Natixis Asset Management Workshop dedicated to "Europe And now what? Outlook and investment strategies"
The Natixis Asset Management Workshop held on April 5 was attended by 200 participants who came to discuss the following topic: "Europe - And now what? – Outlook and investment strategies”.
“The Treaty on Stability, Coordination and Governance in the European Union, the European Stability Mechanism, the Long Term Refinancing Operations and the economic reforms are all major advances on the path toward enhanced European governance,” explained Pascal Voisin, CEO.
While before the debt crisis the eurozone was viewed as a homogeneous block that was capable of bringing together its constituent countries, today the picture is quite different.
In addition, equity and bond markets now obey criteria and frames of reference that have also evolved. All these changes now have to be taken into account in investment decisions…
- What are the new driving forces growths in the eurozone? - Philippe Waechter, Chief Economist of Natixis AM
- What assets should one seek out in this new environment? Philippe Berthelot, Head of Credit Management; Thierry Cuypers, Head of Equity Management Small and Mid-caps Europe; Olivier de Larouzière, Head of Euro fixed Income management; Olivier Lefèvre, Senior European Equities portfolio Manager; Brigitte Lebris, Head of International Bond Management; Françoise Lafitte, Senior portfolio Manager
- How does this new environment impact asset allocation? - Franck Nicolas, Head of Global Allocation and ALM
In recent months the eurozone has adopted new governance rules that can support the long-awaited economic recovery and ultimately ensure the return to more autonomous growth. While all the existing obstacles have not been overcome and many questions remain unanswered, risk aversion has ebbed, at least temporarily, and risky asset classes have rallied.
Equities, credit and emerging debt could continue to catch up and offer opportunities for performance in the coming months, but sovereign risk will continue to dictate the trend and selectivity will remain of the essence.
A shifting hierarchy of risks
This selectivity can also remain a source of performance in the sovereign debt market because of the strong fluctuations in the perception and hierarchy of risks between the various eurozone countries. Nothing ever stays the same. This is certainly one of the lessons to be drawn from the sovereign debt crisis. Another lesson relates to asset allocation decisions. By turning upside down the conventional delineation between "risk-free" and "risk" assets, this crisis is also forcing investors to question their ingrained reflex reactions in the field of allocation and to broaden their sources of diversification.
Consult the dedicated Natixis AM Workshop Newsletter "Europe And now what? Outlook and investment strategies"