Why invest in AI?
Artificial Intelligence (AI)* is reshaping almost every aspect of our lives, from helping healthcare professionals arrive at better and quicker diagnostics and treatment plans, to ensuring that shops never run out of stock. The businesses that embrace this disruptive technology early and efficiently will be the ones racing ahead of their peers. Whether they are directly enabling AI by producing the technology underlying its advances, providing AI services and products to end users, or benefiting from AI by improving their own products and services with its help, our strategy seeks to pick those we believe to be the most likely winners from the AI revolution.
* the development or use of computer systems that simulate human intelligence to perform tasks such as decision-making or audio or visual identification or perception.
The value and income from the fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise. There is no guarantee that the fund will achieve its objective and you may get back less than you originally invested.
Investment Approach
The fund aims to provide a higher total return (the combination of capital growth and income), net of the Ongoing Charges Figure, than that of the MSCI ACWI Index over any five-year period. The fund managers seek to identify opportunities where AI is emerging as a potential driver to long-term revenue growth or profit margin expansion. They look for innovations through provision or adoption of Al, which they expect will cause changes in the way existing markets or businesses operate.
The fund managers’ engagement with technical experts and executive management in the investee companies is a crucial part of the investment approach. From the fund's investment universe, the managers identify investment opportunities in three categories - enablers, providers and beneficiaries.
Examples of companies we invest in
Enablers
Companies that supply the crucial underlying artificial intelligence services and products (including technology) to AI Providers, which enable them to provide AI services.
Example - Samsung
Providers
Companies providing Artificial Intelligence services and products to end users such as consumers or Artificial Intelligence beneficiaries.
Example - Microsoft
Beneficiaries
Companies that are receiving meaningful benefits from their use of Artificial Intelligence, which are expected to drive valuations over the long-term.
Example - PepsiCo
Can you tell the difference between
human and AI generated content?
Please read the articles below to see if you can spot the difference between human writing and that generated by AI.