Selectors prefer growth GEM funds but value performs better
European fund selectors expressed a preference towards growth emerging market funds over value during the last six months. However, Europe’s top performing funds allocated a greater weighting towards value stocks during the period.
Why European investor performance trailed the US and Latam
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 Latin American investors in 2017.
European fund demand for equities expected to peak in 2018
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.
German investors trade return for safety
A poll from German asset manager Union Investment has found that German institutional investors are more than three times as risk-averse as their peers in neighbouring countries, with 72% of Germans considering ‘safety’ the most important criterion when making investment decisions.
ANALYSIS: Has German election killed the European spring?
Many fund managers dismissed the historical German election results as “insignificant for markets”. But they fail to take into account the fact that these elections have upended the status quo, possibly triggering a reversal of recent political trends.
Why you should care about the German elections
You may be forgiven for not staying up late this Sunday to watch the final results of Germany’s parliamentary elections come in. While Chancellor Merkel is sure to win, the scale of her victory is likely to impact the future direction of bond spreads.