Each month in PWM, eight top European asset allocators reveal how they would spend €100,000 in a fund supermarket for a fairly conservative client with a balanced strategy.
Benjamin Hamidi
Senior portfolio manager, ABN AMRO Investment Solutions.
Based in: Paris, France
“The economic situation has been underpinned by the robustness of consumption and the labour market inherited from the ‘pre-liberation day period’. Activity is also being affected by the anticipations and reactions of economic agents to the major uncertainties resulting from the announcement of the implementation of tariffs, the continuation of their negotiations, the effects of restrictions on migratory flows and the uncertainty of fiscal policy. Markets have rebounded and volatility has eased, but many uncertainties remain. Until we have more visibility, we are reducing our equity exposure on a tactical basis, creating a cash cushion that can be deployed opportunistically.”
Luca Dal Mas
Senior fund analyst, Aviva Investors.
Based in: London, UK
“Early survey data has shown a rebound in the US, suggesting resilience in sentiment. The eurozone’s economic activity also showed tentative signs of stabilisation, pointing to a potential turning point for the local manufacturing sector. While President Trump reignited trade war fears by threatening 50 per cent tariffs on European imports, these were later postponed to July, helping market sentiment. Equity markets experienced positive performance, with developed equities as a whole, posting modest gains, with European indices and technology stocks leading the market higher. In portfolios we have maintained our exposure to US equities, while marginally adding to UK names.”
Jorge Velasco
Director of Investment Strategy, CaixaBank Private Banking.
Based in: Madrid, Spain
“The global stock index (in euros) closed May at virtually the same level as at the end of March, and the same occurred with the main interest rates. However, between those two points, we experienced a true roller coaster — and not only that: on six occasions, the intraday movement range exceeded 5 per cent, even reaching 9 per cent. The market has adjusted interest rate expectations in the US, which now seem reasonable to us. The same applies to the Eurozone. We remain out of dollar-denominated fixed income, and in the Eurozone we are not taking positions on duration or curve. However, we do maintain a favorable view on Italian and Spanish sovereign debt, corporate bonds, and subordinated bonds in the financial sector. We’ve made subtle changes to our diversification strategy, which continues to perform well thanks to Europe’s relative strength compared to the US, as well as to specific sector bets. In May, the Value factor underperformed Growth in the US, but they were evenly matched in Europe. The consensus on earnings growth expectations continues to decline, similarly in both the US and the Eurozone.”
Adam Norris
Portfolio Manager, Colombia Threadneedle Investments.
Based in: London, UK
“Equity markets roared back through May, after the April tariff rout. All funds selected generated a positive performance, with Neuberger Berman Global Investment Grade Credit Fund returning just 0.18 per cent, versus Alger Focus Equity recovering some weaker performance earlier in the year, generating a 15 per cent return. We added to equities by adding to TT Emerging Markets Unconstrained Fund, as we take a more optimistic view of emerging market earnings growth and tailwind of a weaker US dollar.”
Silvia Tenconi
Multimanager Investments & Unit Linked, Eurizon Capital SGR.
Based in: Milan, Italy
“In May the performance of the portfolio was positive, with Wellington Strategic European Equity contributing the most. Equities had a brilliant month, while government bonds where flat in Europe and negative in the US. High Yield bonds, thanks to the rally in risky assets, posted hefty gains. At the end of the month we exited Allianz Europe Equity Growth and Invesco Pan European Equity, replacing them with JPMorgan Europe Strategic Growth and M&G Strategic Value. We keep our balanced exposure to equities, High Yield, US dollar and Italian government bonds.”
Richard Troue
Fund Manager, Hargreaves Lansdown Fund Managers.
Based in: Bristol, UK
“After a volatile April normal service resumed in May. Equites performed well, led by the US. Investors seem confident they’ve figured out Trump’s playbook and ‘Taco’ (Trump Always Chickens Out) became the acronym du jour. This seems dangerous. Firstly, Trump is unpredictable. Secondly, his fiscal stimulus package (if it goes through) will add to an already extraordinary fiscal deficit and put more pressure on consumers. As such, it’s valid to question whether 15 years of uninterrupted US exceptionalism can continue. This doesn’t mean one should abandon the US, but when thinking about maintaining a diversified portfolio, I’m glad I have exposure to less expensive stocks in Europe, the UK, and Japan, while I’m also avoiding excessive duration risk in fixed interest.”
Antti Saari
Chief Investment Strategist, Nordea investments.
Based in: Copenhagen, Denmark
“President Trump has continued his retreat from unsustainably high tariffs on several countries, adding China to the mix in May. The risk of a sharper economic downturn has thus been reduced, and equity markets are up for good reasons. However, tariffs will be higher than before, and Trump is still talking about a postponement of the so-called reciprocal tariffs. Uncertainty about the economic picture is therefore still greater than normal. With the rise in the equity markets, valuation and optimism have increased and the market is vulnerable to any negative news. Hence, we maintain a neutral allocation between equities and bonds, despite a better outlook for economies and earnings. Within equities, Europe remains overweight as we expect easier fiscal policies, deregulation and lower interest rates to benefit the region’s growth outlook.”
Didier Chan-Voc-Chun
Head of Multi-Management and Fund Research at Union Bancaire Privée (UBP).
Based in: Geneva, Switzerland
“Markets rebounded in May, as improving consumer sentiment and a pause in tariff hikes eased global recession fears. Progress in US–EU trade talks further supported the shift back into equities. During this period, we increased our investments in gold, reflecting a strategic response to macroeconomic and geopolitical dynamics. Amid ongoing inflation and recession concerns, as well as geopolitical tensions, gold continues to serve as a reliable store of value. Strong central bank demand and rising retail flows are further supporting gold’s long-term appeal.”
