Europe’s biggest asset manager favors cash amid growth pessimism

Spare Cash - Steve Woods

Amundi, Europe’s biggest asset manager with almost $1 trillion of funds, said it increased cash holdings at the expense of equities and high-yielding bonds because global growth may be weaker than expected next year.

'Forecasters remain too optimistic about global growth for 2014', Didier Borowski, head of strategy and economic research at Amundi, said in an interview in Geneva last week. 'We have to be very cautious on risky assets in the short term'.

Bloomberg News reports that Amundi, which mainly invests on behalf of institutions, said diversified funds have as much as 55% of assets in cash as a weaker economic outlook deters riskier investments.

Economic forecasters are too optimistic as government austerity programs in Europe curb growth, Borowski said. Amundi, owned by two of France’s three biggest banks, Credit Agricole and Societe Generale, increased cash allocations after Federal Reserve Chairman Ben Bernanke said in May that the central bank may begin curtailing fixed-income purchases.

Hit the link below to access the complete Bloomberg article:

Europe’s Biggest Asset Manager Favors Cash Amid Growth Pessimism

Swiss Banks May Lose $522 Million Payment From U.K. Tax Accord

Commerzbank Probed for Possible Swiss Reporting Breach

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News