In early March, a number of Amundi’s experts gathered in Paris to present their views to clients on some of the current concerns facing pension funds. Moments after they spoke about the multiple challenges of inflation, of geopolitical instability and of the impact the climate crisis will have on investment returns, shares in Silicon Valley Bank began to slide.
The sudden return to market panic acts as a timely reminder that you can never be too prepared for the next crisis and the predominant concern remains uncertainty.
Our view is that the current markets appear to be driven mostly by rising fears of recession, following an excessively complacent start to the year. The issue markets face is one of a confidence shock and not a credit shock. While negative sentiment can have a powerful impact, it is important to bear in mind that little has changed in terms of fundamentals over the last few weeks.
This edition of Amundi’s Pension Funds Letter revisits some of the wider global trends and events and the implications these will have on the pensions sector in particular.
You can now read the full whitepaper at the link below