Rewards were missing from the technology sector over the past year, although the risk was definitely...
Rewards were missing from the technology sector over the past year, although the risk was definitely present, according to John Kelly, investment director, at Barclays Global Investors.
Kelly offered a scathing overview of investor performance during the technology, media and telecoms downturn last year. He said: "There was a lot of embarrassment caused by the tech, media and telecom excesses. It's too soon to call it a bubble so we use phrases like consolidation and correction."
He then issued a warning to the fund management industry on the future of the markets. "While the market is efficient today, it is going to be a lot more efficient going forward," Kelly observed, urging fund managers to avoid chasing 'lucky spurts' like the upturn in technology related sectors.
Commenting on the search for performance, Kelly warned: "Every charge is a hurdle that has to be got over. Index funds trade when they need to, but active funds trade when they think it is a good idea. Understand the risk, because most of the funds out there don't."
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