Bestinver has highlighted in its XX Annual Investor Conference that asset managers “must be prepared” to face inflation, with the tools and funds ready to reduce the sensitivity that occurs when prices rise.
“Inflation is very difficult to predict and to say what level it is going to reach, or if it is going to be a peak that will then go down. We, the managers, what we have to do is be prepared “, has influenced the director of Fixed Income of the manager, Eduardo Roque.
Roque added that this should be done while looking for bonds and companies that are less sensitive to this phenomenon. For his part, the director of International Variable Income, Tomás Pintó, has defended that the best protection is “to buy good businesses at good prices.”
“In the end, the important thing is to have a balanced portfolio and as Eduardo explains, be prepared”, Pintó pointed out at the Conference, which coincided in time with the publication of inflation data for the United States, where it has risen to 5%, and the decision of the European Central Bank (ECB) to maintain interest rates.
Regarding the Iberian market, the director of Iberia Variable Income, Ricardo Seixas, highlights the importance of being invested in companies that may have such pricing ability.
The managers of Bestinver have recommended investors who want to preserve their purchasing power in the face of inflation to invest in Variable Income if their horizon is long term, in mixed funds if it is medium term and in Fixed Income if it is short term.
PROFITABILITY OF FUNDS IN 2020
The managers have influenced this Thursday that twelve of the thirteen funds of the manager have offered positive returns so far this year, with the exception of Bestinver Short Term, which lost -0.10%.
The vehicle that increased the most was Bestinver Bolsa FI, with 16.58%, followed by Bestinver Internacional FI and Bestinfond FI, with 16.05% and 15.83%, respectively.
Likewise, the CEO of Bestinver, Enrique Pérez-Pla, highlighted the infrastructure fund Bestinver Infra FCR, which has committed 42% of its target size and has already invested 113 million euros.
Pintó has highlighted several stocks in the Equity portfolio, such as Berkshire Hathaway and Facebook, and has defended that it is “well balanced” and that they expect high returns in the coming years.
What they are looking for in securities, as specified, is that they be assets that have been “poorly managed”, with a management team “capable of getting back on track” and that they are cheap.
In that sense, he has highlighted two other bets of the manager: Harley Davidson and Pandora, “profitable” businesses and not valued at their current prices, in the same way that the need to change the car park is not valued, which is why they have invested in BMW and Stellantis.
The manager stressed that the latter companies are seen as the problem in terms of climate change, while “they are part of the solution.”
In Spain and Portugal, Seixas has highlighted Ctt, the ‘Correos’ of Portugal, while Roque has highlighted the bonds of the sensor company Ams.