Stéphane Corsaletti, CEO of A.A.Advisors, discusses the strategies that clients of the funds of funds and funds of mandates provider are pursuing.
François Hollande’s victory was priced into markets before the poll, so there was no panic on the result. But the financial community, the new leader’s declared ‘enemy’, now braces itself for details of his ‘pro-growth’ policies.
Viggo Johansen, head of institutional sales, Nordic at Schroders, says the ongoing interest rate environment is creating challenges for but also opportunities for his firm in the local market.
Capital Strategies Partners is using particular databases to find managers of niche active management strategies, and bring their capabilities and products to market.
Lesser-known rating agencies in markets such as Brazil, China and Germany are planning their challenges to S&P, Moody’s and Fitch as new regulations take hold.
The credit rating agencies’ failure to assign accurate ratings to mortgage securities inundating the US sub-prime market in 2008 is old news. What is new is the rising concern about their monopoly of the ratings market and their ever evolving business structures.
Many French investors are attempting to wash their hands of EU equities, but are not ready to commit to the only visible escape route: emerging markets. Others cling to the belief core European economies remain a safe bet for fixed income. Uncertainty seems to be the key common denominator for French fund managers heading into 2012.
François Baroin, French minister for the economy, finance and industry, has said the risk that France loses its AAA credit rating is “undeniably serious”, just days after Standard and Poor’s threatened to downgrade the credit rating of 15 eurozone countries.
Continental allocators facing difficult prognoses for their local markets are encouraging clients to ‘try something new’, but managers say Europe still has a role in portfolios.
Europe’s leaders need to follow just three steps to secure the stability of the beleaguered eurozone, Giles Keating, head of global research at Credit Suisse Zurich, told delegates at the Association of the Luxembourg Fund Industry’s (Alfi) November conference.
Taking growth, debt and political factors together, it seems rating agencies and the markets have got something seriously wrong,
says East Capital’s chief economist Marcus Svedberg.
Figures from Lipper suggest ethical equity funds under-deliver against their sectors.