Schroders Crystal Ball 2024 Investment Outlook: Megatrends are forcing investors to change their view of the world

11-30-2023
Nils Rode

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:

Jennifer Manser, Schroders

 

212.632.2947

Jennifer.Manser@schroders.com

 

Chaneigh Bernard, Prosek

 

646.818.6461

cbernard@prosek.com

Note to Editors

To view the latest press releases from Schroders visit: Newsroom - Media Relations - Schroders

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.Issued by Schroder Investment Management Limited. Registration No 1893220 England. Authorised and regulated by the Financial Conduct Authority.  For regular updates by e-mail please register online at www.schroders.com for our alerting service.

The views and opinions contained herein are those of Schroders’ investment teams and/or Economics Group, and do not necessarily represent Schroder Investment Management North America Inc.’s house views. These views are subject to change. This information is intended to be for information purposes only and it is not intended as promotional material in any respect.

Please consider a fund's investment objectives, risks, charges and expenses carefully before investing. The Schroder mutual funds (the “Funds”) are distributed by The Hartford Funds, a member of FINRA. To obtain product risk and other information on any Schroders Fund, please click the following link. Read the prospectus carefully before investing. To obtain any further information call your financial advisor or call The Hartford Funds at 1-800-456-7526 for Individual Investors.  The Hartford Funds is not an affiliate of Schroders plc.

Schroder Investment Management North America Inc. (“SIMNA”) is an SEC registered investment adviser, CRD Number 105820, providing asset management products and services to clients in the US and registered as a Portfolio Manager with the securities regulatory authorities in Canada.  Schroder Fund Advisors LLC (“SFA”) is a wholly-owned subsidiary of SIMNA Inc. and is registered as a limited purpose broker-dealer with FINRA and as an Exempt Market Dealer with the securities regulatory authorities in Canada.  SFA markets certain investment vehicles for which other Schroders entities are investment advisers.

For illustrative purposes only and does not constitute a recommendation to invest in the above-mentioned security/sector/country.

Schroders Capital is the private markets investment division of Schroders plc. Schroders Capital Management (US) Inc. (‘Schroders Capital US’) is registered as an investment adviser with the US Securities and Exchange Commission (SEC).It provides asset management products and services to clients in the United States and Canada.For more information, visit www.schroderscapital.com

SIMNA, SFA and Schroders Capital are wholly owned subsidiaries of Schroders plc.