Investors are looking to tech and renewable energy during COVID-19 - Business Insider

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The pandemic has shifted the economy towards tech and renewable energy — here's where fund managers are investing right now

Stuart Clark, a multi-asset portfolio manager for Quilter Investors, says energy firms stand to benefit, especially those in renewables. "A green recovery will benefit those involved in decarbonization as well as 'dirty sectors' such as oil who could benefit from the shift."

The MSCI Robotics Index, which tracks US stocks including IBM and Salesforce, shows these types of shares have returned 0.24% globally since January.The closure of nonessential shops and long queues at supermarkets during the UK lockdown have pushed many people towards online delivery services. The MSCI Next Generation Innovation Index, which includes online-focused firms such as e-commerce companies, shows a year-to-date return of 10.48%.The UK government has committed to big infrastructure projects such as the 5G rollout, more cycle lanes, and a network of electric car charging points. Kasim Zafar, chief investment strategist at wealth manager EQ Investors, said the loosening of government purse strings could make infrastructure spending "a key part of the route to recovery.

"Innovation will also continue to play a big part in ensuring better healthcare provision at lower costs," she added. "Manufacturers will continue to require lithium, cobalt, graphite, and nickel as the building blocks to produce energy efficient battery solutions."

 

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