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Global changes being sped up by Covid which could transform fortunes

Could ‘megatrends’ shaping the world make you mega-rich? From automated factories to wind farms, global changes are being sped up by Covid – and could transform YOUR fortunes

By ROSIE MURRAY-WEST, FINANCIAL MAIL ON SUNDAY

PUBLISHED: 21:51, 5 June 2021 | UPDATED: 11:44, 6 June 2021

In a ‘bigger is better’ world, it is no longer enough for economists and investment managers to talk about trends. Instead, they talk about ‘megatrends’ – massive global changes that transcend physical, geopolitical and cultural boundaries…

But thematic investing, as fund managers tend to refer to the strategy of picking businesses that might ride this wave of global change, is harder than it looks.

We do not have a crystal ball, and seismic events, like a global pandemic, can put predictions out of kilter.

‘It is an exciting area, but investors need to make sure they have their main bases covered first,’ says Laith Khalaf, financial analyst at wealth manager AJ Bell.

‘Thematic funds are specialist and high risk, so should only be used by experienced investors looking to broaden out already well-diversified portfolios.’..

Increase your profits as robots cut costs 

It is hard to ignore the huge advances in technology use that have been made since the beginning of the pandemic.

Walter Price, who manages investment trust Allianz Technology, says that although the use of technology was increasing across all aspects of business prior to Covid-19, ‘the slope of the curve has increased dramatically since’…

James Carthew, analyst at investment trust research company QuotedData, says that the boom in cloud computing is allowing smaller software companies to attract customers more cheaply.

He suggests that smaller companies trust Herald, run by veteran fund manager Katie Potts, is a good way for investors to benefit from this trend.

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