Nextury technology fund presented half-year results: the high return on investment was also due to the influence of COVID
Nextury technology fund presented the results of the first half of 2020. During this period, the fund brought 22.91 percent return to investors, and the return for the last 12 months was 44.45 percent and ensured a leading position in assessing the return of as many as 150 funds in Lithuania.
"Although the world seemed to be in a state of crisis, we are currently seeing extremely rapid growth in the technology sector. The crisis has changed the world and companies in various sectors have suffered huge losses, but technology businesses have progressed extremely rapidly, as evidenced by the fund's performance, which is a growing return for investors. We are pleased with such high indicators of both the entire sector and our fund, ”commented Ilya Laurs, Chairman of the Board of the Fund.
Examples show that the crisis is not dangerous for technology businesses. Amazon reported growth in e-sales during the heat of quarantine, employing as many as a quarter of a million people, Tesla has grown by as much as 350 percent since the beginning of the year, and Amazon has recruited 100,000 new people during the heat of the crisis. employees, so there is no doubt that technology companies have great potential.
According to the investor, the businessman, several main phenomena emerged during the crisis. The first is that people have stopped spending money on entertainment, travel and non-essentials. For these reasons, more investment is being made. The second important aspect - both America and Europe - decided to fight the crisis by printing money - by providing subsidies and gifts to businesses. In the short run, the economy is "saturated", but such actions ultimately lead to inflation. Money, savings go down, prices go up.
Can a second wave of quarantine further boost investors? I. Laurs points out that already during the first wave of the virus, businesses digitized, made changes, moved work from offices to homes, and became isolated. "We see a lot of signs that the technology market will continue to grow. The further we go, the more signals we get that the protracted crisis is leading to the digitization of structural technology companies. Many factories replace people with robots, because businesses want security, stability. Inevitable changes are also expected in the future in the fields of logistics and transport, when taxi and truck drivers will be replaced by robotic vehicles, ” I. Laurs emphasized.