What might 2024 have in store for wealth managers?
As 2024 gets underway, wealth managers will be newly focused on their key strategic goals as always. The business of asset allocation and stock selection are a constant challenge and 2024 is no exception. Since the Covid pandemic it seems like we’ve all had to get used to living with heightened levels of risk and uncertainty. Whether it’s war, supply side problems, geopolitical events, inflation, monetary tightening or numerous other factors, 2024 is set to be an ‘interesting’ year for wealth managers. But how are investors viewing the year ahead?
Here at Wealth DFM, we’re certainly intrigued to see how the year plays out. For now, it seems that things are changing on almost a daily basis. Soft landing? Recession? Stagflation? Who knows how it’ll pan out but the ability to be nimble will remain attractive. However, as always, it’s the long-term strategy which really matters – those who look ahead tend to make better decisions than those who focus on the short term.
Where are fund managers putting their money this year?
In this first edition of Wealth DFM Magazine in 2024, we’re delighted to bring you just a small sample of the kind of long read articles which the team and I publish on a daily basis on https://wealthdfm.com/category/featured-news/. If you’re not a regular visitor to the site, we’d love to see you more often! If you are, then thank you, we really appreciate you checking in.
So, this month, we kick off on page 5 with a snapshot of the views of a number of fund managers who’ve been sharing with us which sectors and asset classes their money is on for the year. And where they see the main threats and opportunities coming down the line.
With all the market volatility in 2023, gold hit a record high in December 2023 as investors increased their exposure as a hedge against all the uncertainty. With the yellow metal having risen by 40% this past four years there are good reasons to check out what The Royal Mint’s Steve Jones has got to say (on page 11) about what investors can learn about gold for 2024 and beyond.
Of course, members of the fixed income fan club have risen dramatically as inflation numbers started to reduce and the prospect of the monetary authorities reducing base rates zoomed into view.
China too has been out of favour, with late 2023 seeing investor confidence in Chinese equities at its lowest level since the Asian Financial Crisis of 1998. However, there are some bright spots emerging as GAM’s Jian Shi Cortesi highlights for us on page 14.
Trust in ESG ratings under scrutiny
With the existential threat of climate change overhanging everything, it’s perhaps no surprise that, in recent years, ESG Ratings have found their way into the mainstream conversation. However, with this increasing popularity of sustainable investing, criticisms directed at ESG rating agencies have emerged. In this analysis, Dr. Matthias Breier, Head of ESG Product, FE fundinfo, has been sharing with us some of the issues involved and unpicking some ways to steer a course through the haze.
We hope you enjoy this month’s ‘taster menu’ and also that you’ll come and see us more often on www.WealthDFM.com for more long reads, analysis, news and views.
Editor | Wealth DFM