At WS Partners, 2026 is about more than just fund due diligence — it is about evolution. As we integrate artificial intelligence to deliver deeper insights with greater speed, we are proud to share our Global 2026 Outlook together with a first announcement of our expanded service offering.

As we step into 2026, global markets continue to evolve in a complex and fast-moving environment. Technological acceleration, geopolitical uncertainty, and diverging economic dynamics are shaping both risks and opportunities for investors.

A Note from WSP Partners

From a service perspective, we will further strengthen communication around selected strategies and continue to develop tools aimed at facilitating the effective implementation of your investment decisions. Our objective remains clear to enhance efficiency, transparency, and usability for our clients.

Enhancing our service offering

As for WSP Partners, we are excited to embrace AI and will throughout the year improve our products and services for better speed, more accuracy, larger scope, and deeper insights. Our milestones will be communicated and shared with you, and we are eager to hear your feedback and suggestions.

WSP will deliver

• A new Newsletter Format deeper, broader providing best in class selections and insights.
• A dedicated lists for new fund strategies during the first semester
  • Active ETFs
  • Private Markets
  • Commodities
  • Alternatives

In 2026, we will place particular emphasis on managers using efficient structures in terms of both cost and liquidity, notably active ETFs. We will also continue to monitor strategies offering attractive risk-return profiles.

Finally, we will remain attentive to new entrants and emerging strategies, as alpha generation continues to be a key concern for the investment community.

2025: A Year of Recovery, Innovation, and Volatility

In 2025, global markets experienced a mix of recovery and volatility. Strong performances in technology and healthcare were largely driven by rapid advances in artificial intelligence. At the same time, inflationary pressures and geopolitical tensions created periods of uncertainty and cautious investor sentiment. Major economies, including the United States and Europe, demonstrated resilience, though concerns around consumer spending and potential interest rate hikes persisted. While markets benefited from innovation-led growth, valuation sensitivity and macro risks remained key considerations for investors.

2026: What Lies Ahead?

We summarise below insights from leading portfolio managers and asset managers to frame expectations for the year ahead. The consensus outlook for 2026 points to moderate global economic growth, with projections ranging between 2.1% and 3.2% across regions. Inflation is expected to stabilise, particularly in the United States, where it may hover between 2.5% and 3%. While asset managers remain broadly constructive on equities, particularly technology and emerging markets, views on fixed income remain mixed, with caution prevailing on government bonds. Divergences also persist regarding US equity valuations, prompting some managers to advocate for a more balanced allocation approach.

Key Convictions for 2026

• Technology Sector – Continued investment in AI and cloud infrastructure is expected to drive growth (AXA IM).
• Healthcare Innovations – Advancements in pharmaceuticals and medical technologies are anticipated to support robust growth (AQR).
• Emerging Markets – Strong growth potential driven by favorable demographics and technological adoption (Goldman Sachs, Invesco).
• Defensive Sectors – Focus on sectors like utilities and healthcare for stability amidst economic uncertainties (BlackRock, AXA IM).
• Fixed Income Caution – A selective approach to bonds, particularly in high yield and investment grade, is recommended due to rising risks (PIMCO, Vanguard).

Regional Outlook

• United States: Moderate growth of approximately 2.0% to 2.5% is expected, with inflation stabilising around 2.5%. Equity markets remain sensitive to valuation levels, leading to a more cautious positioning among certain managers.
• Europe: Growth is expected between 1.4% and 1.8%, supported by infrastructure investment and fiscal stimulus initiatives.
• Japan: Growth projections range from 3.0% to 3.3%, driven by corporate governance reforms and increasing consumer spending.
• China: Growth is forecast between 4% and 5%, underpinned by domestic consumption and continued technological advancement.
• Emerging Markets: Growth of 5% or more is anticipated, particularly in India and Southeast Asia, supported by favourable demographics and technology adoption.

Asset-Class Outlook

   Equities

• Base case view: generally positive, with a strong overweight in technology and emerging markets. Key themes
  • Technology Continued AI growth (AXA IM).
  • Healthcare Innovations driving demand (AQR, BlackRock).
  • Emerging Markets Attractive valuations and growth potential (Goldman Sachs, Invesco).

    Fixed Income

• View on bonds Cautious, with an emphasis on high yield and investment-grade credit.
• Credit Mixed outlook, with some managers favoring emerging market debt (PIMCO, Vanguard).

    Alternatives & Gold

• Gold remains a strong hedge against inflation and geopolitical risks (World Gold Council, Amundi).
• Alternatives Private equity and real estate are viewed positively, with expectations for stable returns.

What to Watch in 2026

• Potential interest rate cuts by central banks.
• Geopolitical tensions affecting market stability.
• Inflation trends and their impact on consumer spending.
• Performance of emerging markets amidst global economic shifts.
• Technological advancements and their market implications.

Notable Perspectives

• “The AI theme has broadened out this year, benefiting a wider array of markets including China, Taiwan, and South Korea.” — Source: BlackRock
• “Emerging markets are expected to enjoy the strongest earnings growth, rising 17.1%.” — Source: Capital Group
• “Gold serves as a key hedge against US fiscal and monetary policies.” — Source: Amundi

Contrarian Corner

• Contrarian view “U.S. large caps are expected to offer the lowest returns among major markets due to high valuations.” — Source: AQR
• Contrarian view “The outlook for bonds in 2026 remains broadly constructive.” — Source: DB

Areas of Disagreement

• US Equities Some managers (e.g., Vanguard) are underweight due to high valuations, while others (e.g., Goldman Sachs) maintain a strong overweight stance.
• Fixed Income Divergent views on the attractiveness of government bonds, with some advocating for overweight positions and others cautioning against them (PIMCO, Invesco).

Conclusion

Given elevated market valuations and ongoing geopolitical uncertainty, we anticipate growing demand for portfolios capable of generating stable and sufficient income while maintaining controlled volatility exposure. After several years of strong market performance, investors may naturally consider a gradual reduction in overall portfolio risk.

We sincerely thank you for your continued trust and partnership. We look forward to supporting you throughout the year ahead with commitment, discipline, and enthusiasm.

Best wishes,

The WSP Management Team