In the world of lock down: when the world again faces the disruption in economic activity
In 2020, there were many incidents happen but it is undeniable that one of the most important incidents facing the world in the same way is the COVID-19 pandemic. It is a challenge for the public health industry and also affects the overall economic activity as well.
Believe it or not? among the COVID-19 pandemic, there are opportunities for some businesses to grow. It is business of the future that could facilitate the consumers in anywhere and anytime. For example, Zoom, an online communication application, that works under Cloud system, which facilitates users in video conferencing. Its customer base has grown from 10 million in 2019 to over 300 million in 2020. Besides, Shopify, the traditional store assistant application, builds an online presence and manages a variety of operations including inventory management by operators do not need to invest in a new server. It grows up to 87% in Q3, 2020 (Source: Shopify , as of 29 October 2020)
In the meantime, One of the business that has grown significantly over the years is the education group business that focuses on the use of technology such as online tutoring schools are increasingly popular in the COVID-19 pandemic due to compulsive circumstances. COVID-19 outbreak has changed many parts of the world, it makes business and a lot of labors need to learn more to improve their skills for the future world (Reskill). Moreover, online learning business for the general public, which is more convenient, do not disturb working time and reducing travel times could grow in the COVID-19 pandemic.
The good news is, through 2020, both public and private sectors around the world are working together to find a cure for COVID-19 that we can significantly see improvement in the development and progress of COVID-19 vaccine. Many governments have announced plans to sell large numbers of vaccines to people in their countries by 2021, which is good news for the economy and overall business But, the question is, will the businesses of the future that gained benefits during the COVID-19 pandemic continue to grow? Or should it be halted along with a controlled pandemic?
To answer this question, you might have to go back and ask about the benefits that these future businesses bring to consumers. Whether it is convenience to access products/services, the cost savings that these business functions provide for users, or even the flexibility of businesses offer consumers, they would help these future businesses increase opportunities to grow even if the pandemic is controlled. By the middle of 2020, ResearchAndMarkets.com predicted that the Cloud Computing business between 2020-2027 will grow from $ 264.8 billion in 2019 to $ 927.51 billion in 2027(the average annual growth rate is 16.4% ) (Source: CISION PR Newswire, Jul 2020) and global digital education market in 2020-2027 will be able to grow with an average growth rate about 22.7% per year (Source: Global Newswire, Sept 2020)
Principal Global Cloud Computing Fund and Principal Global Education Fund: The Funds that focus on investing in future stocks
Principal Global Cloud Computing Fund (This fund is concentrated in the technology industry. Investors may lose a lot of money) - Feeder Fund invests in WisdomTree Cloud Computing UCITS ETF which focuses on investing in stocks of businesses that has main income from Cloud services, considering by high growth companies that have at least 15% historical annual growth in last 2 years. There will be an opportunity to become a part of the fund portfolio along with other screening and monitoring criteria to increase investment efficiency. In 2020, WisdomTree Cloud Computing UCITS ETF fund generates a return up to 111.76 % (Source: Bloomberg, as of 31 Dec 2020)
For more information https://www.principal.th/en/principal/GCLOUD-A
Principal Global Education Fund - Feeder Fund invests in Credit Suisse (Lux) Edutainment Equity which focuses on investing in stocks of businesses that has main income from products/services related to the modern education and student course in the student group and general people who want to gain new skills and efficient learning tools. For example, translation pen, digital book and various virtual simulation programs such as doctor training programs, pilots training programs and engineers training programs. They are able to help understanding more effective field operations, reducing costs and also decreasing business mistakes. In 2020, Credit Suisse (Lux) Edutainment Equity fund generates a return up to 23.00%.
For more information https://www.principal.th/en/principal/GEDTECH-A
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คำเตือน:
Principal GCLOUD
Investors should understand the product type (fund), conditions, returns, and risk before deciding to invest / Master fund is concentrated in the United States; therefore, investors should consider the diversification of their investment portfolio/ This master fund is concentrated in the Information Technology Sector, which is caused risks from changing consumer behavior and product obsolescence, therefore, if there is negative factor affects investment, investors might lose their investment massively. Besides, there might has risks and price fluctuation higher than general mutual fund that distributes across many industries/ Thai funds and / or foreign funds (master funds) may invest in derivatives for prevent the risks associated with the exchange rate, that might arise from abroad investment following propriety and circumstance. Investors might lose or gain profit from exchange rate, also the master fund possibly receive loss from exchange rate or receive a refund lower than the initial investment/ Previous performance could not guarantee for future performance.
Principal GEDTECH
- Investors should understand the product type (fund), conditions, returns, and risk before deciding to invest.
- The Fund might use derivatives as a tool for hedging foreign exchange risk of funds but depends on the discretion of Fund Manager.
- This fund is invested in foreign countries and might have risks associated with the exchange rate. Investors might lose or gain profit from exchange rate or receive a refund lower than the initial investment.
- Master fund is concentrated in the United States and Japan; therefore, investors should consider the overall investment by themselves and also, should study prospectus about before invest.
- This master fund is concentrated in the Information Technology Sector, which is caused risks from changing consumer behavior and product obsolescence, therefore, if there is negative factor affects investment, investors might lose their investment massively. Besides, there might has risks and price fluctuation higher than general mutual fund that distributes across many industries.
- Previous performance could not guarantee for future performance.
Reference :
https://www.prnewswire.com/news-releases/cloud-services-industry-2020-2…;
https://www.globenewswire.com/news-release/2020/09/28/2099743/0/en/Digi…
