Investment experts at Afrinvest Asset Management have urged investors to diversify assests to minimize risk and improve returns, in preparation for the investment climate in the pre-election year (2022).
They also advised investors to alternate their portfolio from long term assets to mid/short-dated instruments, saying that long term instruments are more vulnerable during policy normalisation.
In its “Investment Strategy Outlook for 2022”, they advocated for cautious optimism, emphasizing the need for investors to be guided by both fundamentals and market sentiment.
“In the euphoria of economic recovery, we do not want to be caught off guard. We expect investors to be guided by both fundamental and market sentiment.
“What differentiates a great investor from an informed investor is timing and accuracy. In 2022, we will try to identify and position our portfolio to benefit from market movement.
“What differentiates a great investor from an informed investor is timing and accuracy. In 2022, we will try to identify and position our portfolio to benefit from market movement.
“We highlight that diversification remains a key theme of our 2022 strategy. In a time of economic recovery, we expect investors to diversify across and within assets to minimize risks and improve returns.
“Portfolio optimization in 2022 is dependent on high yielding, low risk and short gestation period investment in real estate and other alternatives.
“Liquidity is key overall in 2022. With sufficient liquidity, investors can take advantage of market drawdown/mispriced assets.
“Staying liquid requires to play in the money market but this should be minimal to guarantee optimal returns in 2022.
“We propose that investors should seek high yielding investment-grade corporate bonds in 2022.”
