Italian Referendum: It's a "No"
Italy has voted “no” to the proposed changes in 4 December’s Constitutional Referendum, rejecting an essential part of Prime Minister Renzi’s project connected to the electoral reform. This outcome will bring, in our view, a phase of relative uncertainty, with Renzi’s resignation announced last night and the possible formation of a technical government to renegotiate the electoral law and re-boost the reform momentum. Early elections do not seem the most likely scenario at the moment, as parties have strong incentives to form a coalition and complete the electoral law before the country goes to the polls once again. Overall, we expect that political and economic stability in Italy will be preserved, in the medium term, but in the short term a new phase of volatility will likely open up.
The Era of Investment Solutions
The long-term trends that have underpinned bull markets over the last twenty years no longer exist and investors will have to deal with unprecedented challenges. With low expected returns across asset classes and risk on the rise, he expects the role of asset managers to evolve from product provider to solution provider. In the future, asset management will be about delivering to clients investment solutions that are measurable against concrete economic goals. The era of solutions will require a rethinking of product design, risk management and portfolio construction, as well as distribution models to deliver the investment experience that investors demand.