SINGAPORE (Dow Jones)--Sovereign wealth funds and other big-money investors haven't lost faith in the euro and aren't showing signs of a dramatic move away from euro assets, a senior money manager at BlackRock Inc. (BLK) said Wednesday.
"Part of the reason the euro remains fairly entrenched is that there hasn't been a wholesale diversification away from the euro during this crisis," said Scott Thiel, chief investment officer of fixed income, said at a media briefing.
He said the common currency's resilience amid the ongoing upheaval on the balance sheets of peripheral euro-zone members "underscores that sovereign wealth funds continue to believe in it."
Over the long term, there is evidence of diversification at the margins by big investors away from G-3 holdings and toward emerging-market debt or gold, he said.
As an example, South Korea this week bought gold to bolster its foreign currency reserves. But such moves represent a "fractional, fractional amount" of the fund or central bank's portfolio, said Thiel.
"I don't for a second question the long-term viability of the euro and the monetary union, he said.
Source: http://online.wsj.com
"Part of the reason the euro remains fairly entrenched is that there hasn't been a wholesale diversification away from the euro during this crisis," said Scott Thiel, chief investment officer of fixed income, said at a media briefing.
He said the common currency's resilience amid the ongoing upheaval on the balance sheets of peripheral euro-zone members "underscores that sovereign wealth funds continue to believe in it."
Over the long term, there is evidence of diversification at the margins by big investors away from G-3 holdings and toward emerging-market debt or gold, he said.
As an example, South Korea this week bought gold to bolster its foreign currency reserves. But such moves represent a "fractional, fractional amount" of the fund or central bank's portfolio, said Thiel.
"I don't for a second question the long-term viability of the euro and the monetary union, he said.
Source: http://online.wsj.com
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