The global economy is in the midst of a remarkable transformation, presenting investors with a unique mix of hurdles and opportunities. Over the past year, we’ve witnessed persistent trends—America’s economic resilience, global disinflation, and simmering geopolitical tensions—that are likely to shape the year ahead, though with important nuances.
With a focus on navigating today’s unique market conditions, we present four investment ideas for 2025 aimed at optimizing returns. Each idea targets a different asset class and market opportunity, and is designed to capitalize on the evolving landscape, balancing risk and reward in the pursuit of long-term success.
1. Activate your cash with high-quality bonds
As interest rates decline, investors with expiring cash deposits or low-risk holdings face a critical decision: continue with lower-return investments or pursue higher-potential opportunities. For investors seeking enhanced returns, adopting a more dynamic strategy is essential—actively allocating to high-quality, secure assets. By focusing on premium fixed- income securities, investors can leverage opportunities to outperform cash, even in challenging market conditions. *
An active approach to top-tier credit quality, guided by experienced managers, can unlock alpha even in the lower risk segments of the bond market. With the right expertise, skilled managers can capitalize on market inefficiencies, offering upside potential while maintaining a focus on stability and security.
2. Capitalize on falling interest rates with Global
Listed Real Estate exposure As interest rates are expected to decline, real estate companies may experience improved cash flows, potentially leading to stronger dividend growth. A well-diversified real estate strategy, focused on high-quality owner-operators, can offer consistent outperformance while adapting to changing market conditions.
Because different countries and sectors recover at different rates, a diversified global approach can help capture opportunities across the spectrum. Focusing on publicly traded real estate securities also offers liquidity advantages over direct real estate investments, allowing for more flexible portfolio management.
Moreover, real estate has historically been an effective inflation hedge, a key benefit in an environment where inflationary pressures may persist despite central bank interventions. The ability to adapt to shifting market conditions is essential, as different property types, such as industrial or residential, may react differently to economic changes.
3. Seek growth for a higher-rate landscape with a Multi-Asset growth approach
In an evolving market, a multi-asset strategy can offer a path to meaningful gains while managing volatility—smoothing the path to higher returns.
A multi-asset growth strategy can navigate a complex market environment effectively by dynamically allocating risk budgets across various asset classes. Flexibility is a key advantage in a world where traditional asset correlations are shifting—combining aggressive and defensive assets allows for growth potential while maintaining a more stable return profile. The multi-asset approach also allows for tactical shifts based on changing market conditions, potentially capitalizing on short-term opportunities while maintaining a long-term growth focus.
4. Where performance and “Social” can go hand in hand
Investing in companies at the forefront of diversity and inclusion (D&I) offers a unique opportunity to combine financial performance with positive social impact. This investment philosophy is particularly relevant now, as the correlation between strong D&I policies and financial performance becomes increasingly evident.
Taking a global focus allows for investment in diversity leaders across different markets and cultures, recognizing that D&I practices may vary by region but can still contribute to overall company performance. By avoiding sector biases and using a bottom-up approach, investors can identify opportunities across the market spectrum, from established large-caps to emerging mid-sized companies making strides in D&I.
As we navigate the complexities of the global economy in 2025, these four investment approaches offer diverse ways to position portfolios for potential success. From capitalizing on falling interest rates to embracing social progress, each approach provides a unique angle on the evolving investment landscape. The combination of these strategies can create a well-rounded portfolio that aligns with long-term trends in technology, social responsibility, and economic shifts.
* There can be no warranty that an investment objective, targeted returns and results of an investment structure is achieved. The value of your investment can go up and down, and you could lose some or all of your invested money.
About Nordea Asset Management Nordea Asset Management (NAM, AuM 270bn EUR*), is part of the Nordea Group, the largest financial services group in the Nordic region (AuM 412bn EUR*). NAM offers European and global investors exposure to a broad set of investment funds. We serve a wide range of clients and distributors which include banks, asset managers, independent financial advisors and insurance companies. Nordea Asset Management has a presence in Bonn, Brussels, Copenhagen, Frankfurt, Helsinki, Lisbon, London, Luxembourg, Madrid, Milan, New York, Oslo, Paris, Santiago de Chile, Singapore, Stockholm, Vienna and Zurich. Nordea’s local presence goes hand in hand with the objective of being accessible and offering the best service to clients. Nordea’s success is based on a sustainable and unique multi-boutique approach that combines the expertise of specialised internal boutiques with exclusive external competences allowing us to deliver alpha in a stable way for the benefit of our clients. NAM solutions cover all asset classes from fixed income and equity to multi asset solutions, and manage local and European as well as US, global and emerging market products. Having entered the ESG space over 30 years ago, Responsible Investment is deeply rooted in our Nordic DNA. As an ESG pioneer and market leader we established an award-winning RI Team in 2009—now one of the largest in Europe. We currently offer a broad suite of RI solutions to investors of all types across the globe. * Source: Nordea Investment Funds S.A.,30.09.2024 Nordea Asset Management is the functional name of the asset management business conducted by the legal entities Nordea Investment Funds S.A., Nordea Investment Management AB and Nordea Funds Ltd and their branches and subsidiaries. This material is intended to provide the reader with information on Nordea Asset Management specific capabilities, general market activity or industry trends and is not intended to be relied upon as a forecast or research. This material, or any views or opinions expressed herein, does not amount to an investment advice nor does it constitute a recommendation to buy, sell or invest in any financial product, investment structure or instrument, to enter into or unwind any transaction or to participate in any particular trading strategy. Unless otherwise stated, all views expressed are those Nordea Asset Management. Views and opinions reflect the current economic market conditions, and are subject to change. Any investment decision should be based on the Offering Memorandum or any similar contractual arrangement. All investments involve risks; losses may be made. While the information herein is considered to be correct, no representation or warranty can be given on the ultimate accuracy or completeness of such information. Prospective investors or counterparties should discuss with their professional tax, legal, accounting and other adviser(s) with regards to the potential effect of any investment that they may enter into, including the possible risks and benefits of such investment, and independently evaluate the tax implications, suitability and appropriateness of such potential investments. Published by the relevant Nordea Asset Management entity. Nordea Investment Management AB and Nordea Investment Funds S.A. are licensed and supervised by the Financial Supervisory Authority in Sweden and Luxembourg respectively. Nordea Funds Ltd is a management company incorporated in Finland and supervised by the Finnish Financial Supervisory Authority. This material may not be reproduced or circulated without prior permission. © Nordea Asset Management. In the United Kingdom: Published by Nordea Asset Management UK Limited, a private limited company incorporated in England and Wales with registered number 11297178; which is authorised and regulated by the Financial Conduct Authority. Registered office at 5 Aldermanbury Square, London, United Kingdom, EC2V 7AZ. In Switzerland: Published by Nordea Asset Management Schweiz GmbH, which is registered under the number CHE-218.498.072 and authorised in Switzerland by FINMA. In Singapore: For institutional investors only. Published by Nordea Asset Management Singapore, which is regulated by the Monetary Authority of Singapore (company registration number: 202219416W). The address of Nordea Asset Management Singapore is 138 Market Street, #05-01 CapitaGreen, Singapore 048946.
