The term ‘alternatives’ has become a catch-all for a wide spectrum of assets, strategies and structures. At their best, alternatives can improve portfolio diversification, reduce overall volatility and provide another source of returns. However, with memories still fresh over the failed promises of several alternative investments in previous market downturns, there has been significant debate over their suitability, and whether they will perform as expected in different market environments. There are also differing views over their defensive and growth characteristics, with the reality often somewhere in between. What approaches are there for incorporating alternatives into portfolios, and what criteria should we apply in selecting which types of alternatives to include?
MATHEW JEREMY, Director, Quilla Consulting
BELIEVING IN BULLS, BEARS, AND UNICORNS – DEFINING YOUR INVESTMENT PHILOSOPHY
Like the much-maligned company mission statement, investors often question the practical benefits of having an investment philosophy. However, the process of writing each of its key elements can spark much internal discussion and debate, leading to a focus on a clear set of agreed-upon investment principles, which can be communicated to clients in a clear and concise manner. Speakers in this session will discuss the steps they underwent in defining their investment philosophy, sharing lessons learnt and the key questions that arose from this process. SPEAKERS:
ANNE CLARE, Equity Partner and Senior Financial Adviser, MiQ Private Wealth
JOSHUA DRAKE, Director, Crosbie Wealth
RAISING YOUR RISK PROFILE | IS IT WORTH THE RISK?
The outlook for returns over the next decade is challenging, with many expecting lower returns, given that interests rates have already fallen to historical lows, and our starting point is valuations at already high levels. This presents difficult questions when assessing our clients objectives, and the appropriate levels of risk to take to achieve them. While the standard risk profile questionnaire has been in use for many years – its shortcomings are well known and there is widespread debate on how to properly assess both tolerance and capacity for risk. How can advisers move beyond current practices and implement a dynamic process that helps to deepen the client relationship?
TIM FARRELLY, Principal, farrelly’s Investment Strategy
ESTABLISHING FRAMEWORKS FOR EFFECTIVE DECISION MAKING
As advisers we have a practical appreciation for how behavioral biases can lead to ill informed decisions that negatively impact long term investment returns. Examples selling after a significant market decline, reading only research that validates our own world view, or sticking with an investment strategy purely to avoid switching costs.
In this workshop session, our speaker will outline the main biases we need to be aware of and guide us through the latest research and techniques in mitigating their impacts on our clients.