Investors must look beyond the Australian equity market if they are to participate in sectors shaping the future and, in doing so, have the opportunity to benefit from good investment returns, a portfolio manager has said.
Speaking at the Australian Shareholders Association Conference 2017 recently held in Melbourne, Magellan Asset Management head of research and portfolio manager Nikki Thomas cited the technology sector as an area where companies are changing the world and offering great opportunities for investors to participate and capitalise on the commercialisation of new services.
But Australians will miss out on the opportunity to make money from the rapid development of this sector if they limit their portfolio allocations to the domestic equity market, she said.
To further illustrate the point, Thomas said the rise of digital personal assistants, such as Siri for Apple users, was an example of how technological developments were changing the world and the way consumers approach certain tasks.
“Think about it … [by using a digital personal assistant] you’ve just created a link between you and the world that works through your Apple device and when Apple directs that transaction somewhere someone pays them for that,” she explained.
“Whether they click the value of the transaction, or they charge someone an advertising fee to be the one that is presented to you when you’re doing things, they have the ability to monetise this incredible platform that they’ve built that has become your go-to place to talk to the world.
“These companies excite us. They’re big global amazing companies that aren’t listed in Australia.”''