Exclusive Exclusive: Amundi Chief Warns Investors Against Inflated Expectations

Investors need to lower their expectations in the current environment of low interest rates, the head of Europe’s largest asset manager told Handelsblatt in an exclusive interview. “Some of them still expect returns of 8 ot 10 percent,” Yves Perrier, the head of Amundi, told Handelsblatt. “Investors have to be taught differently.” Mr. Perrier said he’s always supported the European Central Bank’s policies, but its loose monetary has now “gone too far.” The ECB has lowered interest rates to zero and introduced negative rates on deposits. In June, the bank increased its bond-buying program from €60 billion to €80 billion a month and began purchasing corporate bonds for the first time. On Wednesday, the German government issued 10-year bonds with zero percent interest for the first time. Mr. Perrier also said there are still too many divergences in the euro zone. An export surplus of 8 percent in Germany isn’t sustainable over the long run, he said. Read the full story in Thursday’s Handelsblatt Global Edition.