3rd Investment Implementation Summit

Agenda - Wednesday August 12, 2020

Sydney Harbour Marriott Hotel

9.00-9.10

Open and welcome

9.10-10.00

Investment implementation in the wake of the 'heatmap'

The Australian Prudential Regulation Authority has published its first “heatmap” providing assessments of the performance of superannuation funds. This session will discuss the impact of this initiative on investment implementation and the role that investment implementation efficiencies and inefficiencies play in the outperformance and underperformance of funds.

Chair

Andrew Povah

Head of Core Advisory,

Willis Towers Watson

Panel

David Djukanovic

Head of Portfolio Implementation,

OnePath

Mark Ferguson

Head of Investment Risk,

Australian Prudential Regulation Authority (APRA)

Craig Roodt

Director - Investment & Wealth Advisory,

Deloitte

10.00-10.45

Tactical asset allocation: costs, benefits and practical implementation

This session will discuss when and how tactical asset allocation can add value to portfolios compared to other strategies such as structured rebalancing and operational alpha. What scale do you need to have for tactical asset allocation to make sense in house and how is it best implemented?

Chair

Tim Mitchell

Global Head of Governance Consulting,

Willis Towers Watson

Panel

Joe Bracken

Head of Dynamic Asset Allocation,

Commonwealth Superannuation Corporation

Andrew Fisher

Head of Asset Allocation,

Sunsuper

10.45-11.15

Networking & refreshments

11.15-11.45

Derivatives: are you paying a fair price?

There are considerable benefits to using derivatives, whether for hedging, asset repositioning or tax purposes; and structured products can provide significant flexibility. However, these products come at a cost that isn’t always clearly disclosed and understanding whether you’ve paid a fair price is easier said than done. This session will use practical examples to discuss pricing structures, broker commissions and how to assess whether you are achieving and/or receiving quality execution.

Presenter

Kieren Callaghan

Consultant, Seasquared

11.45-12.15

Collateral management: avoiding cash drag in a new regulatory landscape

With a new spate of initial margining requirements set to hit the buyside from September 2020, are uncleared over the counter derivatives structures still worth it and how can funds best manage the collateral implications? This session will discuss the pro’s and con’s of uncleared OTC trades as well as offer insights on how superannuation clients can negotiate collateral agreements to avoid cash drag.

Presenter

Robert Fievez

Director, Financial Services Risk and Regulation,

PricewaterhouseCoopers

12.15-1.15

Lunch - networking & refreshments

1.15-1.55

Positioning for the future: making the most of your trading function

Asset managers are under pressure to reduce cost and improve profitability. This session will address cost pressures facing trading desks and how to address these in a sustainable manner. It will discuss different ways to structure trading desks to maximise execution value and/or reduce operating costs along with the operational implications. It will consider the pro’s and con’s of outsourced trading desks, which are gaining in prominence, vis-à-vis an internal approach that seeks to maximise trader value add. What is the value of a multi-asset approach versus specialist trading functions and what are the operational – including OMS and EMS – solutions required to structure your internal desk for the future?

Chair

Joe Kassel

Former Global Head - Dealing, Exposure Management & Transitions,

AMP Capital

Panel

John Greenan

CEO,

Alignment Systems

Aaron Hantman (New York)

CEO, Partner,

Tourmaline Partners

Jason Lapping

Head of International Equity Trading

Dimensional Fund Advisors

1.55-2.40

Life after LIBOR: transitioning to 'Risk-Free Rates'

The clock is ticking on the likely end of LIBOR but liquidity in markets referencing risk-free rates is slow to develop, leaving firms hesitant to trade RFRs. This in turn is hampering the development of a liquid curve. What are the cost-benefit considerations for buy-side firms trading in contracts that reference LIBOR to switch to RFRs? When is the optimum time to start transitioning? What at are pricing implications and what fallback provisions are in place to converse legacy contracts in the event LIBOR is discontinued?

Chair

Kristye van de Geer

Senior Manager, Interest Rate Products

Australian Securities Exchange

Panel

Nathan Bourne

Senior Executive Leader, Market Infrastructure, Australian Securities & Investments Commission (ASIC)

John Feeney

Partner,

Martialis Consulting

Ross Allen

Managing Director - Data Strategy, 

IHS Markit

2.40-3.10

The electronification of fixed income trading: towards automated dealer selection and execution

Fixed income markets have traditionally lagged in their adoption of trading technologies, hampered by a lack of transparency and a fragmented market structure. However, best execution requirements, coupled with a rapid evolution in execution management capabilities, have put the electronification of fixed income trading on a rapid growth trajectory. This session will discuss global trends, the impact on multi-asset desks and the benefits of pre-trade fixed income analysis on best execution.

Facilitator

John Greenan

CEO,

Alignment Systems

Discussant

Bryan Baker

Head of Dealing APAC,

AMP Capital

Ryan Verlin

Vice President Portfolio Lifecycle Solutions,

FactSet (New York)

3.10-3.40

Networking & refreshments

3.40-4.20

The algo versus the desk and mastering the 'middle touch'

Algorithmic trading is often deemed a prerequisite for surviving tomorrow's markets, a trend supported by the ever more sophisticated algos available in the market; but how can firms distinguish between different algo styles and is it wise to use algos on a routine basis? This session will discuss different styles of algorithms on offer in the market, including the latest in “generic” and “modifiable algos”; when to use algos and when to hold back; the advantages of investing in ever more sophisticated algos, versus investing in a sophisticated trading desk and the risk of “algo saturation” in the market. It will also discuss the benefits and limitations of algo wheels in aiding the algorithm selection process.

Chair

Alicia Vidler

Founder and ex Chief Investment Officer,

Castilium Capital

Panel

Rhett Dinsdale

Portfolio Manager,

Dalton Street Capital

Phil Cornet

Trader,

Perennial Value Management

Sam Willis

Senior Trader and Vice President

Dimensional Fund Advisors

4.20-5.00

The rise in closing auctions: pro’s, con’s and is it sustainable?

There has been a significant increase in closing auction volumes, driven by a growing popularity of passive and index-tracking funds, tougher regulations and the familiar concept that “liquidity attracts liquidity”. However, there are growing concerns the trend is draining liquidity during trading hours, exacerbating price swings and disrupting price discovery, as well as potentially fragmenting the industry as more post close trading products and venues are launched. This session will discuss how to assess impact on pricing and liquidity to determine whether to participate or sit back, and whether the trend is sustainable in the long run.

Chair

Dr Richard Philip

Lecturer,

University of Sydney

Panel

Carole Comerton-Forde

Professor of Finance,

UNSW Business School

 

Janelle Manchee

Senior Equities Dealer,

IFM Investors

Rob Nash

Sales Manager - Trade Execution,

Australian Securities Exchange

5.00

Conference close, followed by networking reception

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