Sterling Assets Management reaping benefits despite COVID-19

Sterling Assets Management reaping benefits despite COVID-19

Early hits taken from COVID-19 being reversed

BY DURRANT PATE
Observer business writer

Wednesday, November 25, 2020

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While most wealth management and assets companies are feeling the pinch from COVID 19, Sterling Assets Management is now reaping the benefits of depressed bond and other securities caused by the global pandemic.

While not disclosing any numbers, company Chairman and President Charles Ross admits that the company has been performing strongly in this latter part of COVID-19 than it did pre-COVID.

Ross told a recent Business Observer forum that Sterling Assets has benefited from a fall in interest expenses complemented by a rise in income from securities.

He pointed out that net interest margin has grown reasonably well due to the fall in interest expenses, especially in the United States, where the company is heavily invested in the bonds and securities market.

Sterling Assets Management is now reaping the benefits of investing in bonds and securities, which took a hit because of COVID-19, resulting in prices being depressed and the company exploiting the opportunity to buy at such depressed prices. “These prices have recovered, thus boosting profits,” Ross declared.

He admitted that the company did suffer during the early period of COVID-19 with the value of some of the securities, in which it had investments, taking a hit. However, Ross is emphasising that over the past few months there has been a reversal in this trend.

STRONG PERFORMANCE

Vice-president for Fixed Income and Foreign Exchange Eugene Stanley, who also spoke at the business forum, said the post-COVID-19 performance has been strong. According to Stanley, “We have been in a much better advantage to take opportunities due to the depressed prices [in the bond and other securities market].”

He boasted about Sterling Assets' strong liquidity position, which has allowed the company to buy securities at depressed prices, with those securities now rebounding, thus benefiting the wealth and assets management company. “In terms of securities, we are very strategic in our approach; even before COVID-19 there are a few core of bonds that we have been focusing on, and so once we saw these bond prices fall in the market turmoil [caused by COVID-19], this represented buying opportunities,” Stanley explained.

The Sterling Assets VP added, “We recognise that these companies had good market fundamentals behind them and once the recovery starts, these companies are going to recover much faster than the others.” When asked to identify some of these companies, Stanley answered in the negative, pointing out that “this is a trade secret”.


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