is back and its return has revived investors’ expectations for growth. In turn, bond yields and commodity prices have risen. However, these movements are relative to last year. AXA IM strongly believes that higher yields are here to stay, but we are moving into a period of normalisation rather than a step-change in our outlook. Moderate economic growth and heightened market volatility are likely to shape investor sentiment in 2017 – as they did in 2016.
Another factor that will not change in the next 12 months is the relevance of political risk, given the busy political calendar in Europe and the start of a new administration in the US. The political events in 2016 highlighted just how hard their outcomes are to predict. With that in mind, our investment strategy will largely focus on low-risk, core assets with a strong emphasis on international diversification at the portfolio level.
Source : AXA Real Estate