IMCO releases World View 2025

This year's report identifies the momentum of key global themes and implications for investment strategies

TORONTO, Jan. 22, 2025 /CNW/ - The Investment Management Corporation of Ontario ("IMCO") today releases the IMCO World View 2025, offering a comprehensive analysis of the macroeconomic, geopolitical and technological forces shaping the investment environment. Now in its third year, the IMCO World View provides insights into the evolving trends and critical implications that guide IMCO's long-term investment strategy.

From climate change and sustainability to deglobalization and economic fragmentation, this year's edition examines the momentum of global investment themes, identifying those that are accelerating, holding steady or decelerating and key implications for asset allocation.

IMCO releases World View 2025

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Highlights from the IMCO World View 2025:

Accelerating trends:

• Addressing inequality: Heightened by inflationary pressures, governments worldwide are adopting interventionist policies aimed at reducing income disparities and reshaping socioeconomic landscapes.
• Deglobalization: Supply chain disruptions and intensifying economic competition between global powers are driving shifts away from traditional globalization, with the spectre of tariffs potentially advancing deglobalization.

Steady trends:

• Policy inflection: Fiscal policies and government interventions continue to reshape markets, reflecting evolving priorities around inequality, climate change and geopolitical challenges.
• Disruptive technologies: Investments in artificial intelligence, renewable energy and medical advancements remain pivotal, propelling innovation across industries.
• Evolving market structures: Increased interest in private markets and index-based public market strategies underscores a shift in investor focus on long-term value creation.

Decelerating trends:

• Climate change and sustainability: While climate change and sustainability remain a critical focus, recent developments indicate a temporary deceleration in momentum, driven by signs of a growing green and ESG investing backlash and US-China competition concerns.

Key implications for investors:

• End of low for long: The era of persistently low interest rates is over, as central banks adjust to higher-for-longer environments.
• Heightened volatility and dispersion: Markets are likely to remain uneven, driven by regional disparities, changes in government and sector-specific dynamics.
• Capital investment boom: Spurred by industrial policy, opportunities continue to emerge in infrastructure, digital technology and clean energy.
• Expanding role of private investments: Private markets will continue to play a critical role in capturing long-term value, particularly in illiquid and emerging sectors.
• Managing unintended exposures: Evolving policies will result in the need for greater diligence to address potential unintended risks and portfolio exposures.
• Innovation and flexibility: Navigating a dynamic macroeconomic environment will demand adaptive strategies and innovative approaches.

Read the IMCO World View 2025: https://www.imcoinvest.com/worldview

ABOUT IMCO

The Investment Management Corporation of Ontario ("IMCO") manages $77.4 billion of assets on behalf of its clients. Designed exclusively to drive better investment outcomes for Ontario's broader public sector, IMCO operates under an independent, not-for-profit, cost recovery structure. We provide leading investment management services, including portfolio construction advice, better access to a diverse range of asset classes and sophisticated risk management capabilities. As one of Canada's largest institutional investors, we invest around the world and execute large transactions efficiently. Our scale gives clients access to a well-diversified global portfolio, including sought-after private and alternative asset classes. Follow us on LinkedIn and X @imcoinvest.

For more information, visit www.imcoinvest.com.

CONTACT
Annette Robertson, Corporate Communications, IMCO
[e-mail]

SOURCE Investment Management Corporation of Ontario [IMCO]