French Asset Managers Dubious About Economic Recovery - RBC Dexia

Eliane Chavagnon

28 June 2012

Over three-quarters (78 per cent) of French asset managers have “little or no confidence” in the government’s ability to revive France’s economy, according to an RBC Dexia poll conducted three weeks after the country’s presidential elections.

“President Hollande has been accused by some market commentators of demonstrating a deep anti-business attitude,” the report says. “Realistically, however, only time will tell how his new government’s budgetary and reform measures will take shape and impact the French economy over the longer term.”

Nonetheless, a mere 20 per cent of those surveyed reported being “quite confident” that European or global governments could resolve the broader financial crisis. Respondents’ faith in Europe was only “slightly better”, with just one-third (38 per cent) being “quite confident” that a solution might be reached.

Meanwhile only 38 per cent expressed a degree of confidence in the ability of governments worldwide to “get to grips with the crisis”, with 60 per cent anticipating it would take four to five years to resolve.

However, over half of asset mangers polled (55 per cent) consider the views of the current crisis as “over pessimistic”.

Reasons to be optimistic

Despite the gloomy sentiment, some 42 per cent of respondents believe the French equity market will rise between now and the end of 2013.

There is also a high level of faith (87 per cent) in the ability of custodian banks to provide the services and support which asset managers need in the current financial environment.

The questionnaire was completed by 55 French asset managers on 31 May.