US election insights: Global technology strategy

The tech industry is reliant on global trade. There are cross-border operations across many tech segments and the implications of any high tariff policy to encourage US reshoring and reduce dependence on overseas supply chains are something to be mindful of. However, given that many tech hardware companies have been gradually moving their operations outside of China in recent years, this could have limited impact and there is potential for exemptions for those willing to build operations in the US.

More generally, it is important to recognise that the market typically reacts quickly to events and any period of volatility following the result is unlikely to last too long. This could also present some interesting investment opportunities for those taking a disciplined, long-term view, whilst most of the market fixates on the rotation and short-term earnings impact from macro factors.

As bottom-up investors, we prefer not to spend too much time trying to assess the impact of macro or political variables, instead focusing on company fundamentals, looking at risk/reward and valuation across a broad view of the dynamic technology space.

We are poised to capture underappreciated opportunities and beneficiaries of long-term structural trends within the value chain across all sectors, industries and geographies as the market starts to broaden. In terms of geography and industry, we prefer China, broadline retail, interactive media, and communications equipment over US, semiconductors/semiconductor equipment and tech hardware as a result of bottom-up stock specific factors.

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CMO-2024-2158560-(SG)