Pierre Bonart

“For 2007, our main scenario is based on a global expansion with only a modest slowdown in a context of low inflation. Asset prices should continue to be supported by the favourable liquidity environment. Equity valuations are reasonable in most markets. We believe equities should be the main beneficiary with most other asset classes offering less potential for capital gains. We have increased our exposure to US equities and continue to favour a balanced style mix. We remain rather on the fixed income side, since we believe the expected returns are not as appealing given the perceived risk.”