Natixis's Raby Sees No ECB Policy Normalization in 2019

The video discusses the multi-boutique business model of Fidelity, emphasizing fee discipline and value for clients. It highlights the ability to maintain steady fee rates despite market pressures, thanks to a strategic focus on liquid and illiquid alternatives. The impact of lower interest rates in the euro area is also examined, noting a slower growth environment and the lack of expected interest rate normalization in 2019.

What is the primary advantage of the multi-boutique model mentioned in the video?

• It allows for a diverse range of investment options.

• It reduces the need for client engagement.

• It enables disciplined fee management.

• It focuses on short-term profits.

How does the firm maintain profitability according to the video?

• By reducing staff costs.

• By focusing solely on liquid alternatives.

• By evolving their fee mix towards liquid and illiquid alternatives.

• By increasing fees significantly.

What is a key factor the firm considers when engaging with clients?

• The global stock market trends.

• The firm's internal policies.

• The client's investment history.

• The competitive environment.

What economic condition is highlighted as puzzling in the Euro area?

• High inflation rates.

• Stable interest rates.

• Rapid economic growth.

• Slow growth despite years of stimulus.

What is the expected growth environment in Europe according to the video?

• Slower for a longer period.

• Stable and consistent.

• Rapid and short-term.

• Unpredictable and volatile.