We have identified three megatrends which are: Demographic change, Future of Technology and Resource Scarcity.
Script
In this video we're talking by our thematic framework. We have in place a thematic, analytical framework, which helps us think long term and focus on structural growth opportunities.
We have identified three megatrends which are: Demographic change, Future of Technology and Resource Scarcity. And within those megatrends, we have got various themes.
We are able to analyse every company in the portfolio in terms of how exposed it is to any given theme. As a result of that we're able to aggregate the information at the portfolio level and assess more accurately which themes the portfolio is exposed to and to what extent.
It helps us in three ways. Firstly, we know our portfolio exposures more accurately. Secondly, we're able to manage diversification more efficiently. And thirdly, we're able to point the research efforts where we want to do more work on any themes that we might not have looked at before or anything where we want more exposure. Of course, valuation is an important assessment of those things - we wouldn't buy any stocks in a theme just for that exposure. It needs to make sense in terms of valuation upside potential and attraction generally.
This framework helps us think long term, assessing attractive structural growth opportunities that we're able to harness for our investors.
This framework helps us think long term, assessing attractive structural growth opportunities that we're able to harness for our investors.
Looking at various themes within each of the megatrends. In Demographic Change there are some important currents such as: aging population, urbanization and middle-class consumer - to name but a few.
In the future of technology, we have exposures to cloud computing, cybersecurity, online gaming - again, just to name but a few. At the intersection of future of technology and demographic change, there are some very attractive opportunities in bespoke healthcare, in consumerisation of healthcare and any areas around that, genomics being an important opportunity for us.
In resource scarcity there are various opportunities - whether it's in terms of climate change, electric vehicle, for example, being one contributor to helping reduce the climate change impact, and physical infrastructure which is becoming greener.
But also robotics and automation at the intersection Resource Scarcity and Future of Technology. Think about Resource Scarcity in the broader sense of the term. It's also physical infrastructure, access to education, but also human capital as a resource scarcity - and that's why robotics and automation features in that megatrend.
All in all , you can see the importance of having a structured consistent analytical framework like we have with systematics analysis, which help us think long term as investors, help us research attractive structural growth opportunities, and help us deploy our clients capital in an efficient manner to ensure a portfolio that is focusing on future quality growth.
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