Register to get unlimited access to all of Citywire’s fund manager database. Registration is free and only takes a minute.

Amundi: four high conviction picks for 2018

Views and investment tips presented by experts from Amundi Asset Management

2018 outlook

Moving into 2018, the economic environment remains strong and the temptation for risks assets is still high, says Pascal Blanqué, group chief investment officer and Vincent Mortier, deputy group chief investment officer at Amundi Asset Management.

In the US, the expected fiscal reform and infrastructure spending should provide a renewed support to an economy that remains buoyant. In the euro area, employment is rising at the fastest rate in a decade, and robust data point to a continuation of a recovery into 2018.

Strong momentum has also been recorded in Japan, and a reacceleration in emerging markets (EM) economies is under way, although with differences seen on a country-by-country basis.

Against this backdrop, the French asset manager has revealed four high conviction ideas for 2018.

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

2018 outlook

Moving into 2018, the economic environment remains strong and the temptation for risks assets is still high, says Pascal Blanqué, group chief investment officer and Vincent Mortier, deputy group chief investment officer at Amundi Asset Management.

In the US, the expected fiscal reform and infrastructure spending should provide a renewed support to an economy that remains buoyant. In the euro area, employment is rising at the fastest rate in a decade, and robust data point to a continuation of a recovery into 2018.

Strong momentum has also been recorded in Japan, and a reacceleration in emerging markets (EM) economies is under way, although with differences seen on a country-by-country basis.

Against this backdrop, the French asset manager has revealed four high conviction ideas for 2018.

 

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Equity

The global equity outlook in 2018 is constructive, thanks to good economic momentum which should continue to drive earnings growth.

Investors should still look for good value opportunities in some sectors – energy, financials, US retailers, infrastructure and domestic banks, noted Romain Boscher, co-head of equities and Diego Franzin, co-head of equities.

‘Through the year, the focus will shift progressively from earnings growth to sustainability of earnings. Here, Japan offers a convincing case in point.’

For EMs equities, Mauro Ratto, head of EMs said he prefers cyclicals over defensives, and China and Russia are his team’s high conviction ideas entering 2018.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Fixed income

According to the head of fixed income Eric Brard, bond investors in the new year should embrace a flexible and active approach using all the levers to generate value.

Dynamic duration and credit exposure, inflation-linked bonds and moving, if possible, along the credit continuum.

Ratto said he expects 4 – 5% returns for EM debt in hard currencies and 7-8% in local currencies in 2018.

He said EM bonds in 2018 will likely be an income story, more than a story of yield compression, for global fixed income.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Multi-asset

Next year, Matteo Germano, global head of multi-asset investments, expects a progressive rebalancing between monetary and fiscal policies with core inflation finally reaccelerating in some regions, such as the US and the eurozone.

‘Within this framework, we expect a smooth transition from an asset reflation regime to a late financial cycle one: still in favour or risky assets, but less benign than the current one for several asset classes.

‘Valuations for most of asset classes look stretched, fixed income in particular, while equities have already discounted most of expected profits growth,’ he noted.

As a result, Germano believes the expected upside in equities will likely be more limited than 2017, in line with the mature phase of the bull market.

Hence relative value rather than directional strategies will be crucial to add value to multi-asset investments in the year to come.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.

Real asset

Pedro-Antonio Arias, global head of real and alternative assets said his team believes the global macroeconomic and financial landscape will remain supportive for real assets in 2018.

Growth is around its potential in the US, eurozone’s renewed strength is spilling over to investments and employment. And EM economies continue to thrive, with Russia and Brazil finally coming out of recession and China showing relatively stable growth outlook.

‘In our view, these cyclical and structural factors will continue to support the demand for real assets in both emerging and developed countries,’ he said.

Leave a comment!

Please sign in or register to comment. It is free to register and only takes a minute or two.
Events
  • Citywire Asia Bangkok Retreat 2018: day one images

    Citywire Asia Bangkok Retreat 2018: day one images

  • Citywire Asia Bangkok Retreat 2018: day two images

    Citywire Asia Bangkok Retreat 2018: day two images

  • Citywire Asia Taipei Retreat 2017: day one images

    Citywire Asia Taipei Retreat 2017: day one images

  • Citywire Asia Taipei Retreat 2017: day two images

    Citywire Asia Taipei Retreat 2017: day two images

  • Citywire Asia Bangkok Retreat 2017: day one images

    Citywire Asia Bangkok Retreat 2017: day one images

  • Citywire Asia Bangkok Retreat 2017: day two images

    Citywire Asia Bangkok Retreat 2017: day two images

  • Images from Citywire Thailand Forum 2017

    Images from Citywire Thailand Forum 2017

  • Citywire Asia Awards 2017: images from Singapore

    Citywire Asia Awards 2017: images from Singapore

  • Citywire Asia Awards 2017: images from Hong Kong

    Citywire Asia Awards 2017: images from Hong Kong

  • Citywire Asia Retreat in Bangkok: day two images

    Citywire Asia Retreat in Bangkok: day two images

  • Bangkok buzz: day 1 images from our Asia Retreat

    Bangkok buzz: day 1 images from our Asia Retreat

  • Images from Citywire's Thailand Forum

    Images from Citywire's Thailand Forum

  • Pictures from Citywire's Hong Kong forum

    Pictures from Citywire's Hong Kong forum

  • Images from our Citywire Singapore Forum

    Images from our Citywire Singapore Forum