3rd Investment Implementation Summit
Agenda - Wednesday March 11, 2020
Open and welcome
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. What is the role of investment implementation (in) efficiencies in (under) performance? How will funds balance risk management with performance when “the heat is on” and how will the heatmap impact asset allocation and fee transparency across the board?
Head of Investment Risk,
Australian Prudential Regulation Authority (APRA)
Director, Investment & Wealth Advisory,
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?
Head of Asset Allocation,
Head of Asset Allocation,
BT Financial Group
Networking & refreshments
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.
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.
Lunch - networking & refreshments
In or out: the future of efficient execution
The growing scrutiny of execution quality, implicit trading costs and implementation leakage by investors is driving many asset managers to revisit the costs and benefits of their trading desks. This session will discuss different models available to firms seeking to maximise value and minimise cost, ranging from the growing prominence of outsourced trading desks, to an internal approach that seeks to generate trader alpha and optimise insights across the firm. It will also discuss the value of a multi-asset approach versus specialist trading functions as a way to reduce cost and maximise value.
Former Global Head - Dealing, Exposure Management & Transitions,
Head of Product, thinkfolio,
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.
Vice President Portfolio Lifecycle Solutions,
FactSet (New York)
Head of Dealing APAC,
Networking & refreshments
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.
Founder & Director,
Dalton Street Capital
Founder and ex Chief Investment Officer,
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.
Sales Manager - Trade Execution,
Australian Securities Exchange
Conference close, followed by networking reception