The world is changing — and changing fast. With this rapid pace of change comes increased complexity for investors. Gone are the days of a rising tide lifting all boats, and of relying on passive index allocations to provide positive returns. We recognize it, and our clients recognize it.

In the many conversations we have with clients around the world, one thing is clear: Most expect to see increased volatility in markets in 2025 and beyond. We share that view and acknowledge the complexity in positioning portfolios for the macroeconomic drivers shaping the world.

THE DRIVERS

There are three instrumental macro drivers accelerating change. These are long term in nature and ever-present in the world around us, so they are not surprising in and of themselves.

I introduced the drivers in my 2024 outlook, and a year on, the trends have only become more entrenched. They tie to evolving client needs and how the asset management industry must s