TIME may prove to be on the investor’s side
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Tuesday, 4 April, 2000 - 22:00
A commonly debated theme in stockmarkets during recent times has been the risks associated with the so-called ‘Internet bubble’.
In some cases this is fair comment – particularly in the ‘hot’ area of dot.com start-ups – where the most frenetic activity has taken place.
However, other experts argue that investors need to look beyond the ‘Internet froth’ and point to the fact that a profound structural change is taking place – one that should lead to the continued growth of companies within specialised sectors and offer opportunities for investors.
BT Funds Management is one investment expert who believes we are in the midst of a profound structural change.
According to BT, innovations in technology have caused businesses to reassess the way they structure, in search of greater efficiencies.
As business reform continues across all industries, the demand for goods and services provided by ‘new economy’ companies increases.
The three areas likely to benefit most from this period of structural transition are telecommunications, information technology and media enterprises – otherwise known as the TIME sector.
Telecommunication companies will benefit as they own the infrastructure and access device technology businesses and individuals are using to change.
Growth among telecommunication companies can be measured by increased Internet traffic, growing data volumes and greater mobile phone usage – all of which show no sign of slowing.
IT companies should also continue to perform well in this period of change.
Falling prices are increasing accessibility to IT products and giving businesses more affordable options.
Furthermore, product innovations are shortening the life-cycle of software applications and hardware, resulting in more regular upgrades.
Media is the third area expected to experience strong growth.
Media is significant as it provides the content needed by businesses to strengthen online presence and by individuals who rely on the Internet and their mobiles to access current information.
In addition, the advent of the Internet and digital television further empowers media as a distributor of goods and services.
In recognition of the convergence of these three sectors, BT Funds Management created the BT TIME Fund which is designed to capture the expected growth within these specialist areas which are driving the change in the new economy.
BT believes this process of change will continue over a number of years, and provide substantial opportunities for investors.
In some cases this is fair comment – particularly in the ‘hot’ area of dot.com start-ups – where the most frenetic activity has taken place.
However, other experts argue that investors need to look beyond the ‘Internet froth’ and point to the fact that a profound structural change is taking place – one that should lead to the continued growth of companies within specialised sectors and offer opportunities for investors.
BT Funds Management is one investment expert who believes we are in the midst of a profound structural change.
According to BT, innovations in technology have caused businesses to reassess the way they structure, in search of greater efficiencies.
As business reform continues across all industries, the demand for goods and services provided by ‘new economy’ companies increases.
The three areas likely to benefit most from this period of structural transition are telecommunications, information technology and media enterprises – otherwise known as the TIME sector.
Telecommunication companies will benefit as they own the infrastructure and access device technology businesses and individuals are using to change.
Growth among telecommunication companies can be measured by increased Internet traffic, growing data volumes and greater mobile phone usage – all of which show no sign of slowing.
IT companies should also continue to perform well in this period of change.
Falling prices are increasing accessibility to IT products and giving businesses more affordable options.
Furthermore, product innovations are shortening the life-cycle of software applications and hardware, resulting in more regular upgrades.
Media is the third area expected to experience strong growth.
Media is significant as it provides the content needed by businesses to strengthen online presence and by individuals who rely on the Internet and their mobiles to access current information.
In addition, the advent of the Internet and digital television further empowers media as a distributor of goods and services.
In recognition of the convergence of these three sectors, BT Funds Management created the BT TIME Fund which is designed to capture the expected growth within these specialist areas which are driving the change in the new economy.
BT believes this process of change will continue over a number of years, and provide substantial opportunities for investors.