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Asset allocation is a key driver of quality portfolio construction, and quality results for investors. PortfolioConstruction Forum is delighted to host farrelly's Investment Strategy Handbook, the first independent, specialist asset allocation research publication for advisers...

Who is farrelly's?  Summary >
How is the farrelly's approach different?  Summary >
What is the farrelly's Investment Strategy Handbook?  Summary >
What others say - testimonial Summary >
How to subscribe  Summary >

Who is farrelly's?
farrelly's is the Australian financial services industry's first dedicated asset allocation research house. It was established by the principal, Tim Farrelly in 2004, to help advisers make superior asset allocation decisions for investors. In addition to being Principal of farrelly's, Tim is also a Visiting Fellow at the School of Finance and Economics at the University of Technology Sydney, and is on the Editorial Board of the Portfolio Construction Journal. Prior to founding farrelly's in 2004, Tim was an Executive Director of Macquarie Bank Ltd, and Director of Macquarie Investment Management Ltd. At various times during his 14 years at Macquarie he sat on the MIML Asset Allocation and Risk Committees, and was responsible for distribution of the Bank's products through independent financial planners and stockbrokers. While at Macquarie, Tim was responsible for the Long-Term Forecasting program in 2000 which foreshadowed the bearmarket in US equities. Tim has a MBA (Distinction) from the Harvard Business School and a Bachelor of Engineering (Met) from the University of Melbourne.
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How is the farrelly's approach different?

It's compatible with how investors really think, and what they want:

• portfolios are constructed to meet the investor's needs - the first step in portfolio design is to work out what the client wants and needs to achieve. It's not about asking clients their age or how aggressive they feel, so they can be squeezed into a preset box.

• return forecasts are forward-looking - in stark contrast to most of the industry, farrelly's Model Asset Allocations are based on long-term, forward-looking forecasts;

• risk is the chance of not meeting the investor's needs - poor long-term returns are the major risk facing investors. Excessive volatility is a secondary, important risk. Tracking error or institutional business risk shouldn't enter into the equation;

• there's more than one way to skin the cat - most of the time, there are many, equally valid asset allocations to achieve the investor's required outcome. While the asset allocation design must be underpinned by a set of rigorous principles and calculations, the final choice will come down to cost, risk, and personal preferences, to produce portfolios that make sense to you and your clients; and,

• transaction costs and taxes matter - taxes and costs can consume half or more of total investment returns, so decisions to change asset allocations should take them into account, carefully weighing up the benefits.
  

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What is the farrelly's Investment Strategy Handbook?

We email and post you the latest farrelly's Investment Strategy Handbook update each quarter. You'll receive these at the beginning of June, September, December and March. But the farrelly's Investment Strategy Handbook is more than just a quarterly print publication - it's a complete web-based service. Your subscription includes one membership to the online subscriber-only farrelly's Investment Strategy Forum, hosted on PortfolioConstruction Forum (another brillient! publication). There you'll find:

farrelly's Investment Strategy Handbook - Updated quarterly, the Handbook contains farrelly's independent editorial, Forecasts in Focus, Forecasts, and Model Asset Allocation...  Sample >

farrelly's Investment Strategy Profiler - This investor-friendly tool documents the key info needed to agree the purposes and requirements of a portfolio, and the risks an investor is prepared to take along the way.

farrelly's Investment Strategy Implementor - updated quarterly in line with the Handbook, this simple-to-use software evaluates whether a change in the Model Asset Allocations should prompt a change in any individual investor's approach. It takes into account individual preferences and transaction costs (including brokerage, buy/sell spreads, exit penalties, and capital gains tax.

farrelly's Investment Strategy Articles & Presentations - farrelly's is often asked to present and write articles. If non-subscribers have the benefit, then farrelly's subscribers should too.

farrelly's Investment Strategy Guide - This provides a more complete description of the rationale behind the farrelly's approach and the assumptions underpinning the farrelly's Investment Strategy Handbook, the Profiler and the Implementor.

Library of academic research papers - These pivotal academic papers provide much of the theoretical foundation to the farrelly's approach.

Your subscription also includes one complimentary registration to the annual one-day Farrelly's Investment Strategy Conference.

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How to subscribe

You can subscribe online, and you have the option to either pay quarterly in advance, or annually in advance.

* There is no GST payable for NZ resident subscribers.

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