BNP Paribas Asset Management launches Parvest Disruptive Technology fund
BNP Paribas Asset Management (‘BNPP AM’) announces the launch of Parvest Disruptive Technology, a fund investing in innovative technologies that enable transformative business models and allow businesses to improve their efficiency and provide new products and services.
Launched on 16 November, Parvest Disruptive Technology is a sub-fund of the Luxembourg-registered Parvest SICAV and is currently valued at EUR 181 million (as at 30 November 2017). It is managed in Boston by Pam Hegarty of BNPP AM’s Global Specialist & Thematic Equity team. She is supported by the wider US Equity and Global Sector Equity teams, as well as benefiting from the research and expertise of BNPP AM’s European, Asian, Global and Emerging Markets equity teams.
The portfolio is concentrated yet diversified, consisting of 30 to 50 holdings in companies with a minimum market capitalisation of USD 1 billion, selected from the MSCI World Index. The investment approach combines top down and bottom up analysis: thematic and industry analysis is used to identify companies that are enabling or benefiting from transformative technology themes. This is complemented by rigorous fundamental research to identify those companies with the highest growth potential and greatest competitive strengths. The portfolio is then constructed in accordance with BNPP AM’s internal environmental, social & governance criteria, and is subject to ongoing risk management.
Innovative technology is enabling significant transformation across the global economy. Current secular themes include cloud computing, artificial intelligence & data analytics, automation & robotics, augmented & virtual reality, and the internet of things. These themes have wide-reaching implications across sectors such as industrials, healthcare, financial services, consumer and energy. Examples in the consumer sector include e-commerce, home automation and driverless cars, while financial services are benefiting from digitisation, fraud prevention, payment technology and blockchain.
Pam Hegarty, Manager of Parvest Disruptive Technology, comments:
“The impact of technological innovation is being felt across a broad range of areas beyond just the technology sector itself. It is having a widespread impact on many aspects of our daily lives, and brings with it many exciting investment opportunities. Parvest Disruptive Technology identifies and invests in those companies that are leaders in or beneficiaries of transformational technologies, while avoiding those that are threatened by the forces of change. We believe that companies that enable or adopt innovative technologies and business models will produce superior long term growth and returns on invested capital. A portfolio of these stocks should therefore deliver outperformance to investors over the long term.”