Portfolio Construction Forum

Portfolio construction practitioners have access to an ever-expanding array of investment research, strategies and tools. Yet the obstacles to meeting clients' long-term financial goals are equally numerous and challenging, especially when the future ain't what it used to be! In an environment of high inflation, tightening monetary policy and heightened economic uncertainty, practitioners must remain open-minded and continuously challenge their portfolio construction beliefs, techniques and tools. This session addressed three contemporary portfolio construction issues: We must use a risk-based framework for portfolio design; The value rotation has just begun; and, ESG ratings undervalue climate solutions. - Watch Philipp Hofflin, Michael Furey, Michael Salvatico and David Wright on Portfolio Construction Forum [https://portfolioconstructionforum.edu.au/article/4098/researchers-roundtable-the-future-aint-what-it-used-to-be] and earn 0.75 CE/CPD hrs

A disciplined, scenarios-based approach to determining your views on the outlook for markets is essential to building portfolios capable of achieving client goals when the future ain’t what it used to be. In the final step of our hypothetical Investment Committee meeting, our asset allocation consultants use the inputs from the Asset Class Outlook Roundtable to explain the asset allocation implications of each of the three Economic Scenarios, and a portfolio that blends all three scenarios using the Investment Committee’s votes on the likelihood of each scenario from the prior session. The panel will then debate how best to implement those asset allocations across sub asset classes and types of investments. - Watch Sébastien Page, Tim Farrelly, Lydia Kav, Jonathan Ramsay and David Wright on Portfolio Construction Forum [https://portfolioconstructionforum.edu.au/article/4113/asset-allocation-roundtable-designing-portfolios-for-future-scenarios-is-critical] and earn 0.75 CE/CPD hrs

Private equity as an asset class is one of the longest-term strategies. Setting up a solid top-down framework, resilient to market evolutions, is key to successful private equity portfolio construction. Building a proven private equity portfolio is not about timing markets, but about identifying the best ideas within that framework - at any point in time. It should be bottom up in approach, while following the course set by the long-term strategy. Surely, one wants to be nimble within continuously evolving market conditions. Yet remaining steady and within the overall long-term objective is key to deliver the best risk-adjusted returns for private equity portfolios. - Watch Pauline Wetter, LGT Capital Partners on Portfolio Construction Forum [https://portfolioconstructionforum.edu.au/article/4111/private-equity-investing-is-critical-in-times-of-market-turbulence]and earn 0.50 CE/CPD hrs

Sustainable investing is booming. But today's mainstream sustainable investing strategies aim to avoid financial risks stemming from ESG issues, rather than promoting positive societal and environmental impact. The future ain’t what it used to be! In a context of rising temperatures, collapsing biodiversity, and pressing social challenges, there is a need for sustainable investors to align their strategies with sustainable development ambitions. The Sustainable Development Goals, adopted by the United Nations, provide a valuable blueprint for creating sustainable investing strategies that invest in companies that contribute to a better world. - Watch Robeco's Jan Anton van Zanten on Portfolio Construction Forum [https://portfolioconstructionforum.edu.au/article/4116/sustainable-investors-need-to-go-beyond-esg-and-target-sdgs] and earn 0.50 CE/CPD hrs

Climate change is one of the most critical issues facing society – it brings damaging impacts for people, communities, and the natural world, as well as disrupting national economies. Climate action is critical for human progress. Investing and engaging for change, committing to tackling the climate-related risks that threaten the future of the planet is our duty or our future ain't what it used to be! Green bonds are a $1trn market that has burst into the investment world as we all seek to build sustainable future economies. Green bonds channel investments in companies with sustainable practices, allowing investors to seize opportunities in transitioning economy. Coupled with doing good, the well-balanced and transparent universe, with compelling yield and attractive current valuations, make green bonds a meaningful long-term portfolio allocation. - Watch Ecaterina Bigos, AXA Investment Managers on Portfolio Construction Forum [https://portfolioconstructionforum.edu.au/article/4110/your-world-is-your-green-bond] and earn 0.50 CE/CPD hrs