Pacific Global Investment Forum: Swinging Back to the Long Term

by Kylie Willment , Chief Investment Officer Pacific

I am delighted to host the next installment of Global Investment Forum (GIF) taking place in Sydney on 15–16 September 2025!

The theme for this year’s Forum, “Swinging Back to the Long Term,” offers us a timely opportunity to reflect on the year so far and examine the forces shaping portfolios, risks, and opportunities for the decade ahead.

We are entering a period of profound change and uncertainty, where our perspective on the future differs significantly from the past. Emerging themes are reshaping how portfolios may be impacted, and in turn, how we must fundamentally approach positioning them. As a partner to our clients’ portfolios, Mercer draws on multiple perspectives to foster collaborative discussions and address the most pressing challenges head on. Our recent Large Asset Owner Barometer (LAOB) captured this, identifying the most influential factors set to shape the macroeconomic environment over the next five to ten years.*

Artificial intelligence (AI) is Front of Mind

Artificial intelligence, including generative AI, has surged to the top of institutional investors’ agendas. In our survey, 43% of large asset owners highlighted AI as a highly influential force in the decade ahead. Mercer sees opportunities for value creation across four areas: the builders of AI models and hardware, the providers of enabling infrastructure, the companies deploying AI to boost productivity, and the disruptors transforming industries entirely.

At GIF Pacific, Manoj Saxena, Chairman of Trustwise and former General Manager of IBM Watson, will deliver the keynote address, drawing on decades of leadership in AI innovation, governance, and safety. Similarly, a dedicated panel, “AI’s evolution – Navigating breakthroughs, bottlenecks and the path ahead,” will explore both the risks and opportunities of AI adoption.

Navigating the Energy Transition

The energy transition and climate change remain firmly on investors’ minds, with 34% of survey respondents citing them as highly influential. Investors are increasingly balancing climate and biodiversity considerations in portfolios, with many reassessing sustainability beliefs and policies to reflect the interconnections between nature and climate. Allocations to climate solutions, with clearly defined impact objectives, are also gaining traction.

As highlighted by large asset owners, climate and the energy transition are expected to be influential themes shaping portfolios in the years ahead, and these topics will feature throughout this year’s program. Attendees interested in portfolios, may wish to join the breakout session, “Navigating known risks and uncertain outcomes – Actions to future-proof insurers’ portfolios,” which will provide an opportunity to share perspectives and examine how investors are approaching these considerations.

Investing in a Time of Geopolitical Tensions

Geopolitical tensions are having wide-ranging effects on economies and markets, intensifying focus on energy and resource security, supply chain fragility, supply-side inflation shocks, cyber risk, and even the weaponisation of debt. In the LAOB survey, 34% of asset owners cited geopolitics as a highly influential factor shaping the macro environment over the next decade.

In an increasingly multipolar world, emerging market strategies offer diversification through exposure to local revenues. We believe active management is the best way to capture alpha and mitigate risks, particularly as sovereign and country-specific risks are more pronounced in emerging markets. Trusted partnerships and collaborative strategies are essential to building resilient portfolios capable of weathering periods of geopolitical upheaval and market volatility. We look forward to fostering collaboration at GIF Pacific, creating space to reflect on past experiences while sharing practical, actionable insights for the future.

Delving into Australia’s Superannuation Market

No GIF in Australia would be complete without paying attention to the superannuation market. This year’s program features sessions on retirement solutions, including the breakout discussion, “Longevity unlocked – Retiring in the age of ageing.” Looking forward, the interplay between public and private markets will be central to the debate, with super funds typically allocating around a quarter of portfolios to private markets such as real estate, infrastructure, private debt, and private equity. Whether this trend continues to gather momentum will be a key focus in discussions around the long-term outlook.

Asia Pacific investors think globally, drawing strength from shared insights and bold dialogue. This year’s GIF Pacific will provide exactly the platform for that way of thinking, bringing together diverse perspectives, fostering collaboration, and offering a clear vision for the future of our industry.

I very much look forward to welcoming you to Sydney!

____

*Our research was conducted via an online survey between October 1, 2024, and January 15, 2025. Large asset owners are defined as each having approximately USD $2 billion or more in assets under ownership and include pension funds, insurers, not-for-profits (endowments, foundations, charities), wealth managers and sovereign wealth funds. The research includes the views of respondents from more than 16 countries. It is important to recognize that this information is subject to inherent limitations and uncertainties. Results may not capture all relevant factors or market conditions. These results should not be construed as personalized investment advice. This should not be construed as investment advise or solicitation of any financial instrument(s)/vehicle(s).

Important notices

References to Mercer shall be construed to include Mercer (US) LLC and/or its associated companies.

© 2025 Mercer (US) LLC. All rights reserved. Please read here: Important notices (mercer.com)