Remko van der Erf, Co-Head Alternative Strategies is an optimist. Whereas some investors are worried about the prospects for 2021, he mainly sees opportunity. That’s hardly surprising in a segment that tends to do well against a backdrop of volatility, diversity and restructurings. Van der Erf defines success as ‘positive returns with a low correlation’.
The real estate market offers many opportunities to add value
Coronavirus has led to a considerable divergence in the fortunes of the different real estate sectors in 2020, but what should investors expect next year? We consider some of the trends to look out for.
The economy is rapidly becoming sustainable and digital
What do our equity portfolio managers expect in 2021 and beyond? We spoke to the fund managers of our small-cap, dividend and sustainable equity strategies and our Global Impact Pool to find our. Optimism reigns, especially over the longer term : as they say, ‘We already hold tomorrow’s winners in the portfolio.’
Macro and Markets
When writing an outlook, it’s always tempting to say there’s a great deal of uncertainty. After all, the future is always uncertain. But where we normally still have a grip on relationships between economic variables such as growth, inflation, interest rates or valuations, now we’ve got the coronavirus to contend with on top of all that.
When it became clear that the coronavirus was morphing from a local Chinese epidemic into a global pandemic in early 2020, it was virtually impossible to forecast its exact impact on the global economy. For this reason, we set out a number of different possible scenarios of what might happen, which also considered the potential investment opportunities that might arise as a result. The scenarios ranged from one of rapid recovery to another of long-term malaise. All, of course, came with the necessary caveats.
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