In interviews with sovereign wealth funds, pension corporations and asset managers in Asia and Europe that jointly manage around $3. 4 trillion, one thing is clear: many of them prevent stock market overheating.
The maximum attitude is not unusual caution. They are aware that the uptick in markets and valuations of personal corporations is largely due to incredibly low interest rates, large central bank stimulus and government tax support, some of which would possibly begin to fall in the coming months.
With asset values still inflated, even in some hot spots like fitness care and tech, many expect a possible momentary slowdown after the stimulus measures end, but before mass vaccinations allow economies to slow down. restart without risking widespread infection.
Here’s what they had to say:
Convenience Stores, Pipelines
GIC Pte, Singapore’s sovereign fund, is in the “least beloved” spaces of retail to infrastructure, whose valuations have been crushed by the pandemic, chief executive Lim Chow Kiat said when the company published its annual report last July.
The fund officially reveals that it manages more than $100 billion, but has more than $450 billion, according to the Sovereign Wealth Fund Institute, making it the sixth largest in the world.
In two of its most important agreements this year, it is part of an organization that acquired a 49% stake in ADNOC Gas Pipelines for $10. 1 billion, and last month partnered with Australian real estate organization Charter Hall in an Australian gross of $682 million ($500 million). ) acquisition, more than two hundred convenience outlets connected to service stations.
Investment director Jeffrey Jaensubhakij said even spaces like hospitality could recover before the resumption of globalArray.
Supply chain change
Global border closures can only be transient and the industry is slowly recovering, says Didier Borowski, director of global outlook at Amundi SA, Europe’s largest asset manager, overseeing approximately $1. 9 trillion.
However, he predicts that the pharmaceutical and fitness industries will shift production of certain key products to a country,but even then, Borowski says it would be too expensive and uneconomic to bring everything home.
“This is the end of rampant globalization, the end of globalization,” he said in a previous interview earlier this month.
Staycations
With restrictions restricting holiday plans, so-called stays are back on the agenda, says Will James, Deputy Director of European Equities at Standard Life Aberdeen Plc, whose team manages the equivalent of approximately $11 billion.
He has invested in Thule Group AB, the Swedish manufacturer of luggage racks and luggage racks for cars, motorcycles, whose stock has almost doubled since the end of March.
“Instead of going to the beach abroad, other people stay home to drive around the country,” he said in an overdue interview last month.
Aeronautical movements like Airbus SE can simply “recover very aggressively” if a vaccine is found, however, it warns that it is not yet clear whether the world will ever be the way it was again, even if it works.
Bonds, bonds
Bonds are one of the great assets neglected from the Covid crisis, says Andrew McCaffery, CIO of Fidelity International, which manages about $437 billion.
The obligations of automakers are especially exciting as car production selections increase and more people drive to congested public transport, he said in a previous interview earlier this month.
“If you look at credit spreads, they’ve moved to degrees that make bonds from some global automakers relatively attractive,” he said, and mentioned Ford Motor Co. and Nissan Motor Co. as examples. ” These obligations are not appreciated, especially when it is said that there has been an increase in car use compared to public transport. “
Green bounce
When the pandemic was sold and recovered, AustralianSuper, the country’s largest pension fund with the equivalent of about $133 billion, retained more than part of its Australian and global stock portfolio and reduced its genuine equity, credits and holdings of personal equity.
He is now looking for investments in digital, maritime and social infrastructure as governments make the most of economies, IAO leader Mark Delaney said last week. The company is also looking for new renewable energy opportunities, such as last year’s $300 million. according to Quinbrook Infrastructure Partners, as governments a green uptick.
“It’s transparent that doing more in the surrounding domain will be a great long-term outcome,” he said.
Holding the fire
With a mandate to maximize long-term yields, the Australian sovereign fund keeps its dust dry, CEO Raphael Arndt said in the annual update of the previous portfolio this month. The $118 billion fund sits cautiously without any tension to deploy its liquidity and until opportunities arise,” he said.
“Economies around the world are at their worst recessions in many decades, and if you look at asset prices, they haven’t moved much,” he said. “The question investors have to ask is this: it only makes sense if interest rates remain very close to 0 and stimulus measures for a long, long time, and that will have to be dangerous. That’s why we’re in a much higher position with caution right now. “
Data centers
Because public procurement is overrated, Aware Damian Graham’s Super CIO embarks on direct investments, such as knowledge centers and apartment buildings. The $91 billion fund is also promoting some of the assets it claims will harm, such as buildings and grocery malls, among others. people replace the way they paint and shop, he said in an interview last month.
The Sydney-based fund invested a hundred million euros ($118 million) last week with APG Group NV to build hotel apartments in Europe, an agreement that could amount to 500 million euros. It’s also a bidding war over indexed fiber optics. operator OptiComm Ltd.
China’s technology
While China is the first to be affected by the coronavirus, it is now leading the way, making it an exciting proposition for Singapore’s state investor Temasek Holdings Pte.
The company, which oversees the roughly $ 225 billion, is positive on several key topics in China, adding technology for clients, life sciences, biotechnology and fintech, said lead investment strategist Rohit Sipahimalan in the company’s annual review earlier this month.
“This year, China is most likely the only primary economy to revel in positive GDP growth,” he said.
This story was published from a firm thread without converting the text. Only the name has been changed.
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