Can hipsters working in Bali or IT developers in Jaipur cause cities to become less relevant?

We are familiar with the investment risks presented by fossil fuel companies having ‘stranded assets’ – assets that are written-off and never sold – in their balance sheets as economies transition to a lower carbon world. Can this risk also apply to cities? Does the world still need cities when technological advancements and demographics are changing how we live?

The recent equity forum saw members of AMP Capital’s Global Equity team debate, in a traditional ‘for’ and ‘against’ format, whether cities were in peril of becoming the next stranded asset. Attendees were invited to cast their vote for the most compelling argument to determine the winning side.

We summarise the key points made by each speaker and note that while both sides contributed lively, pragmatic and thought-provoking insights, there could only be one winner. The result of the audience vote follows the summary.


Important note: This document is provided for Australian residents and residents of countries where it would not be prohibited or against local laws to provide the information in this document (“Permitted Jurisdictions”). This document is not provided to any person who is a resident of any other country. The information in this document is only available to persons accessing the document from within Australia or another Permitted Jurisdiction. While every care has been taken in the preparation of this document, AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497) makes no representation or warranty as to the accuracy or completeness of any statement in it including, without limitation, any forecasts. Past performance is not a reliable indicator of future performance. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. An investor should, before making any investment decisions, consider the appropriateness of the information in this document, and seek professional advice, having regard to the investor’s objectives, financial situation and needs. This document is solely for the use of the party to whom it is provided and must not be provided to any other person or entity without the express written consent of AMP Capital. © Copyright 2016 AMP Capital Investors Limited. All rights reserved.