European equity funds again top investors’ wish lists. Appetite for US equities, however, has vanished as quickly as it surfaced in the wake of Trump’s election victory. Demand for high-yield bonds also declining.
Multi-asset funds have been a long-standing investor favourite. But why do Europe’s fund buyers actually resort to these one-stop shop products?
Norway’s sovereign wealth fund should increase its allocation to equities to 70%, the Norwegian government has recommended to parliament.
Expert Investor has analysed which asset classes were most in demand with European investors in 2016. Many of your peers have been hesitant to make strong asset allocation decisions, but those calls that were made mostly proved right.
Selling European equities and buying global emerging market stocks is developing into the great trend of 2016.
Is accepting a bit more volatility enough to sustain long-term fixed income returns, or should investors also make concessions on liquidity?
Besides higher-yielding bonds, investing in liquid alternatives is another way to future-proof bond portfolios. But such ‘absolute return’ funds bring potential benefits as well as drawbacks.
Everywhere in Europe, investors are having to rethink their strategic fixed income allocation as bond yields keep hitting new lows. When Expert Investor visited Amsterdam recently, we brought together three local wealth managers and an industry consultant to discuss how they take on this challenge.
Appetite for European equities among fund buyers in the Netherlands is lower than it ever has been. They believe the ECB has run out of ammunition to give equity markets another shot, while they see an autumn storm coming in from across the Atlantic.
The past 12 months haven’t been a great time for equity investors. Only US equities delivered a positive return during the period, albeit a modest one. A year ago, few European investors were betting on this asset class to do well though.
While investors reach for their hard hats ahead of the EU referendum, they should also prepare for potential bargains – whichever way the vote goes – on 24 June.
Professional managers of other people’s money, like regional banks, private banks, wealth managers, investment companies, (multi-) family offices, etc. are confronted with a situation that forces them to radically change to prevent being squeezed out of the market.
