1. Back to long-term investing in the age of geopolitical risk

    In the last decade, investor interest in long-horizon outcomes was rare and when it prevailed, it was severely tested by events. The long-term was viewed as opaque and uncertain. It's amazing how attitudes change when new opportunities emerge.

    Amin Rajan | 01-12-17 | More
  2. The optimal shape of retirement planning

    A recent research paper that likens the three main retirement planning approaches to shapes provides an interesting way to think about three different retirement planning approaches. In the end, the best option may incorporate all three.

    Michael Kitces | 10-11-17 | 0.50 CE | 1 comment | More
  3. Research Review: More on portfolio construction

    A recent paper that addresses one of the most pressing issues facing the financial community - how to construct long-term investment portfolios to best fit the needs of those saving for retirement - questions the appropriateness of many commonly used techniques.

    Ron Bird | 06-11-17 | 1.00 CE | More
  4. Philosophy Lecture: Value investing

    Value investing has proven successful over time but it requires discipline and a long-run horizon - and disagreement remains over whether the value premium will persist. What's your philosophy?

    Philipp Hofflin | 01-11-17 | 4.00 CE | More
  5. Understanding the rate and direction of retirement spending

    Having built some satisfaction that their retirement savings balance is sufficient, clients ask "How much can I afford to spend?"

    Aaron Minney | 30-10-17 | More
  6. The ASX200 is too concentrated - reduce weights!

    Simply observing the concentration inherent in the index and reducing Australian Equity weights is throwing the proverbial baby out with the bathwater. It’s nuts and you can clearly see it’s nuts.

    Tim Farrelly | 18-09-17 | More
  7. Beating the world’s best investors

    Where can practitioners take on the world’s best investors and win? Actually, in quite a lot of places.

    Tim Farrelly | 28-08-17 | More
  8. There’s a place for Impact Investing strategies in portfolios

    The impact investing market will be worth US$1 trillion in coming decades. It is important for practitioners to realise the impact that their client's capital can have on society.

    Richard Brandweiner, Giles Gunesekera & Tim Macready | 24-08-17 | 0.50 CE | More
  9. Exploiting anomalies is vital for higher long-term returns

    To outperform the market you have to invest in something different. Investment returns are best captured through the exploitation of anomalies – the truly different mispriced opportunities.

    Paul Moore | 24-08-17 | 0.50 CE | More
  10. Smart money signals can improve your global factor models

    In the US, institutional investors have a significant impact on future stock performance. Extending this research globally shows that ownership signals can supplement a traditional factor model and improve long/short performance.

    Jason Liu | 24-08-17 | 0.25 CE | More
  11. Corporate debt is the undiscovered yield play

    With higher returns than term deposits, and less risk than hybrids and equities, corporate loans add up to an attractive alternative in a potentially rising interest rates environment.

    Andrew Lockhart | 24-08-17 | 0.25 CE | More
  12. Risk-based investing is essential in a low return world

    For a portfolio’s position to add up robustly, it must reflect future risks and respond to how these change through time.

    Susan Gosling | 24-08-17 | 0.50 CE | More
  13. There is no dominant strategy in Australian Equities

    Investment managers around the world believe their style is the holy grail of generating returns ahead of the market. But you can’t beat the market using a simple rules-based strategy.

    Blake Henricks | 24-08-17 | 0.25 CE | More
  14. Digital consumption is China's next growth engine

    China's digital economy will soon surpass that of the US. MSCI A Share inclusion in 2018 will allow foreign investors to participate in China's fast growing e-commerce sector.

    Mansfield Mok | 24-08-17 | 0.25 CE | More
  15. Investing in diversified fat left tailed strategies has value

    Investment in a well diversified and risk controlled mix of Risk Premium strategies is essential to building a robust portfolio through good times and bad.

    Philip Seager | 24-08-17 | 0.50 CE | More
  16. Multi asset + derivatives = your pre+post retirement solution

    Constructing portfolios that capture the upside while limiting the downside is more important than ever. Derivatives can help multi-asset investors in three key ways.

    David Jubb | 24-08-17 | 0.50 CE | More
  17. Not all ETFs are created equal

    With over 160 ETFs trading on the ASX, selecting the right ETF has become far more challenging. A simple yet effective due diligence framework is needed to assess suitability.

    Jonathan Howie | 24-08-17 | 0.50 CE | More
  18. Falling living standards are a bigger risk than volatility

    An active portfolio of high-quality Australian companies paying sustainable dividends is part of the solution to protect living standards against income shocks and inflation.

    Reece Birtles | 24-08-17 | 0.50 CE | More
  19. EM Infrastructure is too risky for defensive equity portfolios

    Emerging markets infrastructure plays a powerful role in a portfolio. However many investors make assumptions around the risk of these markets and ignore them to their detriment.

    Charles Hamieh | 24-08-17 | 0.50 CE | More
  20. Global credit deserves a greater piece of the investment pie

    Introducing an active global credit investment into portfolios adds to an investor's opportunity set, and can offer alpha opportunities.

    Samantha Lamb | 24-08-17 | 0.25 CE | More
  21. Managing carbon exposure is essential for better risk-adjusted returns

    Managing carbon risk within portfolios is increasingly a decision integral to risk management and the pursuit of superior long-term risk-adjusted returns.

    Domenico Giuliano | 24-08-17 | 0.50 CE | More
  22. Shifting global trade patterns open up new opportunities

    Portfolio construction must stay relevant. While traditional country and sector allocations may have worked in the past, today's new environment requires a global and flexible approach.

    Andy Budden | 24-08-17 | 0.50 CE | More
  23. Longevity pooling adds up to better retirement outcomes

    There are many risks and uncertainties as retired clients face the next 20 to 40 years. The uncertainty related to the period of retirement can be allowed for, to enable retirees to have a higher living standard during their retirement years.

    David Knox & Nick White | 24-08-17 | 0.50 CE | More
  24. There are better alternatives to time-based rebalancing

    Time-based rebalancing is inefficient. Research suggests that tolerance band rebalancing strategies minimise trading and boost portfolio returns. Such threshold approaches may be used in both the portfolio accumulation and decumulation phase, and act as a pre-commitment device for clients.

    Michael Kitces | 24-08-17 | 1.00 CE | More
  25. Investment is a game of inches – every little bit counts

    In a world where 0.6%pa is top quartile, winning is difficult and losing is easy. There are big gains to be made in surprising places. Even 1%pa adds up to a huge difference over time.

    Tim Farrelly | 23-08-17 | 0.50 CE | More
  26. ETFs are the new stocks and advisers are the new managers

    Advisers are increasingly eschewing active managed fund managers, and instead are supplanting themselves as tactical managers of "passive" ETF funds.

    Michael Kitces | 23-08-17 | 1.00 CE | More
  27. The 'Random Walk' hypothesis is dead

    When it comes to investing across the capital structure, it all adds up, but debt and equity’s relative contributions to returns shift markedly through time.

    Jason Thomas | 23-08-17 | 0.25 CE | More
  28. The shrinking of the public equity market matters

    The number of publicly listed companies in the US has roughly halved since 1996, a phenomenon which spans other regions. The trend is likely to persist, and it has significant implications for investors.

    Brian J. Buenneke & Alex Wilmerding | 23-08-17 | 0.25 CE | More
  29. E + S + G factors all add up to better performance

    Ensuring your investment process has the flexibility to incorporate sustainability factors all adds up to improved longer term portfolio performance outcomes.

    Amanda McCluskey | 23-08-17 | 0.50 CE | More
  30. A team of champions does not make a champion team

    Building genuinely diversified portfolios, where every investment represents an active decision, makes for a champion team of investments.

    Michael O'Dea | 23-08-17 | 0.50 CE | More
  31. Index obsession is unhealthy and leads investors astray

    Investing is simply deploying savings to generate returns, yet abstractions such as indices are creating unnecessary complexity. Nowhere in an effective investment process need there be any reference to the prospects for a market index.

    Andrew Clifford | 23-08-17 | 0.50 CE | More
  32. Creativity and predictability add up to alpha generation

    Loss avoidance and simplicity are highly attractive to the human mind. However, uncertainty is often the source of superior returns and creativity can be a key source of alpha, delivering idiosyncratic outcomes.

    William Low | 23-08-17 | 0.50 CE | More
  33. To pick up pennies, take a structured approach to investing

    In a developed world full of challenges, a consistently applied process that focuses on both the cyclical and secular outlook is something that every investor can apply.

    Tony Crescenzi | 23-08-17 | 0.50 CE | More
  34. In a low return world, small mistakes add up to big losses

    Investors need to employ a rigorous and consistent valuation methodology, seek to minimise forecast error bounds and disregard traditional cap weighted benchmarks.

    Warryn Robertson | 23-08-17 | 0.50 CE | More
  35. Another global financial crisis is inevitable

    Janet Yellen says another crisis is not likely, yet signs of stress are growing and valuations are stretched. Investors need a strategy for weathering a storm, whether or not there is one on the horizon.

    Robert Gay | 23-08-17 | 1.00 CE | More
  36. Retirement spending and biological age

    There is a growing body of evidence suggesting that chronological (C) age is dominated by biological (B) age as a better proxy for longevity risk. Practitioners must consider both ages when building portfolios and structuring retirement spending strategies.

    Moshe Milevsky, York University | 23-08-17 | 1.00 CE | More
  37. Backgrounder: Portfolio rebalancing strategies

    Researchers propose a range of improvements to traditional time-based rebalancing, including threshold and cash flow strategies, designed to increase effectiveness and efficiency.

    Will Jackson | 21-08-17 | 1 comment | More
  38. Investors should hedge their overall financial risk

    People often consider risks in isolation, and overpay for protection as a result. Rather than hedging against specific risks, investors should think like a game theorist.

    Shachar Kariv, University of California, Berkeley | 21-08-17 | More
  39. Backgrounder: The rise of impact investing

    As some institutional investors build internal impact investing capabilities, the inclusion of impact investments in portfolios may be on the cusp of becoming mainstream.

    Will Jackson | 21-08-17 | More
  40. 2011 Conference: CIF - Modern portfolio construction (Michael Kitces)

    Portfolio construction practitioners have traditionally split into two camps - passive indexers, or active investors aiming to either pick winning companies or fund managers who can identify such companies. In this Critical Issues Forum session at the 2011 Conference, US-based researcher Michael Kitces provided a new and robust framework to understand the opportunities for value creation in portfolios...

    Michael Kitces | 20-08-17 | More
  41. It all adds up... well, sometimes it doesn't

    Do you know the impacts of the risk characteristics of your multi-manager portfolio? Better portfolio construction occurs when you don't diversify the risk you are trying to capture. Beware the benchmark hugger - it might be you?

    Michael Furey | 19-08-17 | More
  42. Shifting global trade patterns bring new opportunities

    Shifts in economic and trade regimes and turning points in markets provide asset managers the opportunity to capitalise on short-term distortions in asset prices and to invest in companies that could be winners in the long term.

    Rob Lovelace & David Polak, Capital Group | 18-08-17 | More
  43. Using alternative investments to address pre- and post-retirement issues

    This paper explores the issues and challenges associated with longevity and sequencing risk, especially in the current market environment, and examines how alternative investments offer investors potential solutions for these risks.

    Walter Davis & Ashley O'Connor, Invesco | 18-08-17 | More
  44. The value of investing in a diversified pool of fat left tailed strategies

    Investors often shy from investing in “non-traditional” sources of Risk Premia, but to maximise the probability of achieving positive excess returns, a well-diversified and risk-controlled mix of Risk Premium strategies is essential.

    Capital Fund Management | 18-08-17 | More
  45. E + S + G factors are fundamental to better portfolio outcomes

    Ensuring your investment process incorporates sustainability factors - climate change, global food shortages, water shortages, and poverty, as well as safety, management and governance scandals - adds up to better outcomes.

    Amanda McCluskey | 18-08-17 | More
  46. Asset managers need to build better factors

    Factor indices are a smart way to capture equity market beta. However, investors use factors in pursuit of broader aims.

    Gideon Smith, AXA IM Rosenberg Equities | 17-08-17 | More
  47. Research Review: Financial ruin and biological age

    Two recent studies shed light on retirement income planning. One proposes a framework to avoid the pitfalls of shortfall probabilities. The other finds biological age impacts spending rates.

    Will Jackson | 15-08-17 | 1.00 CE | More
  48. A sector that cannot be ignored

    Having grown strongly over the last 20 years, a new study shows infrastructure investment will continue over the next two decades. It is a secular trend with long-term opportunities.

    RARE Infrastructure | 11-08-17 | More
  49. Choosing discount rates for retirement planning strategies

    While the use of a discount rate to compare strategies or choices that are dispersed or occur over time is useful, the proper discount rate is the investor's expected rate of return, means that the "right" discount rate will vary from one person to the next.

    Michael Kitces | 08-08-17 | 1.00 CE | More
  50. 2011 Conference: DDF - A scenarios approach to asset allocation (Susan Gosling)

    This Due Diligence Forum Research Paper, presented at the 2011 PortfolioConstruction Forum Conference, proposes an asset allocation approach that makes more complete use of information available about the future, forcing consideration of different time frames, alternate outcomes, and tail risk...

    Susan Gosling | 01-08-17 | More
  51. Buying happiness and satisfaction with greater cash reserves

    The classic view of cash when investing is that it's something to minimise. But a recent study found that we're just not content without a healthy allocation to cash. In fact, pushing investors to put all their cash to work increases their financial stress.

    Michael Kitces | 29-06-17 | More
  52. Masterclass NZ 2017 - Resources

    Masterclass NZ is a post-graduate extension program focused on contemporary issues that are fundamental to building better quality portfolios. The one-day program is comprised of five research-based, active learning sessions:

    16-06-17 | More
  53. The upside of less downside

    When equity markets fall, the financial and emotional impacts can be lasting. By focusing on reducing downside, investors can have a smoother ride and still achieve the returns they seek.

    Roy Maslen & Hamish Fitzsimons, AB Global | 30-05-17 | More
  54. Three strategies to manage retirement income uncertainty

    The danger that sequence of return risk can devastate a retirement portfolio is both increasingly recognised and frequently misunderstood. Three research-driven strategies can help manage it.

    Michael Kitces | 22-05-17 | 1.00 CE | More
  55. Impact investing in the context of a diversified portfolio

    This paper presents evidence to suggest that an allocation to impact investments can contribute potential portfolio benefits from the risk-return profile and low correlation with other asset classes.

    Tim Macready, CIMA® & Simba Marekera, Brightlight Impact Advisory | 03-05-17 | 0.50 CE | More
  56. Issues in long-term investing - part 1

    Short-term thinking in finance is nothing new. The benefits of long-term investing extend beyond just being able to invest in illiquid assets. Patience can pay its own dividend.

    Keith Suter, Geoff Warren, Ian Patrick | 10-04-17 | 1.00 CE | More
  57. Research Review: Only in Scandinavia?

    Do professional investors do better when investing on their own behalf? What is the relationship between the remuneration of professional investors and performance? What role to gender and age play in the use of ETFs?

    Ron Bird | 10-04-17 | More
  58. A client's life is a mix of stocks & bonds

    It is time to properly account for risk characteristics of client’s most valuable asset - their human capital. This isn’t easy to implement and places practitioners in a difficult situation...

    Moshe Milevsky, York University | 24-03-17 | 1.00 CE | More
  59. Behavioral biases & hierarchy of retirement needs

    Research suggests we mentally account for income and assets with an intrinsic hierarchy of priorities - a "hierarchy of retirement needs". So retirement income strategies should be reframed to answer three questions.

    Michael Kitces | 23-03-17 | More
  60. Four fundamental portfolio construction decisions

    Markets Summit 2017 delivered 20+ high conviction ideas on how the winds of change are affecting the outlook for economies and asset classes - and delegates were asked to convert the insights into four fundamental portfolio construction decisions.

    Will Jackson | 06-03-17 | More
  61. The wrong side of maybe fallacy

    Monte Carlo analysis is commonly used to evaluate retirement spending plans - but our cognitive and behavioural biases may interfere with proper interpretation of the results.

    Michael Kitces | 28-02-17 | More
  62. Low interest rates matter. So do imputation credits

    A recent, widely circulated article suggested the major Australian banks are overpriced. But including the effect of imputation and a view on interest rates makes a huge difference...

    Tim Farrelly | 27-02-17 | More
  63. Finology Summit 2017 - The winds of change - key takeouts

    Finology Summit 2017 focused on how "The winds of change" are affecting how investors think and behave with respect to money, and how we can better to relate with them. Here are our key takeouts.

    23-02-17 | More
  64. Markets Summit 2017 - The winds of change - key takeouts

    Markets Summit 2017 delivered 20+ high conviction ideas on how the winds of change are affecting the outlook for economies and asset classes - and the implications for portfolios. Here are our key takeouts.

    17-02-17 | More
  65. Focus investors on goals with a retirement spending policy

    A formal, written spending policy can help investors focus on what's really important - will they meet their goals?

    Tim Farrelly | 15-02-17 | 0.25 CE | More
  66. The winds have changed

    The tectonic plates of the political and economic landscape are rupturing. Brace yourselves for a wild and entertaining ride...

    Jonathan Pain | 14-02-17 | 0.25 CE | 1 comment | More
  67. Winds have changed

    The tectonic plates of the political and economic landscape are rupturing. Brace yourselves for a wild and entertaining ride...

    Jonathan Pain | 14-02-17 | 0.25 CE | More
  68. Now is the time to accumulate duration

    As 2017 began, there was (once again) an air of optimism that interest rates are about to return to normal. This optimism dismisses the significant structural headwinds that are prevalent.

    Brett Lewthwaite, Macquarie Investment Management | 14-02-17 | 0.25 CE | 3 comments | More
  69. There are 4 fundamental decisions to make now for portfolios

    When positioning a multi-asset, portfolio for the medium-term, there are four fundamental decisions we must make now. They are, in some cases, interdependent.

    Tim Farrelly | 14-02-17 | 0.25 CE | More
  70. The hunt for yield is over

    Money velocity is accelerating in the US and UK, as commercial banks rediscover their appetite for risk and the two economies continue to normalise. The shift has significant implications for asset allocators.

    Chris Watling | 14-02-17 | 2 comments | More
  71. Don't confuse the winds of change with "hot air"

    The biggest portfolio risk in 2017 will be over confidence in assigning scenario probabilities. Don't confuse the winds of change with "hot air" when it comes to portfolio construction.

    Robert Mead, PIMCO | 14-02-17 | 0.25 CE | More
  72. Panel: The winds of change

    Partners Group's Charles Dallara, Lazard's Ron Temple, and Magellan's Hamish Douglass debate the winds of change sweeping through the global economy and equity markets.

    Panel | 14-02-17 | 0.25 CE | More
  73. Don't confuse winds of change with "hot air"

    The biggest portfolio risk in 2017 will be over confidence in assigning scenario probabilities. Don't confuse the winds of change with "hot air" when it comes to portfolio construction.

    Robert Mead, PIMCO | 14-02-17 | 0.25 CE | More
  74. Trump the game changer - the only certainty now is uncertainty

    2017 will present many risks and opportunities, as the winds of change sweep through the global economy and markets. Geopolitics will dominate. The only certainty for 2017 is uncertainty.

    Stephen Halmarick, Colonial First State Global Asset Management | 14-02-17 | 0.25 CE | 3 comments | More
  75. Backgrounder: 5 Megatrends driving portfolio construction

    In 2002, we embarked on a quest to identify the secular forces which would substantially influence markets over the coming decade. We proposed five megatrends - which still drive portfolio construction today.

    Will Jackson | 13-02-17 | More
  76. Research Roundtable International 2016 - key takeouts

    Put 10 senior Australian fund analysts on an eight-day CE program to the west coast of the USA? Inevitably, the group debated their views on many issues.

    Will Jackson | 02-02-17 | 2 comments | More
  77. A two-dimensional risk tolerance assessment process

    Beware using risk tolerance assessment tools that blend risk tolerance and risk capacity into a single result. The two need to be measured separately.

    Michael Kitces | 30-01-17 | 2 comments | More
  78. Does political analysis matter when investing?

    Should we just keep our heads down and treat political events as nothing more than noise? 2017 is going to be a year when politics does matter. In fact, it always has.

    Jonathan Pain | 28-01-17 | More
  79. Finding the optimal portfolio rebalancing frequency

    How often should a portfolio be rebalanced? Rather than the conventional wisdom of rebalancing at fixed time intervals, a superior methodology is tolerance band rebalancing.

    Michael Kitces | 02-01-17 | 0.50 CE | 5 comments | More
  80. Re-balancing usually reduces returns

    While rebalancing may be helpful as a risk management strategy, it may actually reduce long-term returns. But that isn't a reason to avoid it.

    Michael Kitces | 02-01-17 | 0.25 CE | 1 comment | More
  81. The failure to understand rebalancing

    We've been drilled that rebalancing in portfolios results in improved returns and/or reduced risk. But the benefits of rebalancing are far smaller than we’ve been led to believe.

    Michael Edesess | 02-01-17 | 4 comments | More