Put the Growth Bucket Back in the Spotlight
As long-term investors, Pension Funds need to find new distinct ways to invest and rethink the full potential of their growth bucket as a flexible opportunity to deal with the uncertain, regulated and challenging environment they are facing.
Three ideas to reinvent the growth bucket investment approach
Megatrends represent the major disruptive evolutions to be expected in the coming decades, which incorporate an intergenerational approach and grasp structural growth engines.
Through thematic investments fully integrated in megatrends, investors have a concrete way to exploit prospective potential returns.
Within a Pension Fund asset allocation, the Equity space provides for a liquid and mid to long-term investment horizon. Pension Funds should seek higher returns over the long-term.
Looking beyond capital appreciation, equities are an attractive asset class from an income perspective, that is becoming more and more important.
Equities offer investors a source of reliable income, with dividend yields comfortably in excess of other available yields in fixed income markets, which are at historic lows.
Emerging Markets shall no longer be seen as a unified block. This will help investors move beyond traditional investing in this asset class and promote new innovative solutions across the full Emerging Markets spectrum.
As Emerging Markets become more relevant in strategic asset allocation, investors should embrace a more holistic approach with new tools to better grasp their intrinsic key characteristics and risk factors.