What are the resilient assets in this Covid19 crisis?

What are the resilient assets in this Covid19 crisis?

CVD1080-1024x576 What are the resilient assets in this Covid19 crisis?

 

colour544x544-300x300 What are the resilient assets in this Covid19 crisis?As the World attempts to contain Covid-19 and hinder global escalation, markets have recalibrated in the face of a potential global recession whilst monitoring the shocks to supply and demand. Market sentiment is that we will see virus case escalation in the second quarter with cases rising until May. The subsequent months will see significant disruption to supply and demand before a rebound later this year.

For this rebound to occur, first we would have to see a substantial decrease in fatalities within red zones, and a slowdown in new cases across all major economies. Central banks would need to implement emergency interest rate cuts and coordinate to keep lending channels operating (the Federal Reserve has already made cuts and ECB’s TLTROs are set to be sub-zero), stimulus plans at national and international levels introduced (e.g. ECB’s €750billion Eurozone financial package and the US administration are to sanction more than $1trillion) and other fiscal authorities to bring about quantitative easing measures. These measures are intended to avoid a more dramatic scenario where the health problem will be followed by a severe economic recession with two or more consecutive quarters of negative growth and potentially thousands of bankruptcies. The indication is that once business resumes then the economy should see a speedy, sharp recovery. Fundamentally, periods of stock market corrections are often followed by markedly positive trends within six months of finding the bottom. Volatility in the meantime of course will be high.

What can investors proactively do?

 So, we should expect low growth and low interest rates into the second quarter and possibly the third quarter. There has already been a brutal repricing of assets so many are not from this point adopting a defensive stance feeling that the damage has already been done. Some sectors will prove to be more resilient, namely infrastructure and real estate, certain commodities may also perform well.

Infrastructure – typically regarded as a solid defensive investment with above average dividend yields. The benefit being that this sector is usually involved in long-term contracts often with governments providing reliable cash flows. China is expected to announce fiscal stimulus packages for infrastructure. Telecommunication towers should continue to see decent secular demand along with digital economies particularly those involved in remote office work, remote management tools, and remote networking. More data centres may be built and more fibre optic infrastructure put in place to cope with demand.

Real Estate – this sector has shown resilience in the past during uncertain economic times. The benefit comes from predictable and stable lease-based cash flow and would not be affected by near-term shocks to the global supply chain. Due to being less impacted by global economic conditions, healthcare, rental housing, net lease, and storage are among the most resilient within this sector. Hospitality will heavily be impacted and opportunities may arise for discounted assets in the coming months. Office demand will have to be reassessed as the confinement/lock down has obliged firms to quickly deploy business continuity plans sending their employees home. Employees will be more accustomed to working from home and even favour it – the individual and business standpoints could be aligned resulting in a decreasing demand for offices.

Commodities – gold of course is the typical safe haven investment. For base metals we know that there is an inventory overhang as demand from China halted. Once Chinese factories resume full operations base metals should recover. China also expected to introduce fiscal stimulus to autos and infrastructure which require vast amounts of base metals. Agriculture is to experience less impact than other sectors as consumption and production rates stay level.

For many this has been a time to restructure their portfolio to a more defensive stance, whilst others have identified great value in the market confident that once Covid-19 is under control by Q3/Q4 major economies will see a rapid recovery. Either way, proactivity means its business as usual despite operating under lock down conditions.

Finscoms helps funds and projects to tell their story to a wider investment network. In these unprecedented times our clients are looking for guidance. We would like to share with you our thoughts. Please contact us to hear about how we can help you.

Benoît Egée, Co-Managing Partner

[email protected]  

+353 1202 4444

Information about Benoît

Connect with Benoît via LinkedIn


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Finscoms partners with tech company Senasen

Finscoms partners with tech company Senasen

Senasen_logotype_Black_RGB Finscoms partners with tech company Senasen
We are delighted to announce the collaboration between the highly rated platform Senasen and Finscoms.

FinsSen Finscoms partners with tech company Senasen

Finscoms and Senasen today announce their partnership to provide greater communication scope for asset managers, private companies, public companies, and investors. Senasen is a dedicated platform that brings businesses together and empowers growth. Senasen harnesses the latest technology to create a more productive business environment. One that does away with advertising, social media and data capture to focus purely on helping your business to grow. Bringing the right people together for the right reasons. To make meaningful connections. To make progress.

Companies and asset managers are looking for more effective ways to interact directly with their investors under regulatory changes, such as MiFID II. With markets becoming more jittery, investors are also seeking more effective real time channels of engagement. This new platform enables companies and asset managers of all types and sizes to profile themselves and interact directly with their current and potential investors.

 

Unlike other platforms, Senasen provides customised functions for each user type, allowing users to meet a variety of their needs.

The company’s management team has extensive experience in the asset management and banking sectors. It is advised by Professor Amin Rajan, CEO of CREATE Research and Herbie Skeete, MD of Mondo Visione. Building on this expertise, Senasen will continue to innovate and enhance its product over the years ahead and has ambitious plans already underway.

Finscoms and Senasen will work in parallel to produce and distribute quality content.

Ken Carmody.

 

Image-Blair-video-still-2-1-300x180 Finscoms partners with tech company Senasen

“We’re not restricted to one sector or industry. Our vision is to create the biggest global network of companies, asset managers and investors – removing unnecessary barriers and taking engagement to a higher level.

About Senasen

Senasen –  is a London-based technology company that aims to use digital solutions to bring together companies, asset managers and investors across all sectors and geographies. Founded in 2018 by Blair McPherson, Senasen is committed to promoting corporate transparency, openness and good governance. It is driven by a mission to bring the best of the digital economy to the practice of investor engagement.

About FINSCOMS

Finscoms – is a full marketing services agency. What we do is help structure and implement efficient marketing strategies. Through us you can create a marketing resource that encompasses everything from strategy definition to day-to-day marketing operations, from thought leadership to Business Development/sales approach. We become your differentiator, your marketing support, contact us to see how we can make an immediate difference.

 

If​ ​you​ ​would​ ​like​ ​to​ ​learn​ ​more​ ​about​ ​how​ ​Finscoms​ ​can​ ​help​ ​with​ ​your​ ​fund​ ​raising please​ ​do​ ​make​ ​contact​ ​with​ ​Edward​ ​at​ [email protected]

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OGIER Fiduciary Services 
Re-brands as ELIAN 
following recent MBO

Ogier Fiduciary rebrands as Elian following an MBO. Led by Paul Willing as chief executive officer, and the existing management team, Elian have developed a clear, uncompromising vision: to continually deliver more value to clients by raising the bar and setting the standard in terms of client service in the company, fund and trust administration industry. 

Elian’s independent client service feedback programme is proof that Elian already provide amongst the highest client service in the industry today with 97% of clients stating they are satisfied with the service levels they currently receive. Elian are determined to do even better and firmly believe that they can with the additional investment now available following their MBO. 

Elian have also developed a comprehensive growth strategy both in terms of organic growth, consolidating their position in core markets, and a well-funded acquisition strategy that will give them critical mass in important new markets where their clients have a demand for services. 

Today Elian employs 500 people across 10 offices, following 15 years of back-to-back growth since their launch as Ogier Fiduciary Services in 1999.  The launch of our new brand harnesses the excitement and enthusiasm everyone in Elian shares in our relentless drive to provide the highest levels of client service in our industry.

Elian continues to be led by Paul Willing as CEO, and by their existing management team, and that there won’t be any change to Elian clients’ existing relationship teams. 

For more information on this please contact Paul Willing
 Chief Executive Officer
 E [email protected] or visit Elian

Finscoms is a specialist communications and marketing services agency to the Asset Managment industry, talk to us if you are interested to boost your visibility online, and/or communicate effectively in what is a heavily congested content sector with everyone all trying to be seen.

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