Swing state: investment themes and opportunities in 2025 and beyond

Critical thinking

In this episode of Critical Thinking, Jo Holden, Global Head of Investment Research at Mercer, is joined by Nick White, Global Strategic Research Director, and Matthew Scott, Strategic Research Principal, to explore Mercer's "Themes and Opportunities 2025" paper, specifically focusing on this year's theme, "Swing State." This concept reflects an economy in transition, driven by shifts in monetary policy, supply chain dynamics, and technological innovation. These forces require investors to adjust their strategies, embracing diversification and preparing for a broader range of scenarios. Key takeaways include:

• Private Markets De-Siloing: The report highlights changes in private market dynamics, with slower distributions and longer holding periods. There is a growing case for emerging markets (EM) over US investments, signaling the need for broader diversification.
• The security of everything: The interconnection between security and sustainability, rising dissatisfaction in institutions, with increasing political instability requiring careful risk management.
• Circular Economy: The importance of the circular economy, noting its potential to create new investment opportunities as businesses increasingly adopt sustainable practices to minimize waste and maximize resource efficiency.

Citations: Investment consultant of the year & Thought leadership paper on sustainable investing, Global: Mercer :: Environmental Finance
Completing the Picture - How the circular economy tackles climate change.pdf
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