Our theme for the 2012 Forums is "Let's not lose the decade - Stepping up to the investment challenge". We anticipate that the global economy will continue to face significant challenges as the developed world dives deeper into the deleveraging process. Many developed economies have embarked upon programs of fiscal austerity. These, coupled with private sector debt reduction, are darkening the economic outlook. The challenges of achieving growth, while getting fiscal houses in order, are perhaps best exemplified by the Eurozone, where the potential for sovereign default and bank failures remains very real. Optimism over the ability of China and other developing nations to counteract fiscal drag in the West is falling in the face of realization that economic decoupling is not a given, and that the emerging world faces its own challenges of overheating and inflation.

Against this backdrop, investors may be forgiven for wanting to bury their heads in the sand. However, we believe that through focusing on sound investment principles and practice, investors are able to construct portfolios that can weather, or even profit, from the storm. Rather than abdicating, investor interests would be better served well through attention to the fundamental principles of:

• Diversification
• Capital preservation
• Inflation hedging
• Risk management (unrewarded and concentration)
• The use of scale
• Efficient application of active management

The 2012 Forums will explore what positive actions can be pursued in order to grasp opportunities and constrain risk over the coming period.

In previous years, we focused on the initial response to the financial crisis and the changes, threats and opportunities that arose in its immediate aftermath, as well as helping investors adjust to the new realities of a changed and uncertain world.

We look forward to seeing you there.