The year 2020 saw global financial markets being severely hit by Brexit negotiations, the US presidency elections and most of all, the COVID-19 pandemic. Funds positioning and asset allocation are adaptively being re-shaped, influencing investment decisions.

BOV Asset Management recently hosted a webinar ‘Managing funds in these COVID times’, during which investment specialists shared insights on investment-grade bonds, international equities, the Maltese markets and what one can expect in the foreseeable future.

The discussion was launched by Steve Ellul, Head at BOV Asset Management who claimed that the COVID-19 pandemic not only disrupted global economies, but it also impacted the way people invest. “Strategically, when developing portfolio funds, Bank of Valletta’s approach is to seek different markets and diversify in long duration bonds,” stated Mr Ellul. He recommended that risk-averse investors should avoid majorly impacted sectors, and instead take into account qualitative factors such as management performance and sustainability.

Monetary politics drove bond yields into new lows, according to Adrian Borg, Portfolio Manager at BOV Asset Management. “We recall a time when German bonds use to leverage a return of 3% interest upon investment, whereas nowadays this decreased to lower than 1%” explained Mr Borg. He foresees that companies will continue to issue bonds to grow their capital and compensate for the depreciation of their assets.

Portfolio Managers Clayton Scicluna and Christian Buhagiar elaborated on both local and global investment situations. They stated that while Maltese government bonds are currently stable, Brexit negotiations and the US presidency elections are globally posing risk on investments.  Trade between countries is still being executed, admittedly at a lower scale, nonetheless, economists continue to forecast a global economic reduction of 3.5%. The speakers concluded that the shifts in consumer behaviours and business operations such as the increase in remote workers, will ultimately transform the way people invest their funds.

A recording of this webinar can be viewed on the BOV YouTube channel – https://youtu.be/hvTqHFM9UNo.

This webinar is purely for information purposes. Any information during this session is not and should not be construed as an offer or recommendation to sell or solicitation of an offer or recommendation to purchase or subscribe for any product. Issued by Bank of Valletta p.l.c., 58, Triq San Zakkarija, Il-Belt Valletta VLT 1130.  Bank of Valletta p.l.c. is a public limited company regulated by the MFSA and is licensed to carry out the business of banking and investment services in terms of the Banking Act (Cap.371 of the Laws of Malta) and the Investment Services Act (Cap.370 of the Laws of Malta).

'Credit & Financial Institutions' Related News Articles

01
Growth in contribution to the Gross Value Added (GVA), as well as in employment within Malta’s financial services industry according to the MFSA’s 2020 Annual Report
FinanceMalta

by FinanceMalta

18th June 2021

SAXO Bank Chief Economist optimistic for recovery in Malta’s Trade, Transport and Tourism
Bank of Valletta

by Bank of Valletta

25th May 2021

The future of Trade, Transport and Tourism in Malta – a business webinar by BOV, Saxo Bank and Malta Maritime Forum
Bank of Valletta

by Bank of Valletta

17th May 2021

2021 Industry Outlook – Analysis of how sectors are positioned for recovery
Western Union Business Solutions

by Western Union Business Solutions

5th February 2021

BOV Staff donate 300 boxes of food and € 5,000 to the Foodbank Lifeline Foundation and St Jeanne Antide Foundation
Bank of Valletta

by Bank of Valletta

4th January 2021

Bank of Valletta to launch Energy Efficiency and Renewable Energy Financing Product
Bank of Valletta

by Bank of Valletta

18th December 2020

What to expect: BOV, Malta Chamber and Saxo Bank debate on the future of businesses
Bank of Valletta

by Bank of Valletta

29th September 2020