With markets upgrading the probability of a stagflationary environment, Europe’s asset allocators assess whether to scale down portfolio risk
Equities ditched as managers expect dramatic profit drop
‘The risk/reward profile looks less compelling’
European fund selectors view 2021 with optimistic eyes
Cash allocations expected to drop as investors look to deploy capital
Luxembourg asset allocators to put more money to work
But that doesn’t mean they are particularly happy about it
Fund managers argue investors face bigger risks than Brexit
Cash could be the wrong place to be if there’s no deal
Investors turn to cash as storm clouds gather
Despite meagre returns, October saw the highest monthly flows into money market funds in over a decade at €52.5bn
Nordic corporates stick to cash despite negative rates
Companies in the Nordic countries continue to hold the majority of their liquidity in bank accounts. And they don’t have plans to diversify, despite the threat of negative central bank interest rates being passed on to them.
Fearful Belgians clutch at Draghi
Belgian fund buyers, once Europe’s most upbeat, have turned negative on most asset classes, and they have been hoarding cash. European equities is the only long-only asset class holding out against the Belgian bearishness.
Cash balances hit 15-year high as investors turn cautious
Investors are turning more cautious in the face of the turmoil in the financial markets this year, according to the latest Bank of America Merrill Lynch (BAML) Fund Manager Survey, with average cash balances up at their highest weighting since November 2001.
Dollar cash outperforms MSCI World year-to-date
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.