Amundi Pension Funds Letter

The Covid-19 crisis: two sides of the same coin for pension funds From a long-term investment perspective, the unprecedented global crisis caused by the Covid-19 pandemic brings along both challenges and opportunities, which constitute two sides of the same coin for institutional investors such as pension funds. From a societal perspective, institutional investors will have … Continued

The Day After #8 – Deglobalisation could improve diversification but also exacerbate financial contagion

In recent years world trade dynamics have definitely shown an accentuated inversion of the globalisation trend and its robust contribution to global economic performance. The Great Financial Crisis (GFC) marked a historic turning point in the degree of global economic integration. Since 2007/08 global trade has entered a period of increasingly protectionist policies (trade barriers, … Continued

Biden’s election momentum and financial markets

Joe Biden has a historically large lead over President Donald Trump in the polls, including in the critical electoral college vote, but that could narrow closer to the election. A game changer could be the Democratic party taking control of the Senate, which appared unlikely early this year.

The Day After #6 – Inflation: persistent headwinds but a possible inflationary cocktail

Since the beginning of the coronavirus pandemic, all eyes have been on the unfolding health catastrophe and the consequences of confinement: economies halted, exploding rates of unemployment (in particular in the United States), and rising debt levels. In this extraordinary context, inflation is often overlooked. This is a dangerous mistake, in our view. For investors, … Continued

The Day After #5 – New frontiers for Central Banks

Central Banks (CBs) are by nature more flexible than governments. Thus, they have been the most proactive in this crisis, reintroducing large-scale asset-purchase programmes financed by money creation (QE policies). How far can they go? We argue here that CBs are still far from being out of ammunition. Financial repression and fiscal dominance are here to … Continued

Multi Asset: a solid total portfolio approach for a complex world

An increasing number of institutional investors have adopted a total portfolio approach (TPA) as a response to the weaknesses of more traditional strategic asset allocation (SAA)-based methodologies. The frontiers between monetary and budgetary policies are being blurred and ballooning budget policies are likely to lead to some form of debt monetisation later on. As a … Continued

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