Macrovue‘s Webinar: How To Investing in Artificial Intelligence - Top 10 AI Stock Picks
Macrovue, the world's first global thematic investment platform giving Australians the ability to invest in international thematic share portfolios.
In this presentation, you will explore:
• The impact AI will have on the global economy
• The companies at the forefront of AI technology
• Why now is a good time to invest in AI technology
• An overview of some of the AI stocks in the portfolio
• Our stock selection criteria and research methodology.
The Macrovue Investment team has researched and constructed a portfolio focused on the five main AI technology systems in practice now.
These 10 companies are the early AI adopters that combine a strong digital capability with proactive strategies that have higher profit margins and are likely to widen the performance gap with other firms in the future.
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How to Invest in AI - Top 10 Artificial Intelligence Stocks
2. Macrovue‘s Webinar
How To Investing in Artificial
Intelligence
Top 10 AI Shares
3 May 2018 – 12:30 PM AEST
2
3. Important Information
3
The content and delivery of this presentation is general information only
and does not constitute personal financial advice. It does not take into
account any person’s financial objectives, situation or needs.
The content is provided for information purposes only and is not a
recommendation to make any investment or adopt any investment
strategy. Past performance is not indicative of future performance. We
recommend you obtain personal financial and tax advice before deciding
to take any action as a result of the content of this presentation.
Future outcomes are inherently uncertain. Actual outcomes may differ
materially from those contemplated in any opinions, estimates or other
forward-looking statements given in this presentation.
4. • 10+ years experience in equities
investments, relationship
management and leading
customer focused teams
• Financial Adviser Coach at BT
Financial Group and Management
experience with Commonwealth
Bank and Link Group
Maz Zaman
Head of Client Services
The image part with relationship ID rId2 was not found in the file.
• 30+ years of fund management
and global investment
experience including Head of
International at Perennial, AMP,
PM Capital & QBE
• Respected commentator on
global markets on CNBC &
Bloomberg
Clay Carter
Chair of Investment Committee
• Equity Research Analyst at Bank
of America-Merrill Lynch
• Quant Analyst at Putnam
Investments (Boston)
• Masters in Financial Engineering,
Columbia University
• MBA, Duke University
Dev Sinha
Director of Investment Products
Speaker Panel
4
5. Agenda
5
Topic Presenter
Introduction to Macrovue and Stock Portfolios Maz Zaman
The investment case for AI Dev Sinha
Artificial Intelligence Stock Portfolio Clay Carter
How to Invest in AI with Macrovue Maz Zaman
Q & A All
7. Invest in Global Trends & Themes
Easily invest in the best companies shaping
the world of tomorrow through customisable
thematic share portfolios called Vues
About Macrovue
7
Invest in International Shares
Access to over 20,000 stocks and ETFs in 18
stock exchanges around the world
Macrovue is the world's first global thematic investment platform giving Australians the ability to:
8. Social
Water Gold
Vues (Thematic Share Portfolios)
• customisable portfolios of 10 global stocks
designed to give you exposure to global
trends, issues or investment styles
• They are monitored daily and actively
reviewed minimum every 3 months
• Our experienced research team picks the
top 10 stocks using a rigorous quantitative
model
Vues – Thematic Stock Portfolios
8
9. Invest in companies
benefiting from the
growth in the demand
for water management
and related
infrastructure,
products, and services.
Global Issue:
Water Scarcity
Invest in: Global Trends, Issues, or Investment Styles
Vue:
Water Liquid Gold
Invest in companies with a
history of stable and
growing dividends. Vue
includes companies like
McDonald’s, Pfizer and
Microsoft.
Investment Style:
High Quality
Vue:
High Quality
Invest in companies
across the value chain of
electric vehicles and
autonomous vehicles
including automakers and
technology companies.
Global Trend:
Car Technology
Vue:
Car of the Future
9
10. The Investment Case for
Artificial Intelligence –
The Fourth Industrial Revolution
Speaker: Dev Sinha, Director of Investment Products
10
11. AI – The next digital frontier
11
• Artificial Intelligence or “AI”: the ability of
machines to exhibit human-like intelligence
using computer systems
• Have the ability to learn, reason, discover
meaning, perceive their environment, learn
from experience, and interact
• Solve problems without the use of hand-
coded software containing detailed
instructions.
12. The importance of AI
12
“AI is one of the most important things that
humanity is working on. It’s more profound
than, I don’t know, electricity or fire.”
Sundar Pichai, CEO of Google
13. Scale of impact: US$15.7 trillion gain to global GDP
13
US$15.7
trillion
Potential gains to global GDP by
2030
Source: PwC
• Driven by wide scale digital transformation
underway across industries
• Gains to GDP of US$6.6 trillion likely to be
derived from productivity gains; remaining
US$9.1 trillion from consumption side gains
• North America (US$3.7 trillion, 14.5% of
GDP) and China (US$7.0 trillion, 26.1% of
GDP) likely to be key beneficiaries from
adoption of AI
14. AI to grow faster than Cloud or Big Data: +54.4% CAGR to 2020
14
Source: IDC
7.85
12.5
46.01
2016 2017 2020
Global Revenues in
Cognitive & AI Systems
(US$ bn)
+54.4% CAGR
54.4%
47.6%
23.0%
20.0%
0%
10%
20%
30%
40%
50%
60%
Cognitive & AI SystemsAI Hardware Big Data Cloud
Comparison of Compound
Accumulated Growth Rate (CAGR)
2016-2020
15. AI Hardware: US$115 billion market by 2025
15
• Total market for AI hardware is
expected to grow from US$3.5 billion in
2016 to US$115.4 billion by 2025 at a
compound annual growth rate (CAGR)
of +47.6%
• Cloud and server are the two largest
segments, accounting for the majority of
sales in 2016 (US$2.4 billion)
• Cloud segment of AI hardware is the
fastest growing category with a CAGR
of +60.1%
• AI Workstation is second fastest
growing category with a CAGR of
+56.5%
16. Why now - Key enablers underpinning AI
16
Artificial Intelligence
More
Advanced &
cheaper
computing
power
More
sophisticated
learning
algorithms
Big Data Cloud
18. AI is not in the future, it is already here
18
AI enabled systems for fraud detection ...
… Or hardware applications
Chatbots for customer service …
Source: Business Wire
19. Applications of AI beyond finance & technology
19
AI
Retailers
Manufacturing
Healthcare
Electric
Utilities
• Retail: Improved operational
efficiency, better demand forecasts and
better shopping experience for
customers.
• Electric Utilities: Smarter “smart
grid”, better energy efficiency and
optimise infrastructure build.
• Manufacturing: Improved
productivity, better quality control &
higher efficiency.
• Healthcare: Vast range of possibilities.
Some potential applications include
analysing reports and data for diagnosis
of diseases, data analysis to forecast
spread of diseases and more efficient
medical treatment for better patient
outcomes.
20. Major players in Artificial Intelligence
20
• AI “Champions League” – the mega
cap companies with deep pockets:
the likes of
Google, Facebook, Microsoft.
• Existing platforms providing excellent
training ground for AI algorithms
• Focus on defending competitive
edge and core business model via AI
applications
• AI critical to continued success of the
FANGs (Facebook, Amazon, Netflix
& Google)
21. Enablers of AI
21
• Offering AI as a service to their clients
and/or…
• …Using AI to improve productivity within
their own businesses.
• Other factors considered during portfolio
construction –
(a) how big of a driver is AI?
(b) When is AI likely to be a large
revenue generator?
To discover all 10 artificial intelligence stocks that were hand-picked by
Macrovue’s Investment team, visit www.macrovue.com.au
22. Other areas of focus within AI
22
AI Technology
Systems
Autonomous
Vehicles
Computer
Vision
Language
Virtual
Agents
Machine
Learning
Robotics
23. How to Invest in AI
Speaker: Maz Zaman, Head of Client Services
23
25. AI Stock Portfolio (Vue): Diversified across industry, country, & size
25
• Portfolio composition reflects relative
importance of first order beneficiaries: 60%
allocation to IT Services and Internet
Software/Services
• Tilted toward larger companies
• Balanced exposure to the US, Europe and
Asia
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
IT Services Internet
Software/Services
Packaged Software Internet Retail Semiconductors
Industry Exposure
40.0%
20.0%
10.0%
10.0%
10.0%
10.0%
Country Allocation
UNITED STATES CHINA FRANCE ISRAEL IRELAND GERMANY
10.00%
90.00%
Size Exposure
MID CAP LARGE CAP
26. Step 1
20,000 stocks are screened based on the investment trend and style.
Taking into consideration factors such as:
• Market Capitalisation
• Liquidity
• Dividend yield and other factors.
Step 2
50 to 250 stocks are scored and ranked using Macrovue's Quantitative
model / filtering system. Top 40% companies are then chosen. The
ranking system is based on fundamentals such as earnings, cash
held, balance sheet, etc.
Step 3
20 to 40 stocks are fundamentally researched and analysed ensuring the
companies have strong and sustainable fundamentals and are diversified
by geography, industry and company size.
Our proprietary multi-factor portfolio construction process is
what makes our portfolios an attractive investment
• Market Capitalisation: >US
$1bn
• Liquidity: > US $1mn
• Exposure to theme: revenues
derived from auto industry.
• We arrive at ~60 stocks at
this stage.
• Post quant filter, we get to
~20-25 stocks.
Example Vue:
Car of the Future
Result
The final 10 stocks are picked
based on fundamentals &
considerations for diversification.
Vue
Only the 10 best stocks are picked to create the Vue. They are then
monitored and regularly reviewed to meet the goals of the Vue based on
trend, issue or style.
Screen Universe
Macrovue Quant
Model
Fundamental
Overlay
100 - 250 Stocks
20,000 Stocks
20 - 40 Stocks
10 Stock Portfolio
(Vue)
Trend / Issue / Style
Macrovue’s Share Portfolio Construction Process
26
27. Comprehensive Platform
27
Review and
Rebalance
Investors are notified
of any stock
updates/notifications
and have the option
of making the same
changes with one-
click
A Vue is a simple
way to transact on
multiple stocks with
one click. You can
also create and
manage your own
Vues.
Easy to Use
Portfolio
Diversification
Reduce concentration
risk from Australian
equities and property
and access a larger
pool of investments
across various
countries and
industries.
28. 4
Invest in the Vues
of your choice:
Invest in global trends
through Vues
1
Join Macrovue for free
in 30 seconds:
Sign up, track and
manage everything
online
3
Deposit funds from
any bank account:
Trade Australian and
international shares
2
Create a free
trading account:
Individual, Joint,
Trust or SMSF
Accounts
How to Invest in AI Stock Portfolio With Macrovue
28
29. To view top 10 Artificial Intelligence
Stocks Selected By Macrovue’s
Investment team, visit
www.macrovue.com.au
29
30. Summary
30
What was covered Presenter
Introduction to Macrovue and Vues Maz Zaman
The investment case for AI Dev Sinha
Artificial Intelligence Share Portfolio (Vue) Clay Carter
How to Invest in AI with Macrovue Maz Zaman
Q & A All
31. Important Information
31
The content and delivery of this presentation is general information only
and does not constitute personal financial advice. It does not take into
account any person’s financial objectives, situation or needs.
The content is provided for information purposes only and is not a
recommendation to make any investment or adopt any investment
strategy. Past performance is not indicative of future performance. We
recommend you obtain personal financial and tax advice before deciding
to take any action as a result of the content of this presentation.
Future outcomes are inherently uncertain. Actual outcomes may differ
materially from those contemplated in any opinions, estimates or other
forward-looking statements given in this presentation.
32. Thank you for joining our webinar
www.macrovue.com.au