Geopolitical resilience in portfolios: How does it work?

Decades of liberal globalization are drawing to a close. In its place emerges a new reality: states deploy trade strategically, secure access to critical raw materials and technologies, and employ both economic and military instruments to do so. The signs are manifold – from supply chain dependencies to raw material embargoes to hybrid threats against critical infrastructure.

The central investor dilemma: Many companies that have delivered strong returns in recent years are inadequately protected against these new geopolitical shocks. Their business models are built for a world that no longer exists.

How can a portfolio be constructed that is not only return-oriented but also systematically accounts for geopolitical risks? With our analytical tool HORIZON SHIFT, we integrate geopolitical resilience factors explicitly into portfolio optimization – what strategic implications does this hold for your investment decisions?