Barcelona’s investors are remarkably unanimous in their fixed income allocation. Almost all of them are overweight short-duration bonds and eight in 10 interviewees are planning to decrease their allocation to long-duration European sovereign debt.
Barcelona’s fund buyers had been bullish about European equities almost by default for the past four years. But political instability across Europe has dented their appetite. Global emerging market equities are their new darling.
Fund buyers expect returns from their equity portfolio to be significantly lower over the next five years. However, they still expect equities to outperform bonds by a considerable margin.
Here you can see a selection of photos taken at Expert Investor Spain forum, held in Madrid on 14 June 2016.
Markets have been trading more or less sideways for a while now, but fund managers and fund buyers alike are preparing for the next downturn. And Brexit could be the trigger.
2015 saw Spanish investors breaking with their long-standing habit of buying ever more bonds, with bond funds seeing net outflows for 10 out of 12 months last year. However, as government bond yields once again approach record lows, they have reversed course.
The Robeco Global Total Return Bond fund (formerly known as Robeco Rorento) combines the two most important qualities Alvaro Martín Sauto, head of funds-of-funds at Bankia, looks for in a fixed income fund: it can allocate flexibly to various asset classes, but prioritises limiting drawdowns over maximising returns.
The majority of fund buyers in the Basque country and in much of the rest of Europe expect another market correction this year. Fund managers at Expert Investor Spain, held in Bilbao last week, identified China and Brexit as the main possible triggers for this.
Here you can find a selection of photos taken at Expert Investor Spain, held on 15 March 2016 in Bilbao.
Here you can see a selection of photos taken at Expert Investor Spain, held on 4 February in Barcelona.