Finding Sources of Wealth within the European Market

Finding Sources of Wealth within the European Market homogeneous way, but as independent creation as I expect volatility to persist risks. This is what financial markets are and correlations to diminish. telling us with ten year government bond yields trading between two and 20 What does the future hold for per cent. As a consequence, the Euro is pension funds? going to behave randomly against the USD or YEN, depending on the First, if Europe cannot get out of the respective central bank polices. unemployment spiral that is hitting the younger generations, the future will be So not only do investors have to face challenging. possible sovereign counterparty risk but also currency risk, each time they invest Secondly, financial markets do not print outside of the Euro. Currency risk returns just because they have beenInterview with: Michel Donegani, management should now be an integral used as a hypothesis into econometricalChief Executive Officer, Prisminvest part of their investment strategy. models to make forecasts on future assets and liability relationships. TheThe European debt crisis is unlikely to What asset allocation practices capacity to react to new environments,be resolved anytime soon, therefore could you share? to adapt the assets allocation and to beinvestors must begin to re-balance their flexible, will differentiate the keyportfolios, says Michel Donegani, Chief Strateg ica l ly, I re com mend th e players.Executive Officer, Prisminvest. emerging markets versus the developed economies for equity allocation. The realFrom an asset management firm at the challenge, however, will come from theupcoming marcus evans European management of the portfolio that is Re-balancingPensions & Investments Summit directly linked to interest rates, like2012, Noordwijk aan Zee, The bonds and real estate. In this area, INetherlands, 14 - 16 May, Donegani would still overweigh corporate bonds the portfoliodiscusses asset allocation and versus government, with a low duration.portfolio management strategies. Then comes the one million dollar will provideWhat is your long-term question: Will Europe survive andmacroeconomic outlook of the converge? Investors who believe thatEuropean market? Europe will survive should be ready to another take on country risks. I would beProfound and often painful reforms surprised to see a German pension fundshould be implemented, as Europe overweighting Italian government source ofdesperately needs to grow. Betting and bonds, although they would receivehoping that emerging market growth almost four per cent more yield on anwill be the answer, is not a credible annual basis for the next ten years. wealthstrategy without accepting a historical Given the environment in Europe, it ischange in economic leadership between not surprising to see nationalism andthe old and the new world. politics influencing asset allocation.The European debt crisis is unlikely tobe resolved smoothly or anytime soon. As important as strategic asset allocation is, re-balancing the portfolio creationWe should not discuss Europe in a will provide another source of wealth

About the European Pensions & Investments Summit 2012 The Investments Network – This unique forum will take place at the Grand Hotel Huis ter Duin, Noordwijk aan marcus evans Summits group Zee, The Netherlands, 14 - 16 May 2012. Offering much more than any conference, delivers peer-to-peer information exhibition or trade show, this exclusive meeting will bring together esteemed on strategic matters, professional industry thought leaders and solution providers to a highly focused and interactive trends and breakthrough networking event. The Summit includes visionary presentations and interactive innovations. forums on looking beyond volatility to pinpoint innovative investment approaches, modernising risk models and delivering returns in the new era of pension investing. www.epi-summit.com Contact Please note that the Summit is a Stacey Melvin, Journalist, marcus evans, Summits Division closed business event and the number of participants strictly Tel: + 357 22 849 400 limited. Email: press@marcusevanscy.com For more information please send an email to info@marcusevanscy.com All rights reserved. The above content may be republished or reproduced. Kindly inform us by sending an email to press@marcusevanscy.comAbout PrisminvestPRISMINVEST S.A. is an independent asset management firm set up in 2000, managing particular collective investment schemesand dedicated managed accounts. Prisminvest is authorised by the Swiss Financial Market Supervisory Authority (FINMA) to act asan asset manager. Among our clients are Swiss and European pension funds, private banks and insurance companies, as well asFamily Offices and third party asset managers.www.prisminvest.chAbout marcus evans Summitsmarcus evans Summits are high level business forums for the world’s leading decision-makers to meet, learn and discussstrategies and solutions. Held at exclusive locations around the world, these events provide attendees with a unique opportunity toindividually tailor their schedules of keynote presentations, think tanks, seminars and one-to-one business meetings.For more information, please visit: www.marcusevans.comUpcoming EventsElite Summit - www.elitesummit.comMiddle East Investments Summit - www.mei-summit.comUK Pensions & Investments Summit - www.ukpensions-summit.comUS Pensions Summit - www.uspensions-summit.comTo view the web version of this interview, please click here: www.epi-summit.com/MichelDonegani

Finding Sources of Wealth within the European Market

by marcus evans

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Finding Sources of Wealth within the European Market Document Transcript