This strategy aims to deliver long-term capital growth through exposure to U.S. corporations that benefit from dominant positions in their markets or that benefit from innovation trends.
100% S&P 500 Index
Philosophy and process
Focus is on companies that benefit from structural changes caused by technological innovation while avoiding those that are negatively impacted by it.
The strategy uses a custom-built thematic investment universe consisting of more than 900 companies across four selected innovation themes: intelligent connectivity; enterprise digitization; next-generation healthcare; and smart energy. These four main categories lead to 40+ identified innovation investment sub-themes from which securities are selected.
Portfolio construction is based on a barbell strategy, with exposure to both thematic innovators and dominant firms.
The security-selection process combines bottom-up fundamental analysis with a dynamic approach to incorporate new available data points as well as market signals. The process aims to identify securities of companies that offer undervalued cash-flow generation potential from structural growth, business model innovation and/or resilience facing an accelerating pace of change.
The portfolio is managed with an active risk profile that is typically lower than the median of U.S. equity peers.
Why invest in these strategies?
A thematic investment style, differentiated from traditional equity strategies, and focused on long-term innovation trends with the objective of adding value over a full business cycle.
Increased exposure to U.S. companies that benefit from technological advances and in corporations that have sustainable business models in a perpetually evolving environment.
Well-diversified strategy and disciplined investment process with a strong emphasis on risk management.