Cédric de Fonclare, manager of the Jupiter European Opportunities Fund, explains in this video interview why he looks with suspicion at the recent wave of M&A.
European equity funds are once again in high demand. In November, European equities were the most popular asset class for two consecutive months for the first time since February.
As the year draws to a close, it’s time to scrutinise the forecasting capabilities of asset managers and fund selectors. Did their favourite asset classes at the end of last year indeed deliver the best performance, or did asset allocators fail hopelessly? In the first part of a two-piece series, we look at their equity market outlooks.
Government bonds are headed for negative returns in 2016, international asset managers believe. Their outlook for the next 12 months is at its most negative since April 2013.
ECB President Mario Draghi disappointed markets on Thursday. While the Bank delivered a 10 basis point cut to the deposit rate to an historic -0.3%, and extended the deadline of its asset purchase programme by six months, it kept the main refinancing and marginal lending rates steady at 5 and 30 basis points respectively.
If you had invested all your cash in dollars as a euro-based investor this year, you would have earned a better return than if you had emulated the MSCI World. Moreover, equity returns seem to have become completely tied to exchange rate movements.
An industry frustrated by the lack of clarity over MIFID II’s detailed requirements would welcome a year-long deferral.
The European Commission has said it is considering a delay of up to a year to the initiation of the second iteration of the Markets in Financial Instruments Directive. The European Fund and Asset Management Association (Efama) had recently been calling for such a delay.
Fund selectors in Barcelona, who again turned up in large numbers at the semi-annual Expert Investor Barcelona event last week, are yearning for another round of quantitative easing. They expect QE 2 will mainly benefit the equity markets, and they are selling off their bond holdings in unprecedented amounts.
Asia-based fund selectors overwhelmingly hold a strong preference for European equities, according to a survey at FSA’s investment forums in Hong Kong and Singapore.