic challenges - meaning superannuation will inevitably feel pressure for reform which will encompass four key changes.
Lifecycle investing considers the whole of a person's life to ensure acceptable standards of living are achieved consistently. It differs from more traditional approaches to financial planning in a number of important ways.
The findings of this paper suggest that legislated minimum pension withdrawal rates may be too high and lead retirees to run out of money sooner than planned.
The Academy Winter Seminar 2013 features four sessions: Get micro about the macro - looking at big risks through the microscope; The Equity Risk Premium; A focus on Australian equities strategies in an objectives-based investing world; and, Equities and Inflation.
The Academy Autumn Seminar 2013 featured five sessions: Market risk; Is Chinese growth a ponzi scheme?; Risk profiling; The approach to risk profiling for retirees; and Using risk factors to evaluate investments and build portfolios.
Investment is often compromised by the quest for easy answers to difficult and involved issues. Risk is one.
Property’s attractive characteristic as an asset class is that it is able to deliver relatively stable revenue streams, with a growth profile in line with inflation. This presentation and paper discuss listed property in the context of the New Zealand market and give some perspective on the sector’s track record over the last cycle.
A changing Equity Risk Premium has implications beyond considering allocations to equities and bonds. This presentation and paper consider the factors that might drive a change in the Equity Risk Premium and ask - If elevated ERPs fall, which sectors and stocks might benefit the most? What implications might that have for investing?
For nearly 30 years bond yields globally have fallen, generating significantly positive returns to investors - but with yields near record lows and global growth improving, this is unlikely to continue. This presentation and paper explore the development of the NZ fixed income market and consider ways for investors to better protect themselves against the growing risks.
Throughout Symposium 2013, PortfolioConstruction Forum Publisher and Symposium Moderator, Graham Rich, presented Video Thought Pieces in which leading global investment experts shared their thoughts on investment challenges. This video featured a panel of experts debating the opportunities and possibilities created by the aging population via the resulting seismic shift in health care, jobs, education, housing, transportation, technology, travel, consumer products and entertainment.
Throughout Symposium 2013, PortfolioConstruction Forum Publisher and Symposium Moderator, Graham Rich, presented Video Thought Pieces in which leading global investment experts shared their thoughts on investment challenges. This video featured Mohamed El-Erian talking about how investing is fundamentally like being a surfer.
Five pillars of risk neatly encapsulate the main areas of risk and contagion that all investors should be watching. In the changing risk environment, the key is to determine which parts of the world are actually paying you to take risk, and which areas are definitely not.
Is it possible to reduce emerging markets’ volatility without sacrificing return potential? This paper and presentation show that a portfolio with emerging stocks, bonds and currencies managed in an active, unconstrained and integrated strategy can capture a greater set of opportunities to seek the high returns associated with EM growth, with better risk management potential.
The low yield world has focused investors on the costs of investing, while changing regulation is leading to greater alignment between portfolio choices and risk-return profiles. Together these factors are transforming the use of active management, indexing and the blending of investment styles. This paper and presentation highlight the results of a survey of various approaches to blending active and index funds in portfolios.
ETFs have grown substantially in size, range, complexity and popularity in recent years. This presentation and paper provide the key issues and portfolio strategy considerations relating to ETFs that can form part of the client conversation. These considerations are not often discussed but should influence whether and how ETFs may be used by clients relative to alternative structures.
Many of the conventional approaches to post-retirement portfolio construction have not been scrutinised adequately in terms of possible outcomes for retirees adopting these approaches. This paper and presentation assess the possible outcomes of using these approaches in meeting income objectives and examines how the advice process can evolve to better address specific objectives by adopting a more holistic approach to portfolio construction.
Building a better global equity portfolio requires a new structure that incorporates both high-growth/higher expected-return elements (emerging markets and small cap, for example) and a complementary low volatility component. This paper and presentation explain why low-volatility equities make sense and provides an overview of the types of strategies available.
This presentation was preparation for the interactive workshop later in the program, looking at the fundamental principles behind diversification, the critical role of correlation in getting diversification benefits, and how practically to consider the benefits of diversification when designing portfolios.
Throughout Symposium 2013, PortfolioConstruction Forum Publisher and Symposium Moderator, Graham Rich, presented Video Thought Pieces in which leading global investment experts shared their thoughts on investment challenges. This video featured Mohamed El-Erian talking about the interplay of the visible hand (QE) and the invisible hand (the markets).
Throughout Symposium 2013, PortfolioConstruction Forum Publisher and Symposium Moderator, Graham Rich, presented Video Thought Pieces in which leading global investment experts shared their thoughts on investment challenges. This video featured Warren Buffett and others talking about the lessons they learned from the legendary Benjamin Graham.
Nearly six years after KiwiSaver launched, there are now more than 2.1 million people contributing with $14.5 billion in the scheme. But many advisers are shunning KiwiSaver-only clients as large institutional advisers reel them in.
Australia is looking at enshrining the term "financial planner/adviser" into law. New Zealand is already a step ahead. We look at the titles advisers are using, what the law allows, and what advisers may call themselves in the future.
With cash no longer providing the same high returns and income required for investors approaching or already in retirement, Global Investments Forum 2013 brought together selected senior investment professionals spanning the major sectors, strategies and regions of the world.
Tom discusses why the corporate bond space offers positive real yields in a globally repressed rate environment.
Stephen discusses the rise of income investing and the advantages of global equities for income seeking investors. As a global energy specialist, he discusses the US shale energy revolution and industrial renaissance, before concluding with insights on the eurozone, and why it remains a significant and underappreciated threat to a global recovery.
Ethan discusses why risk matters, the characteristics of a higher quality return stream and how size, scale, diversification, costs and non-market risks can influence the consistency and repeatability of an investment process.
Adrian will discuss global fundraising and the secondary market including secondary market supply/demand, the market participants, key challenges, market catalysts and how to gain easier access to this much misunderstood asset class.