Thematics

AI & Robotics

A pure investment play on the AI & Robotics theme

Theme overview

A high conviction, thematic strategy that looks beyond the headlines to find the companies it believes are most likely to benefit from the rapid advancements being made in the fields of artificial intelligence and robotics.

Artifical intelligence and robotics are rapidly becoming more prevalent in every aspect of our daily life

A massive and exponential wave of change is shifting the fundamental structure of every sector of the economy, altering the way we do business, the way we live and the way we interact

~US$900 bn market, growing at ~19% annually*

Source: Mirova. Growth based on 5 Years Compound Annual Growth Rate from YIDC Worldwide Semiannual Artificial Intelligence Tracker, 2023.

Reasons to consider

Mirova focuses on the major themes shaping our world. Instead of looking at short-term trends, they exploit long-term secular opportunities, with the search for new growth drivers cutting across sectors, countries, and geographical boundaries. Whether it’s the rise of AI, resource scarcity or new consumer patterns, Mirova is deeply aware of the changes that will upend investing.

Their pure play approach focuses on maximising the ability to generate returns through different market cycles. This includes thematic alpha, by identifying the best long-term themes and investment universes, as well as generating value through diligent stock picking and analysis. In order to maximise long-term performance, their strategies aren’t limited to certain benchmarks, regions, countries, or company sizes.

An unconstrained and concentrated portfolio, it has a high active share and focuses on small and mid-cap companies – which have longer potential growth runways. Unlike other portfolios, meanwhile, it only invests in companies offering products and services, rather than the adopters. This gives it a purer play on the theme of AI & Robotics.

Mirova believes being active is key to success. Even if a theme is viable, investors need to identify the long-term winners while avoiding the losers, something passive products can’t do. Being active is key to delivering repeatable and consistent performance. At the core of their approach, Mirova remains laser-focused on fundamental analysis, valuation discipline and stock selection.

The addressable market is expanding and this is fostering superior growth in terms of revenue generation and profitability."’

– Karen Kharmandarian, Portfolio Manager, Mirova

The analyses and opinions referenced herein represent the subjective views of the author(s) as referenced, are as of the date shown and are subject to change without prior notice. Reference to specific securities, sectors, or markets within this communication does not constitute investment advice, or a recommendation or an offer to buy or to sell any security, or an offer of any regulated financial activity. Investors should consider the investment objectives, risks and expenses of any investment carefully before investing.

Risks to consider

All investing involves risk, including the risk of loss. Investment risk exists with equity, fixed income, and alternative investments. There is no assurance that any investment will meet its performance objectives or that losses will be avoided. There could be other differences across similar products in the same strategy. Investors should fully understand the risks and other relevant details associated with any investment prior to investing.

Alexandre Zilliox

Portfolio Manager

Mirova

Full bio

Karen Kharmandarian

Portfolio Manager

Mirova

Full bio

The firm

A committed player and a leading player in sustainable finance, Mirova is a conviction-based management company that offers its clients investment solutions combining the search for financial performance with environmental and social impact. This is their raison d'être: to contribute to a more sustainable and inclusive economy by increasing their positive impact on environmental issues, but also on reducing inequalities.

As ‘Mission-led company’¹, thanks to multidisciplinary teams united around the same vision, the variety of their areas of expertise, and their ability to innovate and create partnerships with the best experts, they seek to direct capital towards the needs of investment in a real, sustainable and value-creating economy.

Mirova is internationally recognised BCorpTM² certification attests to their environmental and social commitment.

Paris

France

200+

Employees

(1) Introduced in France in 2018 under the Pacte Law, a ‘société à mission’ company must define its "raison d'être" and one or more social, societal or environmental objectives beyond profit. The purpose, and objectives aligned with this purpose, must be set out in its Articles of Association. The Articles specify the means by which the execution of the Mission will be monitored by a Mission Committee (a corporate body distinct from the board of directors which is responsible for monitoring the implementation of the mission with at least one employee.) An independent third party then verifies the execution of the Mission, via a written opinion which is annexed to the report of the Mission Committee to shareholders and made available on the website of the company for a period of five years.

(2) Since 2006, the B Corp movement has been promoting strong values of change throughout the world to make businesses “a force for good” and to distinguish those which reconcile profit (for profit) and collective interest (for purpose). B Corp’s goal is to certify companies that integrate social, societal and environmental objectives into their business model and operations.