March edition: New research on AI; Learn Share and Connect Festival; podcasts LIVE from the Global Investment Forum and meet Marieke de Roo.

How is artificial intelligence being used within the investment industry?

We wanted to find out how AI is being used in the investment industry, so we asked asset managers about their current use of AI and their plans for the future. We also wanted to know how they think AI will impact their investment strategies and product development. Our research was conducted on 150 asset management managers from various asset classes from December 2023-January 2024.

Here’s what we discovered:

? AI is being used by investment managers far beyond the traditional cohort of quantitative managers.

• Mercer’s 2024 AI in Investment Survey shows that 91% of asset managers are either currently using or planning to use AI as part of investment strategy or asset class research.

?? Asset managers expect AI to drive value creation to varied extents across asset classes and sectors.

• At an asset class level, consensus is clearest on the opportunity for AI-driven value creation in equities, hedge funds, and digital assets.
• At a sector level, the perceived opportunity in different industries is significantly dispersed, indicating the scope for potential alpha generation.

? Managers are optimistic about AI’s potential to impact the economy and markets.

• Managers currently using AI expect the integration of these capabilities to deliver positive economic benefits, both in terms of GDP growth and US$ contribution.

???Asset managers note several risks and barriers which currently obstruct wider adoption of AI.

• Among the challenges cited by asset managers, the quality and availability of data, ethical and legal considerations, and the prospect of divergent regulation emerge as key issues preventing broader use of AI tools.

??Managers are investing and allocating resources to strengthen their AI capabilities.

• Over the last three years, asset managers have focused investment on developing machine learning (70%), natural language processing (64%), and generative AI (57%) capabilities, while four in ten (41%) have employees working solely on AI projects and development.

Download Mercer Investments’ AI integration in investment management 2024 global manager survey for a full assessment of the findings.

Learn, Share, and Connect!

What started as an adaptation during times of restrictions is now a virtual festival that takes place April 22-26.

Asset managers around the world leverage a vast amount intellectual capital and in-depth experience to capture opportunities and overcome challenges on behalf of asset owners. The Learn, Share and Connect Festival (LSC Festival) gathers some of the best and brightest of these asset managers to present their forward-looking insights and innovations, and to share with asset owners how they’re addressing key trends and themes in global financial markets.

We are highlighting three themes this year:

1??Dispersion, dislocation

• Alpha generation across private and public market
• Managing higher cost of capital and lower liquidity
• The role of unique diversifiers in a world of elevated geopolitical risks

2??Dynamics of super-cycles

• Evolution of structural and cyclical inflationary forces
• Impact of lasting supply/demand imbalances
• Extraordinary debt levels shifting power from borrowers to lenders

3??Mega trends

• Incorporating megatrends into strategy setting
• Opportunities in energy transition and nature assets
• Tomorrow’s world: where will the next wave of innovation come from

Asset allocators/owners are invited to find and register for the sessions that you want to attend.

Recorded LIVE from the Global Investment Forum in Dublin…. the Critical thinking, Critical issues podcast series!

For those unable to travel to Dublin, Ireland for the Global Investment Forum that took place March 19-21, we recorded captivating discussions from a stellar lineup of speakers right after their stage appearances, to bring you timely and insightful podcast episodes:

?? Investing in an era of misinformation:

In this episode, host Mark McNulty ???? together with guests, Rich Nuzum, CFA and Jo Holden Holden, explore the impact of misinformation and disinformation on the investment landscape. Identified as the number one risk in the World Economic Forum's Global Risks Report, it's a topic that demands our attention.

?? Navigating the Age of Agility:

Mark McNulty ???? hosted Garvan McCarthy and Jo Holden in discussing the theme for this year’s Forum "An Age of Agility." with strategies and insights that can potentially help investors. Tune in to discover how to adapt in today's ever-changing investment landscape.

?? Exploring agile portfolios with Generali:

In this episode, Marieke de Roo is joined by Francesco Martorana, CFA, CAIA, Chief Investment Officer at Generali and Mercer colleague David Morrow, CFA to unpack what it means to build agile portfolios in today's insurance landscape and discuss how insurers can navigate the ever-changing market dynamics and seize potential opportunities.

?? Unlocking the power of Private Markets:

Eimear Walsh sat down with David P. Scopelliti and Michael Butler to discuss the most compelling opportunities in the private markets landscape and what it means for different types of investors. The growth of private markets presents a multitude of possibilities, but potential success can hinge on adaptability and the ability to seize the right opportunities.

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Subscribe to the Critical thinking, Critical issues podcast series on Apple , or wherever you get your podcasts to be notified when a new episode is released.

This month, we are pleased to introduce Marieke de Roo , Regional Commercial Leader, Financial Institutions Group at Mercer. In her role, Marieke works closely with wealth managers, family offices, foundations & insurance companies, to support their investment needs in various ways. Her primary focus is on achieving better outcomes for clients and optimizing their investments for organizational purposes.

With over 20 years of experience, she has worked with clients in most European countries, leveraging the full expertise of Marsh McLennan to address their challenges. Through a consultative approach to sales, she has built a portfolio of long-standing clients earning their trust. ?Marieke is fluent in five languages and began her career with Standard & Poor’s in Paris before relocating to London in 2002 and joining Mercer Wealth in 2013.

Outside of work, Marieke has a passion for art exhibitions and enjoys traveling to off-the-beaten track places with her family. In her free time, she loves running and reading/listening to podcasts.

Be sure to connect with Marieke on LinkedIn and “ring her bell” to keep up with her thought leadership and insights.

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