EMBRACING NEW REALITIESKEY THEMESAsset Management Outlook 2024This financial promotion is provided by Goldman Sachs Bank Europe SEPortfolio Construction:Thinking DifferentlySustainability:Investing with ImpactDisruptive Technology:Innovation and AI AccelerationGeopolitics:Roadmaps for a Reshaped WorldMacroeconomy:Living with Higher for LongerMacroeconomy: Living with Higher for Longer Interest rates in developed markets are set to stay higher for longer, and growth paths and inflation patterns across the global economy are moving in different directions and at different speeds. In public equity markets, we expect macroeconomic discussions to shift toward how specific market sectors and companies can navigate higher capital costs and slower growth. In public fixed income, an up-in-quality approach to credit may help investors identify issuers that look well-positioned to withstand higher funding costs. We also see opportunities for a more strategic approach to private market exposure. Geopolitics: Roadmaps for a Reshaped World An election super cycle will unfold in 2024 against a backdrop of elevated geopolitical risk and economic competition between nations. Investors may need to combine in-house expertise with insight from advisors on the ground to navigate bouts of volatility. Companies benefitting from the reshoring of critical supply chains and increased investment in national security may present compelling investment opportunities.0508KEY THEMES TO WATCH IN 2024Goldman Sachs Asset ManagementAsset Management Outlook 2024 | 3Sustainability: Investing with ImpactSustainable investing is becoming more complex and competitive as investors seek ways to make a real-world impact by focusing on environmental and inclusive-growth themes. Opportunities to invest in sustainable solutions can be found across public and private capital markets, from pure-play enablers of a more sustainable world to transition leaders in high-carbon industries.Portfolio Construction: Thinking Differently In our view, investors can navigate higher-for-longer rates, geopolitical shocks and accelerating secular growth trends by staying active and focusing on diversification and risk management. An integrated approach to portfolio construction can position portfolios to benefit from differences in the composition and characteristics of public and private capital markets.Disruptive Technology: Innovation and AI Acceleration Artificial intelligence is now part of the long-term technology opportunity set. Semiconductors, cybersecurity and healthcare are areas to watch as AI transforms industries. Skill in finding the likely winners of tomorrow is crucial in an era of wide dispersion between high- and low-quality growth companies. When the initial public offering (IPO) market eventually recovers, investors in disruptive companies may benefit.111417Goldman Sachs Asset ManagementAsset Management Outlook 2024 | 4After a phase...
