Monday, December 19, 2011
Pension Parameters Tracks Views on Euro Situation at Thomson Reuters/Lipper Outlook Event;
12:55 PM | 
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pensionfinancialservices |
We were invited to an illustrious event on December 6, when some of the country’s finest fund managers gave their outlook for 2012 at a Thomson Reuters' Lipper Investment Series Outlook panel. The hot issue of the night was how events in Europe will be affecting global market.
Here are some highlights from Christine Thompson, chief investment officer of Fidelity Investments bond group; Lisa Shalett, chief investment officer at Merrill Lynch Wealth Management; Robert Auwaerter, head of the fixed income group at Vanguard; David Giroux, co-manager of T. Rowe Price's large-cap value strategy; and Colin Moore, chief investment officer of Columbia Management Investment Advisors:
- According to Lipper's U.S. fund flows database, which tracks the movement of cash in over 21,000 funds, year-to-date the assets under management in the equity income category are up 26 percent to over $104 billion. The question is whether that strategy is overdone?
- "Probably for the first time in 5- years we are actually underweight higher dividend stocks because we think there is a little bit of a bubble in utilities, and telecoms, mid-cap consumer staples, where the market is putting much too high of a value in that dividend," said David Giroux, co-manager of T. Rowe Price's large-cap value strategy.
- Robert Auwaerter, head of the fixed income group at Vanguard noted it’s easy to talk about the break-up of the euro, but to avoid damage to economies, he thinks they will do anything to stop it.
- Christine Thompson, chief investment officer of Fidelity Investments bond group predicts a two steps forward, one step backward kind of pattern in the market. She based that on human nature. "People (are) looking at the severity of any policy statement that comes out and they view it very skeptically.” This is what leads to some volatility.
- Municipal bonds are also an attractive area said Fidelity's Thompson and Vanguard's Auwaerter.
- Don't count European assets out just yet, said Colin Moore, chief investment officer of Columbia Management Investment Advisors.
Always a good idea to hear what the experts are saying at year’s end – and throughout the year, which is what we do every day. To keep up with market trends that will help you understand how you are tracking with market trends, Pension Parameters recommends that you check in with the Wall Street Journal or ReutersMoney and of course, right here.
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