Living with robots and interacting with them in our everyday lives still seems like science fiction. However, this "hybrid" reality is becoming more and more plausible and probable with each passing day. Automation offers solutions to some of the most important global challenges of our time, such as the ageing population and climate change.
And it is precisely for this reason that we believe investors should follow this trend.
At the 2022 Winter Olympics in Beijing, one could observe examples of interaction between robots and humans in everyday tasks: Robots positioned at the entrance of sports venues scanning QR codes from visitors' smartphones when greeting guests, smart restaurants where robots prepared burgers and cocktails, and also robots tasked with cleaning large areas with UV rays in the shortest possible time as part of the fight against the Corona epidemic.
Did you know that robots are increasingly being used as nurses in Japanese hospitals and old people's homes? They can deliver items virtually at the drop of a hat, monitor patients' vital signs with the support of AI and even socialise with the elderly or mentally disabled.
Good old R2-D2 is long outdated!
Robotic nurses provide a solution to the increasing care needs in a society struggling with an ageing population and a shortage of nurses in hospitals. Adding to this many other applications such as robot-assisted surgery, the global market for medical robots is expected to grow by 15.7% overall by 2029, which is equivalent to $34.5 billion.
There is no area that is exempt from innovation and progress. Medical robots are in themselves a striking example, given our very human vision of care. However, they are actually just an example of the technological breakthroughs that will shape the future in ways we cannot even imagine at the moment. Technological progress seems unstoppable and innovation is omnipresent. After all, all sectors of the economy are affected: industry, agriculture and the service sector.
Robotics is no longer science fiction.
Johan Van Der Biest, Deputy Head of Thematic Global Equity, manager of thematic portfolios and expert in innovative technology, explains why robotics and automation are attractive trends and gives examples of new technologies he has come across in his analysis of investment opportunities. He also highlights the importance of including an ESG component in his approach. https://youtu.be/RHZfVV1QuH4
Over the thirty years that our team has been investing in technology stocks, it has built a well-structured thematic framework to capture the most impactful sub-trends across industries.
This is also the case in our Candriam Equities L Robotics & Innovative Technology fund.
Those who invest in the long-term growth theme of robotics and automation today are by no means betting on the distant future.
The sector has been creating added value for investors for many years. Its development is likely to accelerate further, as this fourth industrial revolution is a key driver of global economic growth.
Candriam Equities L Robotics and Innovative Technology invests in equities of companies around the world that the portfolio managers believe are ideally positioned to benefit from innovations in technology and robotics (e.g.AI, virtual reality, etc.).
All our investment strategies are subject to risks, including the risk of loss of capital.
The main risks associated with the Candriam Equities L Robotics and Innovative Technology fund are the following: Risk of capital loss, ESG Investment Risk, Sustainability Risk, Equity risk, Currency risk, Liquidity risk, Concentration risk, Derivative risk, Counterparty Risk, Emerging market risk, External factors risk.
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