Changing priorities
The tech effect, as well as the broader strong performance of stocks, is once again obvious for multi-asset managers. Royal London Sustainable World Trust, the top name in the multi-asset section, had a 34 per cent exposure to US equities, with Amazon and Alphabet among its top holdings.
Apple, Amazon and the other ‘Faang’ stocks (along with Facebook, Netflix and Google), which have performed well in recent years but look vulnerable to market shifts, may well become a dividing line for some ethical managers, given some investors avoid many of these.
Recently, Neville White, of fund house EdenTree, noted that “all Faang companies, with the exception of Netflix, have been subject to sustained and serious controversy” on issues around privacy, tax avoidance and poor labour conditions.
In the meantime, advisers need to check which way their clients’ ethics lean, and how this fits in with different portfolios. For some, investing in this way may still present an opportunity cost.
