Following is a list of Products articles published on PortfolioConstruction Forum throughout 2007...
PortfolioPicks provides a comprehensive introduction to a 'pick-of-the-bunch' investment, as identified by a leading research house, for you to consider for your approved products list. This PortfolioPick features the T.Rowe Price Global Equity Fund, which aims to generate alpha in a high conviction global equity portfolio, and is rated A by van Eyk^... Full Story >
The 2007 PortfolioConstruction Conference program again challenged delegates' thinking about how they design and build investor portfolios - and it would have been hard to pick a better time to bring together 500 of Australia's leading portfolio construction professionals... Full Story >
In an industry awash with conferences, the PortfolioConstruction Conference has earned a reputation as THE investment conference of the year for those who design and build investor portfolios... Full Story >
PortfolioPicks provides a comprehensive introduction to a 'pick-of-the-bunch' investment, as identified by a leading research house, for you to consider for your approved products list. This PortfolioPick features the Fidelity Australian Equities Fund, which aims to outperform the S&P/ASX200 Index by greater than 2% pa on a rolling three-year basis, and is rated A by van Eyk^... Full Story >
PortfolioPicks provides a comprehensive introduction to a 'pick-of-the-bunch' investment, as identified by a leading research house, for you to consider for your approved products list. This PortfolioPick features the Fidelity Australian Equities Fund, which aims to outperform the S&P/ASX200 Index by greater than 2% pa on a rolling three-year basis, and is rated A by van Eyk^... Full Story >
PortfolioConstruction Meet the Manager provides exclusive iTV interviews with leading portfolio managers about innovative investment themes and products. Delivered to your desk-top for viewing in your own time, Meet the Manager saves you time as you investigate new investment opportunities... Full Story >
The fact that fund managers are fallible shouldn't come as a surprise they're human. New and better models of researching invesmtent skill are emerging all the time... Full Story >
Our visiting fellow, Bob Veres, summarises the most important things he's taken from the two-day PortfolioConstruction Conference 2007 program, and the follow up he'd be doing if he was a Practitioner delegate... Full Story >
Operating leases over transport assets are one of the best kept secrets in the alternative asset space... Full Story >
This session explodes 10 myths, or common misconceptions, regarding the construction of international equity portfolios... Full Story >
This session looks at the benefits of including both listed and unlisted infrastructure assets in a clients portfolio and how to determine the best combination of these assets to achieve an optimal portfolio structure... Full Story >
This session examines new and interesting ways of sourcing multi-alpha from traditional assets... Full Story >
Why bonds? This session explores major structural changes in fixed interest markets and how these relate to contemporary portfolio construction issues... Full Story >
Allocations to alternatives and private equity in particular are steadily increasing around the world. This session focuses on the benefits of private equity investments and the value proposition offered by experienced private equity managers... Full Story >
This session addresses addresses a specialist investment approach looking to profit from one of the mega trends affecting global equity markets global agribusiness... Full Story >
In this session, Dr Sethi overviews the development of India from an IT outsourcing destination to its emergence as the world's R&D and design hub the ultimate "rent-a-brain" supermart... Full Story >
This session examines the historical importance of including dividend-paying and dividend-growing companies in global portfolios and the impact on overall returns... Full Story >
This session explores the shift to absolute return focused funds, the merger of long-only hedge funds with 130/30 funds and the acceptance of longer-term, less liquid strategies as a way of delivering alpha... Full Story >
This session addresses the question of TAA value add from a practical, experiential viewpoint and outlines a TAA approach and process which has delivered superior returns on a consistent basis... Full Story >
As markets have developed, there are increasing opportunities for global investment in infrastructure, via the listed markets. This session explores the opportunities for investors in global infrastructure in today's market... Full Story >
There is a global trend towards concentrated portfolios. This session explores whether concentrated portfolios are appropriate for client portfolios... Full Story >
This session examines the benefits of concentrated portfolio management and the value that an absolute return focus adds to this strategy... Full Story >
This session examines the key assessments to consider when developing an asset allocation to unlisted property... Full Story >
This session explores the key characteristics of capital protected products to highlight the place these types of products have in most investors' portfolios.... Full Story >
This session examines the current state of play in the Australian securities market. We look at the prospects for total returns from property securities in the future... Full Story >
The ability for global and Aussie markets to bounce back following prolonged periods of relatively poor returns is testimony to one of the most enduring, fundamental characteristics of bond returns that is, bonds are naturally mean reverting assets... Full Story >
This session examines the emergence of new tools that allow managers to take advantage of new segments of the fixed income market and shows how managers with the right skills are equipped to uncover the dynamic opportunities of this once staid asset class... Full Story >
When it comes to active management, two heads are better than one, and three heads are even better! Harnessing this insight to generate excess returns is a complex portfolio construction problem... Full Story >
This session discusses how investors can potentially achieve more consistent and higher long-term returns by investing in more - not less - stocks... Full Story >
This session explores the alternative investments universe how alternative investments inter-relate with traditional markets, and their role in portfolio construction... Full Story >
This session explains how companies that have a sustainable competitive edge, having created this by owning or operating assets that are difficult to replicate, can deliver superior returns over time... Full Story >
This session explores a recent study undertaken by State Street Global Advisers looking at the value added by specialist managers operating in the Australian institutional market across the Australian equities, international equities and listed property trusts sectors... Full Story >
For the last few years, boutique fund managers have been all the rage. However, it's rare to meet a boutique manager which is starting out by offering a global fund managed from Australia... Full Story >
For the last few years, boutique fund managers have been all the rage. However, it's rare to meet a boutique manager which is starting out by offering a global fund managed from Australia... Full Story >
The traditional view is that it is impossible to consistently generate alpha through active currency management. We talk with Bruno Crastes, CIO of Credit Agricole, one of the world's largest fixed interest houses about how it does, in fact, consistently do just that... Full Story >
Undeniably, one of the global mega trends currently in play is how to feed an ever growing and increasingly sophisticated population. We now have 80 million new mouths to feed every year yet we have half the arable land we had 40 years ago. Of course, whenever demand exceeds supply, investment opportunities abound... Full Story >
This issue of the Journal documents a key part of the proceedings of the PortfolioConstruction Conference in August 2006. It provides the research papers that were presented at the 20 Due Diligence Forum sessions at Conference. Full Story >
The PortfolioConstruction Journal is one of the three pillars of the PortfolioConstruction Forum. Published three times per year, it presents thought-leading analytical papers and opinions from a range of expert contributors. Full Story >
With an ever-increasing plethora of investments products available, PortfolioPicks provides a comprehensive introduction to a pick of the bunch, to consider for your Approved Product List. Each PortfolioPick revolves around a 45-minute PortfolioPicks iTV program and is FPA CPD-accredited*. This PortfolioPick features the T.Rowe Price Global Equity Fund, which aims to generate alpha in a high conviction global equity portfolio, and is rated AA by van Eyk^... Full Story >
Audio and Powerpoints from the 2006 PortfolioConstruction Conference Due Diligence Forum sessions... Full Story >
A large number of high conviction or "concentrated" equity funds have been released in recent years, all promising higher returns than traditional funds by focusing on the strongest stock selection ideas of a manager. This paper examines the evolution of high conviction funds, looking at why they have been developed, their risk/return characteristics and the broader implications for portfolio management... Full Story >
Short of time? For each Journal issue, we highlight papers we feel you shouldn't miss - this is one. It investigates whether resources is a bubble ready to burst or whether they still represent an attractive investment proposition, and how best to incorporate resources into a portfolio... Full Story >
This paper discusses balancing liquidity, income, valuation, risk and diversification objectives in building property portfolios. It examines the key questions currently confronting Australian investors How should investors gain exposure to offshore assets? Which markets provide appropriate income levels? How can direct property be included in a portfolio without sacrificing liquidity? What are the current valuation conditions in markets? and demonstrates the characteristics of an optimal property portfolio. Full Story >
In recent years, there has been an extraordinary increase in the range of fixed income style assets available to include in portfolios. Harnessing credit risk for income has been a focus for innovation and creativity in capital markets, and many products have been heavily structured. Despite many variations in approach, one common theme has been the use of leverage to enhance potential returns. This paper explores the assets used in structured credit transactions... Full Story >
Hybrids have delivered uncorrelated high returns combined with low volatility over the past five years. This paper explores why, despite some changes in the return equation, their reduced risk and still healthy returns make hybrids one of the most compelling income sub-sectors.... Full Story >
In a small, concentrated market like Australian equities, fund capacity is an important consideration for investors. This paper discusses why the most important factor in determining capacity is an Australian equity manager's style and the best representation of style is actual performance and trading history... Full Story >
Short of time? This is one Journal paper you shouldn't miss. It examines why and how India should be a key component of investors exposure to emerging markets, arguing that investors should not limit themselves to just one leg of the BRIC/emerging markets story... Full Story >
A market-weighted approach has been the traditional way of constructing international equity portfolios often because this is the type of benchmark index against which fund managers are measured. But is this the best approach? Building market cap-weighted portfolios is not the mantra of all active, large cap equity managers. This paper examines an alternative construct for an international equities portfolio that encapsulates potentially greater investment returns and a better way of assessing portfolio performance. Full Story >
In theory, funds management is a highly scaleable business where profit growth results from increased funds under management (FUM) while product quality (investment returns) remains unaffected alpha creation is purely a function of portfolio construction through time and the size of the portfolio is irrelevant. However, there is reason to believe the product quality of a funds management business is not independent of FUM. The difference between the theoretical world and the real world relates to transaction costs. This paper describes transaction costs, and considers factors likely to influence the level of these costs, before turning to the impact of size and investment style on excess returns. Full Story >
Over the last two decades, hedge funds have moved from being predominantly the preserve of wealthy private individuals to being part of mainstream investing. The darlings of the 2000-02 bear market have once more come under scrutiny as many investors look at apparent dwindling returns and try to assess whether there is still value in including hedge funds in portfolios. This paper reviews the impact of institutional investors on risk and return, the emergence of strategy specific solutions to boost returns, the value of accepting less liquidity, incubator funds, structured products, capacity issues, and what this all means for portfolio construction today. Full Story >
Global economic growth in Asia has produced unprecedented demand for commodities and opportunity for investors. This paper examines the benefits of investing in commodities and discusses how an active approach to commodity investing may mitigate downside risk, and create alpha opportunities that are unavailable to passive commodity index investors. Full Story >
Chinese authorities have embarked on Gugai, the Mandarin word for share reform. This paper explains how the Chinese authorities are addressing inefficiencies in the country's share markets and the much-criticised banking system, as well as seeking relieve some of the social tensions and environmental pollution arising out of China's fast economic growth. Full Story >
The search for global alpha should include developing economies on several levels. Recently, the role of emerging markets in the global food chain for the manufacturing and distribution of products and services has significantly increased. Investors monitoring this shift can find valuable information that could potentially drive stock prices of companies in different parts of the chain. This information may not be visible when viewed discretely from an individual country or even continent standpoint and provides global investors with a distinct advantage. Full Story >
Most active managers do not use intrinsic value within their valuation assessments, although they are consistent in their use of other measures to identify value. This paper explores why intrinsic value is critical in determining the value of a stock or country, why its important to go further than stock selection and make investment decisions on a country basis, why positive and negative emotions distort prices and how this can be exploited, and when to allocate to cash. Full Story >
This paper examines traditional approaches to buying international equities, highlighting some of the problems with capitalisation-weighted benchmarks, and suggesting that replicating a global index may no longer be the optimal solution for those investors with longer-term investment horizons. It looks at some of the new strategies available to capture beta and illustrates how diversification can be used to manage risk for investors in a less constrained portfolio. Full Story >
Traditionally, investors have gained exposure to listed property via the Australian listed property trust market. However, the changing Australian property investment environment, combined with greater investment in global property assets, has resulted in the emergence of global property securities as a credible investment choice. Where and how does global listed property fit in a diversified portfolio? Full Story >
Over each of the past five years, the returns on a diversified international bond portfolio fully hedged back into Australian dollars have well exceeded the return realised on a typical Australian bond portfolio. As a result, many fixed interest clients are looking to increase allocations to international bonds. This paper examines some of the reasons why international bond portfolios have outperformed their Australian counterparts and asks whether this is likely to continue. Full Story >
Short of time? Here's another Journal paper you shouldn't miss. It examines key infrastructure investment considerations, the risks of investing in infrastructure, valuations, and infrastructure's place and role in a targeted return portfolio... Full Story >
The global equity benchmark excludes many opportunities as the industrial advantage shifts to the so-called emerging economies. This paper challenges the conventional belief that history is the best guide to determine the optimal composition of the international equities component of a portfolio. It examines why it makes sense to structure an investment portfolio that emphasises global themes and relationships, as opposed to geographic regions. It looks at how a thematic approach to investing identifies the major secular, cyclical and structural influences on the worlds stock markets, and how consistency, risk control and diversification are managed. Full Story >
Predictions two years ago of the demise of active management in the listed property trust sector were premature. This paper examines the concept that the current diversity in the sector is playing into the hands of active managers who can demonstrate a strong property and equities skill base and argues why listed property trusts should still be a part of investor portfolios. Full Story >
Has the role of traditional fixed interest managers changed? This paper explores why it remains critical to have fixed interest in portfolios, both as a tool to lock in income and also as a defensive play. It asks "How do fixed interest managers keep pace with investor demand for greater returns, in a world where spreads are tight even in what are considered more risky securities?" Finally, it argues that with the prospect of rising inflation, declining GDP and a new Fed Chairman throwing uncertainty into the mix, perhaps locking in CPI + 4% isnt a bad thing! Full Story >
