In an increasingly uncertain environment, PGIM surveyed investors across the US, Europe, Asia-Pacific and Middle East to uncover how geopolitical risks are changing the way institutions are constructing their portfolios and approaching risk management. The results shed light on the risks that investors fear most, as well as the actions they are taking to either mitigate the potential fallout or capitalize on opportunities that emerge.
 

Despite the unpredictability of the current environment, nimble investors can assemble portfolios with the ability to be more resilient against unexpected market shocks and an outlook that can be instantly transformed by geopolitical consequences.

REGIONAL ANALYSIS

UNITED STATES

Election outcomes could redefine policy paths, shaping the future of global markets and the economy.

Risks and Opportunities in an Election Cycle—And Beyond

The US presidential election’s potential ripple effect across the domestic economy and global markets will help shape the investment outlook in 2025 and beyond. Different outcomes in federal and state races present divergent policy paths for key issues such as taxes, regulations and trade.

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“After the election, there will be increased certainty over a lot of the trends in government as policy and personnel shakes out, and when you as an investor can predict, you can prepare. It’s when you are surprised that investment decisions may be difficult.”

James Sonne , Vice President and Head of Government Affairs, PGIM

REGIONAL ANALYSIS EUROPE

New regimes could redefine economic strategies, impacting growth and competitiveness amid political fragmentation.

Tackling Economic Challenges as Tough Choices Loom

Tackling Economic Challenges as Tough Choices Loom

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“European policymakers realize it’s a now-or-never moment for growth and competitiveness. They don’t want Europe to simply become the world’s museum with historic buildings, beautiful cities and good food.”

Taggart Davis, Vice President, EMEA Government Affairs, PGIM

REGIONAL ANALYSIS

ASIA-PACIFIC

Geopolitical tensions, shifting trade flows, and a rising US dollar intensify risks for Asia-Pacific investors.

High Anxiety, But With Opportunities Emerging from a New Trade Landscape

The US presidential election’s potential ripple effect across the domestic economy and global markets will help shape the investment outlook in 2025 and beyond. Different outcomes in federal and state races present divergent policy paths for key issues such as taxes, regulations and trade.

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“Countries closer to China in Southeast Asia can benefit from the shift of production from China to those neighboring countries. But the cost of that is potentially overheating or shortages of people or energy.”

Magdalena Polan, Head of Emerging Market Macroeconomic Research, PGIM Fixed Income

<p>“Countries closer to China in Southeast Asia can benefit from the shift of production from China to those neighboring countries. But the cost of that is potentially overheating or shortages of people or energy.”</p>

REGIONAL ANALYSIS

MIDDLE EAST

Regional conflicts and oil supply uncertainties propel Middle Eastern investors to broaden global portfolios, seizing new opportunities.

DIVERSIFYING ACROSS GLOBAL OPPORTUNITIES

Regional conflicts, concerns about supply shocks in oil markets, and global efforts to reduce carbon emissions are driving institutional investors in the Middle East to geographically diversify their portfolios and increase allocations toward emerging opportunities in global public and private markets.

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“If you think you’re moving into a multi-polar geopolitical environment, which sounds reasonable, you want your portfolio diversified.”

Investment strategist, Middle Eastern sovereign wealth fund

GLOBAL RISK REPORT

PART ONE

PGIM’s survey found that geopolitical risk and elections are top of mind for investors. Explore strategies to mitigate risk and capture opportunities.

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PGIM’S RISK MANAGEMENT APPROACH

PGIM seeks to balance risk and reward through a combination of systematic monitoring and assessment of market, credit, liquidity and operational risks.