Institutional Asset Manager Newsletter 13.12.24

2024 – a year of political change

Welcome to the final newsletter of 2024 and as we approach the end of the year, the world looks quite different from the one we saw at the start.
Major political change has been the theme of the year with half of the global population going to the polls.
Geopolitical tensions have also worsened, notably in the Middle East, while the Russia/Ukraine conflict shows no sign of abating.
Against this backdrop, 2024 marked one of the weakest growth periods in recent decades, underscoring difficulties in achieving the UN Sustainable Development Goals (SDGs) and a global economy adapting to post-pandemic realities
But it wasn’t all doom and gloom. Despite headwinds, the global economy avoided a recession and managed a soft landing. Growth, while modest at 2.4 per cent, reflected surprising resilience in the face of geopolitical and financial pressures.
Meanwhile, many countries saw inflation rates stabilise or decline as central banks' monetary tightening began to take effect. This eased cost pressures for businesses and households, particularly in advanced economies.
And despite the difficulties in meeting the SDGs, significant progress was made in renewable energy projects and technology-driven solutions for climate change. This not only reduced reliance on fossil fuels but also created significant investment opportunities. Indeed, approximately USD644 billion was directed towards new renewable energy capacity including large-scale solar, wind projects, and innovations in battery storage and hydrogen energy.
Looking to 2025, these positive trends are set to continue. Growth is expected to stabilise at 3.3 per cent, while central banks are beginning to ease monetary policies after a period of high interest rates, contributing to potential soft landings in key regions like the US and Europe.
However, there is no ignoring the troubles in the Middle East and Ukraine - and the potential impact of trade tariffs imposed by the US - which all add to economic and geopolitical uncertainty in the years to come.
Turning to industry news, we’d like to extend huge congratulations to all the winners at this year’s Institutional Asset Manager Service Provider Awards.
Speaking at the awards event in London on 5 December, Beverly Chandler, Institutional Asset Manager’s managing editor, said: "The asset management sector has shown resilience throughout 2024, amidst challenging economic and geo-political headwinds…many congratulations to our winners in the room and around the world in these awards, you are the backbone of an increasingly competitive industry."
You can find a full list of winners here.
Finally, we’d like to wish you all a wonderful festive break and look forward to welcoming you back in the New Year.

Gill Wadsworth, Editor, Institutional Asset Manager
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