PFS F2F Meeting-How much concentration is too much?

Session Overview: 

Amid the ongoing AI boom, the US now represents almost two-thirds of the most widely used global equity indices. Within the US, tech mega-caps—fuelled by heavy AI investment—have driven much of the market’s returns, resulting in an unprecedented concentration in a small number of companies.

There’s ongoing debate about whether these stocks are overvalued and how effectively these firms will monetise their AI spending. For long-term investors, however, the real concern is the impact this concentration can have on portfolio diversification. At the same time, the US dollar’s dominance is facing growing scrutiny, with potentially significant implications for multi-asset portfolios. We will explore whether today’s US equity concentration is a cause for concern, how it compares with history and other regions and the role of the US dollar within an increasingly multipolar currency world.

Learning objectives

By the end of this session the attendees will be able to :

• To evaluate whether global equity indices still fulfil their role to maximise diversification
• To examine the role of the US Dollar within a multi-asset context
• To understand the key considerations multi-asset investors should be aware of

Tom Morey-Investmernt Specialist-HSBC Asset Management

Tom Morey is an Investment Specialist in the UK Multi-Asset team within HSBC Asset Management in London and has been working in the financial industry since 2017. Tom is responsible for providing core, income, and sustainable investment solutions for HSBC’s global client base across Institutional and Intermediary client segments. Prior to joining HSBC in January 2025, Tom spent seven years within Aon’s fiduciary management (OCIO) investment business in London where he worked across Product Specialist roles covering Aon’s equity, fixed income and multi-asset solutions and Sales roles. Tom is a CFA charterholder and holds a First-Class honours degree (BSc) in International Management and German from the University of Bath (UK).