Investing in Digital Infrastructure?

By Astra Group

The pandemic has been a catalyst for certain growing trends and consumer habits which are, in turn, driving up demands for digital infrastructure to support the growing presence of the online industry. Alongside this, the surge in working-from-home as a result of the pandemic has increased the demand for digital infrastructure such as improvements in networks, manufacturing of equipment such as semiconductors and chips as well as additional security and upgrades of existing data centres.

The way people work, seems to have changed the most due to the pandemic, and is a trend which many companies have said will continue (work-from-home), with a Gartner CEO survey saying that 74% of companies plan to shift to remote work after the covid-19 pandemic. Although this figure is widely debated, it can be said that at the very least there looks to be a change to the way people use offices. It is likely that people will work from home at least one day a week in a majority of professions after the pandemic has ceased. This brings with it a growing need for improved digital infrastructure outside the office.

74% of companies plan to shift to remote work

With the rise of ‘Tech’ during the pandemic, it is important to therefore have exposure to the rising trend which is shaping the future of everything we do in more ways that one.

At Astra we feel it is important that clients are able to profit off of these growing trends in technology. Through investments

in funds which have limited exposure to companies which provide the digital infrastructure to enable the use of home entertainment systems or the infrastructure which supports your internet banking services for example.

Instead of solely investing in the main FAANG companies, it is also important to have exposure to the companies which benefit off of the growth of the FANNGs, as this enables clients to have limited exposure to technology stocks trading at astronomical valuations and thus reducing client risk. This approach to investing known as ‘pick-and-shovel’ investing is, for example, investing in Panasonic Corp which provides the batteries and IP used in Tesla EVs thereby limiting client exposure to potential bubbles such as Tesla stock, but allowing them to benefit off of a rising tre