ECONOMY | 05.14.2020
Coronavirus: a financial analysis IX
The resilience of investor portfolios, like those of health care systems, has been severely tested in recent months, and only the healthiest among them have managed to adequately rebuff the pandemic’s effects on financial markets. In this context, ‘health’ refers not only to robust portfolios, but also to portfolios with significant holdings in health care sector companies. In this article, Ismael García Puente, Investment Manager and Fund Selector at MAPFRE Gestión Patrimonial, analyses the reasons behind the good performance of this sector and lists a series of recommendations.
The price of West Texas Intermediate crude oil went negative for the first time in history. Michael Morosi, a global equity portfolio manager at MAPFRE AM, analyses the reasons why oil is failing to recover lost ground. He also explains how the MAPFRE AM Good Governance fund has navigated managing the portfolio’s environmental risk (“E”) and avoided exposure to the oil market crash by targeting the strong long-term beneficiaries of energy transition, including those from seemingly unrelated industries.
The sustainability of foreign debt and inflation containment are two factors favoring the Brazilian economy as it staves off the devastating effects of the pandemic. In this piece, Oscar Garcia-Serrano, Finance Director of MAPFRE Brazil, expands on the best strategies to be applied in the post-COVID-19 period, during the reconstruction phase. For example, in his opinion, Brazil should push the development of its agricultural sector or prioritize investment in infrastructure.
Within the range of investment possibilities in the real estate sector, the behavior of the infrastructure sector is noteworthy. Carlos Diaz, head of real estate investments at MAPFRE Inversión, considers that infrastructure investments have no correlation with other types of investment, and this is an important advantage for diversifying companies’ portfolios. In addition, they have good growth potential and produce high dividend yields.
Previous editions available here:
- Coronavirus: financial analysis VIII
- Coronavirus: financial analysis VII
- Coronavirus: financial analysis VI
- Coronavirus: financial analysis V
- Coronavirus: financial analysis IV
- Coronavirus: financial analysis III (Spanish)
- Coronavirus: financial analysis II (Spanish)
- Coronavirus: financial analysis I (Spanish)