Investment themes and opportunities 2023
440299419
December 1, 2022
The world is currently in flux across various fronts and we believe investors should act promptly to get ahead
The world is currently in flux across various fronts. A global economic slowdown amid monetary tightening precipitated a bear market, which was then exacerbated by a “summer of disasters,” conflict, and polarization within and between countries. Governments around the world are facing sizable challenges in managing the levels of debt built up over the past decade and especially the past two years. Inflation has continued to balloon above central bank targets, causing sharp rises in interest rates. At the same time, the conflict between Russia and Ukraine heightened the problems of complex and geopolitically sensitive supply chains and led to steep spikes in energy prices, particularly in Europe.
"What if?" Should be the main question on investors' minds; in a world where potential outcomes are so dispersed, relying on the central case could be particularly dangerous. One scenario that investors should understand the ramifications of is one where we enter a higher inflation regime even after today's bout is over.
Head of Global Strategic Research
Three investment themes and opportunities for 2023
We have translated these experiences and developments into three themes for investors for 2023 and beyond, combining lessons from the 1970s with foresight fit for our new situation.
We assess current investment challenges, such as resources conflict, weak growth, spiralling inflation, monetary/fiscal tightening, in the context of the lessons learned in previous years to equip investors for whatever comes next. We provide insights into inflation, the end of “free money” and the balance of power.
Against a backdrop of both increasing interest in sustainable issues and pushback against counterproductive sustainability culture, this theme suggests that investors are unwavering in their commitment to sustainability principles to ensure a joined-up transition. We provide insights into the “resource code”, the age of engagement and the mother necessity.
This theme recognizes the importance of good governance to enable investment committees’ to take advantage of opportunistic investments, dynamic diversification and the construction of robust portfolios (including private markets). Investors in the 1970s would have been envious of the toolkit available today. We provide insights on the private eye on the case, operational alpha and dynamic diversification.
Deja new – from hindsight to foresight
Download the report to learn more about the three key themes which we believe will better position investors for success in 2023 and beyond.
Investment solutions to suit your needs
-
Implementation and OCIO
We can help you define, develop and implement your investment strategy by addressing areas such as governance, risk, sustainability and diversification. We flex our services to suit your needs and help you achieve your investment goals. -
Sustainable investments
We help you build a sustainable investment strategy that integrates environmental, social and governance (ESG) considerations; diversity, equity and inclusion (DEI) factors and seeks an optimal mix between positive change and favourable returns. -
Alternative investments
Leveraging our existing relationships with hundreds of asset managers around the world, we can help you identify and source new investment strategies, opportunities, ideas and innovations across private markets and hedge funds. -
Strategic research
Become a member of the MercerInsight® Community today to get access to strategic research from hundreds of thought leaders around the world, including Mercer and third-party publishers. It’s complimentary and easy to join. -
Asset manager research
By subscribing to MercerInsight® you can gain access to data, analytics and our forward-looking research on asset managers and thousands of investment strategies across both public and private markets. -
Managing investment risk
Our Mercer Sentinel team can help you conduct due diligence and mitigate operational risks across your portfolios and strategies. We assess asset managers, custodians and other service providers to help you deliver on your governance objectives.
Related solutions
Related insights
Important information
Before you access this page, please read and accept the terms and legal notices below. You’re about to enter a page intended for sophisticated, institutional investors only.
This content is provided for informational purposes only. The information provided does not constitute, and should not be construed as, an offer to sell, or a solicitation of an offer to buy, any securities, or an offer, invitation or solicitation of any specific products or the investment management services of Mercer, or an offer or invitation to enter into any portfolio management mandate with Mercer.
Past performance is not an indication of future performance. If you are not able to accept these terms and conditions, please decline and do not proceed further. We reserve the right to suspend or withdraw access to any page(s) included on this website without notice at any time and Mercer accepts no liability if, for any reason, these pages are unavailable at any time or for any period.