Technological innovation
Invest in the technological advances and innovations driving the modern world.
With investment, your capital is at risk.
What is the Technological innovation theme?
The rise of digital technology is one of the hallmarks of the 21st century.
Technological innovation has made businesses more efficient, driven productivity growth, and continued to disrupt our behaviours, preferences, and habits. With each year that passes, it continues to shape and influence almost every aspect of human life and – as the recent rise of machine learning has demonstrated – shows no sign of slowing down.
This theme aims to focus on areas that will drive, or stand to benefit from, the increased evolution and integration of technology into our daily lives. This includes robotics, artificial intelligence, cloud computing, and companies that focus on preventing and managing cyber-related risks.
Why consider investing in this theme?
What does this portfolio invest in?
A portion of this portfolio invests in a collection of exchange traded funds (ETFs) that tilt towards the theme of Technological innovation. The portfolio invests across several sectors that our expert investment team believe are likely to benefit from the development of this theme over the long-term. These include:
- Robotics and automation
Already essential on vehicle production lines, robotics is expanding into other areas of manufacturing as well as the service sector. Expected to become more advanced and integrated into different sectors of the economy over time, this is an area that will continue to support productivity growth in future years.
- Artificial intelligence (AI)
Generative AI is enormously popular, and we are only in the very early stages of commercial adoption. The application of and investment in AI and machine learning is only going to accelerate – perhaps exponentially – across different elements of business and our daily lives over the years to come.
- Cloud computing
Cloud computing allows companies to access computing resources – like servers, data storage, and software development tools – on demand and over the internet (‘the cloud’) rather than relying on or having to invest in physical infrastructure. Essential to the digital economy, cloud technologies enable businesses to grow, scale, innovate, and evolve. They are used by individuals too, when streaming, using apps, and more.
- Cybersecurity
The more we live, work, and do business online, the greater the risk of cybercrime. Cybersecurity is a broad category that covers protection, prevention, and surveillance of digital and physical systems. The industry is in high demand now, and the market is set to increase in the years ahead as our technologies – and cyber criminals – become increasingly sophisticated.
- Semiconductors
Thousands of electronic products rely on semiconductors, including computers, appliances, smartphones and gaming consoles. They are the critical enablers of modern-day life, and the semiconductor industry is only set to become more important in the decades ahead, particularly with the advent of artificial intelligence.
The ETFs we have selected are closely to aligned to these areas, offer the greatest opportunities for long-term investors, and meet the standard requirements we set out as part of our broader investment process.
How is this portfolio managed?
Our investment team actively manage the majority of your globally diversified portfolio, making frequent adjustments based on news, data and analysis. The Thematic portion of your portfolio is solely focused on your chosen theme and requires less frequent intervention, although it will be regularly rebalanced and reviewed at least annually.
Portfolio allocation
Below you can see a detailed breakdown of how our investments are allocated across global financial markets.
- Asset allocation
- Countries allocation
The allocation of assets within a chosen portfolio will vary depending on your chosen risk level and investment style. Your portfolio will typically hold a large majority in equities and invest the balance in bonds to help dampen the ups and downs of the portfolio.
Capital at risk.
Our fees
Input estimated investment
What other themes are available?
Resource transformation
Invest in the ways we utilise energy and resources to meet our future needs. With exposure to the:
Evolving consumer
Invest in the evolving demands and needs of our global population. With exposure to the:
Learn more about Thematic investing
Thematic portfolios are here
Four reasons to consider Thematic investing
How to become a Thematic investor
Most people ask us
Will the actively managed part of the portfolio also invest in technology stocks?
Will the actively managed part of the portfolio also invest in technology stocks?
The actively managed part of the portfolio will be globally diversified across equities and bonds. It will have some exposure to the world’s major stock market indices, like the S&P 500 and the Nasdaq, which include some technology stocks, but its returns will come from a much broader cross-section of industries, sectors, asset classes and geographies.
If trends like artificial intelligence continue to experience rapid growth, will the Thematic portion be reviewed more than once a year?
If trends like artificial intelligence continue to experience rapid growth, will the Thematic portion be reviewed more than once a year?
Our investment team will review the Thematic allocation at least annually, and use their knowledge and expertise to decide whether more frequent adjustments are needed depending on how the theme develops. Due to the long-term nature of Thematic investing, the underlying ETFs are not likely to change, but the investment team will make adjustments if appropriate.
Is this a socially responsible portfolio?
Is this a socially responsible portfolio?
The themes do not incorporate environmental, social and governance (ESG) considerations. They invest in different trends and sectors, have exposure to a variety of areas, including renewable and non-renewable technologies, resources, and industries.
For those looking to incorporate ESG considerations into their investment portfolio, we’d recommend looking into our Socially responsible portfolios.