Twitterview: “We ask for Spainxit contingency plans,” says @eduanton

Fund analyst and head of mutual funds selection and ETFs at Spain’s Inversis Banco (@inversis), Eduardo Anton (@eduanton) is also the founder of blog ETF Room (@etfroom), where he shares his views on the asset class.

In the second Twitterview run by Investment Europe (@inveurope), Italy and Iberia correspondent Chiara Albanese (@chiaraalbanese) asked him via Twitter what will be next for the Spanish economy.

What is your title and where are you based?
I work for Inversis in Madrid as fund analyst. I am responsible for the A – work for the selection of mutual funds and ETFs.

You work in the eye of the eurozone storm. What has changed in the Spanish market?
Definitely a risk off scenario. Spanish Index dropped to it’s 10yr lows this year and Spanish investors are used to invest locally.

Has this also changed your fund selection processes and your risk mechanisms?
Risk control has always been important, but know we are asking new questions. For examples if they have contingency plan if Spain leaves the euro.

Which feedback do you get on that? Are firms planning for Spain’s exit?
Most managers aren’t expecting a Spainxit, but they are investing in companies that have a contingency plan if that happens.

Have you seen a significant capital flight from Spain? Which asset classes do you favour at the moment?
We haven’t seen much capital flight, but clients worried about the euro are investing in money market funds in CHF & Nordic currencies.

Which trends do you foresee for the coming months? Which investments are you considering?
My choices for next year are flexible allocation and absolute return funds. Managers who move actively and benchmark unconstrained.

What short term intervention from EU policymakers do you think would support the Spanish market?
The short-term solution is Spanish PM asking “officially” for help so ECB can activate the OMT program.

Why do you think there is a delay doing that?
It’s difficult to understand politicians but having the long-term rates below the mid-cost of current debt it’s not an incentive.

What’s happening on the ETFs side?
Counterparty risk is limited by UCITS at 10% and asset managers are very transparent on the swap and collateral they have.

Why did you start the ETF room blog and what is your target audience?
We started the blog to provide independent research on ETFs for Spanish speakers. We have seen a lot of interest in LATAM.

Is Twitter useful for your job and how?
Yes! Firstly because I save time reading the news, on Twitter I have a quick overview and just click on those that interest me
Secondly having conversations and share information with investment managers around the world helps me to discover market trends.

What are the can’t miss profiles on Twitter within the AM industry?
Specialized magazines such as @inveurope blogs like @zerohedge and @sintetia and professionals @davidtnavarro @dlacalle and funny stuff @gselevator.

A final guess – Spainxit yes/ Spainxit no?           

No. At least in the near term, but North Europe has to change some rules so the periphery remain interested in be part of European Union.

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