Munro Partners is standing by its investment theme of digitalisation as it believes there is a “long growth runway” for companies in this sector.
Digitalisation was an “area of interest” for the firm last year with companies in areas such as digital enterprise, digital payments and e-commerce and was the fund’s second-highest sector weighting at 14%, behind climate.
In a quarterly update for its Munro Global Growth fund, chief investment officer, Nick Griffin, said he expected trends such as online shopping and remote working would continue.
“We expect to continue to reap the benefits of digitalisation, as our holdings in the digital enterprise, digital payments and e-commerce areas should continue to deliver a strong upcoming earnings results and provide bullish outlook statements. The habits formed in 2020 during the pandemic are likely to stick and lead to an acceleration of growth in many of these areas,” he said.
“There is a long growth runway for companies in the digital areas of interest and the runway’s visibility has become clearer because of the pandemic as we have seen growth rates accelerate and the size of market opportunities expand.”
Holdings included Amazon, Microsoft and semiconductor firms Taiwan Semiconductors and ASML.
The Munro Global Growth fund had returned 38% over one year to 30 November, 2020, according to FE Analytics, versus returns of 6% by its MSCI ACWI benchmark.
Performance of Munro Global Growth fund versus MSCI ACWI over one year to 30 November 2020
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