The backdrop of the seminar is today's challenges in portfolio construction. How do we make investment returns in a low-yield environment, with time varying return drivers and central banks actively interfering with markets? Will future returns, in different regimes, be enough to cover liabilities? Guided by recent survey by State Street Global Advisors, the seminar will take you through a low-historical and academic overview of asset allocation models (60/40, endowments, risk parity) and discuss the latest portfolio construction insights based on regime analysis.
The seminar will feature an asset manager with an outspoken philosophy and actual investment experience in regime analysis. We will delve deeper into questions such as: what are regimes, why do they matter, and how to identify regimes? How to invest in the presence of regimes, and how to deal with short-term focus vs long-term regimes?
We will continue to explore what we can learn from the application of regime analysis to other professions outside the investment world, such as weather forecasting (El Nino), biology (ant colonies) and technology sectors (oil and gas).
Finally, we will learn to apply regime analysis for our own portfolios. The last session of the seminar will showcase where to start with regime analysis and what tools are publicly available. We will learn how to explain the impact of regimes on our portfolio, especially when moving beyond static exposure analytics and look for a deeper understanding of actual risk exposures and return drivers.