Key suggestions
Prioritize inflation resilience in asset allocation
Global inflation rates was recognised as the factor impacting traditional asset allocation strategies the most. To best combat the impacts of inflation, actively build portfolio strategies designed to withstand inflationary pressures, This includes incorporating robust inflation forecasting, exploring asset classes with inflation-hedging characteristics, and deploying analytical tools to understand the nuanced impacts of rising prices across different sectors.
Adopt a cautious yet strategic approach to AI
While generative AI offers promising efficiencies in areas like data augmentation and risk assessment, proceed with careful implementation. Prioritize transparency and maintain robust oversight to mitigate concerns around model bias and the potential for underestimating complex risks. Combine AI insights with experienced human judgment for optimal decision-making.
Prioritize data-driven risk management and regulatory adaptation
The increasing complexity of regulations and the need for efficient trading execution requires a strong focus on data analytics and technological solutions. Invest in tools for risk modelling, compliance automation, and real-time monitoring to navigate evolving requirements and optimize capital efficiency in a dynamic regulatory environment.
Enhance liquidity management in volatile markets
The challenges highlighted in adjusting asset allocation, particularly the unpredictability of events, underscore the critical need for robust liquidity management strategies. Employ tools for global liquidity mapping and consider bespoke investment vehicles designed for specific market conditions to ensure portfolio flexibility and resilience during turbulent periods.
