In focus
[ FUND ]
34 / 35
This fund seeks to benefit from a sector that is expected to grow to
$110bn by 2024
TRUSTNET
Lead manager Ford has specialised in
North American and global equities,
as well as technology, for the past
three decades.
Smith & Williamson Artificial
Intelligence had a strong 2019, making
40.08 per cent, and also delivered a
positive return in 2018, when markets
foundered. Since launch in June 2017,
the fund has made a total return of
71.37 per cent.
FACT BOX
MANAGERS: Chris Ford & Tim Day / LAUNCHED: 23/06/2017 / FUND SIZE: £253.8m / OCF:
0.84%
CROWN RATING
N/A
PERFORMANCE OF FUND VS INDEX SINCE LAUNCH
Smith & Williamson Artificial Intelligence (71.37%)
MSCI World (23.31%)
80%
70%
60%
50%
40%
30%
20%
10%
0%
n1
8
-10%
the development and/or production
of artificially intelligent systems (such
as smart applications on phones) or
products (such as sensor technology).
Both allow third parties to sell or
deliver products and services through
online platforms.
Ford and Day’s investable universe
is currently made up of 500 stocks
including established players in the
field and entrepreneurial firms with
high growth potential.
The 39-strong portfolio includes
well-known names such as Google
parent Alphabet – the largest holding,
representing 6.3 per cent of the
portfolio – Microsoft (3.5 per cent)
and Chinese internet firm Alibaba (2.9
per cent). While technology giants are
well represented in the portfolio, it
also includes other less-recognisable
names that aren’t necessarily
associated with AI.
In addition to investing in AI, the
fund uses it in its investment process
W
ith huge amounts of data
now being collected by ever
more sophisticated devices
in all aspects of daily life, the ability to
process and interpret this information
has grown in importance.
This helps to explain why artificial
intelligence (AI) has become one
of the most exciting areas of the
technology sector. Although once
considered science fiction rather than
science fact, it now looks set to be one
of the most important investment
themes over the coming decades.
Last year, Bank of America Merrill
Lynch highlighted AI (robots/
automation) as one of its top-10
themes for the 2020s, with the size
of this market expected to grow to
$110bn by 2024.
One fund aiming to benefit from
this theme is Smith & Williamson
Artificial Intelligence. The fund –
overseen by Chris Ford and Tim Day –
targets growth through investment in
Smith & Williamson
Artificial Intelligence
to find out which companies can offer
the best exposure to this technology.
Given its dominance in the technology
sector, it is little surprise the largest
geographical allocation in the portfolio
is to US stocks, at 53.5 per cent of assets.
Both Ford and Day joined Smith
& Williamson in 2015, having
previously co-led the London-based
global equities business at thematic
investor Pictet Asset Management.
Source: FE Analytics
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