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2021 Investment Outlook

As you look ahead to 2021, we invite you to explore actionable insights and investment trends across all major asset classes curated from our marketplace of ideas — more than 800 investors strong.

 

Views expressed are those of the authors and are subject to change. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed. For professional or institutional investors only.

Seeing a surer path to a safe and effective vaccine, members of our multi-asset strategist and macro teams are more confident in an economic recovery in 2021, and believe this could be the catalyst for a rotation from growth- to value-oriented exposures. Our fixed income team is likewise moderately pro-cyclical, favouring higher-yielding sectors. Even as we hope to put the pandemic in the rearview mirror in 2021, we believe it has accelerated and reinforced many long-term, seismic shifts in how we live and work, creating secular opportunities across asset classes worthy of closer examination.

 

2021 ESG & Sustainability Outlook

Events of 2020 have brought sustainable investing themes into high relief, says Director of Sustainable Investment Wendy Cromwell. Our impact investors look for the solutions that matter most in the COVID era. Our Climate Research Team works to more fully understand and value the advancing risks and high costs of climate change. And our ESG Research Team pursues deeper engagement on executive compensation and diversity, equity and inclusion topics.
Impact investing: looking for solutions that matter most
Climate research: drawing connections and going deeper
ESG and stewardship: more opportunities for engagement

2021 Alternative Investment Outlook

Alternatives Team Members Dennis Kim and Lori Whiting see mounting evidence that risk assets are becoming more illiquid in risk-off environments and examine implications for alternative strategies. Private Equity Principal Matt Witheiler observes a sense of cautious optimism among late-stage private companies, which is reflected in deal volume, IPO activity and valuations. And Investment Director A.J. McGuire examines secular trends that are supportive of climate-focused entrepreneurs.
Vicious liquidity cycles, volatility and the role of alternative investments
Cautious optimism in private equity markets
On a mission: the disruptive force of private companies seeking climate-change solutions

2021 Fixed Income Outlook

More positives than negatives
Despite persistent risks and challenges in today’s extraordinary environment, Fixed Income Portfolio Managers Rob Burn and Campe Goodman see areas of value and opportunity for fixed income investors. Heading into 2021, their risk posture is moderately pro-cyclical, they favour US bank-loan and EM corporate-debt sectors and they urge investors to stay long credit and maintain some cash exposure.

 

2021 Equity Outlook

We ask whether equity factor extremes signal risk; examine the role of ESG in identifying durable businesses; look at value investing from traditional, contrarian and quality perspectives; explore investable themes across emerging markets; and highlight innovation-driven opportunities accelerated by the global health crisis.
Are equity factor extremes signalling risk ahead?
The growing importance of ESG integration
Perspectives on value investing
EMs: with great challenges come great opportunities
Harnessing disruption: highly investable innovations

 

2021 Multi-Asset Outlook

Is the rotation for real?
Will 2021 bring another roller-coaster ride for markets? Will there be a catalyst for value to outperform? Is there still room for credit to run? Nanette Abuhoff Jacobson and Daniel Cook offer their investment thesis for the coming year, and consider the asset allocation implications.
Turn the page: a thematic playbook for 2021
Nick Samouilhan lays out three areas of secular investment opportunity that he finds attractive heading into 2021: sector and thematic equity, opportunistic fixed income and alternatives.

 

2021 Global Economic Outlook

A great-power world
Great-power competition, climate change adaptation, and COVID-19 recovery: Thomas Mucha describes the forces he believes will shape macro and market events in 2021.
A temporary crisis but a permanent fiscal response?
After a decade dominated by central bank liquidity, John Butler thinks that fiscal policy is likely to take centre stage.
Brexit: prepare for more policy stimulus
Whatever the outcome of the Brexit negotiations, John Butler believes that there will probably be more monetary and fiscal stimulus than the market is expecting.