Disruption. Change multiplies opportunity
Disruption is all around us. From new technologies to shifting trade patterns, the status quo is being challenged. Embrace disruption to seize the moment.
What we mean by disruption
We live in an age of disruption. Transformative new technologies like artificial intelligence (AI) are upending multiple sectors. Climate change is shaking up the energy system. Geopolitical realignments are forcing businesses to rethink supply chains. And demographic shifts are putting pressure on healthcare systems.
The consequences of disruption are profound. They present challenges, but they also create opportunities.
With the right guidance, disruption can be a force for good. AI may dramatically increase productivity. Energy systems could become sustainable and clean. New markets might become integral parts of global supply chains. And medical breakthroughs could revolutionise healthcare.
Navigating through this change requires experience, foresight, and agile thinking.
By welcoming change, we can meet the challenges of the day. By embracing disruption, we can shape the future.
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Rethinking the way you invest
"For investors, it's important to focus on the opportunities that disruption brings. This means questioning old ways of investing.”
Frequently asked questions
No, disruption covers many different fields that influence multiple aspects of business activity, as well as society as a whole. We see disruption in three key areas:
- Tech – including digital disruption
- Resources – such as super-charging clean energy storage
- Fragmentation – geopolitical shifts in the global village that require a new roadmap for investment
Disruptive innovation transforms the specific sector in which it takes place, the businesses operating in that area, businesses in other sectors that leverage these innovations, and the economy and society more broadly. AI is an example of such transformative disruptive innovation. It arose as a tech innovation but has since been embraced in many different ways in many different areas.
It starts with a mindset. Investors should be open to seizing on fresh ideas. Disruptive innovation creates plenty of new opportunities in often unexpected areas. Embracing disruption means reframing points of view and being open to re-evaluating perspectives on the future. The following approaches can help provide a framework for responding to disruptive innovation:
- - Search for alpha opportunities, including financial and “outcome-linked” alpha
- Stay agile in the face of changing market conditions
- Include a thematic approach when investing
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Discover our investable themes
Appreciating China
China is changing. Its economic growth is increasingly driven by innovations in technology, data and science. Its capital markets are developing with a similar energy, on their way to becoming an integrated part of the global financial system. Understanding the country’s unique political context and strategy is essential to grasp the opportunities as an investor and participate in this unique investment story.
Navigating Rates
To stay focused on their goals, investors may need to reposition portfolios to factor in rising interest rates, shifting inflation expectations, and fluctuating exchange rates. Geopolitical turbulence is creating new flash points. Volatility is set to be a hallmark of the coming period, with countries and regions on different paths in terms of growth and monetary policy. Investors may struggle to find safe havens and, with only limited visibility of how markets will develop, expectations could be upended. But we are also confident this environment will create opportunities. Diversification is key – across public and private markets – and we have the ideas and expertise to help you navigate the complexity.
Achieving Sustainability
Sustainable investing is at an inflection point. Interest in sustainability has turned into significant investments, and these inflows rightly come with increased expectations about impact and measurement. Investors are at different stages of their sustainability journey and have different ambitions. We’re focused on bringing sustainable investing into the real world, with a focus on pragmatic approaches and the pathways that support real progress.
Embracing Disruption
We think it’s time to disrupt traditional definitions of “disruption”. Once a story for the tech sector, disruption is now all-encompassing. And while technology and AI may be driving many of the changes, this new wave of disruption could shape every aspect our daily lives. The implications will be profound and exponential – and many of the themes arising from Covid-19 will likely be permanent fixtures.