Greece: Contained or contagion?

Contained or contagion?

Greece's surprise decision to hold a referendum on its creditors' demands was the focal point of market attention this week - and has reignited the debate on whether managers really can shrug off events in the Hellenic Republic.

Whatever the endgame after the referendum – and it is unlikely to be a good one for Greece either way – investors now have food for thought. Having played out in slow motion over the past five years, the crisis has given all investors ample time to position. Outside a handful of Emerging European mandates, retail funds' exposure to the country is virtually non-existent. But two caveats remain. The first is most managers still did not expect Greece to depart the eurozone – prior to this week, at least.  Just 15% thought this scenario would take place, according to the Bank of America M...