An important lesson to take from 2022 was how unpredictable the future, and markets, can be. This time last year, most investors had a sunny disposition with markets at all-time highs and a global economy expanding. If 12 months can create this much volatility and change to the investment environment, then the predicting the next year can result in a wide array of scenarios. Will we talking about inflation or deflation? Recession or recovery? Peace or war? These will define the direction of markets in 2023 and are largely unknowable.
Our philosophy seeks out the rational: invest in observable certainties over unobservable uncertainties. In our view, the world will be more sustainable in the future and investing in sustainable funds allows us to invest in companies providing solutions to solve future problems.
Our 2023 outlook is a bifurcated one: uncertainty in the macro, certainty in the micro. Following the latter is a key building block of our philosophy and a path we recommend.
Mike Fox, Head of Sustainable Investments
Past performance is not a guide to future performance. The value of investments and the income from them may go down as well as up and is not guaranteed. Investors may not get back the amount invested.
For professional clients only, not suitable for retail clients.
For more information on the funds or trusts or the risks of investing, please refer to the Prospectus or Key Investor Information Document (KIID), available via the relevant Fund Information page on www.rlam.com.
Issued in December 2022 by Royal London Asset Management Limited, 55 Gracechurch Street, London, EC3V 0RL. Authorised and regulated by the Financial Conduct Authority, firm reference number 141665. A subsidiary of The Royal London Mutual Insurance Society Limited.