XxX | Feature Contents Editorial
TECHNOLOGY: BACK TO THE FUTURE
Remember the iPod? It disappeared overnight following the launch of the iPhone in 2007. Smartphones are not the only consumer tech innovation to have changed our lives. Electric cars, social media platforms and streaming services can be added to the list. Indeed, as a journalist, I would have to operate differently without Twitter and Google. Yet despite Facebook and Telsa being less than 20 years old, they, and other tech giants such as Amazon, Apple and Netflix, feel as if they are living in the final months of the 20th century. Investor euphoria has stretched the valuations of US tech giants. Indeed, they have reached levels reminiscent of the 1990s when a tech bubble formed and investors were left counting their losses when it burst. But this time the fallout could be worse. The largest six tech stocks in the S&P500 account for around a fifth of the index’s value. Therefore, UK pension schemes with passive equity interests are likely to have exposure. If the tech bubble bursts, what could it mean for UK asset owners? We try to answer that in our cover story from page 20. Emerging markets are another area where investors have been bullish. Before the pan- demic, developing nations were driving more than half of the world’s economic growth and those holding their debt reaped the benefits. But, as Covid took hold, there was a sell-off in March last year that changed the dynamics of the market. From page 44, we look at what holders of emerging market paper need to know follow- ing a period of such disruption. And the disruption of Covid will be nothing compared to the problems caused by the growing shortage of fresh drinking water. Population growth and pollution are just two factors that mean around 2 billion people do not have access to clean drinking water. As this situation is expected to deteriorate, we look at how stewards of long-term capital are protecting portfolios from this ecological crisis. You can read our coverage from page 30. Finally, we also spoke to Simon Pilcher, chief executive of USS Investment Manage- ment, about the scheme’s new approach to equities, engagement and fixed income, and how Covid has impacted the economy (pages 16-19). Hope you enjoy this edition.
Mark Dunne Editor
m.dunne@portfolio-institutional.co.uk
Issue 101 | March 2021 | portfolio institutional | 3
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