Innovation is not a new phenomenon but the pace of change has been accelerating in recent years. Disruption is not just taking place in the technology space but also in other sectors and impacting multiple aspects of the global economy.
The United Global Innovation Fund harnesses opportunities in innovation, focusing on structural trends that can drive growth and returns, independent of the global economic cycle. Many of these investment themes take time to develop and investors need to be patient with a long time horizon of up to 10 years. This will enable the Fund to gain exposure to early-stage potential growth opportunities and allow time for them to play out.
The Fund seeks to invest in companies that are developing disruptive technologies and challenging the way traditional companies operate, as well as firms capitalising on significant trends in various industries.
The 'democratisation' of finance is a phenomenon brought about by rapid internet adoption. This includes the rise of digital banking and ecommerce. China in particular has leapfrogged developed markets like the US to become the global market leader in fintech and e-payments.
Consumers now value 'experiences' such as travel and dining more than 'things' such as clothes and electronic appliances.
The medical field has been given a shot in the arm by innovation. Advancements in drug discovery especially for immuno-oncology and rare diseases are scaling new heights and bending cost curves.
Machine Learning and Automation
The manufacturing sector is being disrupted with increasing automation while the cost of computing has fallen drastically with the amount of data generated expected to quadruple.
The ravaging effects of climate change have led to disruption in the energy sector with renewable sources coming to the fore. The automobile sector is also being disrupted with the increasing prevalence of electric vehicles.