Technology innovation is reshaping our lives and technological advances are generating enormous value creation and disruption across the global economy.
As consumers, we are digitising the way we shop, work, entertain ourselves, monitor our health and manage our finances. For businesses, the role of technology is rapidly shifting from being a driver of marginal efficiency to an enabler of growth and innovation. It allows companies to improve the customer journey, leverage data, increase agility, empower workforces and ultimately gain or retain market leadership. Technologies such as cloud computing, artificial intelligence and data analytics, alongside exponential gains in processing power, are creating strong multiplier effects.
Against this backdrop, while investing in the technology sector is often associated with paying lofty valuation multiples, in the UK we believe there are some highly innovative global leaders, which fly under the radars of many and remain underappreciated. The UK is home to several world-leading technology companies but some trade at discounts to their global peers, while having what we believe are attractive business models with recurring revenue, high profitability and strong cash-flow generation.
Louise Kernohan, UK equities portfolio manager, Newton Investment Management.
Doc ID: 696982