Ninety One’s 2022 Investment Outlooks: The Challenges Of Normalisation

Published: Mon 6 Dec 2021 09:49 AM
While the transition to normalised monetary policy creates uncertainty for the macroeconomic outlook, continued vaccine roll-outs are expected to help underpin growth in 2022. With this backdrop, where can investors turn to during the year ahead to find returns and invest for a better tomorrow?
Global investment manager , Ninety One’s portfolio managers assess the outlook across their asset classes and regions. They also take a deep dive into the outlook for emerging markets, as well as into how sustainability will drive investment outcomes next year and beyond.
Sustainability will be top of the agenda again next year, says Ninety One CEO Hendrik du Toit.
“Investors must direct capital towards reducing real-world emissions, rather than focusing on short-term ‘feel-good’ carbon targets.”
He adds: “As investors, we need to focus on achieving net zero by 2050, rather than short-term goals that do not support real-world emissions reductions. Rather than divesting, we believe in remaining invested and engaging with the heavy emitters. Investors should encourage emitters to run down their high-carbon assets, or transform themselves into companies with a role in a clean, green world. Investors can also support the net-zero transition by backing companies whose products and services accelerate decarbonisation.”
Portfolio Manager Archie Hart identifies catalysts for a more positive 2022 outlook for Emerging Markets Equities.
He says: “Conflicting forces are interacting across global markets - strong growth, high inflation and generous stimulus. Clearly, the chances of all these coexisting for long are quite unlikely. As the relationship between them recalibrates, we are likely to experience volatility in all markets, whether developed or emerging. But the regulatory crackdown in China is now a year old, and well understood by markets.
“Once this has run its course, domestic policy should gradually become supportive. This is because when China’s policymakers realise that growth has slowed, we should see the introduction of much more stimulative policies, which should be beneficial for the broader emerging market asset class as well.”Please read more detailed investment views by clicking the link below: Ninety One
Ninety One isan independent, active global investment manager dedicated to delivering compelling outcomes for its clients, managing US$189 billion in assets (as at 30.09.21).
Established in South Africa in 1991, as Investec Asset Management, the firm started offering domestic investments in an emerging market. In 2020, almost three decades of organic growth later, the firm demerged from Investec Group and became Ninety One. Today the firm offers distinctive active strategies across equities, fixed income, multi-asset and alternatives to institutions, advisors and individual investors around the world.
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