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1 minute with the CIO

Mind the gaps
Bank deleveraging has translated into a severe credit crunch for households and corporations. Meanwhile, de-risking for insurance and pension funds has resulted in more conservative allocations, jeopardizing the potential achievement of investment objectives.

Asset management's role
Some of the legacies of the crisis, including tighter regulations and zero-interest rate policies (ZIRP), create challenges for some market participants. Asset managers can help facing these challenges while accepting that there is no miracle cure for investment policies. Broad diversification and an absolute return mindset may help to enhance the risk/return profile of investor portfolios.

Seize the opportunities
In broadening its offering in nontraditional asset classes (such as infrastructure, loans and project financing), asset management can help to channel resources in an efficient and transparent way toward the real economy.

Rules for active managers
Asset management can help in managing liquidity risk and market volatility. At the same time, it can provide new sources for income, enhance portfolio diversification and mitigate volatility, through advanced risk management techniques and dynamic hedging.

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