Global investors are looking through the short-term noise created by this year’s election cycle to harness the major trends of deglobalisation, disruption and decarbonisation by increasing their exposure to global equities and private equity, according to this year’s Schroders Global Investor Insights Survey.
The report – which encompasses almost 3,000 investors and some $74.5 trillion in assets across the full spectrum of institutions – instead found that the impact of central bank policy (70%), high interest rates (68%) and a potential economic downturn (62%) usurped any concerns about this year’s election cycle.
In terms of national policymaking, investors said global alliances on politics and trade (44%), as well as high levels of government borrowing (35%), would most likely impact their investment positioning.
Johanna Kyrklund, Chief Investment Officer, Schroders, said: “As an active manager, it is vital to remain focused on investment fundamentals and not the newspaper headlines. Economic activity broadly remains positive and inflation has been moving in the right direction with major central banks now cutting rates. Lower interest rates are supportive of equity values.
“The most important election is still ahead of us with Americans heading to the polls next month. However, it is crucial to remember that politics tends to play out in months and years, rather than days and this is what we have remained focused on; keeping it simple.”
