After peaking in April last year, the Euro Stoxx benchmark has dropped more than 20% year-to-date, after a series of inflection points such as the risk of a Grexit, the realisation of a Brexit and a raft of other political and economic concerns.
“The positive outlook for European equities in 2015 faded towards the end of last year and 2016 sentiments were not favourable for the market,” shares Krisztina Anspach, head of cross-asset solutions, wealth management and family offices, global markets, APAC.
In addition to the relatively narrow focus home-biased HNWIs in Asia place on the region, the recent equity appetite of the broad market has been subdued. Nonetheless, the all-pervasive global quest for yield remained and investors showed willingness to take on some downside equity risk for annualised returns in the high single-digits to low double-digits, according to Anspach.
BNP Paribas has remained loyal to clients after promoting Europe ELNs, whose themes fell out, proactively engaging investors to keep them updated or to help restructure positions. “The quality of our aftersales is a major differentiator within Asia’s private banking market,” Anspach comments.
Unwavering commitment that has not been compromised by markets or appetite has led Asia’s private banks to vote BNP Paribas as 2016’s Best Provider of Europe Equity-linked Structured Products.