In the face of unprecedent global events, investors are going through hard times to pick and choose their investment. In such circumstances, what is the role of an asset managers?
The current circumstances that we are going through is undoubtedly unprecedented and the impacts are unpredictable so far.
In these days, investors are looking for the appropriate strategy to adopt with regards to their investments. Whether you are a short, medium or long term investor, you are concerned.
At the very outset, we have observed a sharp increase in banks deposits during lockdown but also which has continued even after this period. The feverishness of the financial market have pushed investors to dis invest and bank their cash while waiting for more favourable days.
Be it in 2008, 2011 and 2020, investors have questioned themselves to whether keep funds in their account and wait or take advantage of this drop to strengthen their positions in certain securities and buy cheaper?
We have observed that a number of investors keep investing and look for less riskier assets. For others, arbitration strategy in order to take advantage of opportunities and compensate for the losses accounted during the decline.
At Providentia, our team has been in the financial markets for several decades and was in the front line during the subprime crisis, the Greek debt or this year the Covid 19. We bring our expertise and also experience of precedent crisis to better advise our clients.
We are of the opinion that the investment and risk profile of each investor must remain the paramount criteria. There should be no room to panic and take hasty decisions with little visibility which can lead to make unreliable decisions.
Our approach is to monitor and analyse all market parameters with high variations that can be very significant and impact our portfolios. In this period, our analysis and strategy, brings us to look for opportunities in the market to take advantage on specific sectors and securities. We ensure that our investors have enough liquidity to do so.
For off-market investments, such as real estate, it is difficult and too early to assess the consequences of the Covid-19. However, in some countries where there is an increasing demand for residential housing, this sector should remain active.
Finally, investment diversification strategies, search for opportunities on the market, tailor-made product, investment in real assets, investments with an Environment, Social and Governance (ESG) aspect are the different approach we offer to our clients to protect their invested capital and sustain their return.
Investors rely heavily on the advice of their manager. We provide the necessary solutions and favour continuous advisory services in order to meet the investors objective.