Position your portfolio for the ideas that are already shaping tomorrow. Structural shifts are transforming how and where money is being invested. Understanding and addressing these changes is crucial.
That’s where our investable themes – China, rates, sustainability and disruption – can guide you.
By providing new perspectives, these themes can help you think beyond the traditional ways of classifying investments. They offer important ways to make sense of and navigate some of the complex forces that will drive tomorrow’s returns.
They represent solutions for the future – and a case for action today.
To stay focused on their goals, investors may need to reposition portfolios to factor in rising interest rates, shifting inflation expectations, and fluctuating exchange rates. Geopolitical turbulence is creating new flash points. Volatility is set to be a hallmark of the coming period, with countries and regions on different paths in terms of growth and monetary policy. Investors may struggle to find safe havens and, with only limited visibility of how markets will develop, expectations could be upended. But we are also confident this environment will create opportunities. Diversification is key – across public and private markets – and we have the ideas and expertise to help you navigate the complexity.
We think it’s time to disrupt traditional definitions of “disruption”. Once a story for the tech sector, disruption is now all-encompassing. And while technology and AI may be driving many of the changes, this new wave of disruption could shape every aspect our daily lives. The implications will be profound and exponential – and many of the themes arising from Covid-19 will likely be permanent fixtures.
Sustainable investing is at an inflection point. Interest in sustainability has turned into significant investments, and these inflows rightly come with increased expectations about impact and measurement. Investors are at different stages of their sustainability journey and have different ambitions. We’re focused on bringing sustainable investing into the real world, with a focus on pragmatic approaches and the pathways that support real progress.
China is changing. Its economic growth is increasingly driven by innovations in technology, data and science. Its capital markets are developing with a similar energy, on their way to becoming an integrated part of the global financial system. Understanding the country’s unique political context and strategy is essential to grasp the opportunities as an investor and participate in this unique investment story.
The past year has been challenging for the technology sector – but what
will 2023 bring? Even as fears of a global slowdown depress sentiment, we
think opportunities will emerge, particularly for long-term investors focusing
on tech-led themes such as artificial intelligence (AI), the metaverse and
cybersecurity that are growing increasingly pervasive and transformative.
Last year was challenging for Chinese equities, as the market was buffeted by Covid lockdowns and a struggling property sector. Investors will be hoping the upcoming Year of the Rabbit is more rewarding, as the macro storm clouds clear, business confidence returns, and key sectors look set to continue to benefit from the government’s drive to increase China’s self-sufficiency.
With a race against time to save many of the world’s species from extinction, countries around the world agreed a plan at the recent COP 15 meeting to respond to the conservation crisis. But the agreement’s success depends on strong collaboration by all stakeholders, with a focus on aligning financial flows with global biodiversity targets and tackling climate change and biodiversity loss as two parts of the same crisis.