Investment strategy December 2015
The investment strategy of ABN AMRO Private Banking is aimed at providing stable future returns. The asset allocation, as determined by the Global Investment Committee, remains tilted in favour of equities with a cautious stance toward bonds. Alternative investments, consisting of hedge funds and commodities, add diversification and return potential in volatile markets.
Global weekly - ECB meeting: the aftermath
Equity markets retreated this week, as investors were still digesting the ECB’s recent decision not to increase the size of its monthly asset purchases and to only moderately lower the deposit rate. Bond markets initially fell in response to the ECB’s statement, before recovering a bit this week.
Global weekly: Navigating expectations
Yesterday, after the European Central Bank (ECB) announced adjustments to its monetary policy that were less than expected, markets were disappointed. Bond yields rose, equity markets fell and the euro surged.
Global weekly: Countdown till December
Expectations continue to build that the US Federal Reserve and the European Central Bank will continue to move their policies in different directions in December. The minutes of their last meetings add to these expectations, and reveal inflation worries within the ECB.
Investment Strategy November 2015
At its meeting on 12 November, the Global Investment Committee reduced risk by moving the strong overweight in equities to a less pronounced overweight. In the balanced profile-3 portfolio, this amounted to a reduction in equities of 5%. The proceeds were invested in bonds, an asset class which remains strongly underweight.
Global weekly: More divergence ahead
Central banks continue to dominate markets. In December, the paths of the European Central Bank and the US Federal Reserve will further diverge, as the ECB adds to its accommodating monetary policy and the Fed hikes rates for the first time since 2006.
ABN AMRO reports EUR 509 million underlying net profit for Q3 2015
‘In the third quarter of 2015 we raised our financial targets, posted a good set of financial results, successfully raised EUR 1 billion of Additional Tier 1 capital and continued preparing for the bank’s intended IPO.'
Global weekly: Aren’t markets ‘Fed up’ yet?
Speculations around policies of the major central banks hold sway of financial markets for a while now. Expectations have risen that the Fed may lift its interest rate in December. Bond markets retreated this week, whereas equity markets continued to recover.
Supervisory authorities complete Dubai investigations and impose fines
ABN AMRO announces today that the supervisory authorities in the Netherlands and Dubai have completed their investigations into the previously ascertained irregularities at its Private Banking office in Dubai.
Global weekly: Following different paths
Central banks in Europe and the US seem to headed in opposite directions, with the ECB hinting at more stimulus and the Federal Reserve weighing the timing of a first rate hike. Bond yields rose after the Fed signalled on Wednesday that a December rate hike cannot be ruled out. Equity markets mostly moved sideways this week.
Global weekly: No more wait and see
ECB President Mario Draghi surprised markets this week with his readiness to expand the central bank’s stimulus programme, including a further cut in rates. The news buoyed equity markets.
Investment strategy October 2015
The Global Investment Committee confirmed its conviction in the existing asset allocation at its meeting on 15 October. The allocation consists of an overweight in equities, a strong underweight in bonds and overweights in commodities and hedge funds. The GIC also decided to lift the short euro versus long US-dollar hedge for US-dollar portfolios, given a muted outlook for the US dollar. The committee’s discussion centred on the main macroeconomic scenario, calling for a continued global recovery, while also considering the potential for an adverse alternative scenario, involving a recession.
Global weekly: Under central bankers’ spell
Equity markets rebounded in the second half of this week, as several Fed policymakers indicated a nearterm rate hike may be premature. ECB officials took an accommodative stance as well, hinting at additional easing measures to fuel inflation.
Global weekly: A positive mood
According to the Federal Reserve minutes, the Fed kept its policy rate unchanged due to worries over emerging markets. The Fed’s decision, however, together with risen oil prices, brought markets in a positive mood.
Global weekly: Wrapping up the third quarter
Despite sharp price movements in specific stocks and bonds – Glencore being a striking example – broader equity and bond markets did not change much this week. Many investors probably welcomed the end of the third quarter, as it has been the worst period for equity performance since 2011. On a brighter note, we expect equity markets to recover in the fourth quarter.
ABN AMRO integrates its Jersey and Guernsey private banking activities
Today ABN AMRO Bank N.V. announces the integration of its private banking activities in Jersey and Guernsey, subject to regulatory approval. In the coming months, ABN AMRO will transfer its business from Jersey to its subsidiary in Guernsey.