As the authors of the new McKinsey report note, the days of a stable economic order and a steady increase in investment activity are over.
In the face of global uncertainty, radical changes in public expectations and business behavior, a new approach to institutional investment is required.
The organization's experts conducted a survey among the heads of 40 public funds, which together manage assets worth more than $10 trillion. The goal is to analyze the best practices for building an investment portfolio and project management. Among the key trends, the authors highlight:
- Active implementation of technologies in the work process. More than four-fifths of respondents use digital tools in strategic planning and workflows. At the same time, technology has become a key risk. In 2022, the number of ransomware attacks increased by 243%, the number of cryptocurrency thefts increased by 269%.
- Public projects are a priority investment area for 76% of respondents. Decreased social mobility, growing economic inequality, political polarization and an aging population are the key drivers for increased social investment.
- The most important issue for respondents is to ensure the sustainable functioning of energy systems. The required capital expenditure will reach $275 trillion by 2050.