Schroders Crystal Ball 2024 Investment Outlook: Megatrends are forcing investors to change their view of the world
The megatrends of decarbonisation, demographics and deglobalisation - ‘the 3Ds’ - will continue to have a seismic impact on investors’ outlook and investment approach during 2024, the media were told at the Schroders Crystal Ball 2024 Investment Outlook Conference.
Schroders investment leaders, Johanna Kyrklund, Co-Head of Investment and Group Chief Investment Officer (CIO), Alex Tedder, Head of Global and Thematic Equities, and Nils Rode, Chief Investment Officer, Private Assets for Schroders Capital, discussed these significant 3D trends and what they will mean for investors.
Johanna Kyrklund, Co-Head of Investment and Group CIO, said:
“The 3Ds of decarbonisation, demographics and deglobalisation are forcing investors to recalibrate their view of the world. Interest rates and inflation may be stabilising but we need to get used to new ranges.
“The stakes have been raised; investors need to work harder to outpace inflation and to compete against a return on cash in the bank.”
Alex Tedder, Head of Global and Thematic Equities, said:
“In 2024 uncertainties will persist and equity markets are likely to remain volatile. As always, however, the old adage that ‘there is always a bull market somewhere’ may prove accurate. In fact, we think there are a number of areas that may prove highly profitable for global equity investors next year.
“For equity investors a change in mindset is needed. This involves more diversification across regions (including a return to unloved markets such as Japan and the UK), more focus on the implications of structural change, and renewed attention to valuation, quality, and risk.”
Nils Rode, Chief Investment Officer, Private Assets for Schroders Capital, said:
“Investors should not automatically continue with what has worked in the past. Instead, strategies and investments should be evaluated for their suitability for the new world we are entering. In conclusion, this is a time to be forward-looking and thoughtful.
“The 3D Reset, the AI revolution, and the private markets slowdown and higher global interest rates mark a new era for private assets investment. By focusing on long-term trends, diversifying portfolios, and rethinking past strategies, investors can navigate this new era successfully.”
To read Schroders’ Outlook 2024 for public markets please click here and for private markets here.
For further information, please contact:
Clarence Chen, Schroder Investment Management (Singapore) Ltd. | +65 6800 7397 | |
Larissa Nair, Penta Asia | +65 8891 5872 |
Schroders plc
Schroders is a global investment management firm with £726.1 billion (€846.1 billion; $923.1 billion) assets under management, as at 30 June 2023. Schroders continues to deliver strong financial results in ever-challenging market conditions, with a market capitalisation of circa £7 billion and over 6,100 employees across 38 locations. Established in 1804, the founding family remains a core shareholder, holding approximately 44% of Schroders’ shares.
Schroders has benefited from a diverse business model by geography, asset class and client type. It offers innovative products and solutions across four core growing business areas; asset management, solutions, Schroders Capital (private assets) and wealth management. Clients include insurance companies, pension schemes, sovereign wealth funds, high-net-worth individuals and foundations. Schroders also manages assets for end clients as part of its relationships with distributors, financial advisers and online platforms.
Schroders aims to provide excellent investment performance to clients through active management. It also channels capital into sustainable and durable businesses to accelerate positive change in the world. Schroders’ business philosophy is based on the belief that if we deliver for clients, we will deliver for our shareholders and other stakeholders.
Important information
This is prepared by Schroders for information and general circulation only, and the opinions expressed are subject to change without notice. It does not constitute an offer or solicitation to deal in units of any Schroders fund and does not have regard to the specific investment objectives, financial situation or particular needs of any specific person who may receive this. This article has not been reviewed by the Monetary Authority of Singapore.