Forum Fodder - Quarterly CE Alert!

Quarterly CE Alert! | September 2022

Our Quarterly CE Alert! highlights our upcoming live continuing education programs, and all of the complimentary on-demand CE/CPD-accredited resources we’ve published over the past few months.

The CE/CPD hours you earn can be used to help meet the CE/CPD requirements of 20 governing bodies (regulators, associations, and institutes), including ASIC, APRA, Legislated, AFA, FPA and CIMA CE/CPD requirements, to name a few.

You can access your CE/CPD certificates via your complimentary Forum MyCE record where you can store, view, print and export your CE/CPD 24/7 earned via the Forum - as well as any CE/CPD hours you have earned from learning activities hosted our CE Accreditation Partners.

Did you know:

• You can tag learning activities to your Forum MySaved record to read/watch later - just click on the flag by the CE hours on an article snippet or page, then when you’re ready to complete the learning activity, go to your MySaved record to see your list.

• You can add other CE to your Forum MyCE record - Upload other CE/CPD (i.e. non-Forum accredited) to your Forum MyCE record so MyCE becomes your “source of truth” learning record store of all your CE/CPD. Go to your Forum MyCE record and click on “Add other CE/CPD you have earned” (below the View, PDF and Excel buttons).

• You can search for CE on specific competency areas (e.g. ethics) - Use our advanced Search function to find continuing education learning activities that most interest you, suit your learning style, and/or meet the requirements of your licensee. You can search by CE competency (e.g. Ethics hours), by the type of CE regime (ASIC, FPA, CIMA, etc), by author, by knowledge domain (Philosophy, Markets, Strategies, Investing, Finology), by way of learning (read, watch, or listen), year or program (e.g. Strategies Conference, Markets Summit). Click on the lime green Search icon at the top of any page on the site.

Markets | Strategies | Investing

Research Symposium Nov 2022 “Exploring contemporary investment research issues”
AEDT 10.00am-12.30pm Fri 25 Nov 2022
Portfolio Construction Forum Research Symposium explores contemporary investment research issues. It was terrific to see over 350 Forum members at the June program. The sessions from that program are available on-demand at https://portfolioconstructionforum.edu.au/research-symposium/. We look forward to seeing you at the November program!
Join us via webinar | 2.50 CE | Mark Your Diary!

Philosophy | Finology

Finology Summit 2022 “Debating biases, beliefs and behaviours in portfolios!”
AEDT 8.30am-5.30pm Tue 06 Dec 2022
Established in 2016, Portfolio Construction Forum Finology Summit will help you better identify and understand how investing biases, beliefs and behaviours impact investment markets and portfolio construction practices - and therefore, investment outcomes - to help you build better quality investor portfolios.
Join us in person at our live studio, a live site, or via live stream | 7-11 CE | Mark Your Diary!

Finology

New online short course! Behavioural Finance - Investment Decision-Making
Our new Behavioural Finance - Investment Decision-Making course examines each stage of the investment decision-making process to reveal the systematic human preferences that shape its success. Encompassing 15 online, on-demand lectures led by behavioural finance expert, Herman Brodie, the course incorporates both the theory and practice of how these preferences manifest, and how to counter unhelpful influences. You will identify, analyse and evaluate the principal human preferences that influence decision-making in situations of uncertainty, so you can recognise and identify these preferences in others, to improve investment decision-making. And along the way, you’ll earn 8 CE hours (including 1 Ethics hour).
Herman Brodie, Prospecta | 8.00 CE | Read, Watch, Listen

Markets | Strategies | Investing | Finology | Philosophy

Research Review: The adaptive markets hypothesis
Despite widespread criticism of the efficient markets hypothesis, development of comparably broad alternatives has been lacking. One promising direction is the adaptive markets hypothesis which seeks apply the concepts and methods of ecology and evolutionary biology to financial market dynamics.
Rob Hamshar, Portfolio Construction Forum | 2.50 CE | Read

Markets | Strategies | As seen at Strategies Conference 2022

Australia’s future ain’t what it used to be!
The latest national census reveals that Australia is a nation determined to change direction. This will re-shape Australia’s economic and cultural landscape and influence the way that practitioners build multi-asset portfolios capable of meeting the long-term financial goals of Australians.
Bernard Salt, Allegra Spender and Tassos Stassopoulos | 0.75 CE | Watch, Listen

Philosophy | Finology | As seen at Finology Masterclass 2022

Quality portfolio construction requires a whole-brain approach
A whole-brain approach to portfolio construction requires a combination of knowledge, skill and expertise across the technical, analytical “fundamental” topics AND the human factors is essential for better quality portfolios.
Graham Rich and Rob Hamshar, Portfolio Construction Forum | 1.00 CE | Watch, Listen

Finology | As seen at Finology Masterclass 2022

Investors are blind to what they do not want to see
The theory of cognitive dissonance was proposed in the 1930s by psychologist Leon Festinger. Understanding how cognitive dissonance can bias our investment decision making, and recognising when our behaviour is being driven by it, is vital.
Herman Brodie, Prospecta | 0.75 CE | Watch, Listen

Finology | Invitation to investment advisers

Complimentary self-assessment to benchmark your Client Care & Practice knowledge and skills
FASEA requires that financial advisers continually improve their client care and practice knowledge and skills - doing so makes obvious business sense, as well. Our new Finology Benchmarking Indices (FBI) self assessment tool helps you benchmark your investing biases, beliefs and behaviours versus peers, to further empower your “client care and practice” knowledge and skills. It’s complimentary to our members who give investment advice, while we continue to develop it.
Portfolio Construction Forum | 0.50 CE | Take the FBI self-assessment

Markets

Research Review: Two for me
These two papers relate to some interesting quirks of the finance industry. The first finds that the accuracy of currency forecasts is worse than could be achieved from random predictions. The second gives a different slant of the large increase in the size of the financial sector.
Ron Bird, Portfolio Construction Forum | 2.00 CE | Read

Investing

Research Roundtable - Aspect Diversified Futures
This Research Roundtable focused on the Aspect Capital Diversified Futures strategy, a systemic, momentum-based managed futures investment strategy.
Portfolio Construction Forum | 1.50 CE | Read, Watch

Markets | As seen at Research Symposium June 2022

Free and fair global markets require shared values
As policymakers begin to craft a new Bretton Woods, and seek to embed the values that liberal democracies want to uphold, practitioners must understand the implications for portfolios.
Rana Foroohar, Financial Times & CNN | 0.50 CE | Watch, Listen

Strategies | As seen at Research Symposium June 2022

Today’s market requires an alternative course of action
The next 10 years are likely to be dramatically different than the last 10 years, and investors will need allocations to alternative investments in this challenging environment.
Tony Davidow, T. Davidow Consulting | 0.50 CE | Watch, Listen

Investing | As seen at Research Symposium June 2022

We must invest with a multi-factor mindset
We must take a multi-factor approach to analysing funds – including ESG, Quality, Size, amongst others – to ensure portfolios reflect the investor’s longer-term philosophy and/or shorter term views.
Michael Furey, Delta Research & Advisory | 0.50 CE | Watch, Listen

Finology | As seen at Research Symposium June 2022

We can harness neuroscientific insights to generate alpha
Prolonged exposure to high volatility causes investors to subsequently underestimate volatility (and vice versa), leading to predictability in stock returns - and the ability to construct a trading strategy that exploits the effect.
Elise Payzan-LeNestour and James Doran, UNSW | 0.50 CE | Watch, Listen

Philosophy | Strategies

The case for and against moving beyond the 60/40 portfolio
For many decades, the default investment portfolio was a 60/40 split – this was seen as the ideal blend of growth and defensive investments for most investors most of the time. Will it continue to deliver in a high inflation, high interest rate environment?
Tony Davidow, Davidow Consulting & Sue Dahn, Pitcher Partners | 0.50 CE | Read

Philosophy | Strategies

Endowment-style investing is as relevant as ever
With stock market valuations close to record highs, and interest rates beginning to rise from all-time lows, traditional portfolios are likely to disappoint in the years ahead.
Thomas Weber, LGT Capital Partners | 0.25 CE | Read, Watch, Listen

Finology

Research Review: Hindsight bias and investing
Hindsight can be a valuable source of learning. However, hindsight is undermined by a range of factors and hindsight bias clouds judgments in all areas of life - including investing.
Rob Hamshar, Portfolio Construction Forum | 2.00 CE | Read

Markets | Rated in the top 5 sessions at Markets Summit 2022

A reckoning approaches, the outlook for many markets is poor
All the indicia of a colossal equities bubble are in place. But there is a lot to own for the next five years if you are prepared to go where the crowd is thinnest, allowing you to be on offense as you defend your clients’ portfolios.
Julian McCormack, Platinum Asset Management | 0.50 CE | Watch, Listen

Markets | Rated in the top 5 sessions at Markets Summit 2022

It’s time for a new investing playbook
Investing over the next several years is going to be unlike anything we’ve experienced in decades. It’s time to go back to the drawing board to reassess the best approach to both defence and offence in a more volatile, changing market.
Ronald Temple, Lazard Asset Management | 0.50 CE | Watch, Listen

Markets | Rated in the top 5 sessions at Markets Summit 2022

The best offence is a great defence! Key takeouts
Our diverse panel of experts debated which of the high conviction propositions they heard during Markets Summit 2022 resonated most strongly, and which they disagreed with most - and the portfolio construction implications.
Alex Lennard, Chris Iggo, Daniela Jaramillo, Jacob Mitchell, Jonathan Armitage, Tim Farrrelly | 0.50 CE | Watch, Listen

Markets | Rated in the top 5 sessions at Markets Summit 2022

The days of abnormal monetary policy are over
With US inflation at a 40-year high, and the housing and labour markets red hot, the US Fed has finally taken a distinct and meaningful step forward on the path back to normal. Investors need to accept that the days of abnormal monetary policy are over.
Jonathan Pain, The Pain Report | 0.50 CE | Watch, Listen

Markets | Strategies | Rated in the top 10 sessions at Markets Summit 2022

The crowded equity trade won’t save investors
Global microcaps offer investors an unparalleled opportunity to invest in economic or market recoveries. Global microcaps’ asymmetry around large market events provides investors with a powerful offence that is a great portfolio defence.
Gino Rossi, Spheria Asset Management | 0.50 CE | Watch, Listen

Markets | Strategies | Rated in the top 10 sessions at Markets Summit 2022

The best form of defence in fixed income is a strong offence
In a world of rising yields, fixed income investors must know that what’s worked in the past might not work going forward. A braver and broader approach is required, by going on the offensive in fixed income.
Joran Laird, T. Rowe Price | 0.50 CE | Watch, Listen

Philosophy | Markets | Rated in the top 10 sessions at Markets Summit 2022

DIG in! Stakeholder capitalism will boost shareholder value
The game has changed - the 2010s is the wrong analogue for the 2020s. DIG in for an important era, when stakeholder capitalism displaces shareholder capitalism and becomes the main route to boosting shareholder value.
Tony Crescenzi, PIMCO | 0.50 CE | Watch, Listen

Markets | Rated in the top 10 sessions at Markets Summit 2022

Right now, it makes sense to sit on the credit fence
Investors may be facing a regime shift in markets that changes the traditional relationship between growth and defensive allocations. In a low conviction world, an allocation to a blend of public and private credit makes sense.
Pete Robinson, CIP Asset Management | 0.50 CE | Watch, Listen

Markets | As seen at Markets Summit 2022

There are no steady states so focus on long-term change
Is there such a thing as normal? Steady states are becoming increasingly rare, the belief in ‘reversion to the mean’ is less relevant than ever and, ultimately, investors are better placed focusing long-term change.
Robert Wilson, Baillie Gifford | 0.25 CE | Watch, Listen

Markets | As seen at Markets Summit 2022

Sustainable dividend growth outperforms over the long-term
Over the long-term, dividend growth and dividend yield are the dominant sources of long-term return. Valuation’s importance recedes over time. Sustainable dividend growth companies appear to play defence well.
David Keir, Dundas Global Investors | 0.25 CE | Watch, Listen

Markets | As seen at Markets Summit 2022

Private debt is the best all-weather defensive strategy
A great attack scores points, but defence wins premierships. The same principal applies to investment portfolios. By making private debt the centre of a defensive strategy, investors can win in all conditions.
Andrew Lockhart, Metrics Credit Partners | 0.50 CE | Watch, Listen

Markets | As seen at Markets Summit 2022

PE to outperform in 2022 and most of you will miss out
Although traditional barriers to participation in PE are fading, PE remains on the bench for many individual investors. With an end to easy value creation and challenging conditions ahead, don’t miss out on PE outperformance in 2022.
Martin Cox, Milford Asset Management | 0.50 CE | Watch, Listen

Markets | As seen at Markets Summit 2022

Climate change risk factors are changing asset valuations
The next decade of decarbonisation is the decade of opportunity to de-risk portfolios and identify green investments. Climate change risk factors are changing asset valuations. Key to success is the need for portfolios to account for climate change risk or risk being obsolete.
Michael Salvatico, S&P Global Sustainable 1 | 0.25 CE | Watch, Listen

Markets | Investing | As seen at Markets Summit 2022

Now may be the time to consider CRE debt
Record low interest rates have fundamentally changed the playbook for income investors. With banks withdrawing from the CRE debt market, other lenders have greater opportunity.
Nick Bullick, Qualitas | 0.25 CE | Watch, Listen

Markets | As seen at Markets Summit 2022

The odds aren’t favouring froth
Inflection points in inflation, interest rates and the large-scale monetary distortion of recent decades suggest the future will not repeat the same playbook as recent decades.
Martin Conlon, Schroders | 0.50 CE | Watch, Listen

Markets | As seen at Markets Summit 2022

Rising rates will bring back discipline to market valuations
Rising interest rates will create casualties and collateral damage in asset prices, but will bring back market discipline, requiring a rethink of what “defensive” even means.
Richard Quin, Bentham Asset Management | 0.50 CE | Watch, Listen

Markets | As seen at Markets Summit 2022

Growth managers that lack energy may be left out in the cold
Investors shouldn’t overlook the potential benefits of focusing on companies in the energy sector. It looks like what’s “old” will be “new” again.
Rajiv Jain, GQG Partners | 0.50 CE | Watch, Listen

Markets | As seen at Markets Summit 2022

Climate change requires offence and defence, just not now
In achieving longer term objectives, climate change demands both a defensive strategy to mitigate longer term risks and an offensive, tactical, approach to capitalising on opportunities.
Tom King, Nanuk Asset Management | 0.50 CE | Watch, Listen

Markets | As seen at Markets Summit 2022

The key risks to markets are hiding in plain sight
Many expect that the end of the pandemic, reopening of economies, tight labour markets and excess consumer savings will push markets higher. Proceed with caution, the best offence is a great defence.
Arvid Streimann, Magellan Financial Group | 0.50 CE | Watch, Listen

Investing

Design and distribution obligations (DDO)
DDO fundamentally changes how financial products are distributed to retail consumers, requiring issuers and distributors to have a consumer-centric approach to the design and distribution of products.
Portfolio Construction Forum | 2.00 CE | Read

Forum CE Library - over 700 CE/CPD hours
Complimentary for all Forum members, the Forum’s online on-demand CE Library offers over 660 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, Legislated, FMA, AFA, FPA and CIMA^® CE/CPD requirements, to name a few.
Earn CE/CPD hours

Forum CIMA CE Library - over 130 CE hours
This subset of our full 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, Legislated, FMA, etc).
Earn CIMA CE hours

Connect with me on LinkedIn
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.