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ANALYSIS: How WannaCry makes cyber security a vital investment

Take a look at your surroundings. Chances are, most of your colleagues are staring at screens or, if you’re in a public place, those around you will be looking down at their phones. Even you’re doing it!



“At Davos at the beginning of this year cyber security made some very clear headlines at The World Economic Forum; Trump made protection one of his key objectives, and even here in the UK in February the Queen opened the National Crime Security Centre as a branch of GCHQ”.

Li describes the opportunity for investors as ‘anti-cyclical’ in that whatever happens in the economic cycle, cyber security is always going to be a risk.

“It’s a relatively new area in the scheme of the tech sector, and there are a lot of companies that are either infrastructure providers or service providers in that space,” he said, adding that the fund equally weights between the two areas.  

Around 50% of the fund is listed in the US, with around 10% in Japan, 10% in Israel and 5% plus in South Korea.

“Looking at market cap sizes, this is generally an opportunity that is predominantly in the small-cap space, which is around 50% of the Nasdaq ISE Cyber Security Ucits index.

Up until Friday’s attack, the index was up 10.6% for the year. In 2016, it was relatively flat.

“It does have some correlation to broader tech equities, but it has a profile of its own because it is small to medium-cap lead and a growing industry, with M&A also a factor.”