Three sustainable investment themes for a low-growth future – Hermes
26 Apr 16
As the world wakes up to the new reality of extremely slow growth, there seems little doubt the returns investors became accustomed to during the ‘Great Moderation’ are a thing of the past.
Cybersecurity affects the lives of corporations and individuals equally – with more than 80 million threats a year, 70% of which go undetected. A potential worst-case ‘Cybergeddon’ scenario has as much as $3trn of global economic value at risk by 2020. To defend against this threat, the $75bn global cybersecurity solutions market is expected to grow by 250% over the next five years.
There are multiple entry points for investors in this theme – with fast growth anticipated in areas such as analytics, automated response technologies, cloud security and biometrics. Investment in critical infrastructure will be a necessity amid concerns over e-commerce payments, encryption, network security and homeland security.
However, this theme does not simply surround products. The threat of IP losses, legal expenses and reputational losses means cybersecurity risk needs to be embedded in the thinking of corporate boards of directors.
Tags: Investment Strategy
