Two secular forces are reshaping the future of investing. One is the rise of artifcial intelligence as a new heartland technology capable of disrupting every industry. The other is growing societal concern about global warming, which is set to transform the ecosystem of today’s fnancial markets.
This report asks: How are artificial intelligence and climate change currently perceived in terms of their future opportunities and risks? What specific investment issues do they give rise to and what solutions are being or will be adopted? In the process, how are the asset allocation approaches changing and what have the outcomes been so far? How will the asset management industry be reshaped as it advances into the age of mega trends?
The method used to answer the questions relied on two strands: a literature survey of about 400 widely respected research studies; bolstered by structured interviews with 45 CIOs, investment strategists and portfolio managers among pension plans, asset managers and pension consultants in 16 countries. They are Australia, Canada, China, Denmark, Finland, France, Germany, India, Japan, Singapore, South Korea, Sweden, Switzerland, the Netherlands, the UK and the US.
This research report looks at how they are already impacting asset allocation and what actions are being taken by investors worldwide to future-proof their portfolios. The report highlights the key trends, the challenges they give rise to and the actions that have been taken in response so far.