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.

Quicklinks

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.

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.

Critical Issues Forum

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.

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


Resources

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)


Resources

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)


Resources

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)


Resources

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)


Resources

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)


Resources

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)


Resources

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)


Resources

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).








 

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.
- Tim Farrelly, Principal, farrelly's Investment Strategy (Sydney)


Resources

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.
- Tim Farrelly, Principal, farrelly's Investment Strategy (Sydney)
- Angela Ashton, Accreditation Editor, PortfolioConstruction Forum (Sydney)
- David Bell, Principal, St Davids Rd Advisory (Sydney)


Resources

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.
-
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.
-
Bradley Betts, Ph.D, Director (Equity Research), BlackRock (San Francisco)








 

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Thought pieces

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)




 

Opinion

Opinion

Opinion

Opinion

Opinion

Opinion

Opinion

Opinion

Due Diligence Forum

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.

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)


Resources

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)


Resources

Due Diligence Forum 1.3

Investing | Equity Global
Get the inside edge – accessing pure equity investments

Stefan Naef, Partner, Partners Group (Zug, Switzerland)


Resources

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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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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Due Diligence Forum 2.1

Investing | Strategies
Retirement monies - what to consider? What to do.

Aaron Minney, Head of Retirement Income Research, Challenger (Sydney)


Resources

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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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)


Resources

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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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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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)
* Awarded Delegate's Pick Award 2013 for best DDF Presentation *


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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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Due Diligence Forum 3.3

Investing | Equity Global
Investing for a lifetime

Peter Wilmshurst, Portfolio Manager, Franklin Templeton Investments (Sydney)


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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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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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Due Diligence Forum 4.1

* Editor's Pick *

Investing | Strategies
Tailoring exposures for the Australian investor
Michael Blayney, Head of Diversified Strategies, Perpetual (Sydney)
* Awarded Editor's Pick Award 2013 for best DDF Research Paper *


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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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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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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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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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Masterclass

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!).

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
 


Slides

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


Slides

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


Slides

Briefing 2

Strategies
I've been thinking about... managing retirement sequencing risk
W
hat 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.
-
Michael Kitces, Partner & Rsh Dir, Pinnacle Advisory Group (Washington DC)


Video
Slides

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.
- Tim Farrelly, Principal, farrelly's Investment Strategy (Sydney)


Slides

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


Slides

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.
- Justin Hooper, Managing Director, Sentinel Wealth

n/a - you had to be there

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.
- Justin Hooper, Managing Director, Sentinel Wealth
- Tim Farrelly, Principal, farrelly's Investment Strategy (Sydney)
- Michael Furey, Managing Director, Delta Research & Advisory

n/a - you had to be there

 

 

 

 

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