Research Review Quarterly
Portfolio Construction Forum | June 2021
Research Review Quarterly | June 2021
I’m pleased to introduce our new Research Review Quarterly, curated by Portfolio Construction Forum’s specialist academic research unit, the Investment Management Research Program led by Professor Ron Bird and featuring finology subject matter expert, Rob Hamshar. The IMR Program aims to bridge the gap between academia and professional portfolio construction practice. Amongst its activities, the IMR Program also curates our Investment Management Analyst Certificate course (the pre-requisite education course for CIMA certification) and Finology Benchmarking Indices program.
Research Review Quarterly keeps you up to date on contemporary academic research on portfolio construction issues across the Forum’s five knowledge domains - Philosophy, Markets, Strategies, Investing and Finology.
It is for all Forum members - but it is particularly relevant to research analysts, asset consultants and portfolio managers from private wealth management, fund research, fund investment consulting and funds management firms.
Each edition of Research Review Quarterly provides 10+ CE/CPD hours, to help you meet the requirements of 20 governing bodies (regulators, associations, and institutes) - including ASIC, APRA, FASEA, FMA, AFA, FPA and CIMA CE/CPD requirements, to name just a few.
Why? As always our aim is to keep challenging your beliefs and help inform your portfolio construction philosophy!
All the best
Graham
Quicklinks
- The impact of a global pandemic on stock markets (1.50 CE)
- Who wins from alternative investing? (1.00 CE)
- Does socially responsible investing do good? (1.00 CE)
- An analysis of target date funds (1.00 CE)
- A closer look at value investing (1.00 CE)
- The adequacy of retirement income systems (1.00 CE)
- Emotional regulation and financial success (1.00 CE)
- The mother of all biases (1.00 CE)
- How investors’ beliefs are shaped by experience (1.00 CE)
- Probability weighting and investor behaviour (1.00 CE)
- The impact of investor beliefs (1.00 CE)
RESEARCH REVIEW QUARTERLY JUNE 2021
Markets | Investing | Finology
Research Review: The impact of a global pandemic on stock markets
Global financial markets have been reacting to the Covid-19 pandemic since early 2020, providing a unique opportunity for researchers to examine the impact of a global pandemic on uncertainty, investor reactions, and stock prices.
Ron Bird, Australian National University & Portfolio Construction Forum | 1.50 CE | Read
Finology
Research Review: Emotional regulation and financial success
Emotions are an important influence on financial decision-making and investing. These three papers explore how emotional regulation strategies influence decision-making under risk and uncertainty, and the link to financial success.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read
Investing
Research Review: Who wins from alternative investing?
High allocations to alternatives are often justified on the basis of return and diversification advantages. Two recent papers show that with private equity and hedge fund, it’s the managers who are the real winners.
Ron Bird, Australian National University & Portfolio Construction Forum | 1.00 CE | Read
Finology
Research Review: The mother of all biases
Investors rely on both their competence and confidence to make investment decisions. The overconfidence effect is sometimes dubbed the “mother of all biases”.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read
Investing
Research Review: Does SRI do good?
Many research papers address the investment performance of sustainable investing - few have investigated whether this form of investing actually achieves the intended good. Two papers address that gap.
Ron Bird, Australian National University & Portfolio Construction Forum | 1.00 CE | Read
Finology
Research Review: How investors’ beliefs are shaped by experience
These two papers provide useful insights into how investors’ attitudes and behaviours evolve over time, and how our beliefs are distorted if we experience positive or negative prior returns.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read
Strategies
An analysis of target date funds
Target date funds first became popular as a MySuper option. Leaving aside whether target date funds are a good idea in the first place, what these two papers highlight is a lack of thought in their design.
Ron Bird, Australian National University & Portfolio Construction Forum | 1.00 CE | Read
Finology
Research Review: Probability weighting and investor behaviour
Even armed with objective probabilities to help decision-making, people often add their own subjective “weights”. Two papers explain this “probability weighting” and how it affects investment decisions.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read
Philosophy | Investing
Research Review: A closer look at value investing
Value investing proved to be successful strategy for nearly a century, before experiencing one of its worst performance periods in the last few years. These two papers examine whether implementation or low interest rates are the culprit.
Ron Bird, Australian National University & Portfolio Construction Forum | 1.00 CE | Read
Finology
Research Review: The impact of investor beliefs
Beliefs interact with investors’ biases and preferences to ultimately influence their behaviour. Two recent papers highlight the impact of individual investors’ beliefs about the future and the impact on portfolio behaviour and composition, as well as market returns.
Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Read
Strategies
Research Review: The adequacy of retirement income systems
While the retirement income system is designed to accommodate all individuals, the real test is its adequacy for the poor. These two papers address this issue for both Australia and the US.
Ron Bird, Australian National University & Portfolio Construction Forum | 1.00 CE | Read
UPCOMING LIVE CE…
Philosophy
Portfolio Construction Forum All Things Considered Zoominar | AEST 10am-12pm, Fri 25 Jun 2021
All Things Considered will challenge your portfolio construction beliefs, helping you identify which remain valid and which require new thinking, to inform your investing knowledge, beliefs and behaviours and help you build better quality investor portfolios.
Attend via livestream | 2.00 CE | Mark Your Diary! Registration will open soon
Strategies
Portfolio Construction Forum Strategies Conference 2021 “The end justifies the means!”
Portfolio construction is only “successful” when it helps clients achieve their financial goals. Yet delivering on those goals – be it financial independence or, at the very least, a reasonable standard of living in retirement – is more challenging than ever. The 20th annual Strategies Conference will challenge and refresh your portfolio construction thinking, as we debate strategies to help build better quality investor portfolios, capable of achieving client goals out into the future.
Attend live in-studio, at a hosted live-site, or via livestream | 12-20 CE | Mark Your Diary!
Finology
Finology Summit 2021 “Behavioural FINance and investor psychOLOGY” | AEDT Wed 13 Oct 2021
Established in 2016, Finology Summit is THE behavioural finance (“fin”) and investment psychology (“ology”) program of the year. The program features an exceptional Faculty of experts from around the world, each offering their best high conviction ideas on behavioural finance and/or investor psychology, and the investment implications. Finology knowledge and skills help us better identify and understand how our own and other people’s different investing biases, beliefs and behaviours impact investment markets and portfolio construction practices - and therefore, investment outcomes - to enable better quality investor portfolios.
Attend live in-studio, at a hosted live-site, or via livestream | 7-11 CE | Register now!
PLUS MORE ON-DEMAND CE…
Forum CE Library - over 600 CE/CPD resources
Complimentary for all Forum members, the Forum’s online on-demand CE Library offers over 500 CE/CPD hours of accredited learning resources, to help members meet the CE/CPD requirements of 20 governing bodies (regulators, associations, and institutes)
including ASIC, APRA, FASEA, FMA, AFA, FPA and CIMA® CE/CPD requirements, to name a few.
Earn CE/CPD hours
Forum CIMA CE Library - over 90 CE hours
This subset of the full Forum CE Library features just those learning resources that are accredited for CIMA CE hours, so CIMA certificants can more easily find learning resources to meet their recertification obligation (at the same time as meeting the CE/CPD requirements of other governing bodies e.g. ASIC, APRA, FASEA, FMA, etc).
Earn CIMA CE hours
KEEP IN TOUCH
Keep up to date - follow us @PortfolioForum
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We also let my LinkedIn network know as soon as we release new articles on portfolioconstructionforum.edu.au and when registration opens for our face-to-face CE programs. If LinkedIn is more your thing than Twitter, I’d welcome you connecting. And of course, I’d welcome having an offline direct conversation with you any time.
