<strong>By: Schroders</strong>

The experts at global asset manager, Schroders, have prepared several 2019 Outlooks for their specific investment capabilities. They’ve handpicked the most relevant for SA – which you can find below.

<h2><strong>Chief Executive’s Outlook 2019: Why 2019 might be a better year for investors</strong></h2>

<strong><u>By: By Peter Harrison, Group Chief Executive, Schroders</u></strong>

<em>After the disappointment of 2018, Chief Executive Peter Harrison rounds up the factors our fund managers think could lead to a brighter year ahead.</em>

<strong><a href="https://www.cover.co.za/wp-content/uploads/2019/01/Schroders-CEO-Outlook-2019.docx">Click here to view the full outlook.</a></strong>

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<h2><strong>Outlook 2019: Emerging markets equities</strong></h2>

<strong><u>By Tom Wilson, Head of Emerging Market Equities at Schroders</u></strong>

<em>Key potential catalysts for emerging markets performance in 2019 are US dollar weakness, a better-than-expected outcome in US-China trade relations and an easing in Chinese growth concerns.</em>

<ul>

<li><em>Valuations in aggregate are attractive and reflect a cautious growth and earnings outlook, while many currencies look cheap.</em></li><li><em>Further escalation in the US-China trade conflict is a risk, but is increasingly priced-in.</em></li><li><em>We expect moderate US dollar depreciation in 2019, which should act as a catalyst for emerging markets equities.</em></li>

</ul>

<strong><a href="https://www.cover.co.za/wp-content/uploads/2019/01/Schroders-EM-Equities-Outlook-2019.docx">Click here to view the full outlook.</a></strong>

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<h2><strong>Outlook 2019: Global equities</strong></h2>

<strong><u>By Alex Tedder, Head and CIO of Global and US Equities and Simon Webber, Lead Portfolio Manager, Schroders</u></strong>

<em>We are seeking out companies investing for change in 2019, while increasingly wary of those that have borrowed excessively.</em>

<ul>

<li><em>In general, markets are moving into a new phase in which inflation is on the rise and central banks are offering less support to markets.</em></li><li><em>There is plenty of complacency in equity markets about the risks from higher interest rates and elevated corporate debt.</em></li><li><em>We believe that some of the best investment opportunities are to be found where industry disruption is significant, such as in the transition to renewable energy.</em></li>

</ul>

<strong><a href="https://www.cover.co.za/wp-content/uploads/2019/01/Outlook-2019-Global-equities.docx">Click here to view the full outlook.</a></strong>

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<h2><strong>Outlook 2019: Sustainability</strong></h2>

<strong><u>By Jessica Ground, Global Head of Stewardship - ESG</u></strong>

<em>The next few years will see rising physical losses from climate-related events, higher taxes to combat intergenerational inequality and tougher conditions for over-levered corporates</em>

<ul>

<li><em>With a growing number of extreme weather-related events in the years ahead, certain sectors are at risk of suffering damage to physical assets and rising costs</em></li><li><em>Governments are likely to look to corporates to help them tackle the imbalance between generations</em></li><li><em>Companies with too much debt are vulnerable to a rising interest rate environment</em></li>

</ul>

<strong><a href="https://www.cover.co.za/wp-content/uploads/2019/01/Sustainability-Outlook-2019.docx">Click here to view the full outlook.</a></strong>

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<h2><strong>2019: Global cities outlook</strong></h2>

<strong><u>By Tom Walker and Hugo Machin, both are Co-Head of Global Real Estate Securities at Schroders</u></strong>

<em>Global cities look set to benefit from a technological revolution in 2019 as investors place a higher value on knowledge than manufacturing.</em>

<ul>

<li><em>Fundamental shifts in demand will impact how we use land and buildings in global cities.</em></li><li><em>The demand shift is already evident in retail, with surging demand for well-located warehouses.</em></li><li><em>Locations in strong cities close to great transport links have enduring value and will benefit from the disruption revolution, as people cluster together to monetise new ideas.</em></li>

</ul>

<strong><a href="https://www.cover.co.za/wp-content/uploads/2019/01/Global-Cities-Outlook-2019.docx">Click here to view the full outlook.</a></strong>