Artificial Intelligence & Other Transformative Megatrends

Megatrends in the Investment Industry: Q3 2020

Technological developments typically follow an S-curve growth pattern: adoption is slow at first, then speeds up, and finally levels off. Earlier this year, certain technologies were already on a particular trajectory, but the pandemic of 2020 has had such a drastic effect that it has caused the curves themselves to shift. New technologies have emerged while other existing trends have accelerated as a result.

Will these new technologies and megatrends succeed in boosting lackluster economic productivity in the developed world? These papers don't merely list the transformative megatrends of the future, they delve into their applications, their implications for the investment industry, and their potential effects upon the world-at-large.

AI: A transformative megatrend (WisdomTree Investments, Aug 2020)

For compliance reasons, this paper is only accessible in certain geographies

Artificial Intelligence is the toolkit required for sifting through the mounds of data we create on a daily basis. This paper from WisdomTree compares the performance and composition of AI indices, through the lens of index-linked AI ETFs.

Fibre Broadband: The need for speed (Aviva Investors, Sep 2020)

For compliance reasons, this paper is only accessible in certain geographies

Aviva Investors discusses why full-fibre broadband service is a key upgrade to existing infrastructure and will pave the way for the data networks of the future.

Artificial Intelligence in Asset Management (CFA Institute Research Foundation)

Who better is there to discuss the usage of artificial intelligence within the asset management industry than CFA Institute Research Foundation? This report predominantly covers AI applications within trading teams, portfolio management practices, and risk management techniques.

Megatrends 2020 and Beyond (EY)

This 108-page megatrends paper begins by describing the S-curve growth pattern for new technological developments and expounds on how the present pandemic has accelerated certain changes. Some of the megatrends discussed include microbiomes, decarbonization, and the techonomic cold war.

Creativity and Possible Post-Pandemic Productivity Gains (Metlife IM, Aug 2020)

MetLife Investment Management points out how economic variables such as labor force productivity, total factor productivity, and capital deepening have declined since the GFC, but the pandemic crisis may provide ample opportunity for innovation. Could these innovations spur economic growth and a boom in productivity itself?

Innovation and Aid Propel Vaccines & Biotech Sector (Janus Henderson, Aug 2020)

For compliance reasons, this paper is only accessible in the United States and Canada

Given the amount of government aid that has gone towards vaccine development for COVID-19, the timeline for vaccine production has been drastically shortened. These and other developments in the biotech sector are discussed by Janus Henderson analyst Agustin Mohedas in this video.

Investing in Innovation (Franklin Templeton, Aug 2020)

For compliance reasons, this paper is only accessible in the EMEA region

Matthew Moberg, portfolio manager at Franklin Templeton, discusses technological innovations such as smartphones and other advancements taking place over the course of the Fourth Industrial Revolution that have led to (or could lead to further) increases in productivity.

10 Investment Themes for the Next 10 Years (Capital Group blog, Aug 2020)

For compliance reasons, this paper is only accessible in the UK & Europe

Capital Group's 10 investment themes for the forthcoming decade include digital advertising, cloud computing, a cure for cancer, and many other innovations across industries and geographies.

Front-To-Client Integration is the Next Big Buy Side Trend (Jacobi, Sep 2020)

Jacobi describes a new form of integration for the asset management industry — one that connects front office personnel to potentially the most important stakeholder (the client).

Global Innovation Index 2020: Who will finance innovation? (Cornell/INSEAD/WIPO)

At 448 pages, this collaborative report provides an incredible amount of depth on the state of innovation and innovative trends throughout 131 global economies. The 2020 edition is the 13th iteration of the Global Innovation Index report.

Will Technology and Innovation Lead to Higher Growth? (NN IP, Aug 2020)

Marco Willner, of NN Investment Partners, looks at the potential for technological advances across fields such as robotics and AI to propel U.S. GDP growth in the near future.

Fintech: A pure play on enduring disruption (Wellington Management, May 2020)

For compliance reasons, this paper is only accessible in the EMEA region

The pandemic may have accelerated certain fintech investment themes, including financial technology infrastructure, financial services digitization, and payments. In this brief analysis, Wellington Management delivers their pure-play approach to fintech investments.

Digital Transformations via Cloud Platforms (McKinsey & Company, Sep 2020)

A cloud-ready operating model may be a key part of corporate digital transformations, and especially relevant for CIOs and CTOs going forward.

Chinese Unicorns: Harnessing innovation for hypergrowth (PwC, 2020)

PwC examines several themes from their China Unicorn Study and discusses how these unicorns have been affected by the COVID-19 crisis.

ESG Focus: The acceleration of electric mobility (American Century, 2020)

The authors identify four trends that are working to increase the adoption of electric vehicles — from improving infrastructure to shifts in consumer preferences.

ESG Improvers: A new frontier for responsible investing (Amundi, 2020)

For compliance reasons, this paper is NOT accessible in the United States

Because of the dynamic nature of ESG analysis, ESG portfolio management should be done in an agile fashion, which Amundi Asset Management believes is accomplished by focusing on a portfolio where the companies have constantly improving ESG characteristics.

Four Technology Trends From Emerging Economies (WEF blog, Sep 2020)

COVID-19 has accelerated the shift towards digital work, learning, and socialization. But will unequal access to technology worsen the rich-poor gap? And is data privacy treated similarly in emerging versus developed economies? WEF looks at these and several other technology trends in this blog article.