Best Megatrends Paper 2021

Best Megatrends Paper 2021

Man Group?Wins Best Megatrends Paper 2021

In the Megatrends category, we feature ground-breaking thought leadership pieces, forecasting big investment ideas and outlining the sectors and topics tipped to dominate the investment industry for years to come. The winning paper, from Man Group, lays out how climate change is likely to impact corporations and how investors can position their portfolios in a warming world. Aside from climate change, investment professionals also look at other ‘Big Ideas’, and some insights may come as a surprise.

WINNER: MAN GROUP

Climate Investment: Positioning portfolios for a warmer world (Man Group, 2021)

Man Group’s winning paper gives a comprehensive introduction into the topic, its science, methodology and terminology. They go into fine detail about a fictional energy company seeking to realign its business model with carbon neutrality, and they suggest ways in which investors can pick between the winners and losers in this great generational transition. Man Group concludes with an up-to-date snapshot of climate-focused investment, providing a roadmap for ‘green’ decisions and looks at likely scenarios for different asset classes.

HIGHLY COMMENDED

PGIM Megatrends: Weathering Climate Change (PGIM, Feb 2021)

Drawing on the insights of 45 PGIM investment professionals, numerous policymakers, and scientists, as well as a proprietary survey of 100 global institutional investors, they propose an actionable climate change agenda for investors. They forecast a prolonged sunset for fossil fuels and leave no doubt that repricing of climate risks is inevitable. The report outlines five catalysts that may drive the repricing across asset classes, sectors, companies, and individual securities.?

Deep Water Waves: Long-term drivers that face investors (Franklin Templeton, Aug 2021)

Franklin Templeton outlines several strong forces they expect will influence investment portfolios in the future. Established assumptions will be swept aside and the basic foundations on which asset prices are based will be profoundly altered. Companies will be under pressure to change at almost every operational level, and investors must prepare for widening the definition of ‘quality’ to include ESG considerations and other unstoppable new factors.

ARK Invest Big Ideas 2021 (ARK)

In their 112-page report, ARK Investment Management develops more than a dozen investable long-term ‘big ideas’, and the latest edition of this annual report features several themes for the first time, such as the re-invention of data centres, orbital aerospace, and multi-cancer screening. In this highly illustrative guide, they concisely present the investment case for disruptive sectors and ideas and provide actionable market potential forecasts.

Trends Investing: Future of food (Robeco, 2021)

Rather than going big and wide, Robeco goes granular and focuses on investment opportunities in the food sector: an area which has been undergoing massive change in recent years and stands to be at the centre of the climate change debate for years to come. They make the case for the strong return potential for investors to seek out producers and marketers of healthy and sustainable foodstuffs and innovative ways of feeding a growing global population. In addition to more obvious aspects, the report also covers restaurant software and cultured meat.

The Case for a Dedicated China Equity Allocation (Mercer, 2021)

Mercer believes equity portfolios should have a strategic allocation to emerging markets. While China has a high representation in EM indices already, this exposure is tilted towards the country’s offshore market, i.e. Chinese listings in Hong Kong or the U.S. They believe the future dynamics of that economy will be increasingly reflected in China’s onshore, or A-Shares, market. Therefore, Mercer advocates a strategic allocation to China A-shares representing 5-10% of an equity portfolio.

Capturing Structural Change: A guide to thematic investing (Lazard AM, 2021)

In this concise paper, Lazard Asset Management dismisses benchmark-centric investment approaches as somewhat anachronistic when searching for returns from the truly transformative structural changes that the world is likely to be undergoing in the near future. They make the case for a thematic approach that would place these changes at the heart of an equity portfolio. Investors should face forward, have conviction, and have patience.


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ABOUT THE SAVVY INVESTOR AWARDS

The Savvy Investor Awards celebrate the best content from across the global institutional investment industry. We present awards across 10?different categories including the best overall paper.

Every year our Content Team handpicks and uploads over 10,000 articles and papers to the Savvy Investor platform. This library, alongside engagement data from 57,000+ members, means our judges are well-placed to identify and assess the award-worthy papers of 2021. The Awards are judged on many elements including the depth, quality, readability, and of course, appeal and relevance to our institutional investor audience. In a world saturated with content, and where it’s difficult to cut through the noise, it is a great pleasure to highlight quality, cutting edge, and deeply engaging thought leadership for the investment community.

As the leading content hub for institutional investors, the Savvy Investor Awards were designed to help to affirm or establish authors and firms as true thought leaders within the industry.

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