Watch the Global Investment Forum 2024 key takeaways video:
Exploring key investment themes
The forum explored many important investment themes across various sessions, including:
Taking stock of a changing world: The Rt. Hon. The Lord Hague of Richmond, William Hague, Former UK Foreign Secretary provided a comprehensive analysis of the geopolitical landscape, focusing on the US, China, and the eurozone. He highlighted the heightened risks of conflict and their potential implications for commodity markets and international trade. Lord Hague also emphasised the transformative potential of AI to drive a productivity boom.
Investing in a shifting economic landscape: Peter Branner, Chief Investment Officer, hosted a panel of experts in real estate, fixed income, equities, alternatives, and global macro research. The discussion offered an in-depth review of the macroeconomic outlook, focusing on inflationary trends, China, and the US.
Fixed Income: opportunities in 2024 and beyond: Rene Buehlmann, Chief Executive Officer at abrdn Investments, spearheaded a discussion on fixed income, identifying where the opportunities lie within emerging markets, developed markets, and private credit.
"It was truly fantastic to get together, and exchange market insights and investment ideas. I'm already looking forward to our next event."
xavier meyer, chief client officer and ceo of uk and emea
Key takeaways
After the main sessions, our abrdn experts discussed their respective areas of specialism with clients in smaller breakout sessions. Here are some of the key takeaways.
Emerging markets:
With core inflation nearing pre-pandemic levels, a rate-cutting cycle is nearly upon us. Despite some concerns, emerging markets stand to benefit from lower debt burdens, increased ‘smart money’ investments, and capital expenditure aligned to ‘going green’ initiatives. Supply chain de-risking and a positive economic outlook will further bolster this dynamic asset class.
Real estate:
Institutional investors continue to shy away from European living assets – but change is coming thanks to a convergence with the more mature US market structure. Living assets can become a significant opportunity akin to the logistics boom in the previous cycle. Through sustainable and affordable housing, including the burgeoning purpose-built student accommodation sector, real estate can positively impact communities and the environment while achieving strategic growth.
Smaller companies:
Central banks are approaching the end of their rate-tightening cycles and rate cuts are on the way. Historical data suggests small- and mid-cap companies are poised to outperform. This is thanks to their agility, increased investor risk appetite and a record start to M&A activity that’s expected to accelerate. Current valuations versus large caps are also attractive. We favour Europe and the UK, prioritising quality growth companies. These firms are characterised by robust profitability, skilled management teams, and sound ESG standards.'
Private credit:
We prefer investment-grade, asset-backed mid-market loans, with an emphasis on commercial real estate and fund finance. The market here is less crowded, with assets offering enhanced yield, downside protection and predictable cashflows. We prioritise assets with strong or improving ESG credentials, primarily in the UK, Europe, and selective US sectors.
Infrastructure:
The energy transition will require £110 trillion of investment by 2050* to decarbonise the global energy supply. Infrastructure investment will play a crucial role in this transformation, propelled by megatrends such as population growth, rapid technological advancements, and the increasing need for private capital.
*UBS, March 2021 and abrdn 31 December 2023 (municipal debt and listed equity). Past performance does not predict future returns.
Investment involves risk. The value of investments, and the income from them, can go down as well as up and you may get back less than the amount invested.