Most absolute return funds have failed to live up to expectations in recent years. As a consequence, their popularity with Italy’s fund selectors declined somewhat. But Italians' love for absolute return has flared up once again, for obvious reasons.
The country with the highest level of retrocessions in Europe also was the most lucrative market for active managers in 2016. Little wonder some asset managers believe Mifid II will negatively impact fund sales.
Here you can see a slideshow of photos taken at the Expert Investor Pan European Congress, held in Rome on 1-3 March 2017.
Thanks to the end-of-year ‘Trump rally’, 2016 has been a pretty good year for investors in risky assets. However, not all asset classes have fared so well.
Stock markets have responded to the Italian No-vote in an even more muted way than to the UK’s vote Brexit and Donald Trump’s election. Are investors being complacent about the political and economic effects of a vote that was seen as vital for the future of the EU not so long ago, or has the referendum outcome in fact already been priced in?
European markets were largely unmoved on Monday morning despite the Italian electorate’s decision to reject Prime Minister Matteo Renzi's call for constitutional reform.
Whereas equity markets have quickly shrugged off the result of the US presidential elections, peripheral bond spreads have widened since. Trump’s election seems to have reminded markets of the possible consequences of an Italian no-vote in next week’s referendum.