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3 key investment trends for a post-COVID world

 


Refinitiv | August 20, 2020


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The Refinitiv article, “3 key investment trends for a post-COVID world,” quoted Russell Reynolds Associates Board Advisory Specialist Andrew Droste on the rise of stakeholder capitalism and why the theory is being further underscored by the inequities being exacerbated by the pandemic. The article is excerpted below.

What shape will the reco​very take? Will ESG investing come to the fore? Will alternative data help? Post-COVID-19 investment trends were put under the spotlight in a Refinitiv-hosted LinkedIn discussion featuring experts from across the business world.​

  1. During the LinkedIn discussion, the experts gave their views on the pace and shape of the post-pandemic recovery. Forty-four percent believe it will be​​ a ‘W’-shaped recovery.
  2. In the post​​-COVID-19 landscape, new consumer trends will emerge. These trends include a shift to online shopping and working from home, while videoconferencing will grow in popularity.
  3. The first-half of 2020 has seen record levels of investment in ESG. This focus on sustainability will be a key investment trend in the future. Meanwhile, ​​alternative data will become an important tool in analyzing future investment trends.

The entire world sits in anticipation, waiting to see what the ‘new normal’ of the post-crisis era will look like and how we can adapt and rebuild our​​​ economies.

ESG investing will be big in the post-COVID-19 era 

The experts agreed that COVID-19 is a wake-up call for all businesses. which has revealed that our markets and supply chains are fragile and easily dis​​​rupted. This will result in an increased focus on sustainability — something we have already seen happening with the high level of investments in the first quarter of 2020.​

And​​rew Dro​ste, o​​​f Russell Reynolds Associates, said: “COVID-19 has exacerbated inequities and underscored the importance of companies expanding the strategy and risk management processes to include key stakeholders beyond shareholders.​

“Long- (and​​ short-) term value and profits to shareholders are diminished and cannot thrive over the long term if there is an erosion that occurs amon​g employees, customers, supply chains, governments, or society at large.”


Crea​​​ting successful ESG strategies 

Based on ​​learnings from the crisis, our experts have identified the key factors to a successful post-pandemic ESG strategy.

Focus on integ​ration, from management KPIs to reporting, said Andrew Droste.

To read the​ full article, click here.​​


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3 key investment trends for a post-COVID world