ABOUT MCFS
The Monash Centre for Financial Studies (MCFS), located within the Monash Business School, conducts cutting-edge research on the Australian and global financial markets.
Our research is both academically rigorous and practically focused, with an industry-relevant approach that aims to generate knowledge and insights to benefit Australian businesses, regulators, policymakers, and other stakeholders. Additionally, from 2023, MCFS has expanded its scope to offer experiential education units to Monash students, further bridging the gap between academic knowledge and practical industry experience.
As a critical hub for engagement between Monash University and the finance industry, MCFS collaborates with executives, industry associations, government bodies, and other stakeholders to facilitate meaningful two-way knowledge transfer.
Located in Melbourne’s vibrant CBD, MCFS is strategically positioned near major banks, pension and sovereign wealth funds, investment firms, consulting agencies, regulatory bodies, government departments, and technology companies, enhancing frequent and efficient interactions between our researchers and industry practitioners.
1 MESSAGE FROM OUR DIRECTOR
As we close another year at the Monash Centre for Financial Studies (MCFS), I am pleased to reflect on our continued progress and accomplishments.
This year, we have seen further expansion in both our educational and research initiatives, which further reinforce our commitment to bridging the gap between academic theory and industry practice.
A standout highlight for us was the continued success of the Fundamentals of Investment Strategy unit, which was offered twice and engaged over 700 students. This achievement highlights the growing interest in our curriculum, with students from a diverse range of disciplines, beyond just business, participating. This year’s success also demonstrates our dedication to providing students with a comprehensive understanding of finance and investment underpinned by practical industry insights.
We were also pleased to see ongoing recognition of our academic and professional leadership. Dr. Nga Pham’s
Our research efforts also extended to more socially responsible and impactful areas. In response to the CFO Office’s request, we conducted a benchmarking study on the quality of Monash University’s modern slavery disclosure, positioning our research as a crucial driver for improving transparency and accountability in the broader university sector.
Looking ahead, we remain enthusiastic about our potential to contribute to the future of finance through both research and education. The support of our industry partners, students, and the broader academic community has been instrumental in our success. We look forward to building on these relationships to continue delivering valuable and impactful work in the years to come.
HIGHLIGHTS
The Centre verified two research impact cases and four early impact cases through the Faculty Research Impact Case evaluation panel.
Professor Deep Kapur, Director of MCFS, continued serving as an Independent Advisor to the Board Investment Committee of REST, one of Australia’s largest superannuation funds.
Dr Nga Pham was appointed to the Board of Directors of the CFA Society Australia.
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MCFS hosted 20 Monash students under the Industry Experience Program.
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MCFS delivered the Fundamentals
In partnership with givvable and colleagues from Economics and Marketing, MCFS applied for an ARC Linkage Project grant.
MCFS co-organised the Academic Practitioner Day at the International Corporate Governance Network (ICGN) Annual Conference in Melbourne, in collaboration with ICGN.
At the request of the CFO Office, MCFS conducted a benchmarking
RESEARCH PROJECTS
Modern Slavery Disclosure Quality Ratings: ASX100 Companies Update
2023
Nga Pham, Bei Cui, Ummul Ruthbah
This research brief presents the fourth year of Monash’s Modern Slavery Research program, in which we assessed statements of ASX100 companies in FY2023 using the enhanced methodology – MSD 2.0. This year’s report introduces three new features: Bookmarks and Ideas to share examples of best practices, and Deep Dive sections on relevant issues of interest.
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Long Term Capital Market Assumptions: Fixed Income
Lai Hoang, Ummul Ruthbah
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Modelling Retirement Investment with the 60/40 Investment Strategy
Nga Pham, Bei Cui, Ummul Ruthbah
This study focuses on measuring financial stability during retirement using a 60/40 portfolio model. It evaluates the potential of an average retiree’s financial resources, such as pension incomes and retirement savings, to support a comfortable 25-year retirement. By employing Monte Carlo simulations, we determine the success rate of maintaining a comfortable lifestyle with a 60/40 investment strategy. This study offers crucial insights for retirees and financial planners when navigating retirement strategies amidst market volatility. This was funded by CFAI.
Modern Slavery Research Program Impact Study
Nga Pham, Bei Cui, Ummul Ruthbah
In early 2024, MCFS conducted a research impact study for the Modern Slavery Research program. We interviewed representatives from seven companies that have an in-depth understanding of their modern slavery action plans and reporting processes, as well as three institutional investors who are familiar with MCFS’s modern slavery research reports. Based on these interviews, we verified four impact and two early impact cases of the Modern Slavery Research program through the Faculty Research Impact Case evaluation panel.
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The Performance of the 60/40 Portfolio Over the Last Century
Nga Pham, Bei Cui, Ummul Ruthbah
This research, using the Dimson-Marsh-Staunton Global Investment Returns Database, analysed long- term investment returns in key markets like Australia, Japan, the UK, and the US, focusing on the 60/40 equity-bond portfolio. The study reveals that the correlation between stocks and bonds is not consistently negative, impacting the effectiveness of traditional investment strategies. These findings emphasise the need for dynamic investment approaches rather than reliance on historical trends. This research was funded by the CFAI.
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Insights Towards Net Zero: Global Trends and Developments in Carbon Pricing
Bei Cui, Nga Pham, Ummul Ruthbah, Trinh Le, Jan Ahrens, Roger Cohen
MCFS was invited to contribute to the CFA Institute Research and Policy Centre’s Investment Innovations Toward Achieving Net Zero. This chapter analyses global carbon pricing trends, highlighting its role in reducing emissions and achieving net zero. It examines fragmented pricing mechanisms, challenges, progress, and solutions, emphasising policy harmonisation and investor roles.
In this project, we extend our capital market assumptions, which reflect our projections on long-term risk and returns to fixed income. The project’s outputs, combined with our previous research on capital market assumptions related to equity, will inform our ongoing research on investment strategy, pension, and superannuation, and enable the development of simulation models that account for various future market scenarios. It also has the potential to be utilised by various types of end-users, such as portfolio managers and institutional investors, to construct their portfolios, assess their portfolio risk-return profiles, and thus generate commercial revenue. View Details
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ONGOING PROJECTS
Modern Slavery Statement Disclosure Quality
Nga Pham, Bei Cui, Ummul Ruthbah
Modern slavery disclosure is a critical step in mitigating the risk associated with modern slavery practices in companies’ operations and supply chains. The disclosure quality signals the level of commitment and efforts that the companies have undertaken in managing these risks. Our research measures the disclosure quality of the modern slavery statements submitted by the largest Australian-listed companies.
Per formance of super funds in Australia: The contribution of alternatives and active management
Ummul Ruthbah, Aditya Shanksar
This paper examines the impact of alternative investments and active management on the performance of the largest Australian superannuation funds. Employing a rigorous benchmarking approach, we assess whether they have enhanced the risk- adjusted returns of these super funds. Results indicate that alternative investments and active management within Australian superannuation funds have contributed positively to the overall performance of these funds. This suggests that the structural and regulatory specifics of the Australian system may allow more effective utilisation of alternative assets.
Long-Term Capital Market Assumptions: Alternatives
Ummul Ruthbah, Trinh Le
In this project, we extend our capital market assumptions, which reflect our projections on long-term risk and returns to alternative assets, including private equity, infrastructure, and real estate. We apply a customised approach to estimate returns, considering unique factors such as illiquidity premiums and valuation uncertainties. Additionally, we factor in inflation and exchange rate fluctuations to ensure our estimates reflect nominal price changes and the growing importance of international exposure in unlisted asset portfolios.
Climate-related Financial Disclosure
Quality: Evidence from Australian Mining Companies
Bei Cui
To measure the quality of companies’ climate-related financial disclosure and provide a comparable and standardised rating of the level of alignment with the ISSB, the Monash Centre for Financial Studies developed a framework that can be applied to all companies reporting under Chapter 2M of the Corporations Act.
In this report, the assessment framework is applied to the top 30 companies in the Metals & Mining sector to understand their level of alignment with IFRS S2 recommendations, their performance compared to their peers, and areas where the quality of their disclosure could be improved.
Net Zero, Nature Positive Australian Companies
Bei Cui, Ummul Ruthbah, Anita Foerster, Ella Vines MCFS, in collaboration with the Green Lab, is undertaking a strategic research initiative aimed at identifying and promoting best practices among Australian companies that align with net-zero emissions and nature-positive objectives. This project investigates how firms are integrating climate and biodiversity goals into their financial strategies, risk disclosures, and operational frameworks. By analysing corporate commitments, reporting practices, decarbonisation levers and the effectiveness of nature-related initiatives, our joint research aims to provide actionable insights for policymakers, investors, and corporate leaders.
ENGAGEMENT
Our senior researchers and leaders participated in numerous webinars and other forums during 2023 to exchange knowledge and ideas with other researchers and key industry partners of Monash Business School. We also collaborated with our industry partners to facilitate industry-oriented research and provide guidance on their investment strategies.
INDUSTRY ENGAGEMENT
REST Investment Committee
Professor Deep Kapur, the Director of the Centre, continued serving as an Independent Advisor to the Board Investment Committee of REST, one of Australia’s largest superannuation funds.
Modern Slavery Research Engagement
After the release of the Modern Slavery Statement Disclosure Quality report, Monash Centre for Financial Studies participated in meetings with the following companies and investment funds
Engagement with the Government
Modern Slavery Research Presentation to the Modern Slavery Business Engagement nit in Canberra.
MCFS presented the latest updates to the Government’s Human Trafficking and Modern Slavery Research Program.
MCFS accepted the invitation by the Commonwealth’s Interdepartmental Committee on Modern Slavery in Public Procurement to present their research
Engagement with the industry
Dr Nga Pham was invited by the nited Nations Global Compact Network Australia (‘ NGCNA’) to speak about continuous improvement in modern slavery disclosure quality to the Modern Slavery Community of Practice (MSCoP) for business participants.
MCFS was invited by Macquarie Securities (Australia) Limited to present the updates from the modern slavery disclosure quality research to their investor network.
Dr Nga Pham delivered an online presentation on the quality of modern slavery disclosures by ASX100 companies. The event was hosted by Jarden Group.
Dr Nga Pham gave an online presentation on the quality of modern slavery disclosures among ASX100 companies, hosted by the Australian Council of Superannuation Investors.
Dr Nga Pham participated in a panel discussion titled ‘Beyond Compliance The strategic advantage of ethical supply chains.’
Dr Bei Cui was part of the discussion of the Australasian Institute of Mining and Metallurgy (AusiMM) on Modern Slavery Reporting in the Mining Industry.
Dr Cui and Dr Pham were invited to a panel discussion on Modern Slavery hosted by Trans Tasman Business Circle in Brisbane.
Dr Pham participated in a fireside chat at the Victorian Legal Counsel Summit, discussing how to navigate the modern slavery reporting landscape.
Dr Cui and Dr Pham presented the ‘Modern Slavery Disclosure Quality Ratings ASX100 Companies pdate 2022’. The event was hosted by Trans Tasman Business Circle Women Leaders Study Tour.
MCFS offered consultancy services to Allianz Australia in regards to their report on Monash Slavery Disclosure Quality Framework.
Monash Centre for Financial Studies hosted the Academic Session at the International Corporate Governance Network (ICGN) Conference in Melbourne. Dr Nga Pham was one of the speakers at the session titled ‘ Governance of Modern Slavery Risk’.
MCFS partnered with givvable and colleagues from Economics and Marketing to apply for an ARC Linkage Project grant.
Internal Engagement
Dr Nga Pham is a member of Monash University’s Modern Slavery Steering Committee
Monash Centre for Financial Studies was asked to benchmark Monash University vs the Go8
Dr Nga Pham participated in a webinar, hosted by The Green Lab, Monash Business School, as part of the Monash Nature Positive Network Webinar Series: A Nature Positive Australia – Why Does It Matter and How Do We Get There
Dr Nga Pham joined the panel discussion at the Faculty Research Impact Symposium
Dr Nga Pham was the moderator of the panel discussion “ Beyond Borders: Designing and measuring research impact” which was organised by Monash Business School’s Research Impact Sub-Committee. Dr Bei Cui was one of the panelists.
Understanding Carbon Market Opportunities – Pricing Methodologies and Trading Strategies
25 January
Dr Bei Cui was one of the speakers at this webinar, which explores the evolution of carbon prices globally with the world’s first Real Carbon Price Index (RCPI), developed by researchers at Monash Centre for Financial Studies, in collaboration with CZero and Sparkchange.
Australian Sustainability Reporting Standards – Disclosure
of Climate related
Financial
Information Exposure
MCFS produced a report for the Australian Energy Regulator (AER), which examines and identifies the issues with a new data series, estimates the impact of these issues, and provides possible solutions to make the new data series usable for the AER.
MONASH STUDENT MANAGED FUND (MSMF) FIRESIDE CHAT
The Monash Student Managed Fund (MSMF) community had the unique opportunity to engage in an insightful fireside chat with Professor Deep Kapur and Tanuj Dutt, Director at the Future Fund. This discussion provided MSMF members with valuable insights into the complexities of the investment landscape.
Presentation to the Banks Procurement Professional Forum
18 M arch 2024
MCFS and givvable will participated in the forum of procurement professionals across Tier 1 Banks. The event was coordinated by Suncorp.
Monash-Q Group Finance Colloquium
22 M arch 2024
Dr Bei Cui presented her research on Predicting defaults in China’s credit bond market’. This conference was hosted jointly by Monash Business School Department’s of Banking and Finance, the Q Group, amd the Monash Centre for Quantitative Finance and investment Strategies.
ASX consultation on Corporate Governance Principles
24 M ay 2024
Submission to the ASX Public Consultation on the Draft 5th Edition of the Corporate Governance Principles and Recommendations, authored by Dr Nga Pham.
MONASH STUDENT MANAGED FUND (MSMF) L AUNCH NIGHT
24 July 2024
Monash Centre for Financial Studies took part in the MSMF Launch Night, a special event aimed at facilitating meaningful connections between students and industry professionals. This occasion offers students a unique opportunity to engage with experts, build valuable relationships, and expand their professional network.
MONASH STUDENT MANAGED FUND (MSMF) FIRESIDE CHAT
The Monash Student Managed Fund (MSMF) community was fortunate to engage in a dynamic fireside chat with Dr Nga Pham and Winnie Wong, Portfolio Manager at Spirit Super. This conversation offered a rare learning opportunity, giving MSMF members an inside look into the intricate world of investments. 19 September 2024
MEMBERSHIP AND PROFESSIONAL SERVICES
The International Corporate Governance Network (ICGN)
Dr Nga Pham co-chairs ICGN's Financial Capital Committee, which produces ICGN's regular viewpoints and responses to public consultations of governments, regulators and standard-setting bodies globally.
Investor Group on Climate Change
As members of the Working Group, Ummul Ruthbah, Nga Pham and Bei Cui participated in uarterly meetings and other activities.
Responsible Investment Association
Australasia (RIAA)
Dr Nga Pham is a member of RIAA’s Human Rights Working Group and Modern Slavery Working Group and participated in their uarterly meetings and specific policy advocacy projects.
Media Engagement
Dr Ummul Ruthbah, Dr Nga Pham and Dr Bei Cui were featured in the Australian Financial Review newspaper as award-winning female researchers who are breaking barriers in the finance industry to create a more inclusive and e uitable society
The Sydney Morning Herald: Super’s Dilemma, Engage or Divest; Superannuatio
The Saturday Paper: Australian Businesses face pressure from European sustainability standard
The Remarkable Women: Modern Slavery in the fashion industr
Business and Human Rights Resource Centre: Australia - Modern Slavery Disclosure Quality Ratings ASX100 Companies 2024 Updat
The National Tribune: Modern Slavery Disclosure Quality Report reveals a rise in Australian reporting standard
Newswire NZ: Modern Slavery Disclosure Quality Report reveals a rise in Australian reporting standard
News.com.au: Modern Slavery Disclosure Quality Report reveals a rise in Australian reporting standard
News for Business: Modern Slavery Disclosure Quality Report reveals a rise in Australian reporting standard
Medianet: Modern Slavery Disclosure Quality Report reveals a rise in Australian reporting standard
Mirage News: Australian Modern Slavery Reporting Standards Ris
OZ News Today: Modern Slavery Disclosure Quality Report reveals a rise in Australian reporting standard
2MO Radio: Modern slavery reportin
2BS 95.1 FM Radio: Modern slavery reportin
2AD 1134 AM Radio: Modern slavery reportin
2HD 1143 AM Radio: Modern slavery reportin
2LF Radio: Modern slavery reportin
2PM Radio 531: Modern slavery reportin
Radio 2EL 1089AM: Modern slavery reportin
2NZ 1188 Radio: Modern slavery reportin
4WK 963AM Radio: Modern slavery reportin
2PK 1404 AM Radio: Modern slavery reportin
4GY Radio: Modern slavery reportin
Financial Standard Sustainability: ASX100 slavery disclosure stron
Procurement and Supply Australasia: Australia’s modern slavery reporting standards continue to ris
Investment Magazine: Australia’s modern slavery regime puts reporting ahead of responsibilit
Anthesis: What is the Modern Slavery Act Australia and how to comply?
EDUCATION
BEX3131/ BEX5131FUNDAMENTALS OF INVESTMENT STRATEGY
The Fundamentals of Investment Strategy unit is designed to provide students with a comprehensive understanding of personal investment concepts and help them develop their own investment philosophy. One of the key features of this unit is its hands-on learning approach, allowing students to gain practical knowledge and perspectives on making informed investment decisions across various contexts. It is taught by a blend of esteemed local and international investment experts, along with MCFS staff, providing students with diverse and valuable insights. In 2024, the unit attracted significant interest, enrolling over 700 students from different faculties of Monash.
BEX3260/ BEX5260 –UNDERSTANDING MEGATRENDS
MCFS received approval from the FEC to offer another experiential unit called Understanding Megatrends. This unit is open to all undergraduate and graduate students at Monash and is planned to launch in 2025.
WORKPLACE INTEGRATED LEARNING (WIL) INTERNS, 2024
Through our internship program, MCFS helps Monash Business School students to expand their knowledge and networks and gives them valuable work experience to assist their future success.
Adriana Kristy Bouziotis
02/01/2024 13/02/2024, 20 Days
Worked on: Modern slavery project (scoring of MS statements)
Yi Chen
02/01/2024 30/01/2024, 20 Days
Worked on: Modern slavery project (scoring of MS statements)
Z ach ary Yong Chern Phung
02/01/2024 30/01/2024, 20 Days
Worked on: Modern slavery project (scoring of MS statements)
Jason Trinh
26/02/2024 09/05/2024, 30 Days
Worked on: Modern slavery project (scoring of MS statements)
Jiahui Zhong
02/01/2024 30/01/2024, 20 Days
Worked on: Modern slavery project (scoring of MS statements)
Margare t Grace Bailey
26/02/2024 03/05/2024, 30 Days
Worked on: Modern slavery project (scoring of MS statements)
Swaroop Sridhar
26/02/2024 – 03/05/2024, 20 Days
Worked on: Climate Reporting
Zejinyi Liu
27/02/2024 – 01/05/2024, 20 Days
Worked on: Climate Reporting
Benjamin Fink
26/02/2024 – 24/05/2024, 30 Days
Worked on: Data collection and modelling for the Super Funds Performance project
Zhenlin Zhang
19/06/2024 – 16/07/2024, 20 Days
Worked on: Modern slavery project (scoring of MS statements)
Alexandra Constantopoulos 22/07/2024 – 18/10/2024, 20 Days
Worked on: Modern slavery project (scoring of MS statements) & Climate Reporting
Hongfei Wang
22/07/2024 – 18/10/2024, 20 Days
Worked on: Data collection and modelling for the Super Funds Performance project
Andy Le
17/06/2024 – 12/07/2024, 20 Days
Worked on: Modern slavery project (scoring of MS statements)
Jordan Khee Huang Ong
22/07/2024 – 18/10/2024, 20 Days
Worked on: Modern slavery project (scoring of MS statements) & Climate Reporting
Gladys Quincy
17/06/2024 – 12/07/2024, 20 Days
Worked on: Modern slavery project (scoring of MS statements)
Radhika Gopalakrishna
22/07/2024 – 18/10/2024, 20 Days
Worked on: Modern slavery project (scoring of MS statements)
OUR PEOPLE
MCFS STAFF
Deep Kapur
Director, Monash Centre for Financial Studies Deputy Dean, Strategic Initiatives
Ummul Ruthbah
Deputy Director, Monash Centre for Financial Studies
Nga Pham Senior Research Fellow
Bei Cui Research Fellow
Trinh Le Research Fellow
Ka-leung Lam Research Fellow
Aditya Shankar Research Assistant
Yashdeep Dahiya Research Assistant
Ioanna Zografou Executive Assistant to Deep Kapur
AFFILIATED FACULTY MEMBERS
Simon Wilkie Head, Monash Business School Dean, Faculty of Business and Economics
KLAUS ACKERMANN
Assistant Professor, Department of Econometrics and Business Statistics
SIMON ANGUS
Associate Professor, Department of Economics
Paul Raschky Professor, Department of Economics
MARIANO PITOSH HEYDEN Professor, Department of Management
BONSOO KOO
Associate Professor, Department of Econometrics and Business Statistics
Joseph LIU Professor, Department of Software Systems and Cybersecurity
KAVEH MAJLESI Professor, Department of Economics
DANIEL MELSER
Adjunct Research Fellow, Department of Econometrics and Business Statistics
Charlie Nave
Associate Professor of Practice
SENIOR ADVISORS
Jan Ahrens Chief Executive Officer, SparkChange
Michael Aked Senior Investment Manager, Scientific Beta
Henrik Andersson Co-Founder and CIO, Apollo Capital
Frances Atkins Co-founder, givvable
Syd Bone Chief Executive Officer, CP2 Limited
Steven Carew
Head of Multi Boutique Platform, Warakirri Asset Management
Tony Dickinson Director of Wealth Management, UBS
Qiao M a Portfolio Management, Munro Partners
Andre Roberts Senior Portfolio Manager, Invesco Ltd.
Stephen Anthony Chief Economist, Macroeconomics Advisory
Winnie Wong Portfolio Manager, CareSuper
Roger Cohen Founder, C2Zero
Ajit Singh Assistant Director, Monetary and Capital Markets Department, International Monetary Fund (IMF)
Ranjit
