Despite the Covid-19 pandemic and the volatile environment, EUROCONSUMERS INVEST's first advisory services to a counterparty, specifically, Optimize for the sub-fund Optimize Invest Selection, has evolved well and produced strong results in the first semester of 2021. More is to come regarding new markets and new activities.
In the first half of 2021, the Optimize Invest Selection has gained 3,9%, with Euroconsumers Invest producing more than 100 recommendations according to an allocation of 55% in bonds and 45% in stocks using funds and ETFs to represent the different weights of the world geographies, according to Euroconsumers Network asset allocation methodology.
Overall, it was a good run for financial assets in this period, especially to stock markets, with most of them posting solid rises with investors very much of a risk-on mood.
The iShares MSCI Canada UCITS ETF USD (Acc) gained 24,4%, and the Amundi Funds Russian Equity - R2 EUR C advanced 22,8%, pushed by higher commodity prices.
The results were mixed on the bond market, given some nervousness about the exact timing of any changes to the current ultra-loose monetary policies, especially in the EU and the USA.
The iShares Core € Govt Bond UCITS ETF EUR Dist lost 3%, and the iShares $ Treasury Bd 7-10y UCITS ETF USD Dist dropped 0,3%. Nonetheless, some markets benefit from a rise in their respective currencies, like NOK, which lead Nordea 1 - Norwegian Bond BI to gain 1,6%.
From local PROTESTE INVESTE to international EUROCONSUMERS INVEST
Based in Portugal, PROTESTE INVESTE offers services that include, among other components, the definition of investment strategies, the advice and monitoring of portfolios and financial instruments, the definition of financial planning, the issuance of market reports with performance and risk measurement.
In 2016, PROTESTE INVESTE obtained authorization from the Portuguese Securities Market Commission (CMVM) to exercise the service of Investment Advice. Since then, the company has been using the trademark "Tree Family Office" (TFO).
In terms of market segment, the offer was, in the first place, directed to private investors/families with relevant assets that, for different reasons – low financial literacy, lack of time, confidence or income - sought a personalized service.
In 2021, PROTESTE INVESTE started to direct its main activity to other types of investors and entering new markets through the newly created "Euroconsumers Invest" brand.
The company now focuses on another type of customer, namely eligible financial counterparties, by expanding the business to international markets. Financial consulting
The company issues recommendations according to the adequacy of each investor by fulfilling several deliverables and verifying several variables, such as knowledge, experience, objectives, and tolerance to risk.
In the dimension of other financial parties, the adopted model involves advising about certain aspects resulting from elaborating different asset allocations monitoring financial instruments.
The consultancy works with autonomy and flexibility to recommend the best market options for each selected geography.
On a global scale, the company generates synergies with the Euroconsumers Group Network, which is present in Portugal, Spain, Italy, Belgium, Luxembourg, and Brazil and provides services to 1.2 million consumers.
In this way, it uses the experience, expertise, and evaluations of financial analysts in the economic area who follow various markets and assets while maintaining a global vision.
The pandemic and its new challenges
The pandemic situation impacted the activity development plan, posing challenges never experienced before and sowing a high dose of uncertainty at various levels. Inevitably, the company had to adapt. Therefore, at the internal level, and to deal with the circumstances, the business continuity policy was activated, which was fundamentally translated into ensuring the safety and protection of employees and ensuring at the same time the logistical resources necessary to provide the services.
In practice, due to the various lockdowns and the new measures implemented, employees began to work remotely using digital tools — a demanding change given the urgency of the situation and the nature of the service characterized by proximity.
In a generalized way, the health concern gained preponderance to other domains, and the behaviour patterns postponed many investment decisions. Concerning market developments, it has been necessary to manage contradictory feelings (from optimism to pessimism and pessimism to optimism). Faced with this abrupt change, the consultancy reacted quickly, elaborating scenarios, revisiting the fundamentals, the asset allocation model and reinforcing communication while transmitting confidence in counselling.
In any case, the corporate plan changed the organizational structure and changed its positioning in the market, directing its offer and focus to other segments and markets. As a result, at the end of 2020, the company achieved the objective of starting to diversify its activity in terms of offering and market expansion and providing consultancy services to eligible counterparties by advising an investment fund.
The activity will expand to other markets in the following months, providing advisory services to more financial products.
What to expect
As far as the economic context is concerned, although most global economies have seen a relatively rapid recovery in recent quarters, the world has not returned to normal yet. The threats still prevail. Like in other geographies, the growth rate is very much pending from:
a) Developments in new Covid-19 outbreaks, which unfortunately continue higher.
b) The efficacy of vaccines, including its immunity, and thereby the normalization of economic activity, which may take months to achieve.
Regarding the financial markets, despite the recovery of the leading financial centres, the risks are still high. In our approach, we maintain relative prudence and continue to diversify assets across various categories and geographies.
That's what you can find, for example, on the Sicav – Optimize Invest Selection: diversification.