Allianz Global Investors CIO on a year of ‘unimaginable events’

Written by:
Allianz Global Investors CIO Andreas Utermann has warned investors to prepare for more significant unexpected events in 2015.

Commenting on trading over the last year, Utermann said the most extreme events had been almost entirely unpredicted, suggesting investors could face a similar scenario next year.

He said: “After the crash, unimaginable events have continued to happen, so the euro falling to $1 is not impossible. Do not forget, at launch the euro went from $1.16 to $0.82 and then rose to $1.45, so it is not unreasonable for it to fall to $1.”

Utermann, who oversees the management of 345bn euros (£274bn) globally, added “financial dynamics are going to be in the same place in 2015 as they have been for the last couple of years.

“In a financially suppressed world, there is not much you can do.”

Despite these concerns, Utermann said he was “mildly positive” on global equities and recent events were likely to have a positive effect on markets overall.

“Although the lower oil price is not an entirely good thing, as the oil price is often indicative of inflation, it is positive for other dynamics, particularly the US consumer story,” he said.

Although he described his market view as generally positive, Utermann has recently introduced new tools for his managers to use in difficult conditions, including raising their portfolios’ cash levels.

He said: “We now hold significantly more cash than we have done in the past, so we don’t have to sell. In the past, our funds were mostly fully invested, with up to 1 – 2 per cent in cash. They are now able to hold 3 – 5 per cent.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Five ways to get on the property ladder without the Bank of Mum and Dad

A report suggests the Bank of Mum and Dad is running low on funds. Fortunately, there are other options for st...

The essential Your Money guide to the April 2018 tax changes

As we head into the 2018/19 tax year, a number of key changes take place to existing policies while some new i...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
2014 review: Which asset class or event surprised you most?

John Redwood, chairman of the investment committee, Charles Stanley Pan Asset Oil prices The biggest surprise was the collapse in...