Equity themes for 2024
Capital
Allocation
Artificial
Intelligence
Obesity
Medicine
Opportunities linked to a robust capex outlook (thanks to recent underinvestment, fiscal stimulus and automation spend) and M&A.
Favour structural themes (e.g. precision agriculture, electrification supplies).
Opportunities linked to capex initiated by Next Generation European funds and factory automation. Buybacks are rising. Prefer exposure to high total return stocks, particularly among the Oil & Gas and Financial sectors.
Nearshoring offers opportunities to protect supply chains, increase employment and boost domestic demand. Favour economies close to major markets (e.g. Vietnam, Morocco, Mexico and Turkey).
US
EU
EM
EMERGING MARKETS
Opportunities in infrastructure, software and services that use generative AI for automation and transformation. Prefer AI deployers (e.g. fintech, consumer and healthcare firms) with potential upside.
Benefit of AI earnings for European semi-conductor names has been limited so far. Favour IT service companies (such as Consultants) who are well-positioned to assist with AI preparatory work on data/IT infrastructure.
Opportunities in South Korea (i.e. dominance in memory boosts its lead in chips) and Taiwan (i.e. foundries will gain from chip demand).
EM-domiciled firms invested in the US can benefit from the IRA.
US
EU
EM
EMERGING MARKETS
Opportunities in GLP-1 medicines that are approved for diabetes but aid weight loss in treating obesity. Favour GLP-1 losers with attractive valuations while remain cautious on leaders with growth priced in.
Opportunity in a certain large European pharmaceutical company involved in GLP-1 medicines but has already seen strong performance.
NA
US
EU
EM
EMERGING MARKETS
Click on the themes to find out more about them
Positive momentum amid incentives from IRA (Inflation Reduction Act)
Key themes: the evolution of traditional hydrocarbon firms; the increased share of new and lower-cost tech; the energy grids’ ability to handle more intermittent power; and the adoption of new technologies.
A notable theme for the EU, but with some challenges
The European Green Deal should support the transition, but there are challenges related to delays, planning permission in some countries and regulation.
Greater private financing needed to support EM critical players
EM play a vital role in global supply chains and the energy transition, but these countries will need about $2 trillion annually by 2030 to reach net zero emissions by 2050*. The private sector will have to support around 80-90% of the investment needed.
Themes
Convictions
Equity themes for 2024
Capital
Allocation
Artificial
Intelligence
Obesity
Medicine
Opportunities linked to a robust capex outlook (thanks to recent underinvestment, fiscal stimulus and automation spend) and M&A.
Favour structural themes (e.g. precision agriculture, electrification supplies).
Opportunities linked to capex initiated by Next Generation European funds and factory automation. Buybacks are rising. Prefer exposure to high total return stocks, particularly among the Oil & Gas and Financial sectors.
Nearshoring offers opportunities to protect supply chains, increase employment and boost domestic demand. Favour economies close to major markets (e.g. Vietnam, Morocco, Mexico and Turkey).
US
EU
EM
EMERGING MARKETS
Opportunities in infrastructure, software and services that use generative AI for automation and transformation. Prefer AI deployers (e.g. fintech, consumer and healthcare firms) with potential upside.
Benefit of AI earnings for European semi-conductor names has been limited so far. Favour IT service companies (such as Consultants) who are well-positioned to assist with AI preparatory work on data/IT infrastructure.
Opportunities in South Korea (i.e. dominance in memory boosts its lead in chips) and Taiwan (i.e. foundries will gain from chip demand).
EM-domiciled firms invested in the US can benefit from the IRA.
US
EU
EM
EMERGING MARKETS
Opportunities in GLP-1 medicines that are approved for diabetes but aid weight loss in treating obesity. Favour GLP-1 losers with attractive valuations while remain cautious on leaders with growth priced in.
Opportunity in a certain large European pharmaceutical company involved in GLP-1 medicines but has already seen strong performance.
NA
US
EU
EM
EMERGING MARKETS
Click on the themes to find out more about them
Favour the traditional hydrocarbon firms as well as the capital goods technology providers (e.g. building controls, electrification components) and commodity firms. Favour those exposed to CCUS (carbon, capture, usage and storage) and hydrogen with competitive advantages in those areas.
Favour exposure to renewables that can finance their transition through internal cash flows, EV trucks, solar panels, sustainable aviation fuels and the structural growth in automation, as well as reshoring activities. Conviction also in some of the cable and building insulation companies.
Favour countries where commitment to fighting climate change is increasing.
China is among the favoured countries in the long-term. In the EM, Sustainable Development Goals are gaining traction. In particular, these regions play a key role in the EV and renewable energy space.
Themes
Convictions
Equity themes for 2024
Themes
Convictions
Obesity
Medicine
Positive momentum amid incentives from IRA (Inflation Reduction Act)
Key themes: the evolution of traditional hydrocarbon firms; the increased share of new and lower-cost tech; the energy grids’ ability to handle more intermittent power; and the adoption of new technologies.
A notable theme for the EU, but with some challenges
The European Green Deal should support the transition, but there are challenges related to delays, planning permission in some countries and regulation.
Greater private financing needed to support EM critical players
EM play a vital role in global supply chains and the energy transition, but these countries will need about $2 trillion annually by 2030 to reach net zero emissions by 2050*. The private sector will have to support around 80-90% of the investment needed.
US
EU
EM
EMERGING MARKETS
Favour the traditional hydrocarbon firms as well as the capital goods technology providers (e.g. building controls, electrification components) and commodity firms. Favour those exposed to CCUS (carbon, capture, usage and storage) and hydrogen with competitive advantages in those areas.
Favour exposure to renewables that can finance their transition through internal cash flows, EV trucks, solar panels, sustainable aviation fuels and the structural growth in automation, as well as reshoring activities. Conviction also in some of the cable and building insulation companies.
Favour countries where commitment to fighting climate change is increasing.
China is among the favoured countries in the long-term. In the EM, Sustainable Development Goals are gaining traction. In particular, these regions play a key role in the EV and renewable energy space.
US
EU
EM
EMERGING MARKETS
Opportunities in GLP-1 medicines that are approved for diabetes but aid weight loss in treating obesity. Favour GLP-1 losers with attractive valuations while remain cautious on leaders with growth priced in.
Opportunity in a certain large European pharmaceutical company involved in GLP-1 medicines but has already seen strong performance.
NA
US
EU
EM
EMERGING MARKETS
Click on the themes to find out more about them
US
EU
EM
EMERGING MARKETS