The global economy slowed in 2019. Geopolitical risk was elevated. Economic uncertainty fed through to weakening business and consumer sentiment.

The economic outlook is uncertain, as always. We think risks are skewed to the downside. Elevated geopolitical risks, a mature economic cycle and stretched asset valuations all loom as risks to achieving investment objectives. But the ongoing search for yield and central bank support could continue to boost risk asset returns. We think portfolio resilience will be critical over the medium term.

Portfolio resilience is not just adopting a defensive bias. Investors need to be able to participate in the upside. But that must be balanced by mitigating downsides.

Our 2020 Oreana Financial Service Medium-Term Global Outlook explicitly looks out over the next five years and identifies key areas of focus that we expect will help improve portfolio resilience.