As the strapline for the 1960 Yul Brynner Western (almost) goes: “They were seven ... THEY (FOUGHT) PERFORMED LIKE SEVEN HUNDRED”. Global stock markets have been dominated this year by just seven US tech companies. 'The magnificent seven': Apple, Microsoft, Meta, Amazon, Alphabet, Nvidia and Tesla, have been responsible for 'all of the gains in global stocks' throughout 2023 so far, due to investor projections about the prospects for artificial intelligence.

This is a much-reported topic, but this 'magnificent seven' phenomenon has an important but so far under-reported consequence that they think is worth investor attention. Storebrand Asset Management find a positive relationship between the performance of climate index funds and their positions in the 'magnificent seven' stocks throughout 2023 and question whether this is aligned with the objectives of investors seeking 'passive' global equity replacement strategies or exposure to the climate transition opportunity.

To the extent that anything on this website constitutes a financial promotion it is exempt from the general prohibition in S21 of FSMA on the basis that the site is only intended for investment professionals as such term is defined in S19 of the Financial Promotions Order. Please note that Pensions for Purpose does not provide consultancy services, advice or personal recommendations on any of the investment opportunities mentioned on the platform. We curate content written by members and do not endorse any underlying funds.

Learn more here