ECONOMY | 04.16.2020
Coronavirus: Financial Analysis V
Successful investment is not easy. However, when making decisions where there is an excess of information, it is vital to try to simplify issues as much as possible. A manager may be tempted to be particularly active, in terms of both buying and selling, in these times of market turbulence, but for Luis García, a manager at MAPFRE AM, success lies in knowing when to wait and be patient. In this article published in elEconomista, he explains which questions long-term investors should ask at a time when we are constantly being bombarded by data and information.
The drastic impact of the COVID-19 crisis on markets is causing us to think carefully about the investment process followed by managers, and to cautiously take measures to improve the quality and long-term performance of portfolios. In this article, Michael Morosi, a global equity portfolio manager at MAPFRE AM, explains how they have continued to focus on good corporate governance, a strategy they use for the MAPFRE Good Governance Fund to make investment decisions.
G20 leaders recently held a virtual summit to discuss the action being taken to fight the pandemic. Gonzalo de Cadenas-Santiago, Director of Macroeconomics and Financial Analysis at MAPFRE Economic Research, believes that instead of watching countries fight with each other, the G20 must strive to eliminate trade barriers for medication and equipment, and to increase funding for research into vaccines and medical aid for the poorest countries. In an article in EL CONFIDENCIAL, he explains how it is key that the health crisis, which is going to lead to an unprecedented economic crisis, does not also become a major political crisis.
In several articles published in previous editions of MAPFRE’s financial newsletter, reference has been made to the importance of not getting carried away by emotions in times of market turbulence, such as those we are currently experiencing. With almost all assets affected, effective management is particularly important. The portfolio recommended by MAPFRE Gestion Patrimonial for conservative profiles is the one that performed the best in March, during the contest held by EXPANSION and AllFunds. This article explains the keys to success.
Trends in financial markets remain unclear and we are continuing to see volatility. According to Alberto Matellán, chief economist of MAPFRE Inversión, investors are already moving away from a very negative scenario, something which “makes new surprises less likely.” Instead, he is focusing on the positive aspects of the message from the IMF. The organization expects a three percent drop in global economic growth with 170 countries entering into recession, although “recovery will be rapid in 2021.” In this scenario, the recommendation for investors is still to remain calm and exercise the necessary discipline for each profile.
The companies that meet the ESG criteria are normally those that are in a sound financial position, with a cash surplus and shareholder protection, meaning they become safe havens and are able to survive long-term at times like these. Eduardo Ripollés, institutional sales director at MAPFRE AM, explains in this video that the “S,” which refers to investments with social criteria in the acronym “ESG”, will be strengthened as a result of this crisis.
This week, dozens of prominent figures signed a letter addressed to the G20 demanding immediate and coordinated action at the international level. And it is against this backdrop that calls are starting to be heard, voicing innovative ideas about how to brace the world for this tsunami that may sweep away many emerging economies. One of them concerns the UN’s Special Drawing Rights (SDR) as Juan Francés from corporate communications explains in this article.