Talking Point  

Technological change is driving investment decisions

Technological change is driving investment decisions

Technological change is one of the biggest drivers behind investment decisions, according to a study by BNP Paribas Asset Management.

Almost all investors surveyed (95 per cent) cited the acceleration of digital and new technologies as an important change shaping their investment strategies.

This was closely followed by the impact of ageing populations (91 per cent), changes in consumer spending habits (89 per cent) and population growth in emerging markets (86 per cent).

Technology, telecoms and IT were more important in Asia (93 per cent) compared to Europe (81 per cent) and the US (75 per cent).

Sandro Pierri, BNP Paribas Asset Management chief executive, said the results of the survey highlighted the significance of demographic and societal changes, and their investment implications.  

Pierri added: “The findings also show the extent to which demographic shifts and asset allocation considerations are interlinked with the ever-quickening pace of technology and the focus on sustainability, which requires a fundamental re-allocation of capital.  

“This will need deep transformation in the investment industry to cater for issues such as funding the pension gap, moving from wealth creation to wealth preservation adapted to clients’ risk profiles, or providing for a more digital way of investing.”

BNP Paribas said the findings also reflected the more appealing sectors identified by respondents.  

Healthcare was identified by almost all investors (91 per cent) as significantly attractive, followed by technology (84 per cent), energy (67 per cent), agrifood (63 per cent), leisure and tourism (60 per cent) and real estate (59 per cent).  Their growing attractiveness is also linked to the pandemic and climate change.