technology stocks

Long-term interest rates will continue to rise, as will inflation. And the correlations between German government bonds and equities will become positive again. That’s a tough sell for the management of multi-asset portfolios. Fortunately, there are alternatives such as swaps and floating rate notes. And value stocks are preferred in an environment of rising interest rates and inflation.

Many technology companies have risen to dominance in a relatively short space of time, with legislators struggling to keep up the speed. Large investors should do their bit by constantly reminding these companies of their responsibilities, say Jon Guinness (photo) and Sumant Wahi, managers of Fidelity International’s Global Communication Fund.

The pair spoke out on this digital ethics in the margin of the annual (now virtual) Sustainable Investment Week of sustainability label Luxflag.

Skagen Global remains an outlier among global equity funds. The fund shuns most big American technology stocks. ‘The valuations are still unjustifiable for us,’ says manager Knut Gezelius who, despite this underweight to big tech, still managed to beat the market year-to-date.