What makes a company resilient in a crisis?

10 August 2020
| By partnerarticle |
image
image
expand image

Aviva Investors looks at what resilience means in the current context, as COVID-19 hits global economies

The coronavirus pandemic has roiled markets and disrupted business models around the world. One consequence of the crisis has been a renewed focus on what makes a company resilient: from the size of its debts to the consistency of its revenue streams.

But resilience is not a static quality. What it means to be resilient will shift under different market conditions, argues Mikhail Zverev, head of global equities at Aviva Investors.

“You need to ask the question: ‘resilient to what?’,” he says. “Like ‘quality’, ‘resilience’ may sound like an absolute concept, but it depends on context. Whether the risk is a theoretical black swan or a clear and present danger, equity investors need to look at a company’s capacity to respond and adapt to change.”

Read more

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest developments in Super Review! Anytime, Anywhere!

Grant Banner

From my perspective, 40- 50% of people are likely going to be deeply unhappy about how long they actually live. ...

1 year 4 months ago
Kevin Gorman

Super director remuneration ...

1 year 4 months ago
Anthony Asher

No doubt true, but most of it is still because over 45’s have been upgrading their houses with 30 year mortgages. Money ...

1 year 4 months ago

Australia’s largest superannuation fund has confirmed all members who had funds stolen during the recent cyber fraud crime have been reimbursed. ...

3 days 16 hours ago

As institutional investors grapple with shifting sentiment towards US equities and fresh uncertainty surrounding tariffs, Australia’s Aware Super is sticking to a discipl...

3 days 17 hours ago

Market volatility continued to weigh on fund returns last month, with persistent uncertainty making it difficult to pinpoint how returns will fare in April. ...

3 days 17 hours ago

TOP PERFORMING FUNDS

ACS FIXED INT - AUSTRALIA/GLOBAL BOND