LQG 2025/10/14 – 18:30 – Instability: Debt, Inflation and AI’s Impact on Investing – Inigo Fraser Jenkins – IP *OLO* Hybrid

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Investors face a new regime. Macro mega-forces including demographic change, public debt, climate and deglobalisation indicate higher inflation and lower growth. New portfolio strategies and designs are required to protect purchasing power.

2025/10/14 – In-Person and On-Line

Instability: Debt, Inflation and AI’s Impact on Investing

Seminar by Inigo Fraser Jenkins

The LQG is very grateful to our hosts of this seminar:  Bloomberg

Instability: Debt, Inflation and AI’s Impact on Investing

Inigo makes the case that investors face a new regime vs that which has held since the early 80s. Macro mega-forces that are set to act in concert to point towards higher equilibrium inflation and lower growth: Demographics, public debt, climate and deglobalisation. AI offers a potential offset, but attempts to forecast productivity have historically failed, and assuming high productivity growth from AI implies a very negative view on employment.
This prognosis is not bearish, but it does require a significant shift in asset allocation and portfolio design. This implies a higher allocation to real assets (including public equities and private markets) even if they also face significant headwinds, and a lower allocation to long duration debt.
The more fundamental change required is one of governance. We suggest the real focus should be the protection of purchasing power, rather than maximizing return/risk.
In the process we discuss how should the definition of risk change?
Does backtesting work when the rules are different?
What is the role of active vs passive investing?
What is the role of crypto in institutional portfolios?

About the Speaker

Inigo Fraser Jenkins

Co-Head—Institutional Solutions

AllianceBernstein

Inigo Fraser Jenkins is Co-Head of Institutional Solutions at AB. He was previously head of Global Quantitative Strategy at Bernstein Research. Prior to joining Bernstein in 2015, Fraser Jenkins headed Nomura’s Global Quantitative Strategy and European Equity Strategy teams after holding the position of European quantitative strategist at Lehman Brothers. He began his career at the Bank of England. Fraser Jenkins holds a BSc in physics from Imperial College London, an MSc in history and philosophy of science from the London School of Economics and Political Science, and an MSc in finance from Imperial College London.