3rd Investment Implementation Summit

3rd Investment Implementation Summit

Date: Wednesday March 11, 2020

Location: ASX, Sydney, Australia


The Investment Implementation Summit is the only independent forum in Australia focused exclusively on implementation issues for the buy-side.

It discusses best practice in investment implementation and trade execution, and brings together senior investment, implementation, trading and technology executives from asset managers and their institutional clients.

Rapidly evolving global best practice, technology, regulation and commercial pressures are changing the trading and investment landscape in Australia.

On one hand, the focus on best execution, solid risk management, transparency and optimum efficiency is increasing, and institutions that can adapt to this new commercial environment are likely to gain a competitive advantage. On the other hand, institutional investors are increasingly taking more control and seeking deeper insights into the implementation of portfolios and investment processes.

The purpose of this forum is to examine efficiencies in investment implementation across both asset management and superannuation, along with technological developments to improve performance and increase transparency.  The morning is focused on investment implementation trends in superannuation, and the afternoon will look at trading and asset management in more detail.

The Summit attracts 100 C-level and senior delegates from asset managers, insurers and large asset owner organisations, along with a limited number from their service providers.


Agenda

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. 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?

Chair: Andrew Povah, Senior Investment Consultant, Willis Towers Watson

Panel:

David Djukanovic, Head of Portfolio Implementation, ANZ Wealth

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

Jeff Gebler, Principal, Milliman

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

1.15-2.00

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: Wietske Blees, Head of Content, Fund Business

Panel:

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

John Feeney, Partner, Martialis Consulting

Steve Warner (London), Head of Product – thinkfolio, IHS Markit

2.00-2.40

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?

​Joe Kassel, Former Global Head – Dealing, Exposure Management & Transitions, AMP Capital

Aaron Hantman (New York), CEO, Partner, Tourmaline Partners

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: Ryan Verlin, Vice President Portfolio Lifecycle Solutions, FactSet (New York)

Discussant: Bryan Baker, Head of Dealing APAC, AMP Capital

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:

Alan Sheen, Founder & Director, Dalton Street Capital

Phil Cornet, Trader, Perennial Value Management

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:

Janelle Manchee, Senior Equities Dealer, IFM Investors​

Rob Nash, Sales Manager – Trade Execution, Australian Securities Exchange

5.00

Conference close, followed by networking reception

Registration

https://www.fundbusiness.com.au/registration

andrew.koch

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