Bernard Aybran comments on Risk-off
Bernard Aybran is CIO Multi Management at Invesco in Paris, and a member of InvestmentEurope’s Editorial Board.
In January 2016 he commented on the following question:
Q.Have you had to review your fund selection (and/or asset allocation) positions in any particular way in light of the recent risk-off shift in global markets experienced at the start of 2016?
A. Over 2015, actively managed European equity funds exhibited an unusual feature: the proportion of funds that outperformed the broad indices was significantly above the usual proportion. This can be explained by both sector and market cap biases and trends that lasted for most of the year.
Entering 2016, the trends are continuing, including during the bout of volatility in which major stock markets started. Still, as trends end at some point, we are considering diversifying our selection, with fund managers that have been positioned differently and then underperforming. While looking for underperforming funds is not that usual, there are times when that makes sense.
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