Why active management matters more for income investors

Significant implications for advisers and investors relying on passive income strategies

clock • 4 min read

As AI-driven investment reshapes markets, structural biases may become increasingly pronounced, warns Rory Sandilands

The world's largest technology companies are investing on an unprecedented scale in artificial intelligence infrastructure. Between them, Alphabet, Amazon, Meta Platforms, Microsoft and Oracle plan to spend $684bn in 2026 and $775bn in 2027 on data centres, cloud expansion and AI development. This trend could accelerate significantly from here. JP Morgan estimates that $1.5trn of AI-related infrastructure will be needed over the next five years, with up to half of this financed through bond markets. That implies roughly $300bn of annual debt issuance, which will significantly resha...

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