As a notable highlight of our 20th anniversary, EquitiesFirst enlisted Institutional Investor Custom Research Lab (“II Research”) to co-produce an extensive study providing insights into how the global investment community is responding to dramatic shifts in the macroeconomic and geopolitical environment.

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This report captures the views of more than 300 investment decision-makers at a wide range of asset management firms, foundations, pensions and endowments.

Despite prevailing uncertainty, our research found that investors are broadly optimistic about equities over the next two years. The survey also revealed the common concerns and regional differences that are reshaping investment strategies, as well as how savvy institutions are looking to benefit from ongoing volatility and emerging opportunities.

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KEY FINDINGS

5.9%
The mean expected return on equities in 2023

Investors expect stocks to regain ground after double-digit losses in 2022. The base case forecast is positive across developed and emerging markets in North America, Europe, Asia-Pacific and globally.

63%
of investors see inflation and interest rates as the biggest macroeconomic drivers of equity performance

Rising prices and rising interest rates top the list of macro considerations globally, but there are regional differences. Investors focused on North America are especially concerned about interest rates (84%) and inflation (79%), while those focused on Europe’s developed markets are most worried about the impact of energy costs.

70%
singled out climate change as the most pressing geopolitical risk

The impact of global warming is the top geopolitical concern for investors, ranking ahead of the war in Europe (65%) and rogue cyber-attacks (52%). Investors focused on North American equities are notably less concerned about the impact of climate change than the global average.

67%
of investors see smart beta strategies as a preferred investment strategy over the next two years

Smart beta strategies, which use quantitative factors to fine-tune broad index strategies, are now the preferred investment strategy, ranking especially highly in the most liquid and developed equity markets. Fundamental, bottom-up active strategies remain popular in most markets, with 50% of investors globally indicating this as a preference.

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REGIONAL INSIGHTS

SET FOR SMOOTHER SAILING WITH STRONG GROWTH
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CLIMATE CHANGE BRINGING GREEN OPPORTUNITIES
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SMART BETA STRATEGIES THE WAY TO GO
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IN-DEPTH ANALYSIS

Why Are Institutional Investors Bullish on Stocks Through 2024?

A new survey finds they believe equities will return 5.9% in 2023 – with tech and health care leading the way.

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    ABOUT
    EQUITIESFIRST

    Founded in 2002, EquitiesFirst is a global investor specializing in long-term equities-based financing. EquitiesFirst’s approach overcomes traditional limitations and redefines the financing experience through providing efficient access to capital for listed companies, entrepreneurs and investors against publicly traded securities. As the pioneer of Progressive Capital – a partnership approach to investment, rooted in respect, mutual interest and understanding. EquitiesFirst delivers liquidity solutions that are vital, transformative and move partners forward. The research report aims to shed light on the key factors that are reshaping investment strategies in uncertain times, as well as how institutions are leveraging ongoing volatility to capitalize on emerging opportunities.

    ABOUT
    INSTITUTIONAL
    INVESTOR

    With its 50-year history in journalism, Institutional Investor seeks to be the must-read publication for pension funds, endowments, sovereign wealth funds, asset managers, hedge funds, regulators, and research firms. CIOs and other industry executives turn to II because it has kept the best of its legendary history while evolving to meet the needs of modern readers. II’s serious journalism tells the inside stories of major events, offers new insights into the industry’s biggest players, and provides insightful analysis of the most important issues to institutional investors. A credible source for in-depth information that investment professionals can’t find anywhere else, II serves as the voice of institutional investing in a crowded financial news landscape.