Carmignac Gestion is increasing its exposure to peripheral countries debt and Europe, according to deputy managing director Eric le Coz.
Le Coz says the asset manager is reducing its safest positions in bond for a “careful selection” of certain peripheral countries’ government debt and corporate bonds.
He says exposure to European equities has also been increased along with equities more generally.
He explains: “This should not be interpreted as the result of unbridled enthusiasm over companies’ health: we simply intend to take advantage of the price increase caused by the risk premium falling on these assets.”
Le Coz says decisive action by central banks has appeared to eliminate systemic risk “for the moment”.
He adds: “Without ignoring the darkening economic outlook, we think that long-term assets should nevertheless continue to benefit from an improvement in P/E multiples, justified by the lower systemic risk premium and reallocations towards long-term assets at a time when real yields are negative on risk-free assets.”