Euro needs more than a Greece fix in 2012, warns Omam’s Heslop

A successful restructuring of Greece’s debt is not enough to make the wider issues affecting the eurozone go away, warns Old Mutual Asset Managers’ Ian Heslop.

Heslop, manager of the Old Mutual Global Equity Absolute Return fund, agrees that the markets will continue to be rocked by volatility in the opening months of 2012 as uncertainty persists on the macroeconomic stage.

He also fails to see a quick resolution to the eurozone debt crisis and expects uncertainty to continue to affect the market, especially equities, for some time to come.

“Irrespective of whether or not there is an agreement which allows debt to be restructured in Greece, we then have Italy, we have Spain, we have Ireland,” Heslop warns.

“Those issues are not going to go away in the short term.”

Despite the fact that “Europe is something that you can’t get away from”, Heslop says there are some regions that look attractive at the moment. The US has seen a steady improvement in economic data in recent months, the manager notes, while Japan has started to perform “reasonably well”.

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