IMCO Releases World View 2026

Positioning portfolios for resilience as globalization fractures and volatility rises  

TORONTO, Jan. 28, 2026 /CNW/ - The Investment Management Corporation of Ontario ("IMCO") today releases the IMCO World View 2026, its annual flagship research publication that helps guide long-term investment strategy across its multi-billion-dollar portfolio.

IMCO World View 2026 (CNW Group/Investment Management Corporation of Ontario [IMCO])

This year's report underscores the speed at which deglobalization is happening, driven by a rise in protectionist policies and tariffs, led primarily by the U.S., while governments around the world seek to reassert economic control. IMCO's Investment Research and Economics team expects the pace of this transition to amplify market volatility and materially influence long-term portfolio construction.

The report distills complex economic, market, and policy developments into six core themes and six corresponding investment implications, offering a framework to navigate a more polarized and unpredictable global economy.

"Our World View framework cuts through global economic and market complexity as a cornerstone of IMCO's research-driven investment process," said Nick Chamie, Senior Managing Director, Head of Total Portfolio & Capital Markets, Chief Strategist, IMCO.

Highlights from the IMCO World View 2026:

Accelerating trends:

Deglobalization: President Donald Trump's second term has intensified Washington's interventionist and competitive approach, quickening the global shift away from open, integrated markets as countries recalibrate their economic models.

Policy inflection: U.S. policymakers are increasingly turning to policy intervention to reshape global trade and financial flows, using tools ranging from fiscal stimulus and tariffs to currency measures, subsidies, and other novel approaches.

Steady trends:

Addressing inequality: Governments have shifted some attention away from this social concern, focusing instead on boosting economic growth through industrial and fiscal stimulus, though inequality remains persistent and politically consequential.

Disruptive technology: Rapid adoption of artificial intelligence and advances in electric vehicle batteries highlight their growing impact across various industries.

Evolving market structures: While growth moderates in private markets, the investable universe is shifting, expanding retail investor access to previously exclusive private markets.

Decelerating trends:

Climate change and sustainability: Rising energy demand and security concerns have temporarily shifted focus away from environmental priorities, though the need for clean energy adaptation amid the energy transition remains.

Key implications for investors:

End of low for long: Geopolitical uncertainty and economic reshoring may fuel inflation and shape monetary policy, making broader currency diversification, shorter duration fixed-income and safe-haven assets like commodities more attractive. 

Heightened volatility and dispersion: Concentrated markets and high valuations, combined with U.S. efforts to disrupt the status quo are setting the stage for market swings. A "macro-aware" asset allocation framework alongside risk-hedging strategies can help strengthen portfolio resilience.

Capital investment boom: Rising capital spending, particularly in energy, defence, and AI infrastructure, is creating opportunities to invest in critical infrastructure and companies tied to nation-building projects. 

Expanding role of private investments: Private markets support long-term value creation and help reduce short-term portfolio volatility, while giving institutional investors access to a broader set of investment opportunities.

Managing unintended exposures: Growing popularity of passive investing is intensifying market concentrations, heightening the need for diversified strategies.

Innovation and flexibility: A weakening of traditional market dynamics calls for greater adaptability and resiliency in portfolio construction.

Read the IMCO World View 2026.

CONTACT

Annette Robertson
Corporate Communications, IMCO
Email: [email protected]

ABOUT IMCO

The Investment Management Corporation of Ontario ("IMCO") manages $86 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.

SOURCE Investment Management Corporation of Ontario [IMCO]