The movement of Italian government bond spreads will depend on who will be the next finance minister, and future volatility will depend on whether the new government’s decisions diverge from the European Union, according to a top fund selector.
The Iberian country has undergone a turnaround in fortunes since the European debt crisis.
With bond yields still at record lows, the ECB planning to pull back its QE programme, and the US slowly rising interest rates, Expert Investor asked investment experts where they found opportunity at its Pan-European Rome Congress.
Many fund selectors believe clients often end up damaging their own portfolios when insisting on bad investment ideas, according to a survey conducted at Expert Investor’s Pan-European Congress in Rome on Thursday.
Strong gains in US equity markets over the past year have encouraged investors to target the asset class in 2018, but while most prefer large cap funds it’s the small caps that have generated the better returns.
The market reaction following the success of Italy’s populist parties at Sunday’s general election will depend on how diluted their stance will be going forward on fiscal easing and being anti-Europe, according to experts.
The expected hung parliament following this weekend’s Italian election is likely to encourage fund selectors towards Italian equities and away from the fixed income sector, according to experts.
The depreciation of the US dollar led to European investors lagging behind their US and Latin American counterparts in terms of performance in 2017 despite making the right call about being overweight European equities, according to Natixis Investment Managers. Click through the gallery to find out what asset allocation looked like for European, US, and…
With the global selloff shaking markets over the past week, Expert Investor data suggests that it was the Spanish and the Italians that might be the least prepared for a potential market correction, and the Danish could be the most ready.
What do Italian fund buyers think of all the major asset classes?
European asset managers’ appetite for equities is at its highest since March 2015 with the majority of fund managers responding to Bank of America Merrill Lynch’s latest fund manager survey reporting an overweight allocation despite seeing the asset class as expensive.
While Italy faces election and non-performing loan (NPL) challenges, Aviva Investors believe that its market is looking attractive for investors in 2018 but fund selectors warn the country should not be a core part of a global portfolio.
