Mideast Wealth Funds Plan More European Bargain Hunting: Invesco - Bloomberg

Mideast Wealth Funds Plan More European Bargain Hunting: Invesco - Bloomberg:

Almost half of Middle Eastern sovereign wealth funds plan to buy more shares in mainly European companies battered by the market turmoil brought on by the coronavirus pandemic, according to Invesco Ltd.

Over the next 12 months, about 43% of sovereign funds in the region will buy equities with lower valuations, while 29% will cut those holdings, the asset manager said in a report published on Monday. Most will look in Europe for bargains, with 38% increasing their exposure to emerging Europe and 38% to developed Europe.

“The market turmoil in March and April saw asset prices fall considerably, especially as some investors sold securities to ensure liquidity,” Zainab Kufaishi, head of Middle East and Africa at Invesco, said in a statement. “This presented opportunities to gain exposure to blue chip companies at very good prices.”

Regional funds are more prepared to hunt for bargains than they were during the 2009 financial crisis after building up large cash reserves in recent years, Invesco said. About 57% of funds plan to invest more in fixed income, 43% in infrastructure and 50% in private equity.