Thematics

Designing a new world

For Professional Investors only.

Key trends shaping the world

Investment convictions

Outlook: Among transformative
long-term themes, it is Artificial Intelligence (AI) that is largely in focus because of its remarkable acceleration over the last two years.

Preferences: AI remains a compelling proposition, though caution is warranted due to sky-high valuations. The AI tech providers (e.g. semiconductor companies) have been the early winners amid robust AI demand.

The incredible advances in AI have started to reshape the world. This is a good example of the power of thematics, and why investors might consider an asset allocation in this area.

It’s the tech providers, largely led by semiconductor producers, that have driven
the recent acceleration in AI.

A closer look at this segment of the market is worth exploring. Semiconductors are used in virtually all electronic products and they represent about a third of the weight of the global IT sector.

Elsewhere, the enablers (cloud providers,
data centres) are heavy investors in Al, while the deployers are those businesses that are already leveraging AI to transform their businesses^[10].

In each of these segments there is the potential for growth.

ETF implementation ideas

AMUNDI MSCI ROBOTICS & AI ESG SCREENED UCITS ETF
Management fees: 0.40%*

AMUNDI MSCI SEMICONDUCTORS ESG SCREENED UCITS ETF
Management fees: 0.35%*

Semiconductor exposure in global Information Technology strategies
Sector breakdown (in % of market capitalisation)

Source: Amundi, Bloomberg, MSCI. Data as at 31/10/2024