Capital Markets Outlook

Finding income will be a much tougher task for investors in the years ahead, given the likely backdrop of low yields and diminished returns. To be successful, we believe that it’s critical to generate efficient income: maximizing the income produced per each unit of risk.

Finding stable growth when growth is harder to come by will be a challenge once the dislocations from the COVID-19 pandemic have healed. With the right definition of quality, and a diverse toolkit including equities and other asset classes, we believe investors will be better equipped to build a better return path.

For investors seeking to deploy their capital with purpose, investing in the time of COVID-19 and beyond offers opportunities, but also requires strong risk management. It takes a keen eye to incorporate purpose and other goals in portfolio design while building a better return path.

A new shock to the global economy from Russia's invasion of Ukraine makes forecasting particularly difficult right now. Usually, geopolitical disruptions are quickly shrugged off, but we think the ongoing crisis will lead to lower growth and higher inflation than previously expected.

Active bond investors can rise to the challenges of today's environment. Here's how

While the conflict has created many uncertainties, the impact of persistent inflation will be the dominant influence for equity investors through 2022 and beyond.