The  took place in Paris on 9 March. Organised by Fundclass, the awards recognise the best management companies active in Europe for the quality and performance of their range. This year, Luxembourg firms distinguished themselves at European level.

Among the Luxembourg winners was Ethenea Independent Investors. Luca Pesarini, its co-founder and senior portfolio manager, spoke to Paperjam and Delano about the company's management method and its investment prospects for 2023.

Marc Fassone: In a difficult macroeconomic context, what do you think allowed Ethenea Independent Investors to stand out from your competitors and win the award?

Luca Pesarini: Our philosophy is what made us different from the competition. We try to distinguish ourselves through active management, taking positions independent of benchmarks and reducing risks at an early stage in stressful phases. Last year in particular, we had to react quickly and actively to market developments. This was particularly the case during the geopolitical escalation. Although we had already adopted a defensive positioning before the outbreak of the war, we quickly reduced the risks further and stabilised the portfolio with a strong position in US dollars.

However, the biggest difference last year was the management of our bond portfolio. We realised early on that the ‘transitional narrative’ was obsolete in the face of continuing price rises and, consequently, higher interest rates. High credit quality and, most importantly, tight duration management meant that we did not lose money on the bond portfolio in 2022.

2022 saw the return of war in Europe. Has this had an influence on your management? Did we see the advent of war management?

The start of the war was a defining moment and was not expected in this form. Nevertheless, as portfolio managers, we had already reacted to the rising tensions. With the help of scenario analyses, we had already anticipated the adjustments to be made to the portfolio, which now had to be implemented. Apart from the obvious shock to the stock market and the flight to the dollar, it was mainly the inflationary pressure triggered by this conflict that we anticipated.

What do you think will be the defining feature of 2023 for asset managers?

From a macroeconomic point of view, 2023 will be characterised by continued high uncertainty, which will be stimulated by the adjustment processes still underway. On the one hand, we see that inflation is not falling as fast as expected, and that consumption and the labour market remain relatively robust.

On the other hand, we are confronted with ever-decreasing earnings revisions and the first difficulties caused by the restrictive monetary policy on interest rates. The most interesting thing will be to see how the central banks resolve this dilemma. As investors, we are therefore preparing for continued high volatility in all asset classes. The year 2023 will bring attractive tactical and strategic opportunities for the patient investor.

Read the original French version of this interview on the site

Updated 30 March at 9:55am to correct prize category