“We are currently seeing opportunities in REITs, among others”, said Gerlinger. “These exchange-traded real estate investment trusts have suffered from the effects of the pandemic as a whole sector.” This is why many REITs are undervalued now. “Additionally, we continue to see a comparatively high dividend yield, even by comparison”, added Gerlinger. Given that no negative influence from interest rates is expected, REITs have become more attractive. The only disadvantage is their strong correlation with the stock market. “While this makes them look very attractive from a yield perspective, as a vehicle for diversification, they are only suitable to a limited extent”, Gerlinger pointed out.
There are also opportunities in defensive sectors. “These are areas where solid cash flows can have a very stabilizing effect, particularly in a weak economic environment”, said Gerlinger. Telecommunications, utilities, or network operators are at the top of the list. “Since we are expecting an economic recovery, however, these defensive sectors are becoming less attractive compared to those industries that have corrected significantly and are therefore enjoying advantages in terms of valuation”, Gerlinger explained.
One highly interesting sector in the long term is health care, which is considered a megatrend. The development of one or more vaccines against Covid-19 will obviously be reflected in the share prices of the listed companies producing those vaccines. “In general, though, the industry is under both price and margin pressure, which may be offset by higher sales due to demographic developments”, said Gerlinger. In addition, the fact that there will be takeovers and mergers in the future speaks in favour of the sector with the takeover fantasy driving prices. “It will be particularly interesting where the megatrend health care meets the megatrend digitalisation”, Gerlinger highlighted. “Digital health” is the key to prospects of sound returns. Although the technology sector overall is valued highly, it is also benefitting from the consequences of the pandemic, with the keywords being home office, cloud computing, cybersecurity, and digitalisation. “The sector also still offers relatively higher profit growth than almost all other industries”, said Gerlinger.
Additional information is available at www.moventum.lu.
Moventum Asset Management S.A. (Moventum AM) is a wholly owned subsidiary of Moventum S.C.A. The management company, in which Moventum’s asset management expertise has been concentrated since the beginning of 2019, manages Moventum’s own funds and individual mandates as part of its asset management portfolios.
As an independent financial service partner, Moventum S.C.A. is specifically addressing financial service providers such as financial advisors, asset managers, institutional investors, and NGOs. Its services in asset management and asset building include a web-based securities investment platform focusing on funds, relieving financial advisors of administrative tasks, and integrating custody and account management for individual investors. Investment management tools, regulatory-compliant reporting and individual securities services are also part of the full-service range. Standardised fund asset management service with a sustainable, successful track record for the relevant risk/reward profiles complements the offering. The Moventum Group also enables institutional investors to outsource securities processing in its entirety. The MoventumOffice investment platform offers access to more than 9,000 investment products including funds and ETFs from more than 400 investment firms, including the use of analysis, reporting and support tools.
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