The Portfolio Construction Forum (PCF) Strategies Summit 2025 delivered a compelling message to investment professionals: the era of passive reliance on policy backstops is ending, and practitioners must actively reposition portfolios for a dramatically shifting landscape. Under the theme "Time to Make a Move," the conference challenged delegates to navigate what organisers described as a "polycrisis" of converging global challenges.

Summit Highlights: From da Vinci to Market Reality

The Summit opened with the inaugural da Vinci Lecture, drawing parallels between Leonardo da Vinci's Renaissance polymath approach and modern portfolio construction. Oliver Hartwich argued that investment professionals must become "civilizational stewards," thinking across disciplines to address interconnected crises threatening Western economic foundations. His 39-page treatise on the fragmentation of trade, collapsing alliances, and AI disruption proved both readable and provocative, setting an intellectually ambitious tone.

The conference examined four economic scenarios ranging from an immediate "Market Storm Ahead" to a more gradual "Managed Slog," each with distinct implications for Australian portfolios. Delegates heard that US equity valuations sit at record highs while facing headwinds from trade tariffs, falling immigration, and rising deficits—creating an environment of low growth and sticky inflation that demands portfolio rebalancing.

Notably, systematic and quantitative strategies emerged as a recurring theme, marking their return to prominence after years in the shadows. As JR and JT observe in this week's video, a wrap-up of the conference and preview of the workshop,  these data-driven approaches have performed surprisingly well recently, though understanding their success and ongoing ‘edge’ remains a challenge given their complexity. Private assets also dominated discussions, with European Private Credit receiving particular acclaim through Stephen Blanchard's highly-rated presentation.

Implementation Workshop: From Theory to Practice

The implementation workshop, facilitated by InvestSense, bridges the gap between strategic insights and practical portfolio construction. Scheduled as both an in-person session and a follow-up 90-minute "Zoominar," the workshop tackles macro issues through interactive polling to gauge whether delegates genuinely embrace the constructive outlook or were simply swept up in conference enthusiasm.

The workshop will systematically review each Special Interest Forum presentation, examining high-conviction investment theses and their practical applications. It will address critical portfolio design elements including multi-manager approaches, total portfolio management, and the role of alternative assets. Participants analyse 10-12 specific strategy ideas with practical implementation guidance, from systematic investing approaches to emerging market opportunities and private asset allocations.

Why You Might Want To Attend

The implementation workshop offers unique value for investment advisers navigating unprecedented market conditions. First, it provides actionable translation of complex macro themes into specific portfolio adjustments, helping advisers move beyond theoretical understanding to practical application. The interactive format allows participants to stress-test asset allocation implications across different economic scenarios with peers facing similar challenges.

Second, the workshop addresses the uniquely Australian context, a market psychologically unprepared for sustained downturns after 30 years of uninterrupted growth. With sequencing risk threatening retirees' capital in early retirement years, the workshop equips advisers with defensive reallocation strategies crucial for protecting client outcomes.

Finally, as the Summit emphasised, the time for passive hope in policy rescue could be drawing to an end. Advisers who attend will gain the tools and conviction needed to make the portfolio moves that could protect and grow client wealth in an era of heightened uncertainty and regime change. So if you would like to attend please feel free to register using this link: https://services.brillient.com.au/register/strategies-summit-2025-implementation-zoominar/delegate

All we ask is that you take some time to read the materials that we send to you upon registration (assuming you weren’t able to attend the Strategies Summit).