Since the emergence of “Modern Portfolio Theory” and the “Capital Asset Pricing Model” in the late 1960s, institutional investors have taken a quantitatively driven approach to portfolio construction, looking to create portfolio diversification and obtain better risk-adjusted returns by balancing their asset-class exposures. This journey has seen several important advancements in thinking about how to optimally achieve desired results.
Funds that want to take the total portfolio approach first need to get the total portfolio view. To do that they not only need data – and lots of it – but a rock-solid understanding of exactly how they’re going to use it.
AIMA’s global group gets behind Aussie chapter
(Pictured: Paul Chadwick)
With its first inhouse-produced conference coming up next month, the Alternative Investment Management Association’s Australian chapter is set to lift its profile in the industry and increase its relevance for members – both managers and investors – with the help of its global affiliate association.
The recently knighted Sir Michael Hintze is one of several funds management dignitaries coming to Sydney from London for the AIMA conference, taking place at the Hilton Hotel in Sydney on September 10.
Paul Chadwick, the AIMA Australian chapter chair, said last week that, in his opinion, the Australian hedge fund industry was not as large as it ought to be given the talent around. “We may be a bit too Australian-centric as well,” he said.
The Australian hedge fund industry is estimated at A$48 billion by ASIC. However, this estimate is fuzzy. There is no clear and agreed definition of what is a hedge fund, nor any other type of alternative managers. For instance, is a quant-orientated lowly levered 120:20 long/short equities fund a hedge fund?
Previously, the AIMA Australian conference had been produced by an outsource conference organization but Chadwick said that it was thought the association should take control of the event this year as part of its growth and development.
“In the past year we’ve revamped our education committee, we’ve organized more seminars and other events and had more interaction with non-manager members,” he said. “We’ve also been more proactive with the regulators in contributing to informed policy development and are encouraged to have both ASIC and APRA talking at this conference.”
Chadwick, a funds manager best known for helping to build GMO Australia before selling his interest in 2008 and starting the boutique Nanuk Asset Management, took over the AIMA chair last year after his long-standing predecessor, Kim Ivey, moved to Broome in Western Australia. Chadwick is also a director of the local subsidiary of London-based CQS, of which Sir Michael Hintze is the founder.
Andrew Baker, the global CEO of AIMA, and Phillip Tye, the chair of AIMA Hong Kong, will be attending the Sydney conference.
Other speakers include: Adrian Redlick, CIO of Merricks Capital; Gerard Satur, CEO of MST Capital; Susan Buckley, managing director of global fixed interest for QIC; Greg Tanzer, commissioner of ASIC; Craig Roodt, senior manager of APRA; David George of the Future Fund; and Miles Collins of the Myer family office.
Super fund executives and other fiduciary investors are able to attend the conference at no charge. AIMA members are $100 and non-member managers are $350.
