Coronavirus To Affect Investment Norms, Financial Advisors Say

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As governments and institutions all across battle the novel-CoronaVirus pandemic, one front that has taken a hit are economies of the host countries. This situation has rendered many jobless as factories and businesses have been forced to shut following governments’ directives of lockdowns set to curb the spread of the virus.
After months of lockdowns and stringent restrictions, institutions and governments are seen to make a turn around on the orders, seeking a resumption of economic activities, however, as financial analysts say this may not mean a rebound in the markets.
Globally, stock markets have declined sharply in the US, Europe, and Asia as investors have been pulling back on their investments and putting on hold in trading.
Even in such times, for potential investors, according to Peter Jarvis the Chief Investment Officer at Africa Alliance Investment Bank, a set of companies such as Amazon, Zoom, and Fortnite owned by a Tencent are a good option to invest into as he said, are helping us work, meet and play for home.
Speaking during a joint Enwealth Kenya webinar with Britam Kenya Asset Management Chief Executive Officer Kenneth Kaniu, set to look into the impact of the CoronaVirus on the international markets and investments, Jarvis said the route to a global rebound in the economy would be more rigorous testing, vaccine development, and cure.
In the region, potential investors have been urged to look into pension funds as a mode of financing activities even as local institutional investors, according to Kaniu, have in the past made private equity investments as a limited partner in private equity funds.
Touting infrastructure as a good form of investment for pension fund he said this should enable individuals to have a component of income properties in their portfolios.
“Kenyan asset managers have chosen to invest in private equity funds a Limited Partners (LPs), which has invested their exposure to various industries and reduced concentration risk,” said Kenneth Kaniu, CEO Britam Asset Managers.
Momentum is building to speed the development of coronavirus vaccines by intentionally infecting healthy, young volunteers with the virus. Scientists working on developing the vaccine have indicated that within six weeks it would be known if it would work even as pharmaceuticals are in a joint race to acquire one.