After the event in Milan, Kairos chose Rome as the venue of a convention entitled “Scenarios and Proposals for Investments”, held in the capital of Italy on 14 April: an opportunity to take stock of its 15-year history together with its Rome-based customers.
Paolo Basilico, President and CEO of the Group, who acted as host of the event, opened his address recalling Kairos’s philosophy: strong focus on portfolio returns through a management approach mindful of risks and volatility.
Mr. Basilico briefly described the key milestones in the company’s progress towards growth and success, which have allowed it to maintain its leadership among Italian independent operators. He then moved on to explain the Group’s new initiatives: alongside quality asset management, Kairos can now offer wealth management and consulting services thanks to the recent partnership with Julius Baer Group.
With Paolo Basilico, other keynote speakers at the convention included Guido Brera, Collective Asset Management team leader; Rocco Bove, Fixed-Income Management Team leader, and Alessandro Fugnoli, Kairos Strategist.
Guido Brera gave a brief analysis of the present situation. “In the last three years we made some very definite management decisions, which in retrospect proved to be successful : we have started 2015 in a positive position in the European and Italian equity market in view of the current scenario, characterised by a weak Euro, low oil prices and the ECB’s quantitative easing programme. However, we are aware that the environment remains unstable, particularly after such a strong rally, and we will continue to be vigilant because we believe that volatility will increse over the next few months”.
On the fixed-income front, more demanding challenges loom ahead. “So far we have lived in the best of possible worlds, with huge amounts of liquidity diluting the differences between individual markets and management styles,” commented Rocco Bove. “Looking to the future, it will be increasingly important to adopt a management approach guided by flexibility in an environment of interest rates substantially at zero”.
Kairos strategist Alessandro Fugnoli suggested how to navigate the quantitative easing programme which, “with its pros and cons, does provide some oxygen: it comes a long way and it’s forever”. In other words, the monetary policy will remain expansionary, at least until inflation rises above the target range. Fugnoli closed the meeting with a quote from Norman Mailer: “There was that law of life, so cruel and so just, that one must grow or else pay more for remaining the same.”