Investors are constantly looking at what the next drivers of growth will be, where they will be located, and who will benefit from them. Technology is enabling growth across the world, but what differentiates the hundreds of companies headed for mediocrity or failure from the few that will excel? And how much more room is there to grow?[vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22David%20Veal%22%2C%22job_role%22%3A%22chief%20investment%20officer%2C%20Employees%20Retirement%20System%20of%20Texas%20(United%20States)%22%2C%22content%22%3A%22%22%2C%22image%22%3A%2247064%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fdavidtveal%2F%22%7D%2C%7B%22name%22%3A%22Mark%20Baribeau%22%2C%22job_role%22%3A%22managing%20director%2C%20head%20of%20global%20equity%2C%20Jennison%20Associates%20(United%20States)%20%22%2C%22content%22%3A%22Mark%20B.%20Baribeau%2C%20CFA%2C%20is%20a%20managing%20director%2C%20the%20head%20of%20global%20equity%2C%20and%20a%20global%20equity%20portfolio%20manager.%20He%20joined%20Jennison%20Associates%20in%20April%202011.%20He%20was%20previously%20with%20Loomis%2C%20Sayles%20%26%20Company%20for%20more%20than%2021%20years%2C%20where%20he%20was%20lead%20portfolio%20manager%20for%20the%20global%20equity%20opportunities%20strategy%2C%20beginning%20in%202004.%20In%20addition%2C%20he%20managed%20large%20cap%20growth%20portfolios%20from%201992%20to%202010%2C%20serving%20as%20lead%20manager%20from%201999%20to%202010.%20Prior%20to%20his%20tenure%20at%20Loomis%2C%20Sayles%20%26%20Company%2C%20Baribeau%20was%20an%20economist%20at%20John%20Hancock%20Financial%20Services.%20He%20received%20a%20BA%20in%20economics%20from%20the%20University%20of%20Vermont%20and%20an%20MA%20from%20the%20University%20of%20Maryland.%20He%20has%20a%20CFA%20designation%20and%20is%20a%20member%20of%20the%20Boston%20Security%20Analysts%20Society%20and%20the%20National%20Association%20of%20Business%20Economists.%22%2C%22image%22%3A%2247065%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Fmark-baribeau-c-f-a-067856b%2F%22%7D%5D” title=”Speaker” el_class=””][vc_quotes layout=”accordion” quotes=”%5B%7B%22name%22%3A%22Amanda%20White%22%2C%22job_role%22%3A%22Director%20of%20institutional%20content%2C%20Conexus%20Financial%20%20(Australia)%22%2C%22content%22%3A%22White%20is%20responsible%20for%20the%20content%20across%20all%20Conexus%20Financial%E2%80%99s%20institutional%20media%20and%20events.%20She%20is%20responsible%20for%20directing%20the%20bi-annual%20Fiduciary%20Investors%20Symposium%20which%20challenges%20global%20investors%20on%20investment%20best%20practice%20and%20aims%20to%20place%20the%20responsibilities%20of%20investors%20in%20wider%20societal%2C%20and%20political%20contexts%2C%20as%20well%20as%20promote%20the%20long-term%20stability%20of%20markets%20and%20sustainable%20retirement%20incomes.%20She%20is%20the%20editor%20of%20www.top1000funds.com%2C%20the%20online%20news%20and%20analysis%20site%20for%20the%20world%E2%80%99s%20largest%20institutional%20investors.%20White%20has%20been%20an%20investment%20journalist%20for%20more%20than%2020%20years%20and%20has%20edited%20industry%20journals%20including%20Investment%20%26%20Technology%2C%20Investor%20Weekly%20and%20MasterFunds%20Quarterly.%20She%20was%20previously%20editorial%20director%20of%20InvestorInfo%20and%20has%20worked%20as%20a%20freelance%20journalist%20for%20the%20Australian%20Financial%20Review%2C%20CFO%2C%20Asset%20and%20Asia%20Asset%20Management.%20She%20has%20a%20Bachelor%20of%20Economics%20from%20Sydney%20University%20and%20a%20Master%20of%20Arts%20in%20Journalism%20from%20the%20University%20of%20Technology%2C%20Sydney.%20She%20was%20previously%20a%20columnist%20for%20the%20Canadian%20publication%2C%20Corporate%20Knights%2C%20which%20is%20distributed%20by%20the%20Globe%20and%20Mail%20and%20The%20Washington%20Post.%20White%20is%20currently%20a%20fellow%20in%20the%20Finance%20Leaders%20Fellowship%20at%20the%20Aspen%20Institute.%20The%20two-year%20program%20consists%20of%2022%20fellows%20and%20seeks%20to%20develop%20the%20next%20generation%20of%20responsible%2C%20community-spirited%20leaders%20in%20the%20global%20finance%20industry.%22%2C%22image%22%3A%2245819%22%2C%22linkedin%22%3A%22https%3A%2F%2Fwww.linkedin.com%2Fin%2Famanda-white-101a7515%2F%3ForiginalSubdomain%3Dau%22%7D%5D” title=”Moderator” el_class=””][vc_empty_space height=”10px”]
The world has two decades to find the solutions to keep warming to below two degrees, otherwise we are likely to cross two degrees and need to plan for risk associated with two point five or three degrees.
He said the number of corporate commitments to tackle climate change will increase in line with customer demand for more action.
On one hand innovation will comprise “sustained innovation” of existing technology. In contrast, “disruptive innovation” comprises new technology that is initially expensive but then becomes cheaper.
Innovation also depends on companies being able to tap the infrastructure and supply chains they need to thrive.
In early-stage investment, the focus is on feasibility and the extent to which a new product is cost effective or competitive. In the next stage access to a supply chain and infrastructure becomes a priority.
Investment in pioneering sectors involved working with teams that understand the technology, regulatory barriers and supply chain risk as well as an understanding of the policy needed to create these markets.
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Unanswered questions and answers
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Poll results
To follow[vc_line_chart x_values=”” values=”%5B%7B%22title%22%3A%22OneDirect-to-consumer%20models%3A%20E-commerce%2C%20EVs%2C%20entertainment%22%2C%22y_values%22%3A%2236%22%2C%22color%22%3A%22blue%22%7D%2C%7B%22title%22%3A%22Tech%20enablers%3A%20Digital%20payments%22%2C%22y_values%22%3A%2227%22%2C%22color%22%3A%22pink%22%7D%2C%7B%22title%22%3A%22Digital%20transformation%20of%20the%20enterprise%3A%20software%20as%20a%20service%22%2C%22y_values%22%3A%2236%22%2C%22color%22%3A%22sandy-brown%22%7D%5D” title=”Which secular theme do you think is most compelling?”]
Power prices will not fall to zero in a world of renewables and renewable energy generation ebbs and flows require smoothing and investment in new technologies according to experts on renewable energy. Gas will be in the system longer as a bridge fuel, and investors should also explore opportunities in construction-ready or operational fixed-price renewable
More investors are moving into private credit. Opportunities from the pandemic are far from over and the asset class is proving an important allocation in a wider, simplified fixed income portfolio. Investors at FIS Digital discuss their allocations and approaches.
Blockchain technology will open up illiquid assets, like real estate, to new investors in what could be the greatest disruption ahead. Franklin Templeton's Jenny Johnson explains how the asset manager is ensuring it taps the new opportunity.
A company's ability to sell direct-to-consumer, cloud computing and digitisation in payments are key areas for investors to focus. Investors should invest in companies that have a business model aligned to how people want to buy goods and prepare for a separation whereby companies with the technology to adapt streak ahead.
The transformation of investment instruments in fixed income has altered traditional 60:40 portfolios. But for some investors, the hunt for yield is a rising cause for concern that could lead to another credit crisis.
Don't expect another decade of outperformance from US equity while inflation, fuelled by a demand shock, is set to spike foreign exchange volatility impacting total portfolio returns, warned Rebecca Patterson, director of investment research, Bridgewater Associates speaking at FIS Digital 2021.
Finance day at COP26 bought headline grabbing news - including the establishment of Mark Carney's GFANZ and new accounting standards - but the PRI's Fiona Reynolds tells FIS delegates more needs to be done.
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