Covid-19 doesn't scare HNWI's assets
08 May 2020 _ News
As reported by our team of wealth managers, the crisis linked to the spread of the coronavirus has given rise to a motivation of high-level clients to invest. The evidence comes from an investigation by UBS
Our Wealth Manager team has no doubt about it: the rich have not lost the will to invest, despite the coronavirus. This is confirmed by the results of a recent survey conducted in April by UBS, the world's largest bank in the wealth management industry, of 4108 entrepreneurs and investors in 14 states, which showed that 37% of the sample want to increase exposure; 23% see this period as a good opportunity to buy equities; while 70% do not expect any change in their investments within 6 months. Finally, in 61% of the cases there are new opportunities to buy in case the price lists show further declines.
In recent months, especially for the more audacious risk profiles, our managers have followed these requirements by increasing their equity exposure, especially on the major US companies.
What distinguishes Pharus in the asset management sector is precisely the international investment perspective offered to its clients, who, if they did not rely on a partner with over twenty years of experience in the financial markets, could easily fall into the trap of "home bias", i.e. the attitude of preferring investments that are reminiscent of "home": the shareholder simply entrusts his portfolio to securities linked to his company, or focuses on shares of his own country.
Pharus wealth managers have preferred the central themes of change, including: innovation, both technological and in healthcare, semiconductors, digital payments and consumption, entertainment and telecommunications. But also the more defensive regulated utilities and luxury, which had been strongly discounted.
The crisis has therefore proved to be an excellent time to consolidate equity positions in the medium to long term, based on the pillars of rationality, prudence and diversification. Diversification by sector, geographical area and asset class in the portfolio.
The logic of progressive investment, the use of safe haven assets (e.g. gold and the Swiss franc) and products with capital protection on maturity have proved particularly suitable for this.
Finally, it should be remembered that Pharus is an independent company that invests exclusively in the interests of its clients and their asset goals and is located in Switzerland, typically a refuge country and historically of great political stability.
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