TECHNOLOGY INNOVATION AS A GROWTH DRIVER
The current global landscape is characterized by a slowdown in globalization processes, a redesign of production chains in the main geographies, the need to achieve technological and energy self-sufficiency, and a growing awareness of environmental, social, and good governance issues.
At the same time, the acceleration of technological innovation is creating new business and investment opportunities, while on the other it is increasing the volatility of financial markets.
The sectors most exposed to these trends are high-tech sectors – such as information technology, telecommunications, electronics and biotechnology – which in recent years have recorded strong growth that does not seem destined to stop. Technology innovation is also having a significant impact on traditional sectors, such as industrial production, consumption, financial services, renewable energy and healthcare. These companies are investing in new technologies to remain competitive and to respond to evolving customer needs, improving the efficiency of their processes and developing the potential to create new markets and products.
VALUE RESPONSES IN THE POTENTIAL OF CHANGE
KIS Innovation Trends is a dollar-denominated thematic equity product that invests in global markets, aiming to identify the most performing, innovative, technology-intensive companies with the potential to become leaders in their respective sectors.
We refer in particular to those companies that will benefit from long-term economic and social trends, such as “disruptive technologies,” or technologies that are expected to influence social and consumer behavior, as well as demographic and climate change.
KAIROS' OFFERING
The investment universe of KIS Innovation Trends is broad and consists of at least 80% of international equity securities. It is an investment solution that combines the analysis used to identify specific securities within the sectors and markets that offer the best investment opportunities (bottom-up) with an analysis focused on macroeconomic conditions (top-down).
In order to extract value from the current economic and financial context, the management team analyzes the impact of innovations, not exclusively limited to the technology sector, but by multi-sectoral applications in areas that guarantee companies efficiency in the provision of goods and services, such as for example in the sectors: financial, healthcare, industrial, consumer goods and energy.
The four areas of innovation identified by KIS Innovation Trends are:
The Fund is actively managed, integrating fundamental and quantitative analysis, with a medium- to long-term investment horizon. The investment process begins with the evaluation of the investable universe, which takes place on a global scale. The manager identifies the companies that are the subject of the investment through a fundamental analysis process.
The overall portfolio construction will follow these criteria in particular:
- listed equity securities issued by international companies;
- global geographic exposure;
- companies with reasonable valuations relative to growth prospects, cash generation, and sustainable debt exposure;
- investment concentration, i.e. a maximum of 5% on a single security, with approximately 90 securities expected in the portfolio.
The Fund aims to grow capital in the medium to long term by outperforming the reference benchmark, which is used for performance comparison and to calculate the performance fee.
The portfolio is invested for the long term in approximately 40-50 disruptive growth stocks with a global focus.
The moderate correlation level of the portfolio with the reference market allows the product to function as a valid tool for diversification and efficient equity asset allocation.
According to the SFDR Regulation on ESG funds, the Fund is classified as art. 8. Further information on sustainability aspects is available at the link https://www.kairospartners.com/esg-en/?lang=en and in the prospectus.
KIS innovation Trends is aimed at investors with a high risk tolerance, who can set aside the capital for a period of at least 5 years and are prepared to meet defined investment objectives, have experience of, or understand, so-called “capital at risk” products and are able to accept significant capital losses (should these occur). Investment involves a risk component, and as a result, the originally invested capital may not be fully or partially recovered. Past performance is not indicative of future results. KIS Innovation Trends’ synthetic risk indicator is classified at level 4 out of 7. Comprehensive information regarding risks is available in the Prospectus and Key Information Document (KID).
THE MANAGEMENT TEAM
The management of KIS Innovation Trends is entrusted to Alberto Tocchio and Riccardo Quagliotti, who have extensive experience in the equity market, both in terms of management skills and top-down and bottom-up analysis techniques.
The management team is able to generate and identify the best investment ideas. Their consolidated expertise in analysis and security selection, combined with the constant monitoring of themes and Kairos’ ability to anticipate new and promising trends, make this investment solution distinctive.
We are signatories of the PRI, Principles for Responsible Investment, the United Nations initiative which contributes to the development of an increasingly sustainable global financial system.
We are signatories of the Carbond Disclosure Project (CDP), the international non-profit organization that intends to contribute to the construction of a sustainable economy for people and the planet.