Webinar : The Power of Rebalancing: Fact, Fiction and Why it Matters, May 6 , 630pm IST

The Power of Rebalancing: Fact, Fiction and Why it Matters

When:
Wednesday 6th May 2:00pm BST (3:00pm CEST / 9:00am ET)

Presented by:

–  Adrian Banner, Ph.D., chief executive officer and chief investment officer of INTECH
–  David Schofield, president of INTECH’s international division

Presenter:

Brendan Maton

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The Power of Rebalancing: Fact, Fiction and Why it Matters

It is well-understood that rebalancing is a necessary step in restoring a portfolio of volatile assets back to its target weights. Whether it is performed periodically or triggered when actual weightings move too far from target, rebalancing a portfolio will naturally lead to selling assets that have outperformed the portfolio, and buying assets that have underperformed the portfolio.

It is much less widely understood that rebalancing can actually be a source of return for the portfolio. Despite the fact that this observation dates back to 1982 [Fernholz and Shay] and has been successfully used to manage portfolios for nearly as long, it has come under considerable attack in the recent past by some academics and practitioners. The main arguments used by these detractors are:

1.       There is no return benefit, because the portfolio’s expected wealth does not increase.
2.      The return benefit exists, but is due to diversification, not rebalancing.
3.      The return benefit relies on mean-reversion.

These arguments may appear compelling at first glance, but all three are fundamentally flawed. This webcast will tell you why.

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Adrian Banner, Ph.D.
Chief executive officer and chief investment officer, INTECH
Dr. Banner was named chief executive officer in November 2012 and concurrently is the firm’s chief investment officer. He joined INTECH in August 2002 and has since been an integral part of the firm’s Princeton-based research team. Dr. Banner has extensive knowledge of INTECH’s trading systems, optimisation programs and research initiatives, both on an operational and theoretical basis. He has held various roles as part of the Princeton research team prior to being named CIO and subsequently CEO. Dr. Banner earned his Ph.D. in mathematics from Princeton University and his M.Sc. and B.Sc., also in mathematics, from the University of New South Wales, Australia. Dr. Banner has lectured on the stability of market capitalisation and low-volatility equity portfolios at a number of academic and professional conferences and has authored several scholarly papers on Stochastic Portfolio Theory.
David Schofield
President of INTECH’s international division – London
David is responsible for developing, implementing and managing the business effort for the firm outside of North America, including representing INTECH’s proprietary investment process to investors and consultants. Prior to joining INTECH in 2006, Mr. Schofield was responsible for developing Janus Capital International’s institutional activities in Europe, the UK and the Middle East, and had further responsibility for international consultant relations. Before joining Janus in 2001, Mr. Schofield spent 15 years in investment banking focusing on major institutional investors in Germany, France and the UK. During this time he worked for Salomon Brothers, Lehman Brothers and UBS in New York, London and Frankfurt. Mr. Schofield holds a Joint Honours Masters Degree in French and German from the University of Oxford. He is a published author and has 29 years of investment experience.

 

Register now for the webcast >>
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About AIWMI

The Association of International Wealth Management of India (AIWMI) is a not-for-profit organization and a globally recognized membership association for finance professionals. AIWMI primarily focuses on the broad and strategic role of developing a more robust and forward-looking training infrastructure for the financial services sector and to promote more active industry involvement and collaboration in training and continuing education. AIWMI is offering advanced international certification programs along with a wide variety of high-quality executive education programs. AIWMI programs combine state-of-the-art knowledge and skills with practical experience and insights into the functioning of the financial sector. All AIWMI courses and educational events have an intense and pragmatic curriculum. Participants are exposed to the latest developments within the financial services sector. AIWMI plays a key role in guiding the development of the financial services sector. AIWMI works with key industry participants’ viz. the Government, the Regulators, the Industries/Associations, the Corporate, the Media and the General Public to achieve its objectives. Besides enhancing technical competence and professionalism in the industry, AIWMI organizes events and facilitates discussions to promote best practices in leadership and talent development in the financial sector with an aim to become Asia’s premier center of excellence for financial education.

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