Equity Strategy and Thematic Opportunities
In the discussion between Willem Sels, Global CIO and Kevin-Lyne Smith, Global Head of Equities, we highlight several strategic investment themes that benefit from the AI-led innovation and Fed rate cuts.
The AI trade has been broadening out from Large Language Models into the wider AI ecosystem of semiconductor manufacturers, data centres, cloud providers and the supporting hardware, infrastructure and utilities.
Aerospace and security companies are poised for growth due to geopolitical shifts, with strong order books and emerging technologies. Subscription services are thriving among Gen X, Gen Z and millennials, offering cost-effective solutions and broad appeal.
The re-industrialisation of North America and automation are driving growth in industrials, securing supply chains, and enhancing efficiency. Financials report strong performance, with positive trading revenues and M&A activity and offer good diversification from tech. Within Asia, China and Singapore offer diverse opportunities. While our theme around ‘China’s Innovation Champions’ captures the big tech success stories, ‘Asia’s Enduring Titans’ focusses on big blue chips across technology, financial, and consumer discretionary sectors.
The discussion underscores our selective approach to identifying winners from the AI mega trend and it also illustrates the rich opportunity set.
Watch the video to explore these investment themes in detail, to help consider how a mix of themes across sectors, styles and regions can help achieve the right balance.