SUNDAY, 4 MAY 2014 Strategic Considerationsannual.cfainstitute.org/files/2014/04/annual_conference_schedule.pdf · Annual Conference Sunday Keynote The Behavior Gap 4A CARL RICHARDS

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SUNDAY, 4 MAY 2014

Connecting through Service: CFA Institute and Seattle Works Volunteer Project 303 and Marymoor Park Sponsored by CFA Society Seattle and CFA Society Portland

Registration South Lobby, Level 4

The Research Foundation Workshop for the Practitioner: Frontiers of Asset Management 6C

Limited space is available for this free pre-conference workshop.

The Research Foundation Workshop for the Practitioner draws from work supported by the CFA Institute Research Foundation to help participants enhance their practical investment knowledge, understand and apply new research, and contribute to effective client service.

Manager Selection: Evidence, Methods for Selection, and Techniques for Managing

SCOTT D. STEWART, CFAMember of the Board of DirectorsBoston Security Analysts Society

• Historical record of professional and retail investors’ manager selection

• Qualitative and quantitative techniques for manager selection

• Excel tools for mixing and evaluating managers

Asset Allocation with Macroeconomic Foundations: The Risk Factor Approach

VASANTTILAK NAIKExecutive Vice President and Global Head of Empirical ResearchPIMCO

SÉBASTIEN PAGE, CFAExecutive Vice President and Global Head of Client AnalyticsPIMCO

Strategic Considerations

• Recent trends in asset and risk allocation

• The stock–bond correlation: A vital part of the asset allocation decision but volatile and difficult to estimate

• Our econometric model: A method of explaining and forecasting the stock–bond correlation

Tactical Considerations

• Our framework for tactical asset allocation incorporates features of a macro-driven investment process

• We develop forecasts of scenario returns on various assets and forecasts of asset return volatility and complement correlations implied by the forward-looking views with those prompted by historical data

• A robust risk–return optimization subject to liquidity and other constraints yields a useful starting point for the optimal tactical overlay

Moderated by Wayne H. Wagner, Chairman, Research Committee, CFA Institute Research Foundation

Peer Discussion and Networking

Take advantage of one of the best resources the CFA Institute Annual Conference has to offer—the opportunity for discussion and idea sharing with other high-level investment professionals attending the conference. We invite you to attend this informal session and join in roundtable conversations with other delegates and CFA Institute staff across a spectrum of relevant topics.

European Real Estate Bubbles 615

• Which northern European real estate markets are in bubble territory?

• What created these bubbles?

• When might these bubbles pop, and what will the ramifications be?

Facilitated by Ron Rimkus, CFA, Content Director, CFA Institute

The Outlook for Equities 616

• What are valuation measures telling us?

• Are the best opportunities in developed, emerging, or frontier markets?

• Does the current environment necessitate any tactical changes to equity portfolios?

Facilitated by David Larrabee, CFA, Director, Corporate and Member Products, CFA Institute

7:30 A.M.–12:00 P.M.

12:00 P.M.–7:00 P.M.

12:30 P.M.–2:45 P.M.

1:15 P.M.–2:45 P.M.

All events take place on the South Levels of the Washington State Convention Center, unless otherwise stated.

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Refreshments in Exhibit Hall 4B

Book Signing 6C

SCOTT D. STEWART, CFA

CFA Institute Annual Members’ Meeting 608

Conference Welcome 4A

TOM R. ROBINSON, CFA, CONFERENCE EMCEEManaging Director, AmericasCFA Institute

KRISTI LORD, CFAPresidentCFA Society Seattle

Annual Conference Sunday Keynote

The Behavior Gap 4A

CARL RICHARDS Author, The Behavior Gap

When emotion gets in the way of making smart financial decisions, the distance between what we should do and what we actually do is the “behavior gap.” Using simple drawings to explain the gap, author Carl Richards will demonstrate how to think about your approach to investing and how to recognize and avoid common, emotionally driven mistakes.

Moderated by Margaret E. Franklin, CFA, Marret Private Wealth Inc.

Book Signing Sheraton Seattle Hotel

CARL RICHARDS

Welcome Reception Sheraton Seattle Hotel

Sponsored by FactSet

See page 7 for more information.

2:00 P.M.–5:00 P.M.

2:45 P.M.–3:15 P.M.

3:00 P.M.–4:00 P.M.

5:00 P.M.

5:00 P.M.–6:00 P.M

6:15 P.M.–6:45 P.M.

6:15 P.M.–7:15 P.M.

The Role of the Right Brain in Investing 617

• What is the role of creativity in investing?

• What are the caveats and limitations of using the right brain in investing?

• How can we balance the left and right brains to create a whole-brained approach?

Facilitated by Jason Voss, CFA, Content Director, CFA Institute

Rules for Social Media and Blogging 618

• What are the motivations for engaging in social media?

• What are the rules of social media, and what kind of traffic can you expect?

• How do you attract and build a blog audience?

Facilitated by Lauren Foster, Content Director, CFA Institute

The Future of Finance 619

• What does the CFA Institute mission of leading the investment profession by setting the highest standards of ethics, education, and professional excellence for the ultimate benefit of society really mean?

• What are the most pressing issues shaping the future of finance, and what can financial professionals do to make the profession more trustworthy and forward-thinking?

• How much of the industry’s lackluster reputation is the result of misperceptions versus actual business practices?

Facilitated by Rebecca A. Fender, CFA, Director and Project Leader, Future of Finance Project, CFA Institute, and Ashvin P. Vibhakar, CFA, Senior Advisor, CFA Institute

Differentiating Yourself for Career Success 620

• How do your communication and leadership styles contribute to your leadership presence and help differentiate you as an investment professional?

• Is personal branding simply jargon or a legitimate career strategy?

• What have you learned about navigating different leadership and communications styles?t

Facilitated by Kassie Steegman, CFA, President, Evolving Leadership, LLC, and Julia VanDeren, Manager, Career Services, CFA Institute

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Breakfast

Breakfast is available with the Sponsored Corporate Presentations and in the Exhibit Hall.

Active Managers vs. Passive Products: How to Win the Debate 6E

AXIOMA, INC.

• Asset owners are questioning the value of active portfolio management

• Passive solutions have investors asking, Why pay for an active manager if I might do just as well with a passive product?

• Active managers must differentiate themselves; demonstrate that their process is consistent, repeatable, and skill based; and compellingly highlight their strengths and value as active managers

New Frontiers of Risk: Revisiting the 360° Manager 6A

BNY MELLON

• BNY Mellon and Harry Markowitz, a Nobel Laureate and one of the founders of modern portfolio theory, have partnered on a paper that examines the changes in and evolution of the practice of risk management since the market events of 2008

• Surveying asset owners and sovereign wealth funds across the globe, their research answers the following questions:

› What are the types of risks asset owners are most concerned about today?

› How do “big data” and “transparency” relate to risk management?

› How important is mathematics-based or computer-assisted analysis to asset owners?

› What are the drivers, elements, challenges, and benefits of an effective risk management process?

• This session will include the presentation of their survey results, key themes uncovered by their research, and recommendations of risk management best practices that directly address the concerns of those surveyed

How to Leverage Company “Ecosystems” and Macro Exposure to Construct Better Stock Selection Models 608

FACTSET

• How the changes in our industry—from changes in perception to changes in regulation—have placed increased attention on fiduciary responsibility

• How we can understand the full impact of any market shift—from macro sentiment to a company’s sources of revenue

• How we can account for bidirectional supply chain signals to make better investment decisions

The Impact on Assets of the Industrial Transition to a Low-Carbon Economy 6C

FTSE

• Are we currently engaged in an industrial transition to a low-carbon economy?

• Is it possible to create a transparent market model that enables us to define and measure such a macro industrial shift and understand its likely impact on securities and portfolios?

• Will we be able to effectively adapt to a changed economy or mitigate or remediate the impacts of climate change, resource depletion, and environmental erosion?

Creating and Profiting from More Accurate Macroeconomic Forecasts 6B

THOMSON REUTERS

• Surprises in macroeconomic data move markets, but anticipating these surprises is difficult

• The Thomson Reuters StarMine team is “analyzing the analysts” with the SmartEstimate earnings forecast, in which the weight given to each estimate takes into account the historical accuracy of the issuing analyst

• We will compare the SmartEstimate for earnings estimates with those for economics and show how the persistence of economist forecasting ability compares with that of sell-side analysts and the impact of economic surprises in various markets

7:45 A.M.–8:35 A.M.

7:45 A.M.–8:35 A.M.

MONDAY, 5 MAY 2014


Sponsored Corporate Presentations Sponsored Corporate Presentations offer a range of best practices, strategies, tools, and tactics for successful investment management and financial analysis from professionals at leading financial services firms.

1918

STEPHEN RUMSEYCEOPermian Global Advisors LLP

ANDREW STEERPresident and CEOWorld Resources Institute

• What are the sustainability challenges facing the world and the resulting opportunities and risks for investing? Are current “sustainable investing” approaches viable and scalable?

• Can markets be used to effectively price environmental externalities and create incentives for sustainable investment practices?

• What conclusions can be drawn from empirical evidence about the performance of sustainable and responsible investing?

Moderated by Roger Urwin, Towers Watson Limited

Past, Present, and Future Financial Thinking: A Conversation with Bill Sharpe 4A

WILLIAM F. SHARPE 1990 Nobel Laureate in Economic SciencesSTANCO 25 Professor of Finance, EmeritusGraduate School of Business, Stanford University

• Understanding theory and practice in investment management

• Improving retirement security: State pension funds, government-sponsored social security programs, defined contribution plans, and retirement income strategies

Moderated by Robert Litterman, Kepos Capital LP

Book Signings 4B

ROBERT LITTERMAN

WILLIAM F. SHARPE

Networking Lunch and Dessert with Exhibitors 4C Sponsored by MSCI

Lunch tables will be organized by topic tracks to facilitate networking.

8:45 A.M.–9:05 A.M.

9:05 A.M.–10:00 A.M.

10:00 A.M.–10:30 A.M.

10:00 A.M.–10:30 A.M.

10:30 A.M.–11:30 A.M

11:30 A.M.–12:30 P.M.

12:30 P.M.–1:00 P.M.

12:30 P.M.–2:00 P.M.

Opening Remarks 4A

JOHN D. ROGERS, CFAPresident and CEOCFA Institute

Safeguarding the System: Promoting Stability and Minimizing Systemic Risk 4A

SHEILA C. BAIRSenior AdvisorPew Charitable Trusts

• Is the political heart for true financial reform still beating?

• What remains to be done to alleviate systemic risk?

• Why are financial reforms that promote stability and minimize systemic risk important to a banking sector that supports a well-functioning, free-market economy?

• What reforms will affect the investment management sector in the United States and Europe?

Moderated by Thomas Easton, The Economist

This session is presented as part of the Future of Finance initiative, and it highlights the importance of Safeguarding the System in shaping a trustworthy, forward-thinking financial industry that better serves society.

Book Signing 4B

SHEILA C. BAIR

Refreshment Break with Exhibitors 4B

Sustainable and Responsible Investing: Can Markets Save the World? 4A

DAVID BLOODCo-Founder and Senior PartnerGeneration Investment Management LLP

Plenary Sessions Plenary Sessions feature industry thought leaders, who provide big-picture perspectives, innovative insights, and broad outlooks on current issues of interest to the entire audience.

Monday Morning Programming sponsored by Sector SPDRs

2120

Putting Investors First: The Fallacy of Hedge Funds

ALTERNATIVE INVESTMENTS TRACK

608

SIMON LACK, CFAFounderSL Advisors, LLC

• How well have hedge fund investors really performed, and why?

• How should investors use hedge funds?

• Why aren’t investors negotiating more favorable terms?

Moderated by Craig D. Senyk, CFA, Mawer Investment Management

This session is presented as part of the Future of Finance initiative, and it highlights the importance of Putting Investors First in shaping a trustworthy, forward-thinking financial industry that better serves society.

Dynamic Risk Capital Allocation: An Alternative Perspective on Risk

ASSET AND RISK ALLOCATION TRACK

6E

BRIAN D. SINGER, CFA Head of Dynamic Allocation Strategies William Blair & Company

• A framework for dynamic risk capital allocation

• The new world order: The framework it requires for dynamic risk capital allocation that combines the uncertainties of fundamental analysis with disciplines that better frame macroeconomic, geopolitical, and demographic developments

• New mental vistas and a dose of humility: An uncertain terrain and risk factors that map the landscape

Moderated by Randy Cass, CFA, Business News Network

Forget Bulls and Bears: Africa Is a Lion Market

EQUITY INVESTMENTS TRACK

6C

CLIFFORD D. MPARE, CFACEOFrontline Capital Advisors

• Macroeconomic, political, and demographic trends in Africa

• Africa’s role in the commodities supercycle

• Growth of Africa’s eurobond markets to fund huge infrastructure needs

• Equity valuation: Africa’s sectors, industries, and companies of interest

Moderated by Reshma Kapadia, Barron’s

Managing Fixed-Income Portfolios in the Later Stages of a Business Cycle

FIXED-INCOME MANAGEMENT TRACK

6A

KATHLEEN C. GAFFNEY, CFAVice President; Co-Director, Investment-Grade Fixed Income; and Portfolio Manager, Eaton Vance Bond FundEaton Vance Management

• How should bond investors deal with a rising interest rate environment?

• Which risk factors are priced most attractively—yield curve, duration, credit, convexity/optionality, currency?

• How can we construct global portfolios across the income spectrum—bonds, stocks, and convertibles—with a focus on value?

Moderated by Michael Lustig, Annual Conference Advisory Group

2:00 P.M.–3:00 P.M.

Concurrent Practitioner Sessions Concurrent Practitioner Sessions explore key topics in six tracks (Alternative Investments, Asset and Risk Allocation, Equity Investments, Fixed-Income Management, Policy and Practice, and Private Wealth Management), with analysis and commentary on market trends from prominent charterholder practitioners.

2322

Lessons from SAC Capital: Could It Happen to Your Firm?

POLICY AND PRACTICE TRACK

613

DAVID A. CHAVESSecurities Program CoordinatorUS Federal Bureau of Investigation

RORY M. COHENPartnerMayer Brown LLP

MARK D. PERLOWPartnerK&L Gates

SCOTT POMFRETChief Compliance OfficerHighfields Capital

ROBERT B. VAN GROVERPartnerSeward & Kissel

• What the new enforcement paradigm for 2014 looks like: New norms for investigations and enforcement of financial service businesses

• What every investment practitioner needs to know to stay clear of career-ending and firm-damaging compliance pitfalls

Moderated by Walter Zebrowski, Regulatory Compliance Association

Qualifies for 1 Standards, Ethics, and Regulations (SER) continuing education credit.

Lessons of the Fall: Understanding and Applying Principles Taught by the 2008 Financial Crisis on How to Advise Clients and Invest Their Money

PRIVATE WEALTH MANAGEMENT TRACK

6B

G. SCOTT CLEMONS, CFAChief Investment StrategistBrown Brothers Harriman & Co.

• The flawed conventional definition of risk and why passive investing is not riskless investing

• The fallacy of relative returns and the underappreciated role of cash as a call option

• The difference between wealth and money

Moderated by Paul Sullivan, New York Times

Book Signing 4B

SIMON LACK, CFA


Dispatches from the Disruption: The Brave New World of Venture Capital Investing

ALTERNATIVE INVESTMENTS TRACK

608

CHRISTOPHER A. DOUVOS, CFA Managing DirectorVenture Investment Associates

• The next phase of venture and private equity investing: Structure, incentives, and investor expectations

• Trends in fundraising, demographics, terms, financing, and entrepreneurial dynamics

• The new and higher due diligence bar and determination of value

• Prospects for investors in venture capital today

Moderated by Christopher T. Vincent, CFA, William Blair & Company

Optimization, Valuation, Diversification, and Risk in Constructing Global Portfolios

ASSET AND RISK ALLOCATION TRACK

6E

JEFFREY C. SCOTT, CFA Chief Investment OfficerWurts & Associates

• “Allocating to risks” and positioning client portfolios to weather an uncertain macro environment

• Stress testing portfolios and enhancing diversification based on economic regimes

• Improving governance, manager selection, and perspectives on risk

Moderated by Harin de Silva, CFA, Analytic Investors, LLC

3:00 P.M.–3:30 P.M.

3:00 P.M.–3:30 P.M.

3:30 P.M.–4:30 P.M.

2524

Is Smart Beta Still Smart after Taxes?

PRIVATE WEALTH MANAGEMENT TRACK

613

PAUL BOUCHEY, CFAManaging Director of ResearchParametric

• The introduction of “smart beta” strategies to the asset management universe: An alternative to the traditional active and passive strategies

• Examples of smart beta strategies: Minimum-variance, equal-weighted, and fundamentally weighted strategies

• Returns and risks of several popular smart beta strategies

• The tax impact on returns of smart beta strategies’ increased turnover and management techniques for mitigating the tax drag

Moderated by Stephen M. Horan, CFA, CIPM, CFA Institute

Book Signing West Lobby, Level 6

RONALD J. RYAN, CFA

Transition Break

4:30 P.M.–5:00 P.M.

4:30 P.M.–4:45 P.M.

Utilizing ETFs in Active Equity Strategies

EQUITY INVESTMENTS TRACK

6B

NOEL C. ARCHARD, CFA Managing DirectorBlackRock

• How to determine the right ETF strategy for your portfolio

• How equity managers are using ETFs as portfolio management and risk management tools

• What the liquidity, pricing, execution, and risk factors are

Moderated by David Larrabee, CFA, CFA Institute

Finding Value in Emerging Market Debt

FIXED-INCOME MANAGEMENT TRACK

6C

KRISTIN J. CEVA, CFA Managing PrincipalPayden & Rygel

• Outlook for emerging market debt and currencies: Targeting the most attractive countries, sectors, and companies

• Local emerging market currency versus USD/EUR-pay bonds

• The new rising stars of emerging markets

• The importance of security selection and risk management

Moderated by Randy Cass, CFA, Business News Network

The Global Pensions Cliff: Myths, Realities, and Courses of Action

POLICY AND PRACTICE TRACK

6A

RONALD J. RYAN, CFA CEO and FounderRyan ALM, Inc.

• Risk factors in public and corporate pensions: Why the wrong objectives may be the greatest risk of all

• Systemic risk and the perfect storm

• Solutions to the global pensions cliff

Moderated by Catherine Piez, CFA, The Brookings Institution

This session is presented as part of the Future of Finance initiative, and it highlights the importance of Retirement Security in shaping a trustworthy, forward-thinking financial industry that better serves society.

2726

Addressing the Agency Issue: How Can the Investment Profession Better Align with Investor Interests? 6A

SUZANNE L. DUNCANSenior Vice PresidentState Street

KRISTI MITCHEMHead of the Americas Institutional Client GroupState Street Global Advisors

MICHAEL G. TROTSKY, CFAExecutive Director and Chief Investment OfficerPension Reserves Investment Management Board

• The Influential Investor: How Investor Behavior Is Redefining Performance (State Street Center for Applied Research 2013): The three dimensions of misaligned interests between investors and those who serve them

• Fee structures, short-termism, and ownership: How can the interests of the investment profession be aligned with the interests of investors?

• An interactive practitioner debate on “big ideas” that might inspire change

Behavioral Portfolio Management: A New Paradigm for Managing Investment Portfolios 6E

C. THOMAS HOWARD CEO and Director of ResearchAthenaInvest

• Measurable and persistent behavioral factors are emerging as a new source of information with the potential to transform how we think about portfolio management and to dramatically improve portfolio performance

• Behavioral portfolio management (BPM) is the next step in a developing paradigm shift away from modern portfolio theory and toward behavioral finance

• BPM looks beyond investors’ cognitive errors and focuses on how to harness price distortions driven by emotional crowds to create superior portfolios

Moderated by Craig D. Senyk, CFA, Mawer Investment Management

Championing the CFA Institute Portfolio in Your Organization 6C

DANIEL GAMBA, CFAManaging DirectorBlackRock

YOUNG LEE, CFASenior Managing Director and General CounselMacKay Shields LLC

PATRICK RANZIJN, CFAGlobal Co-Lead Product and Finance EducationUBS Business University

• How do the CFA Program, CIPM Program, and Claritas Investment Certificate work together to support the industry’s learning needs?

• How can investment professionals champion the educational program portfolio in their organizations?

• How can you provide input and feedback for CFA Institute’s product positioning and championing efforts?

Moderated by Tom Collimore, CFA, CFA Institute

Digital Economies: Gathering Perfect Information from Imperfect Markets 608

YANIS VAROUFAKIS Professor of EconomicsUniversity of Texas at AustinNational and Kapodistrian University of Athens, Greece

• What can we learn regarding arbitrage, relative prices, and market equilibrium from the exchange economies spontaneously created within video game communities?

• What can we learn from bitcoin and in-game currencies about the present and future of money?

• What does this all mean for our troubled “analog” world in terms of politics, finance, and real economies?

Moderated by Jason Voss, CFA, CFA Institute

4:45 P.M.–5:45 P.M.

Beyond the Numbers Sessions Beyond the Numbers Sessions provide training in soft skill areas of growth and personal development for investment professionals, including leadership, firm building, career skills, and CFA Institute perspectives.

2928

Disrupting Investment Research: Applying Social and Online Community Insights 613

LEIGH DROGENFounder and CEOEstimize

JOSEPH A. GITS IV, CFACEO and Co-FounderSocial Market Analytics

DIVYA NARENDRACEOSumZero

• Can a combination of insights from investment professionals and crowdsourcing really improve the quality of investment research and idea generation?

• Can new forms of online collaboration provide more accurate estimates of a company’s performance?

• What are the risks and rewards of mining social data for investment insights?

Moderated by Len Costa, CFA Institute

Putting Investors First: Positioning Wealth Management Firms to Understand the Client Base of the Future 6B

PATRICIA L. EDWARDS, CFAManaging Director, InvestmentsThe Private Client Reserve at the U.S. Bank

DEENA KATZAssociate Professor, Texas Tech UniversityFounding Principal, Evensky & Katz

SCOTT D. WELCHExecutive Vice President and Chief Investment OfficerFortigent, LLC

• What do clients want from their wealth managers, and how can managers build trust with their clients?

• What demographic trends are guiding current wealth transfers, and who will be tomorrow’s high-net-worth individuals?

• Are there lessons that private wealth firms can learn from institutional investors?

Moderated by Margaret E. Franklin, CFA, Marret Private Wealth Inc.

This session is presented as part of the Future of Finance initiative, and it highlights the importance of Putting Investors First in shaping a trustworthy, forward-thinking financial industry that better serves society.

Book Signings West Lobby, Level 6

C. THOMAS HOWARD

YANIS VAROUFAKIS

5:45 P.M.–6:15 P.M.

3130

Breakfast


No More Alpha, No More Beta: What’s Next? 6E

MSCI

• Three drivers of investment performance: returns, risk, and cost

• The shift in emphasis from projecting market returns (beta) and producing outperformance (alpha) toward engineering better solutions to client-segment-specific investment problems

• The greater reliance on quantitative research into factors driving risk and return (e.g., better models for risk, return, and portfolio construction) that results from these new solutions and more cost-effective implementations

The Significant Investment Opportunity in Sustainable and Responsible Investing 6A

PERMIAN GLOBAL

• Natural forests, and their role in climate change mitigation, have been largely overlooked, offering a major investment opportunity

• Leading research suggests that conserving tropical forests would not only cut emissions levels by removing carbon dioxide from the atmosphere but also produce a reduction of greenhouse gas concentrations and reduce the risk of even more severe global warming

• The Permian Global solution offers a unique investment opportunity that provides a competitive risk-adjusted return and mitigates climate change

TUESDAY, 6 MAY 2014



7:45 A.M.–8:35 A.M.

7:45 A.M.–8:35 A.M.

Investors, Are You Protected? Enforcing Your Rights 608

ROBBINS GELLER RUDMAN & DOWD LLP

• Corporate fraud, its impact on key international markets, and how to protect your assets

• The protocol realities of advancing shareowner claims to remedy fraudulent financial reporting and other misleading company disclosures

• Rating agencies and their role in the financial crisis

• The globalization of shareholder claims

Smart Beta and Its Implications for Active Management: Confessions of an Index Provider 6B

RUSSELL INVESTMENTS

• “Smart beta” indices and related products have expanded the tool kit available to investors, but the wide variety of products being labeled “smart beta”—and even the terminology itself—can create confusion

• Smart beta can offer a compelling solution to the flaws of both active and passive management

• Investors need to understand what differentiates smart beta from traditional passive approaches as well as from actively managed strategies—and the relative strengths and weaknesses of each

Institutional Investments in Hedge Funds: Global Trends, Challenges, and Opportunities 6C

SOCIETE GENERALE CORPORATE & INVESTMENT BANKING

• The pace of institutional inflows into hedge funds has increased as investors around the world seek strong, uncorrelated risk-adjusted returns to help meet spending obligations

• Yet hedge fund risk continues to pose challenges for investment professionals as well as boards of directors contemplating increased allocations to alternatives

• Learn how some investors are mitigating hedge fund risk through advanced transparency, new technology, and proven due diligence techniques

Morning Announcements 4A

Tomorrow’s World: What Today’s Global Demographic Trends Mean for Asia and the Global Economy 4A

CLINT R. LAURENT CEO and FounderGlobal Demographics Ltd

• The changing age profile of populations means that traditional market segments (such as young, emerging, middle class) are no longer the growth markets

• New country/age/income segments will be the opportunities of the next decade

• Ways the new China will develop—with slower growth but higher consumer spending

Moderated by Richard Brandweiner, CFA, First State Super

Book Signing 4B

CLINT R. LAURENT


Managing the Emerging Market Portfolio 4A

ARJUN DIVECHA Chairman of the Board and Head of Emerging MarketsGMO

• Asset allocation across emerging market countries and sectors: The search for profitability

• Promising country/sector combinations: How to identify them

• Strategies to exploit the emerging market demographic shift: The sweet spot in long-term global demand growth

Moderated by George R. Hoguet, CFA, State Street Global Advisors

The Economics of Good and Evil 4A

TOMÁŠ SEDLÁČEK Chief Macroeconomic StrategistČSOB

• What is economics, and what is its crucial role in and broader responsibility to society?

• How have stories and narrative shaped economic theory?

• Why does studying the history of thought help us get rid of the intellectual brainwashing of the age, see through the intellectual fashion of the day, and take a couple of steps back?

• What is the truth that only appears in financial crises, and how do we address the need to counterbalance today’s mainstream approaches to economics?

Moderated by Attila Koksal, CFA, Unlu Securities

Book Signing 4B

TOMÁŠ SEDLÁČEK

Networking Lunch and Dessert with Exhibitors 4C Sponsored by Bloomberg's Portfolio and Risk Analytics

Lunch tables will be organized by topic tracks to facilitate networking.

Behavioral Finance: Core Principles and Practical Applications 6A

NICHOLAS C. BARBERISStephen and Camille Schramm Professor of FinanceYale School of Management

• Behavioral finance argues that a better understanding of human psychology—in particular, that market participants are not always rational—can improve financial decision making

• This session will present an overview of the current state of the field, with an emphasis on the past decade but including some speculation about the most promising directions for the next decade

• Behavioral finance is not a minor supplement to the traditional finance paradigm but, rather, an essential framework for understanding many of the most important financial phenomena

Moderated by Jason Voss, CFA, CFA Institute 3332

Master Classes Master Classes offer in-depth exploration of specialized topics in a course-style lecture format by academics from the world’s top universities and business schools.

8:45 A.M.–9:00 A.M.

9:00 A.M.–10:00 A.M.

10:00 A.M.–10:30 A.M.

10:00 A.M.–10:30 A.M.

10:30 A.M.–11:30 A.M.

11:30 A.M.–12:30 P.M.

12:30 P.M.–1:00 P.M.

2:00 P.M.–4:45 P.M.

(BREAK FROM

3:00 P.M.–3:30 P.M.)


Tuesday Morning Programming sponsored by Bloomberg's Portfolio and Risk Analytics

12:30 P.M.–2:00 P.M

Price and Value: Determinants, Divergence, and Convergence 6B

ASWATH DAMODARAN Professor of Finance and David Margolis Teaching FellowLeonard N. Stern School of Business, New York University

• Investors are guilty of using price and value as interchangeable terms, but they are often different in both what they measure and what they mean

• Value is a function of its fundamentals—cash flows, growth, and risk—and price is set by demand, supply, and a multitude of other factors, including mood and momentum, although price is influenced by fundamentals

• Failure to recognize the distinction causes pain for analysts, who are often asked to price assets using valuation tools or value assets using pricing tools

• The determinants of value change over time, thus changing value

• The determinants of price can make price diverge from value

• The forces that cause the eventual convergence of price and value have consequences for investors

Moderated by David Larrabee, CFA, CFA Institute

Analyzing Corporate Credit and Distressed Securities 608

VICTORIA V. IVASHINA Associate Professor of Business Administration Hellman Faculty FellowHarvard Business School

• Identifying characteristics of bank loans and other debt instruments available to investors as well as the factors driving the leveraged loan market

• Understanding the risks of debtholders at various levels of capital structure priority and common distressed investing strategies

• Breaking down complex situations and investing up and down the capital structure

Moderated by Ron Rimkus, CFA, CFA Institute

New Frontiers in Risk and Asset Allocation 6E

LIONEL MARTELLINI Professor of Finance, EDHEC Business SchoolScientific Director, EDHEC-Risk Institute

• The evolution of investment decision making: From asset allocation to risk allocation to reconciling risk allocation with smart(er) betas

3:00 P.M.–3:30 P.M

4:45 P.M.–5:15 P.M.

6:30 P.M.–10:00 P.M.

• Risk allocation: Across and within asset classes, with correlated assets and uncorrelated assets, and with implicit versus explicit factors

• Risk parity versus risk budgeting in the new environment

Moderated by Rob Gowen, CFA, CFA Institute

Best Practices in Retirement Planning 6C

WADE D. PFAU, CFA Professor of Retirement IncomeThe American College

• Determining appropriate savings rates for retirement

• Establishing asset allocation in the accumulation phase

• Transitioning from accumulation to decumulation

• Evaluating the two schools of thought for retirement income planning

Moderated by Lauren Foster, CFA Institute

This session is presented as part of the Future of Finance initiative, and it highlights the importance of Retirement Security in shaping a trustworthy, forward-thinking financial industry that better serves society.


Book Signing West Lobby, Level 6

ASWATH DAMODARAN

Networking Reception and Dinner EMP Museum

Sponsored by Bloomberg's Portfolio and Risk Analytics and MSCI

See page 8 for more information, including transportation details.

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It’s Not Active or Passive: It’s Both! 6E

VANGUARD

• Active funds provide one thing that index funds can’t—the opportunity for alpha, or risk-adjusted excess return

• But active funds often carry the handicap of higher costs, which can lead to underperformance, on average

• Learn how to use a blended approach, combining both active and passive, that can provide the happy medium best suited for your clients

Innovations in the World of Indexing 6A

WISDOMTREE ASSET MANAGEMENT

• Innovations in the world of indexing, new choices for passive exposures, and the rationale for fundamentally weighted indexing

• The ways these strategies differ from traditional capitalization-weighted indices and perform in real time and ways investors can evaluate “smart beta” strategies

• Investors’ use of fundamentally weighted strategies to gain access to asset classes around the world

Morning Announcements 4A

Central Banking, State Capitalism, and the Future of the Monetary System 4A

ANN PETTIFOR DirectorPolicy Research in Macroeconomics (PRIME)

• The fallacy of easy money: Are central bankers trying to solve long-term problems with short-term solutions, and what might be the ramifications of their strategy?

• The limits of credit expansion: Is ever-increasing sovereign debt a recipe for disaster or essential for global prosperity and stability?

• Structural imbalances in global economics: How long can they persist, and can they be reduced without triggering a monetary crisis?

Moderated by James Benoit, CFA, AfrAsia Bank Ltd.

Breakfast


Multi-Asset Class Portfolio Analytics and Reporting with BondEdge 6C

BONDEDGE SOLUTIONS

• The new suite of equity analysis and reporting tools offered by BondEdge Solutions, an Interactive Data company and leading provider of fixed-income portfolio management software

• A single-source solution for multi-asset analysis

• A review of cross-asset risk allocations, sector exposures, issuer concentrations, benchmark comparisons, time-series analysis, pre- and post-trade compliance reporting, and portfolio “what if” analyses

The Power of Moats: Competitive Advantages Drive Superior Performance 6B

MORNINGSTAR, INC.

• Specific examples of undervalued wide-moat companies

• Details behind how Morningstar analysts know a wide moat when they see it

• Explanation of how moats can improve investment outcomes

• Morningstar’s new forward-looking quantitative ratings and reports

7:45 A.M.–8:35 A.M.

7:45 A.M.–8:35 A.M.


8:45 A.M.–9:00 A.M.

9:00 A.M.–10:00 A.M

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WEDNESDAY, 7 MAY 2014



10:00 A.M.–10:30 A.M

10:30 A.M.–11:30 A.M

11:30 A.M.–12:30 P.M.

12:30 P.M.–1:00 P.M.

12:30 P.M.


21st Century Asset Management 4A

CLIFFORD S. ASNESS Managing and Founding PrincipalAQR Capital Management LLC

• Trends that are likely to transform the investment industry

• Steps that firms need to take to be relevant in the future and constraints we will never be able to do anything about

• Skills that investment professionals, firms, and clients will need to thrive in the next 20 years:

› Developing a better understanding of risk

› Making judgments and a constant philosophy equal to data

› Offering hedge funds that hedge

› Recalibrating fees

Moderated by Brendan Conway, Barron's

The Signal and The Noise 4A

NATE SILVER Founder, FiveThirtyEight.comAuthor, The Signal and The Noise

• Overfitting: The reason noise is mistaken for signal

• Closing the gap between what we know and what we think we know: One giant Bayesian leap—and some small steps—forward

• Improving forecasts and models: Think probabilistically, stop and smell the data, know your biases, and add a dose of humility

Moderated by Diane Brady, Bloomberg Businessweek

Book Signing South Lobby, Level 4

NATE SILVER

Conference Close

Thank you for joining us.

26–29 April 2015Frankfurt, Germany

annual.cfainstitute.org

38

MONDAY, 5 MAY, 7:45 A.M.–8:35 A.M. | SPONSORED CORPORATE PRESENTATIONS

Active Managers vs. Passive Products: How to Win the Debate Axioma, Inc.6E

New Frontiers of Risk: Revisiting the 360° ManagerBNY Mellon 6A

How to Leverage Company “Ecosystems” and Macro Exposure to Construct Better Stock Selection ModelsFactSet608

The Impact on Assets of the Industrial Transition to a Low-Carbon Economy FTSE6C

Creating and Profiting from More Accurate Macroeconomic ForecastsThomson Reuters6B

MONDAY, 5 MAY, 2:00 P.M.–3:00 P.M. | CONCURRENT PRACTITIONER SESSIONS

Alternative Investments Track

Asset and Risk Allocation Track

Equity Investments Track

Fixed-Income Management Track

Policy and Practice Track

Private Wealth Management Track

Putting Investors First: The Fallacy of Hedge Funds Simon Lack, CFA 608

Dynamic Risk Capital Allocation: An Alternative Perspective on Risk Brian D. Singer, CFA 6E

Forget Bulls and Bears: Africa Is a Lion MarketClifford D. Mpare, CFA 6C

Managing Fixed-Income Portfolios in the Later Stages of a Business Cycle Kathleen C. Gaffney, CFA 6A

Lessons from SAC Capital: Could It Happen to Your Firm? David A. Chaves;Rory M. Cohen;Mark D. Perlow;Scott Pomfret;Robert B. Van Grover 613

Lessons of the Fall: Understanding and Applying Principles Taught by the 2008 Financial Crisis on How to Advise Clients and Invest Their MoneyG. Scott Clemons, CFA 6B

MONDAY, 5 MAY, 3:30 P.M.–4:30 P.M. | CONCURRENT PRACTITIONER SESSIONS

Alternative Investments Track

Asset and Risk Allocation Track

Equity Investments Track

Fixed-Income Management Track

Policy and Practice Track

Private Wealth Management Track

Dispatches from the Disruption: The Brave New World of Venture Capital Investing Christopher A. Douvos, CFA 608

Optimization, Valuation, Diversification, and Risk in Constructing Global PortfoliosJeffrey C. Scott, CFA 6E

Utilizing ETFs in Active Equity Strategies Noel C. Archard, CFA 6B

Finding Value in Emerging Market DebtKristin J. Ceva, CFA 6C

The Global Pensions Cliff: Myths, Realities, and Courses of ActionRonald J. Ryan, CFA 6A

Is Smart Beta Still Smart after Taxes?Paul Bouchey, CFA 613

MONDAY, 5 MAY, 4:45 P.M.–5:45 P.M. | BEYOND THE NUMBERS SESSIONS

Addressing the Agency Issue: How Can the Investment Profession Better Align with Investor Interests?Suzanne L. Duncan; Kristi Mitchem; Michael G. Trotsky, CFA 6A

Behavioral Portfolio Management: A New Paradigm for Managing Investment PortfoliosC. Thomas Howard 6E

Championing the CFA Institute Portfolio in Your Organization Daniel Gamba, CFA; Young Lee, CFA; Patrick Ranzijn, CFA 6C

Digital Economies: Gathering Perfect Information from Imperfect MarketsYanis Varoufakis 608

Disrupting Investment Research: Applying Social and Online Community Insights Leigh Drogen; Joseph A. Gits IV, CFA; Divya Narendra 613

Putting Investors First: Positioning Wealth Management Firms to Understand the Client Base of the FuturePatricia L. Edwards, CFA; Deena Katz;Scott D. Welch6B

4140

CONCURRENT SESSIONS AT A GLANCE

CONCURRENT SESSIONS AT A GLANCE

TUESDAY, 6 MAY, 7:45 A.M.–8:35 A.M. | SPONSORED CORPORATE PRESENTATIONS

No More Alpha, No More Beta: What’s Next?MSCI 6E

The Significant Investment Opportunity in Sustainable and Responsible InvestingPermian Global 6A

Investors, Are You Protected? Enforcing Your RightsRobbins Geller Rudman & Dowd LLP608

Smart Beta and Its Implications for Active Management: Confessions of an Index ProviderRussell Investments6B

Institutional Investments in Hedge Funds: Global Trends, Challenges, and OpportunitiesSociete Generale Corporate & Investment Banking6C

TUESDAY, 6 MAY, 2:00 P.M.–4:45 P.M. (BREAK FROM 3:00 P.M.–3:30 P.M.) | MASTER CLASSES

Behavioral Finance: Core Principles and Practical ApplicationsNicholas C. Barberis 6A

Price and Value: Determinants, Divergence, and Convergence Aswath Damodaran 6B

Analyzing Corporate Credit and Distressed SecuritiesVictoria V. Ivashina 608

New Frontiers in Risk and Asset AllocationLionel Martellini 6E

Best Practices in Retirement PlanningWade D. Pfau, CFA 6C

WEDNESDAY, 7 MAY, 7:45 A.M.–8:35 A.M. | SPONSORED CORPORATE PRESENTATIONS

Multi-Asset Class Portfolio Analytics and Reporting with BondEdgeBondEdge Solutions6C

The Power of Moats: Competitive Advantages Drive Superior PerformanceMorningstar, Inc.6B

It’s Not Active or Passive: It’s Both!Vanguard6E

Innovations in the World of IndexingWisdomTree Asset Management6A

4342

Documents

SUNDAY, 4 MAY 2014 Strategic Considerationsannual.cfainstitute.org/files/2014/04/annual_conference_schedule.pdf · Annual Conference Sunday Keynote The Behavior Gap 4A CARL RICHARDS