Step into the captivating world of macroeconomics, where we’ll discuss the latest insights into Central Banks’ pathways and the elusive concept of a soft landing, all while navigating the complex web of geopolitical risks. Get ready to uncover the exciting implications for markets and investment strategies as we arm advisers with deep insights into the implications behind the headlines.

Global equities rebounded in 2023 from the worst annual performance since the Global Financial Crisis. The strong performance, however, masked an underlying trend that global equities indices are becoming increasingly concentrated, and returns are becoming increasingly driven by Developed Markets Large Caps stocks, which have seen Emerging Markets and SMID Caps indices materially underperform. In fact, during 2023 there was a 14 and nine percentage point difference between the returns of the MSCI World Index, and the Emerging Markets and SMID Caps indices respectively, and by year-end the so-called ‘Magnificent Seven’ made up 20% of the index – with Apple and Microsoft making up almost 10%! During this session, our panellists will highlight the risks and opportunities in their respective sectors, and provide their views on how investors should be positioned to prosper during these volatile times.

Over the past two years, we have witnessed heightened volatility in the fixed income market. 2022 has proven to be one of the most challenging years on record for fixed income investors amid central banks’ aggressive rate hikes to curb inflation. This was followed by a strong recovery towards the end of 2023 as the US Federal Reserve paused on interest rate hikes and signalled potential rate cuts in 2024.

Looking ahead to 2024, bond market volatility is expected to persist driven by ongoing economic and geopolitical uncertainty. The trajectory of monetary policies and economic growth will remain pivotal in influencing bond prices. While central banks appear largely done with raising interest rates, rates are likely to remain higher for longer due to persistent inflationary pressures stemming from structural factors such as deglobalisation, diminished labour force participation rates, and escalating energy prices. Despite the market consensus of a mild economic slowdown, there is a potential risk of a more pronounced economic slowdown resulting from the delayed impact of policy tightening.

Volatility typically brings greater performance dispersion across the fixed income spectrum encompassing sovereign bonds, investment grade credit, high yield bonds and securitised assets. Against this backdrop, the diverse fixed income markets may present an array of opportunities with the potential to weather the portfolio in different economic scenarios. Our panel of fixed income experts will provide valuable insights on navigating the bond market volatility.

Net Zero Emissions in The Real World is a central challenge for stakeholders who are involved in the transition from fossil fuel to renewable energy.

Join Portfolio Manager, Will Baylis of Martin Currie Australia, a Franklin Templeton company, at the Lonsec Symposium this May, for a compelling panel discussion alongside representatives from select ASX 200 Listed Companies. This session will delve into the actionable strategies and collaborative efforts needed to transition from fossil fuels to renewable energy sources effectively.

The panel will explore the role of transition fuels, carbon offsets, and the importance of innovation in project delivery and infrastructure, while highlighting the significance of community engagement and obtaining a social license to operate. This discussion aims to realign our expectations on the achievability of net zero carbon emissions and underscore the urgency of immediate action to mitigate future consequences.

For most of the recent past, asset allocators have been able to rely on equities and bonds to deliver relatively good returns with low risk, and further the negative correlation between equities and bonds as a primary source of diversification. With higher interest rates, ongoing geopolitical risks, and volatility and dispersion returning to markets, alternatives are becoming a more essential allocation to build portfolio resiliency.

That all said, alternatives have had a challenging period for much of the post GFC period with liquid alternatives struggling in the low interest rate, low vol environment. On the other hand, private assets, which have been the mainstay of institutional investors but are now being democratised for retail investors, have generally performed strong. What is the role of alternatives in portfolios, is there a place for both liquid alternatives and private assets, does the complementary risk and liquidity characteristics of liquid alternatives and private assets may make for a balanced and outcome oriented alternatives allocation.

Is it time for alternatives to enter the mainstream?

This session is tailored for financial advisers seeking clarity on the evolving landscape of infrastructure investment. Delving into critical debates, it will explore the definition of infrastructure assets in today’s market, including emerging sectors like data centres and green energy. The discussion will also address whether infrastructure warrants its own category or belongs within REITs, alongside considerations of benchmarking, valuation methodologies, and the balance between listed and unlisted exposure. With a focus on navigating liquidity challenges and assessing ESG considerations, attendees will gain insights into optimising infrastructure allocations in a higher-for-longer environment while effectively managing emerging risks such as climate change.

Hear from General Manager, Consulting at VBP – Sue Viskovic on what the latest research reveals about the link between Managed Account uptake and profitability, pricing and efficiency. What are the most successful firms doing to supercharge their businesses, and what are some of the obstacles that stand in the way of business success when it comes to implementing a managed account strategy?

We will also hear from Lonsec CEO – Michael Wright and Head of Wealth for BlackRock Australasia – Chantal Giles on what’s being seen on a global scale when it comes to shifting the value proposition of advisers away from stock picking, as well as delving into a new partnership between both of these businesses, aimed at solving some of the obstacles advice businesses are facing when it comes to Managed Accounts.

The financial services industry is at a tipping point. Artificial intelligence (AI) is no longer a futuristic concept, it’s a transformative force with the potential to reshape traditional businesses and unlock unprecedented opportunities. This session transcends the headlines, delving into both the practical applications of AI in today’s dynamic financial services market and how investors can best seek to exploit the opportunities on offer.