Are the Covid-19 disruptors the next trend investment theme?
This latest blog post includes some top recent megatrends and thematic investing papers curated by the Savvy Investor Content Team. Perhaps unsurprisingly, the long-term impact of Covid-19 on companies, industries, and asset allocators' decisions is discussed in a number of pieces.
Should you have missed it, the 2020 Savvy Investor Awards were announced on December 7th. The link that appears below the "Savvy Investor Awards" sub-heading in the paper list takes you to the Best Megatrends Paper category, where you can view the winning paper by Robeco, plus the Highly Commended ones too.
Covid-19 has already shifted quite markedly elements of the corporate landscape. This paper by NN IP examines the disease's possible long-term impact on the adoption of new technologies, and the longevity of certain companies and industries.
In this paper by UBS AM, the authors argue that the enigma that is China has created three separate megatrends that fixed income investors and asset allocators should play close attention to.
Baillie Gifford highlights the opportunity set that exists in the European technology sector. As a long time laggard behind the growth in US and, more recently, Chinese tech, they believe that prospects for European tech are brighter than they have been for some time.
SAVVY INVESTOR AWARDS
The winner of the 2020 Savvy Investor Awards "Best Megatrends" paper was Robeco. For more information about their paper, as well as the other Highly Commended papers recognised in the Awards, click on the link above.
OTHER RECENT CONTENT
In this video, the FT's Lex Column outlines how Covid-19 has acted as a massive disruptor to many businesses this year.
UBS AM argues that a more granular approach is required when assessing whether to allocate funds to different emerging markets. They propose identifying key themes that are affecting specific companies and industries, and examining which countries are best exposed to these trends.
Candriam outlines the long-term attractions of the healthcare sector, buoyed on one hand by the aging populations of the developed world, but also by the more affluent aspirations of emerging market populations.
Wellington Management's Portfolio Manager Dáire Dunne outlines the areas of focus that the firm's research categories will be focusing on in future articles.
Robeco notes that increasing evidence shows that a very small number of listed stocks account for the majority of long-term gains in stock markets. They believe that a trends and thematic investment framework can help investors identify this elite bunch of stocks.
Qontigo argues that as a result of the Covid-19 crisis, a shift of several years has been seen in both e-commerce and the adoption of new digital technologies. They highlight a new index that offers exposure to companies in innovative technologies and services, which benefit from societal and economic change.
FactSet suggests that thematic indexing needs a makeover as the rebalancing process and ways in which some stocks are chosen can be opaque in some passive indices.