Giovanni Becchere
Head of Multi-Assets, ABN AMRO Investment Solutions. Based in: Paris, France
“Equity markets proved resilient in Q3. Yet the situation in developed bond markets remains challenging, with many segments, including core eurozone government bonds, offering very low or even negative yields. In this context we sell the BSF Fixed income Strategies fund to increase exposure to Neuberger Berman Emerging Debt - Local Currency. This fund is focused on an asset class that can still benefit from attractive yields, supported by positive momentum of activity and by the current undervaluation of the underlying currencies.”
Luca Dal Mas
Senior fund analyst, Aviva Investors. Based in: London, UK
“The ECB announced the restart of their asset purchase programme. The proposed initiatives triggered a strong sell-off in government bonds and a rally in local banks. A surprise drone strike at a Saudi Arabia oil shocked energy prices but a release of strategic reserves by the US promptly calmed investors. The OECD downgrade of global growth for 2019 did not manage to unsettle equity markets, which closed the month with limited gains. We thought appropriate to maintain a balanced exposure to risky assets and only applied marginal changes to our global equity exposure.”
Kelly Prior
Investment Manager in the Multi-manager team, BMO Global Asset Management. Based in: London, UK
“After the fireworks of August, September bought with it the steadying hand of central bankers as the Federal Reserve and ECB carried out the anticipated interest rate cuts, and in the ECB’s case, the reintroduction of QE. A spike in the oil price proved short-lived, as did a surge in the overnight funding rate in the US banking system. Markets made solid ground with Japan taking top spot. We switched the CC Asian Focused fund for the TT Asia ex Japan Equity Fund, and the Schroder Japan Opportunities fund for the Eastspring Investment Japan Dynamic.”
Ian Crispo
Head of fund selection, Deutsche Bank Wealth Management. Based in: London, UK
“Early in the month, we reduced our allocation to government bonds and increased our exposure to corporates on the back of continued negative return expectations, already priced in rate cuts and continued easing by central banks. The portfolio weathered the Brexit saga, impeachment volatility and trade war concerns relatively well, with EMD and credit managers producing strong returns. Our alternatives book was negatively impacted by market reversals and the rotation between growth and value.”
Silvia Tenconi
Multimanager Investments & Unit Linked, Eurizon Capital SGR. Based in: Milan, Italy
“In September, performance was positive. Top contributors were our European Equity funds, even though Fidelity European Dynamic Growth lagged its benchmark because of a rebound in the value factor. The allocation to cash detracted one basis point. Macro data point to a slowing economic cycle, albeit no recession is on the radar for now, while central banks have adopted an easing bias that supports the markets. We keep our allocation unchanged: we still like developed markets equities and credit and keep a sizeable exposure to the US dollar.”
Lee Gardhouse
Chief Investment Officer, Hargreaves Lansdown Fund Managers. Based in: Bristol, UK
“I don’t see growth investors trembling in their boots but September certainly sent a shot across the bows for the out and out growth investor. Yes the threat to traditional businesses of private equity backed companies that get to compete without the need to make a profit is not going to go away any time soon. However it is difficult to conclude that not making a profit is going to be acceptable practice over the long term. We preach the benefit of diversification because you never know how you might act if you are caught on the wrong side of the market when the wind changes.”
Bernard Aybran
CIO Multi-management, Invesco. Based in: Paris, France
“With this asset allocation, the fixed income investments are optimised according to the most recent changes in the interest rate landscape. An actively managed, long-held investment has been redeemed and the proceeds reinvested in a short-term investment grade ETF, so the overall portfolio less at risk of rising rates. On the equity side, the active fund managers have been sticking to their investment styles despite the strong rotation from growth to value. For many years, rankings have been highly dependent on style biases.”
Paul Hookway,
Senior Fund Analyst, Kleinwort Hambros. Based in: London, UK
“As we move into the last quarter of 2019 we see plenty to concern investors. Weakening PMI data points to a slowdown of GDP growth though not a recession at this stage coupled with US/China trade wars and Brexit it is little wonder investors are easily spooked. The UK market is offering good value as it remains unloved by international investors, though a resolution to the Brexit impasse is required to unlock it. Given this uncertainty we found no reason to make any changes in September; we remain confident we are correctly positioned to meet the challenges ahead.”
Antti Saari
Chief Investment Strategist, Nordea investments. Based in: Copenhagen, Denmark
“The risk-on/risk-off behaviour of the markets continues. September provided some relief for risky assets and a pullback in government bonds as yields rose. The tug of war between easier monetary policy and uncertain economic and geopolitical environment will have a hold on markets going forward. With this foggy outlook, we keep our neutral stance between equities and fixed income.”
