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Insights

2023 Outlook: Sustainability & Impact

We expect meaningful shifts in net zero and other sustainable and impact strategies toward more impactful implementation approaches. In line with this, we expect allocations to diverse managers to rise, as greater numbers of investors embrace stated investment policy objectives. Approaches to Climate & Net Zero Shift from Window Dressing to Real Change in 2023 […]

December 2022

2023 Outlook: Interest Rates

We expect interest rates will increase in many developed markets, as implied by market pricing. But we think the Fed will hold rates in restrictive territory for longer than expected. We don’t believe any increases will prompt another European sovereign debt crisis. US Federal Reserve Pauses, but Does Not Pivot in 2023 Celia Dallas, Chief […]

December 2022

2023 Outlook: Equities

We expect global earnings growth will be below average next year, as prior interest rate hikes increasingly bite. With this backdrop, we expect value equities will outperform, Chinese equity underperformance will correct, and Healthcare may present an overweight opportunity. Global Earnings Growth Will Be Below Average in 2023 Kevin Rosenbaum, Global Head of Capital Markets […]

December 2022

2023 Outlook: Credits

We expect most liquid credits will generate higher returns in 2023 relative to 2022, given the better yields on offer. We also see private credit as offering opportunities, particularly in secondary trading. Liquid Credit Markets Should Generate Higher Returns in 2023 Wade O’Brien, Managing Director, Capital Markets Research Many high-yield (HY) borrowers are prepared for […]

December 2022

2023 Outlook: Private Investments

We expect the cyclical backdrop to impact private equity and venture capital returns, ultimately influencing recently invested vintages the most. That said, we think the 2023 vintage could perform well. Private Equity Will Sail in Stormy Seas in 2023 Keirsten Lawton, Co-Head of US Private Equity Research, and Caryn Slotsky, Senior Investment Director, Private Investment […]

December 2022

2023 Outlook: Hedge Funds

We expect macro hedge funds to perform well, given our expectations that market volatilities will remain elevated and our view that inflation risks are skewed to exceeding expectations. We expect long/short managers will benefit from positive short rebates. Continued Inflation Uncertainties Underpin Our Optimism in Macro Hedge Funds in 2023 Meisan Lim, Managing Director, Hedge […]

December 2022

2023 Outlook: Real Assets

We expect energy equities will be resilient due to underinvestment in recent years. So, we don’t think investors should underweight this economic sector in the near term despite some long-term headwinds from decarbonization efforts. In real estate, we think offices may finally offer some attractive opportunities for the discerning investor. Energy Equities at Benchmark Weights […]

December 2022

2023 Outlook: Currencies

We expect the US dollar to remain firm but with limited appreciation relative to 2022, given our view that it is near the end of its incredible multi-year run. We believe gold’s performance will improve and digital assets, in general, will not surpass prior highs, many of which were set in 2021. 2023 Will Not […]

December 2022