December 12, 2022 2023 Investment Outlook Institutional Investors Applying the Lessons of a Turbulent Year to 2023 Contents A confluence of unprecedented events in 2022 weakened 2023 Market Outlooks asset prices across all markets. Rarely have investors had ƒ Equity to grapple with the kind of lessons imparted by a global Andrew Slimmon ........................................................................................3 economy just starting to emerge from a pandemic, while ƒ Income dealing with unprecedented monetary policy measures Jim Caron .........................................................................................................5 and a major land war in Europe. ƒ Global Income Eric Stein, CFA .............................................................................................. 7 The turbulence of 2022 now weighs heavily on our ƒ Emerging Markets investment outlook for 2023, with implications ranging Jitania Kandhari .............................................................................................9 ƒ Multi-Asset from economic growth, inflation, central bank policy Andrew Harmstone ...................................................................................11 and interest rates to credit quality, earnings, valuations, ƒ Calvert investor sentiment and other key metrics. John Streur ................................................................................................... 13 We aim to help identify the portfolio implications for 2023 Strategy Outlooks our clients, and offer investment solutions to meet their Equity unique objectives and guidelines. While 2022 may have ƒ Counterpoint Global delivered more than its share of disruptions, our Manas Gautam ........................................................................................... 15 ƒ International Equity investment philosophy remains constant. As always, William Lock, Bruno Paulson .............................................................. 17 we seek to: ƒ Emerging Markets Equity Vishal Gupta ................................................................................................19 ƒ capitalize actively on the opportunities presented by ƒ Global Listed Real Assets volatile investor sentiment Laurel Durkay ............................................................................................. 21 ƒ ensure that portfolio risk profiles are appropriate for Income our investment strategies ƒ Floating-Rate Loans Andrew Sveen, CFA ................................................................................ 23 ƒ pursue fundamental value that helps build client ƒ High Yield wealth over the course of many business cycles Stephen C. Concannon, CFA, Will Reardon ................................ 25 ƒ Agency MBS ƒ take dynamic action that serves the long-term Andrew Szczurowski, CFA ....................................................................27 ƒ Emerging Markets Debt interests of our clients, yet remain steadfast when Marshall Stocker, Ph.D., CFA, Bradford Godfrey, CFA ...........29 patience is warranted ƒ Investment Grade Credit Richard Ford ................................................................................................ 31 In this 2023 outlook, our investment managers share Private Markets their diverse views on where markets are headed and ƒ Private Real Estate how they are positioning their strategies. We hope you Tony Charles .............................................................................................. 33 find the discussions informative, and we wish you a ƒ Private Equity healthy and prosperous New Year. Patrick Reid, CFA ...................................................................................... 35