Investors are at a crossroads, as evidenced by recent developments in financial markets, said Florin Dolea, CEO of Amundi Asset Management Romania, yesterday, at a press conference.
He said: "We think we are at a crossroads. It shows the evolutions of recent financial markets that come after a period of sustained global economic growth." A moment when we think our investors are asking themselves: what what to do, in which direction we should be heading at this moment. "
According to Amundi representatives, the pace of global economic growth has already reached the maximum, with the possibility that in the future we may witness a more international growth environment.
Bernard Pujol, director of Amundi Paris for Partnerships and Services, said: "We are at the end of a period of normalization of monetary policies. On the one hand, benchmark interest rates have been raised and carried out in the United States ) and the European Central Bank (ECB) will start raising interest next year, which means we are in this normalization environment.
Of course, this will lead to low liquidity in the market and a tightening of financial conditions. A key element is the increase in volatility, fueled by rising interest rates, on the one hand, and political events such as trade war, which is also expected to increase volatility in the financial markets next year, on the other. "
Bernard Pujol added: "But it has to be mentioned that in the last 3 to 4 years the level of volatility in the markets has been reduced and this increase in volatility will be a key challenge for us (…) We have slightly revised negatively forecasts of economic growth for 2018 and 2019, but global growth prospects remain robust. "
According to Nuria Trio, head of Amundi Milan's Business and Investment Development Division, despite fluctuations, shares are the assets that provided the best long-term return (5.8% for funds managed by Amundi), followed by bonds corporations (2.8%) and government bonds (2.4%), while the only assets with negative returns are bank deposits, whose profitability was eroded by inflation.
Amundi Asset Management is an investment manager operating in Europe, North America, Asia Pacific and the Middle East and is listed on the Paris Stock Exchange in November 2015.
Of the EUR 1,300 billion in management, 614 billion are fixed income investments; 234 billion in mixed funds; 192 billion invested in shares; 186 billion are liquidity solutions, while other assets are worth 81 billion euros.
Following the financial crisis of 2008 and December 2015, the US benchmark interest rate was reduced to 0.25%, so that credit institutions have easier access to liquidity.