As investors, we are often reminded of the dangers of the belief that ‘this time it’s different’. Going beyond market valuations, are there other lessons we can learn from history, from global pandemics to trade wars, that could help us navigate the period ahead of us? This session will give us the opportunity to take a step back and assess where markets stand relative to history, and share views on what are the key risks to mitigate, and potential drivers of return, that are set to have the greatest impact on portfolio construction over the next decade.
ANTHONY DOYLE, Cross Asset Specialist, Fidelity International
THE ROAD TO HELL... IS PAVED WITH HIGH YIELD
Valuations are high, interest rates are low, but investors still expect growth and income. The pious will call for reducing return expectations, which will close part of the gap, but can our clients survive on these lower yields?
As advisers, we have been pitched a broad array of solutions, but all likely involve taking on some form of additional risk. Perhaps the road to capital destruction is paved with chasing returns?
Should we simply stay the course and stick broadly with balanced portfolios, or is the 60/40 portfolio ‘doomed’ as some now suggest? Speakers in this session will share their perspectives on how we should achieve a balance between lower return expectations and extracting higher yields.
ANDREW CANOBI, Director, Australia Fixed Income, Franklin Templeton
JONATHAN TOLUB, Director, InvestSense
NELSON YUAN, Investment Analyst, PIMCO
DRAWING THE LINE IN SOCIAL AND ETHICAL INVESTING
While there are still questions over how to implement sustainable investing, increasing numbers of investors have recognisedenvironmental, social, and governance (ESG) factors as important drivers of value. Approaches have moved beyond negative screens that exclude certain sectors, towards proactively seeking out investments seen as ethical, sustainable, and/or achieving a positive impact for society. With sustainable investing expected to continue to gain greater traction and interest, can these types of strategies be implemented in a way that meets a client’s bespoke specifications, without being detrimental to returns?.
STUART PALMER, Head of Ethics Research, Australian Ethical Investment
LEAH WILLIS, Head of Client Relationships, Australian Ethical Investment
ACTIVE MANAGEMENT IS DEAD. LONG LIVE ACTIVE MANAGEMENT (?)
In recent times we have seen several Australian funds wound-up, due to lack of interest, particularly from institutional investors, and intense competition driving down fees to very low levels. The increasingly concentrated nature of the Australian Equity market, and challenging macroeconomic outlook, suggests an environment that will be difficult for active managers to add value. Is this the end for active management, at least in Australia? Or is it time for new approaches?
SEAN FENTON, Chief Investment Officer, Sage Capital – an investment manager partner of Channel Capital
Despite the impact of COVID-19 on the global economy, markets have traded relatively strongly, buoyed by significant government stimulus, and the continued growth of the technology sector. Given the challenging outlook, and high market valuations, can attractive investment opportunities still be found? Speakers in this session will discuss and debate which sectors domestically and overseas are best positioned for the conditions that lie ahead.
QIAO MA, Portfolio Manager – Asian Equities, Cooper Investors
JOEL FLEMING, Yarra Capital Management, Portfolio Manager for the UBS Microcap Fund
BURSTING THE BUBBLE OF DISRUPTIVE INNOVATION
Since the term ‘Disruptive Innovation’ was first coined by the late Clayton Christensen in 1995, it has become synonymous with the successful companies that have driven the current bull market. However, with firms in almost every industry now seeking to implement technology in their products and processes, one needs to take a more discerning approach to finding truly innovative and disruptive companies. This session seeks to revisit Clayton’s original thinking on this topic, and explore its implications for investing in today’s markets, where growth has substantially outperformed value for several years, and low interest rates have helped push valuations to new highs.
SHANE WOLDENDORP, Investment Specialist, Orbis Investments