1. Trend to global investing still has much further to go

    Recently, I attended the Eureka Report Around the World of Investing Forum. The overwhelming impression was that global investing is very new to many Australians.

    Dominic McCormick | 05-12-14 | 1 comment | More
  2. A better class of bubble

    Only the most die-hard peak-oil proponents, or other gold-bugs, will fail to acknowledge that the commodity bubble has burst. Is it a positive, or negative, for financial markets?

    Louis-Vincent Gave, GaveKal | 04-12-14 | More
  3. Lessons form the last 40 yrs

    Looking back over the last 40 years, it is clear that, in the next 20 years, successful asset owners and managers are going to listen to Einstein and stop making things too simple.

    Alan Brown | 03-12-14 | More
  4. Does a diversification strategy fit with a planner's fiduciary duty?

    It is not beyond the realms of possibility that the "prudent person" approach to playing it as safe as possible in portfolio construction might undergo a significant shift.

    Tony Vidler, Strictly Business | 02-12-14 | More
  5. Yin & Yang of retirement income

    This white paper serves up a retirement income planning "buffet" - reviewing the two main opposing philosophies and the range of strategies that span the divide.

    Angela Ashton, PortfolioConstruction Forum | 21-11-14 | 2 comments | More
  6. Are low-vol stocks over crowded?

    Ten years ago, hardly anyone talked about low-volatility investing. Now there's growing concern it is becoming an overcrowded trade. There are four arguments against this.

    David Blitz & Pim van Vliet, Robeco | 20-11-14 | More
  7. Academy Spring Seminar 2014 - Resources Kit

    PortfolioConstruction Forum Academy Spring Seminar 2014 features three sessions. This Resources Kit contains the materials for preparing for the Seminar. After the Seminar, it will also contain the presentations for each session.

    19-11-14 | 44 comments | More
  8. China A shares emerging?

    Despite strong returns, it's still hard for investors to think positively about China A shares as an investment. The key is to envisage what the world will look like in 10 to 15 years.

    Dominic McCormick | 17-11-14 | 3 comments | More
  9. Revisiting sequence of returns risk

    In managing sequence of returns risk, we may not be giving simple rebalancing nearly the credit it deserves to accomplish similar or better than more complex approaches.

    Michael Kitces | 13-11-14 | 0.75 CE | 1 comment | More
  10. Gridlock itself is not the problem

    Gridlock may be perfectly acceptable in Washington these days - but Europe, like Japan, now badly needs strong political leadership.

    Anatole Kaletsky | 12-11-14 | More
  11. Why are bond yields so low?

    The answer seems obvious. But more complicated forces are at work that have reduced real interest rates far below historic norms and may keep them very low for many years.

    Robert Gay | 11-11-14 | More
  12. IS is irrelevant - Libya is relevant

    The media continues to obsess about IS - but the far more investment-relevant development in the Middle East is the sudden return of Libyan crude to the market.

    Marko Papic, BCA Research | 10-11-14 | More
  13. Low beta anomaly - mispricing or risk?

    I don't dispute low vol stocks outperform highly vol stocks. But volatility does not explain all of an asset's risk.

    Michael Furey | 07-11-14 | 1 comment | More
  14. Taking a gamble with negative interest rates

    The taboo that savers have to be compensated for handing money to a financial institution has been broken, with the ECB's negative rates finally being passed on to retail clients.

    Oliver Hartwich, The New Zealand Initiative | 06-11-14 | More
  15. Deflation: Boom Or bust?

    It has been my contention for a while that capitalism is returning to its 19th century deflationary roots. Indeed, the evidence has become overwhelming.

    Charles Gave, GaveKal | 05-11-14 | More
  16. 4 takeouts from the recent volatility

    Last week's volatility surprised many. How should portfolios be positioned? And what does this recent bout of volatility tell us about the economy and financial markets?

    Russ Koesterich, BlackRock | 29-10-14 | More
  17. Sharpe on retirement income planning

    One of the originators of CAPM, Sharpe was awarded the Nobel Prize in economics. I sat down with him to discuss retirement income planning.

    Robert Huebscher, Advisor Perspectives | 28-10-14 | More
  18. Phrases that should be banished from retirement planning

    Perhaps the most crucial change in our retirement planning language is simply to rename "retirement".

    Michael Kitces | 27-10-14 | More
  19. Capitalism inequality & Piketty

    Thomas Piketty's "Capital in the Twenty‐First Century" is certainly the economics book of the year. We have been asked numerous times to appraise his ideas.

    Woody Brock | 24-10-14 | More
  20. Down the retirement risk zone with gun

    This particularly relevant review of literature on sequencing risk considers the impact of Australia's age pension on retirement spending strategies.

    Angela Ashton, PortfolioConstruction Forum | 15-10-14 | More
  21. US rate signal may be broken

    Relying on Fed tightening to predict the next serious sharemarket weakness may be very dangerous. Perhaps this time really IS different.

    Dominic McCormick | 14-10-14 | More
  22. Retirement risk, rising equity glidepaths and valuation-based asset allocation

    The dynamic duo (Kitces and Pfau) are back in their search for the ultimate truth about retirement income planning and how to structure portfolios to minimise drawdowns.

    Angela Ashton, PortfolioConstruction Forum | 03-10-14 | More
  23. Hearing echoes of 1987

    Today is much less reminiscent of 2007, when global equity prices were at similar levels to today, than of 1987. But it seems too early for investors to panic, or even reduce risk.

    Anatole Kaletsky | 02-10-14 | 1 comment | More
  24. 2014 Conference - Webcast

    This Resources Kit is a deluge of videos, podcasts, and papers for all sessions of the jam-packed Conference 2014 program so you can "attend" even if you weren't part of the 600 plus audience.

    19-09-14 | More
  25. Finding smart beta in the factor zoo

    This paper argues that to make choices regarding smart betas we must first assess whether they're robust. Luckily, it concludes, most so-called factors can be ignored.

    Angela Ashton, PortfolioConstruction Forum | 16-09-14 | More
  26. The UK now faces years of volatility

    If Scotland does vote for independence, it's hard to come up with a positive scenario for British assets.

    Anatole Kaletsky | 08-09-14 | More
  27. The crisis in retirement planning

    Robert Merton, 1997 Nobel Prize winner, has recently penned an article about his views on retirement planning. There are some interesting take aways for Australian practitioners.

    Angela Ashton, PortfolioConstruction Forum | 03-09-14 | 1 comment | More
  28. Ramblings about unconstrained debt funds

    Unconstrained debt strategies are flavour of the month, and likely to be very popular amongst investors for several reasons. But where do such funds fit in a portfolio?

    Michael Furey | 02-09-14 | More
  29. The Zen of risk parity and Richard Nixon's surprise benefit

    What do Richard Nixon, novel "Zen and the Art of Motorcycle Maintenance", and Bridgewater Associates have to do with risk parity investing and Conference 2014?

    Greg Bright, Investor Strategy News | 01-09-14 | More
  30. Making the right call on Term Deposits

    Are Term Deposits the most boring subject in finance? Actually, they're anything but. The Australian TD market is an area where it is easy to add demonstrable value for clients.

    Tim Farrelly | 01-09-14 | More
  31. 5 key takeouts: Conference 2014 Finology Forum (where investing meets investors)

    As the first day of our annual Conference program, we hosted the Finology Forum. Our particular focus of finology was as it applies to the giving of investment advice.

    Angela Ashton, PortfolioConstruction Forum | 27-08-14 | More
  32. 2014 Conference Finology Forum - CPD Quiz

    The one-day Conference Finology Forum 2014 program (within the overall three-day Conference program) featured leading investment thinkers from around the world presenting on how to more effectively help investors manage their expectations and investment portfolios. This CPD Quiz is for delegates to complete, to receive CPD accreditation.

    26-08-14 | More
  33. The power of R cubed

    It is given that we all are wired to act foolishly sometimes, so how can we be better "choice architects" and "decision reassurers" for ourselves and our clients?

    Dr David Lazenby, ScenarioNow Inc | 21-08-14 | More
  34. Navigating risk through asset allocation - the 1st order decision

    This presentation addresses the importance of developing improved and dynamic investment approaches that seek to better understand and manage total portfolio risk as well as identify sources of return.

    Dan Farley, State Street Global Advisors | 21-08-14 | More
  35. Behavioural approaches to retirement risk communication

    Individuals are vulnerable to economic and financial risks as they approach and enter retirement. Insights from behavioural finance can be used to enhance risk communication and retirement outcomes.

    Prof Hazel Bateman, UNSW | 21-08-14 | More
  36. Investing with risk in mind

    Investors should be aware of the risks they are exposed to within a portfolio and when they're being paid to take risk (or not). A different approach is needed to build portfolios with better risk awareness.

    Nick Bullman, CheckRisk | 21-08-14 | More
  37. Risk rapporting

    Formal reports redolent with data and analysis fail to communicate risks as people actually feel them. Reports need to be replaced by rapports, by engaged conversations.

    Prof Jack Gray, UTS | 21-08-14 | More
  38. Geopolitical risks (and rewards) - the impact on portfolios

    If geopolitics is far more important in considering investment markets today, how do we integrate geopolitics into portfolio construction?

    Marko Papic, BCA Research | 21-08-14 | More
  39. Risk parity portfolios and the low beta premium

    In recent years, the risk parity approach to asset allocation has been gaining popularity. Evidence supports it but confidence in its efficacy requires a theoretical justification.

    Cliff Asness, AQR Capital Management | 21-08-14 | More
  40. Understanding both sides of the risk and return equation

    As we sit today with some unprecedented market conditions, it's probably more relevant than ever to understand both sides of the risk and return equation in the fixed income space.

    Dr Michael Hasenstab, Franklin Templeton | 21-08-14 | More
  41. Risk parity portfolios - fad or future?

    Is risk parity's outperformance in the past decade sustainable or just a quirk of the unusual markets.

    Michael Kitces | 21-08-14 | More
  42. The power of the 3rd R

    To flourish in the robo-advice era, portfolio construction practitioners must provide clients with a positive Return on Attention (ROA), Intimacy (ROI) and Empathy (ROE).

    Dr David Lazenby, ScenarioNow Inc | 20-08-14 | More
  43. Are risk and return really linked?

    What return premia - if any - are attached to different types of investment risk? And just how reliable those premia are in practice? Can the risks be diversified?

    Tim Farrelly | 20-08-14 | More
  44. Residential property - riskier than equities?

    For many Australians, their house is one of their biggest assets, if not the biggest. But a leveraged owner-occupied home is riskier than the sharemarket.

    Christopher Joye, Smarter Money Investments | 20-08-14 | More
  45. Conversations that matter

    We need to relate to investors in such a way that they can once again know and trust that financial security is a fact, not a feeling.

    Timothy Noonan, Russell Investments | 20-08-14 | More
  46. How best to take portfolio risk

    The traditional approach to portfolio construction is to own a diversified portfolio, adjusting total risk up or down. An alternative is to take a bucket approach.

    Michael Kitces | 20-08-14 | More
  47. The quest for returns in the new world paradigm "Redux"

    A sustained period of lower global growth, rich valuations from traditional assets and an eerie calm before the storm in asset price volatility require a different approach to asset allocation.

    David Griffith, BlackRock | 20-08-14 | More
  48. Breaking the Risk On/Risk Off cycle

    In managing a risk on/risk off world, investors can maintain or increase exposure to growth assets while experiencing a smoother ride.

    Don Hamson, Plato Investment Management | 20-08-14 | More
  49. Building a robust portfolio for future unknowns

    To ensure risk is genuinely well diversified takes a forward-looking scenario-analysis process to combine quantitative rigor with qualitative insights of the plausible but unlikely extreme stresses we might face.

    Mark Foster, Standard Life Investments | 20-08-14 | More
  50. VIX-ING your portfolio

    When looking to reconnect risk and return in portfolios, what better place to start than with the barometer of equity market risk itself?

    Simon Ho, Triple 3 Partners | 20-08-14 | More
  51. Risk & return: Two investment approaches

    If risk and return are imperfectly linked, there is opportunity to increase average return, without increasing risk - particularly in equity markets where risk is mispriced.

    Ryan Taliaferro, Acadian Asset Management | 20-08-14 | More
  52. Dysfunctional risk and return

    In many cases, fundamental risk and return characteristics have been shown the door as funds have flowed into ever lower yielding income asset classes.

    Mark Kiesel | 20-08-14 | More
  53. Reconnecting the three Rs - Risk & Return (& Relating)

    The last decade has seen a distinct disconnect between investment risk and return, versus what we're taught should be the case.

    Graham Rich, PortfolioConstruction Forum | 20-08-14 | More
  54. How different fixed income is today

    Fixed income has changed, and is very different today versus what it was years ago. It makes sense to evolve your portfolios accordingly.

    Rick Rieder, BlackRock | 20-08-14 | More
  55. The changing nature of interest rates and inflation

    What are the questions that everyone is asking today? When will interest rates spike? And, what about the increased rate of inflation? One has to accept the changing nature of these two elements.

    Joan Payden, Payden & Rygel | 20-08-14 | More
  56. Managing expectations - keeping clients goal-focused

    The constant challenge is to keep clients focused on their wealth goal when they are distracted by the many other factors that influence their perception of risk.

    Kajanga Kulatunga, MLC Investment Management | 19-08-14 | More
  57. Conversational methods that accelerate trust

    To improve client outcomes, financial practitioners must master six basic response skills.

    Dr David Lazenby, ScenarioNow Inc | 19-08-14 | More
  58. Risk & return mythbusters

    A common belief amongst financial practitioners is that investors and clients understand the investment objective. But are our investment beliefs a reflection of reality or investment myths?

    Fredrik Axsater, State Street Global Advisors | 19-08-14 | More
  59. Finology: The Financial Frontier

    Needleman said, "Money has a way to bring reality to situations". If so, the challenge is to have more scientific clarity helping to expose what money (and therefore investing) represents in a client's world.

    Dr David Lazenby, ScenarioNow Inc | 19-08-14 | More
  60. What is finology anyway?

    Finology is the emerging (and converging) research field covering the study of minds, customs and behaviours with respect to money. It incorporates behavioural finance, and much, much more.

    Michael Kitces | 19-08-14 | More
  61. Prepare for a change of course

    There may be rocks ahead. Reconnecting risk and return must be the right focus - but thinking conventional tools will keep us out of trouble may be a mistake.

    Alan Brown, Schroders | 18-08-14 | More
  62. A practical measure of Alpha Potential

    Alpha Potential is gaining traction as a tool to identify opportunities for active management, enhancing the value proposition afforded to active managers.

    Andrew Kophamel and Ben Wang, Aberdeen Asset Management | 17-08-14 | More
  63. Settling in

    People often ask me about my outlook for the US housing market. The outlook is improving - and that's constructive for consumer spending, confidence and jobs.

    Mark Kiesel | 15-08-14 | More
  64. Backgrounder: Reconnecting risk & return

    The last decade has seen a disconnect between investment risk and return vs what we're taught should be the case. What is the long-term relationship? Can it be beaten?

    PortfolioConstruction Forum | 15-08-14 | More
  65. Breaking the risk on/risk off cycle

    A dynamic risk management approach can protect a portfolio again sequencing risk, providing reliable investment returns over the cycle.

    Plato Milliman | 14-08-14 | More
  66. Implementing an absolute risk and return approach to portfolio construction

    This paper reviews the principles, practices, risk management requirements and implementation steps needed to build absolute return focused portfolios.

    Nick Griffiths, Pengana Capital | 13-08-14 | More
  67. Building a robust portfolio for future unknowns

    To ensure risk is genuinely well diversified takes a sophisticated forward-looking scenario-analysis process to combine quantitative rigor with qualitative insights of extreme stresses it might face.

    Mark Foster & Chris Nichols, Standard Life Investments | 12-08-14 | More
  68. Evaluating the Australian bond market through a global lens

    This paper explores the thesis that capturing the traditional relationship of fixed income in the total client portfolio will require more untraditional approaches going forward.

    Chris Siniakov & Andrew Canobi, Franklin Templeton Investments | 12-08-14 | More
  69. Are you hanging your clients' investment aspirations on six stocks?

    Six stocks make up just under half of the Australian equity market. This research paper examines the impact of this on investors' returns, and whether it is responsible investing.

    Olivia Engel | 12-08-14 | More
  70. The quest for returns in the new world paradigm

    This paper explores a different approach to asset allocation and alternative returns sources to reduce the reliance on traditional asset classes and drive returns.

    David Griffith, BlackRock | 11-08-14 | More
  71. Volatility overlay – reconnecting risk and return for equities

    This research paper discusses (in simple terms) how to reconnect the concept of Risk and Return via the practical application of volatility derivatives to portfolios.

    Triple3 Partners | 11-08-14 | More
  72. Understanding private equity's outperformance in difficult times

    This paper explores the opportunities within private equity and private debt and examines their role in providing downside protection for investors.

    Dr Stephan Schäli & Florian Demleitner, Partners Group | 11-08-14 | More
  73. Broader horizons: The evolving high-yield landscape

    Over the past 40 years, the high-yield landscape has grown exponentially. Knowing the key risks and emerging opportunities can help map a path forward.

    Gershon Distenfeld & Ashish Shah, AllianceBernstein | 11-08-14 | More
  74. The future is flexible - why, when, whence?

    Uncertainty about the timing of future interest rate rises poses challenges to fixed income investors. This paper identifies options available in managing portfolios in such an environment.

    Nick Gartside, JP Morgan Asset Management | 11-08-14 | More
  75. Shiller CAPE - terrible but valuable

    After two decades of elevated earnings and PEs - and two bear markets but also three bull markets - many are questioning whether Shiller CAPE is all that predictive.

    Michael Kitces | 08-08-14 | More
  76. Life after zero

    Risk assets are grinding higher and volatility is extraordinarily low - and monetary stimulus is still plentiful. What does life after zero (rates) look like?

    BlackRock Investment Institute | 07-08-14 | More
  77. Opportunities and challenges in a less US-centric world

    We've come to accept a world where the US drives what happens in the global economy and markets. But that's changing - with significant implications for portfolios.

    Dominic McCormick | 05-08-14 | More
  78. The 5% solution

    Going forward, instead of 5% real, traditional stocks and bonds will offer about 2.5%. But there are many things you can do to bridge the gap.

    Cliff Asness, AQR Capital Management | 31-07-14 | 1 comment | More
  79. Summer essays

    Investing can and often is intellectually compelling. But it should not be driven by excitement, as it is for many individuals.

    Jeremy Grantham | 31-07-14 | More
  80. The case for a structural equity bull market

    Are equities at the end of a five-year cyclical bounce or the start of a 15-year structural breakout? History suggests two contradictory answers.

    Anatole Kaletsky | 29-07-14 | More
  81. Market cap-weighted bond indices - always tough to beat

    It is not surprising that bond managers have significant difficulty in outperforming a market cap-weighted benchmark.

    Michael Furey | 28-07-14 | More
  82. Behavioural finance vs standard finance

    This paper is a great introduction to why behavioural finance is quickly becoming recognised as a field that can add real value to the wealth management industry.

    Angela Ashton, PortfolioConstruction Forum | 26-07-14 | More
  83. Investing in communicating about investing

    As investment professionals, we live investing every day. We spend excessive time reporting and not enough 'rapporting.'

    Prof Jack Gray, UTS | 21-07-14 | 1 comment | More
  84. Evidence for the stability of risk tolerance

    The GFC was the first crisis where good risk profiling tools were in place for a wide range of investors. Two papers look at whether risk tolerances altered materially through it.

    Angela Ashton, PortfolioConstruction Forum | 11-07-14 | More
  85. Geopolitical risk - Implications for portfolio construction

    Do geopolitical events involving potential or actual military conflict really matter in the constructing of investment portfolios?

    Dominic McCormick | 08-07-14 | More
  86. A warning to bond bears

    Are we at the start of a long-term bond bear market? Here are three factors that I expect to keep bond yields lower for longer, and five important implications for investors.

    Curt Custard, UBS Global Asset Management | 01-07-14 | More
  87. 2014 Symposium - CPD Quiz

    Symposium NZ 2014 facilitated debate on the three pillars of portfolio construction – markets, strategies and investing - to help delegates build better quality portfolios. This CPD Quiz is for delegates to complete, to receive Structured CPD Hours.

    30-06-14 | More
  88. Show me the alpha

    This paper examines the oft-considered subject of hedge fund returns, finding far greater dispersion than for traditional fund managers.

    Angela Ashton, PortfolioConstruction Forum | 25-06-14 | 3 comments | More
  89. Don't save 10% of income (spend just 50% of every raise)

    The staple of retirement planning - save a percentage of income - makes it surprisingly difficult to ever reach retirement. The alternative is much easier and more successful.

    Michael Kitces | 20-06-14 | More
  90. Rates are going up - so don't buy fixed interest?

    Everyone knows bond rates are going up - so why would you buy fixed interest? Actually, there are three really good reasons.

    Tim Farrelly | 18-06-14 | More
  91. Academy Winter Seminar 2014 - Resources Kit

    PortfolioConstruction Forum Academy Winter Seminar 2014 featured four sessions: Risk, return & relating; Statistics, lies, and investment performance analysis; How safe are safe withdrawal rates in retirement?; and, Communicating and learning with and from clients.

    18-06-14 | 31 comments | More
  92. Sunnis on the march

    The Islamist surge through central Iraq has the potential to upset the plans of investors who've convinced themselves that volatility is in the past.

    Charles Gave, GaveKal | 16-06-14 | More
  93. The good guys and the bad guys in the cradle of civilisation

    What we are witnessing in Iraq is a war within Islam. Will it mutate into a broader regional war thereby threatening oil supplies?

    Jonathan Pain | 14-06-14 | 5 comments | More
  94. Four things that matter in 2014 and beyond

    Here are some brief thoughts on four issues that matter a lot, in our view. Two have been poorly discussed in the financial press, and the other two have been ignored completely.

    Woody Brock | 11-06-14 | More
  95. The 4% non-solution

    Moving to a twenty-first-century currency system would make it far simpler to move to a twenty-first-century central-banking regime as well.

    Kenneth Rogoff | 10-06-14 | More
  96. Dare to be great - the challenge of being different

    Investing differently gives no certainty of great results (increasing the odds of being wrong as well as right). But it is a necessary but not sufficient ingredient for great performance.

    Dominic McCormick | 10-06-14 | More
  97. Home price beliefs in Australia

    Are we any good at estimating the values of our homes? Surprisingly, on average we are, according to a RBA study. It also found a link to weightings of risky assets in portfolios.

    Angela Ashton, PortfolioConstruction Forum | 05-06-14 | More
  98. Fureyous: How often should we rebalance portfolios?

    Across the industry, portfolio rebalancing is the norm - with little agreement on the optimal frequency. So I experimented to find out which frequency is best.

    Michael Furey | 03-06-14 | 2 comments | More
  99. 2014 Symposium - Resources Kit

    This Resources Kit is a deluge of videos, podcasts, and papers for all sessions of the jam-packed Symposium 2014 program so you can "attend" even if you weren't part of the 200-strong audience.

    30-05-14 | More
  100. Drumroll to the ECB meeting

    Markets are pricing in expectations that the ECB will have to be very aggressive next week if it is to turn back the tide of European deceleration. It's reminiscent of October 1987.

    Louis-Vincent Gave, GaveKal | 29-05-14 | More
  101. Changes in retirement and the retirement spending smile

    Most research assumes retirees maintain a consistent standard of living. A new study disproves this, implying we may be overestimating funds needed to retire by up to 20%.

    Michael Kitces | 26-05-14 | More
  102. Where investing meets investors

    Three interrelated aspects of practically managing client portfolios - constructing portfolios using buckets, diversifying human capital, and the Withdrawal Policy Statement.

    Michael Kitces | 21-05-14 | More
  103. The Great Debate - A multi-dimensional view of portfolio risk

    Our Symposium NZ 2014 faculty debated that the best way for practitioners to manage a client's primary risk of not meeting their objectives is to manage the long-term uncertainty of returns.

    Symposium NZ 2014 Investment Advisory Board | 21-05-14 | More
  104. Popping the bonnet on central banks

    This paper and presentation argue that understanding what is going on under the bonnet at central banks is key to understanding what will drive markets, and how best to position portfolios.

    Christian Hawkesby, Harbour Asset Management | 21-05-14 | More
  105. Has behavioural finance made us better (investors)?

    Are the human and organisational barriers to being better investors insurmountable, or can we learn and improve our decision-making?

    Prof Jack Gray, UTS | 20-05-14 | More
  106. Implementing the modern portfolio - in theory and in practice

    Typically, MPT has focused solely on how to invest within classes, not amongst them. But MPT continues to evolve.

    Michael Kitces | 20-05-14 | More
  107. About the risk tolerance paradox

    This paper and presentation provide an introduction to the risk tolerance paradox, exploring the main reason it exists, and introducing risk management strategies that seek to solve the problem.

    Michael Armitage, Milliman Financial Risk Management | 20-05-14 | More
  108. As global markets calm, be ever mindful of the risks

    This paper and presentation argue that the bond market can offer compensation against rising rates through roll down and active management of forwards.

    David Fisher, PIMCO | 20-05-14 | More
  109. The Great Unwind

    Central banks must complete the Great Unwind – removing ultra-easy monetary policies. The critical period for markets will come when the Fed lifts short-term rates (probably, but not necessarily, after tapering ends).

    Tim Farrelly | 20-05-14 | More
  110. Challenging your portfolio construction beliefs

    Graham Rich opened Symposium 2014 in his usual thought-provoking (and entertaining) way, highlighting key issues to consider over the jam-packed, marathon program.

    Graham Rich, PortfolioConstruction Forum | 20-05-14 | More
  111. Investing in global bonds - a smarter way

    If you were lending somebody money, would you lend them more money just because they had more debt? If you are investing according to a debt-weighted benchmark, that is exactly what you are doing.

    Graham Ansell, ANZ NZ Investments | 14-05-14 | More
  112. Moving forward with the normalisation of yields

    Faced with the prospect of rising yields, some investors are cutting bond allocations. But the bond market can offer compensation against rising rates.

    Scott Mather, David Fisher & Michael Story, PIMCO | 14-05-14 | More
  113. Removing central bank stimulus - implications for fixed interest

    Understanding what is going on under the bonnet at central banks is key to understanding what will drive markets – and therefore how to best position portfolios.

    Christian Hawkesby, Harbour Asset Management | 14-05-14 | More
  114. Valuations matter: Implications for portfolio risk and return outcomes

    While it is well established that equity valuations impact medium-term equity returns. It is less well known that starting period equity valuations also impact medium-term equity volatility and bond-equity correlations.

    Keith Poore, AMP Capital NZ | 14-05-14 | More
  115. Longevity risk aversion and optimal safe withdrawal rates

    There is huge variety in retirement income strategies. This paper introduces "longevity risk aversion" and its impact on safe withdrawal rates.

    Angela Ashton, PortfolioConstruction Forum | 07-05-14 | 1 comment | More
  116. A tale of two sharemarkets

    Often, the true dangers reside where investors are most comfortable going and the best opportunities are where investors fear to tread.

    Dominic McCormick | 06-05-14 | More
  117. The investor's challenge

    Whatever return forecasts you make will be wrong - so you better have a portfolio that has the opportunity to make money in a very broad spectrum of investment outcomes.

    Guy Stern, Standard Life Investments | 05-05-14 | 1 comment | More
  118. It's time to start looking at alternative assets

    It is time to start looking at alternative assets. Not because there is any pressing need to invest today, but because thorough analysis takes time and mistakes can be expensive.

    Tim Farrelly | 02-05-14 | More
  119. Why valuation really matters

    Valuation is not just an important driver of investment returns but also of investment volatility.

    Stephen Anness | 30-04-14 | More
  120. Global equity investing: Insights into a better portfolio

    Towers Watson's compendium of insights into global equity investing contains useful insights about issues many portfolio construction practitioners face every day.

    Angela Ashton, PortfolioConstruction Forum | 29-04-14 | More
  121. Divorcing your debt benchmark

    Divorcing your debt benchmark and adopting more unconstrained approach to debt investing and offering degrees of freedom to the portfolio manager is the new "core".

    Lisa Kim, PIMCO | 10-04-14 | More
  122. Academy Autumn Seminar 2014 - Resources Kit

    The Academy Autumn Seminar 2014 featured four sessions: 10 golden rules for portfolio construction; Reassessing the global debt spectrum; Currency revisited - to hedge or not to hedge; Volatility investing - the next frontier.

    09-04-14 | 40 comments | More
  123. Emerging markets on trial

    Against a backdrop of currency slides, yield spikes and chronic equity underperformance, we invited our EM experts to defend their asset class against three charges.

    BlackRock Investment Institute | 09-04-14 | More
  124. Investing for retirement: the defined contribution challenge

    Target date funds are becoming the workhorse for DC plans but there are problems with the approach. This paper offers a portfolio construction framework to overcome them.

    Ben Inker & Martin Tarlie, GMO | 08-04-14 | More
  125. Active versus passive

    The active versus passive debate was recently given a boost when Warren Buffet suggested in his annual letter that most investors are better off investing passively.

    Dominic McCormick | 07-04-14 | 1 comment | More
  126. Age banding - a model for planning retirement income needs

    In recent months, we've highlighted one school of research on funding retirement income, being the sustainable withdrawal rate approach. This paper takes a different approach.

    Angela Ashton, PortfolioConstruction Forum | 04-04-14 | 1 comment | More
  127. The changing face of correlation?

    The challenge for investors over the past several years is that diversification did not work as expected. The dynamic nature of correlation must be factored into portfolio modeling.

    Dan Farley, State Street Global Advisors | 02-04-14 | 1 comment | More
  128. The euthanasia of pensioners in Peoria

    So the US budget deficit is contracting because government consumption is falling? It is really just an accounting illusion. Financial repression is still the order of the day.

    Charles Gave, GaveKal | 01-04-14 | More
  129. The takeaways from the latest Fama-French research

    Does Fama and French's latest work, A Five-Factor Asset Pricing Model, provide any information that can be of practical value to advisers or investors? The answer is no.

    Michael Edesess | 25-03-14 | 1 comment | More
  130. Monitoring the success of target date funds

    The nature of target date funds - encompassing multiple objectives and changing asset allocations over time - raises challenges for performance reporting.

    Sean Henaghan, AMP Capital | 24-03-14 | More
  131. A year for genuine improvement

    2014 is likely to be a year of genuine improvement in the global economy, and one where uncertainty is rather low.

    Christopher Probyn, State Street Global Advisors | 21-03-14 | More
  132. How much do clients withdraw in retirement, really?

    As the logic goes, retired clients deplete their portfolios, and more pass away as the years go by, so a firm with aging clients is akin to a rapidly depreciating asset. But is this true?

    Michael Kitces | 18-03-14 | More
  133. Thoughts on investing - scale and skill in active management

    It's the eternal debate - can active management outperform? Two recent reports offer some interesting insights into the issue.

    Angela Ashton, PortfolioConstruction Forum | 17-03-14 | More
  134. Russia's permanent interests

    If you believe the US State Department has the Crimean situation under control, plan for a bullish scenario for risk assets. Plan for the opposite, if you believe Putin will prevail.

    Louis-Vincent Gave, GaveKal | 13-03-14 | 1 comment | More
  135. Global investing trend has much further to go

    Australians are waking up to the fact that they have not had enough global (mainly equity) exposure. Why the case for more global exposure now?

    Dominic McCormick | 12-03-14 | More
  136. Safe withdrawal rates in retirement - an Australian perspective

    A new research paper looks specifically at withdrawal rates in the Australian context, confirming the legislated minimums for account-based pensions are much too high.

    Angela Ashton, PortfolioConstruction Forum | 12-03-14 | More
  137. 2014 Markets Summit - Resources Kit

    This Resources Kit is a deluge of videos, podcasts, and papers for all 18 sessions of the jam-packed Markets Summit 2014 program - The Great Escape (what will markets be like in the QE runout?) so you can "attend" even if you weren't part of the 500-strong audience.

    07-03-14 | More
  138. Over the wire or under it, the Great Escape will be dangerous

    In rapid-fire presentations, 18 experts from various parts of the world debated the biggest issue facing the financial world.

    Greg Bright, Investor Strategy News | 25-02-14 | More
  139. Markets Summit 2014 - key takeouts

    In a new format for Markets Summit 2014, delegates took the role of CIO for the day, as the 18 strong presenter faculty made the case for their highest conviction insights.

    Angela Ashton, PortfolioConstruction Forum | 19-02-14 | More
  140. The Aquarium Theory of Investing

    Normal is not our experience - today's world is different from anything in the history of human capitalism. The Aquarium Theory of Investing is one way to gain perspective.

    Brian Singer, William Blair & Co | 18-02-14 | More
  141. Markets Summit 2014 Investment Advisory Board Meeting

    Our Markets Summit faculty debated two critical issues arising from Unconventional Monetary Policy; for the coming two to three years, to substantially overweight DM vs EM Equities in portfolios and substantially overweight Short vs Long Duration Bonds.

    Markets Summit 2014 Investment Advisory Board | 18-02-14 | More
  142. The wrong route to the right destination?

    We must challenge common assumptions about the US and emerging markets to ensure we are focusing on the best routes to the right destination.

    Ronald Temple | 18-02-14 | More
  143. Quantitative squeezing - differentiation in EM Investing

    Emerging Markets were a focal point in 2013, repricing as US stimulus, commodity prices and China's boom subsided. In future, EM performance will depend on individual merit.

    Kathryn Koch, Goldman Sachs Asset Management | 18-02-14 | More
  144. Why the US recovery will surprise on the upside

    The US is the critical market of the global economy - and there are sign-posts that clearly suggest it is ready to surprise on the upside, with significant implications for portfolios.

    Hamish Douglass, Magellan Financial Group | 18-02-14 | More
  145. Bonds are a cheap insurance policy

    Think about bonds as an insurance policy for portfolios. With higher yields available, very cheap insurance is even better able to pay for hurdles facing portfolios.

    Robert Mead, PIMCO | 18-02-14 | More
  146. There will be no Great Escape without a Great Unwind

    To achieve the Great Escape, central banks must first complete the Great Unwind – the removal of ultra-easy monetary policies. So what is the roadmap for the Great Unwind?

    Tim Farrelly | 18-02-14 | More
  147. Inflation risk - will QE ruin retirement?

    Ultra-low interest rates and QE have offset the deflationary forces of debt deleveraging. The challenge policy makers face is when to withdraw the stimulus to avert inflation.

    Susan Gosling | 18-02-14 | More
  148. Can central bankers negotiate the B.U.M.P. without crashing?

    Breaking Unconventional Monetary Policy (B.U.M.P.) and it's impact on global financial stability is the key risk for the foreseeable future.

    Nick Bullman, CheckRisk | 18-02-14 | More
  149. Is index investing simply a case of indifference?

    In a Great Escape world, ignoring the index and actively seeking growth investments regardless of size or weightings is more important than ever.

    Alex Milton, NovaPort Capital | 18-02-14 | More
  150. Deploying TAA across credit will be critical as QE unwinds

    The ability to pick inflection points in markets as well as deploying TAA across credit will be the key ingredient going forward.

    Robert Waldner, Invesco | 18-02-14 | More
  151. Does the end of QE mean the end of the yield play?

    Short-term rates are likely to remain low for a prolonged period of time. Investors will still need to source yield, they'll simply have to be more creative to find it.

    Russ Koesterich, BlackRock | 18-02-14 | More
  152. QE and navigating the Great Escape

    Most of the world will see an improvement in economic growth this year. Equities are by far the most attractive asset class - but they will be much more volatile.

    Jonathan Pain | 18-02-14 | More
  153. Unintended consequences of ultra-easy monetary policy

    Today's long period of very easy money and very low yields has distorted the financial system. This will cause unintended consequences in the near future as QE ends.

    Woody Brock | 18-02-14 | More
  154. Determining withdrawal rates using historical data

    William Bengen established the 4% rule - and showed a higher exposure to equities was better for retirement portfolios.

    Angela Ashton, PortfolioConstruction Forum | 06-02-14 | 4 comments | More
  155. Academy Summer Seminar 2014 - Resources Kit

    The Academy Summer Seminar 2013 featured four sessions: The paradox of wealth (& what can be done); Don't concentrate too hard; Developing your investment philosophy; and, Financial literacy and cognitive functioning.

    05-02-14 | More
  156. The role of sentiment and contrarian investing

    As we entered 2014, the consensus on the best and worst areas to invest could be described very simply: momentum investing ruled, contrarian investing was dead.

    Dominic McCormick | 05-02-14 | More
  157. What's causing the panic?

    The bullish mood suddenly changed in early January. Here is a structure for thinking about recent market events that may be helpful in assessing new evidence as it comes along.

    Anatole Kaletsky | 04-02-14 | More
  158. Blowing in the wind

    A report on asset allocation intentions of financial planners set the voice in my head singing "How many times..."

    Tim Farrelly | 03-02-14 | More
  159. What a wonderful world

    The majority of the world will see an improvement in economic growth this year. But, after a lengthy and linear rise, equity markets will see much greater volatility this year.

    Jonathan Pain | 28-01-14 | More
  160. Is the worst behind us?

    Breaking Unconventional Monetary Policy is not an asymmetric outcome - it is like 50 shades of grey, whips included, particularly for emerging markets.

    Nick Bullman, CheckRisk | 26-01-14 | More