Investing in artificial intelligence beyond Nvidia (Fund Digest October 2023)
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Investing in artificial intelligence beyond Nvidia (Fund Digest October 2023)

7 Feb
1 Nov

Want to invest in the technology sectors, embracing the wave of innovation and creation such as artificial intelligence which has taken the world by storm since the initial release of ChatGPT by OpenAI in late 2022? 

We’re excited to spotlight five funds on Endowus Fund Smart — from our fund manager partners, AllianzGI, BlackRock, Fidelity, Franklin Templeton and Thematics, that can offer you a range of options to ride on investment opportunities arising from global technology and innovation. 

Learn more about these funds. For those who would like to seek a hassle-free ready built portfolio, take a look at our Global Technology model portfolio that has already been curated by the Endowus Investment Office.

The investment objective of the AllianzGI Global Artificial Intelligence Fund seeks a long-term capital growth by investing in the global equity markets with a focus on the evolution of artificial intelligence. It demonstrates high-octane characteristics with high upside during bull runs (especially when growth is in favour) and high downside during unfavourable conditions.

Thematics AM Meta Fund also aims to achieve capital growth over the long term, through an investment process systematically including Environmental, Social and Governance ("ESG") considerations. 

Fidelity Global Technology Fund invests primarily in equity securities of companies throughout the world that have, or will, develop products, processes or services that will provide, or will benefit significantly from, technological advances and improvements, aiming to achieve capital growth over the long term.

Franklin Templeton Technology Fund invests principally in equity securities of technology companies of any size located any where in the world. It aims achieve capital appreciation by investing at least two-thirds of its assets inequity securities of companies expected to benefit from the development, advancement and use of technology.

The BlackRock BGF Next Generation Technology Fund primarily invests in companies related to next-generation technology, such as artificial intelligence, automation, e-commerce, and more. It typically invests in a mix of large, medium, and small-cap companies, with a focus on developed global markets, but it may also consider emerging markets.

Thematic / AI exposure

AllianzGI Global Artificial Intelligence Fund

ISIN: LU1548497426 (USD), LU1720051108 (HKD)

This Fund strategically selects the best AI-related opportunities spanning various sectors. Its focus extends beyond the typical IT-related domains like big data, cloud, and robotics, embracing the broader applications of AI across industries such as agriculture, energy, retail, construction, healthcare, and real estate. While its holdings are primarily in the US, the fund seeks companies with global revenue exposure, placing added emphasis on company quality, including factors like R&D commitment and management quality.

The Fund's management team, led by Sebastian Thomas, along with Co-PMs James Chen and Stephen Jue, boasts an average of over 20 years of experience. They receive support from two dedicated senior analysts with approximately 15 years of experience. Additionally, the fund leverages Allianz's renowned Grassroots Research platform to access independent, on-the-ground analysis.

Performance-wise, this fund exhibits high-octane characteristics. It tends to shine during bullish phases, particularly when growth is in favour, but can experience significant downside during unfavourable market conditions.

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Thematics AM Meta Fund

ISIN: LU1923622614 (USD), LU2433249047 (HKD)

The Fund aims to achieve long-term capital growth by directly investing in the equities of companies that fall under Thematics AM's AI & Robotics, Safety, Subscription Economy, and Water strategy. The Fund offers diversified exposure to multiple themes that have the potential to grow at a rate superior to that of the broader global economy, due to the long term secular growth drivers that underpin them.

The Fund invests in 4 thematic strategies, namely, Safety, AI & Robotics, Water, and Subscription Economy on an equal weight basis and rebalanced on a monthly basis. As the fund identifies new themes over time, they may get incorporated in the Fund gradually. In terms of performance, the Fund’s growth profile should allow the Fund to perform strongly in environments favourable for growth companies.

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Broad technology exposure

Fidelity Global Technology Fund

ISIN: LU1560650563 (USD)

Fidelity Global Technology Fund invests primarily in equity securities of companies throughout the world that have, or will, develop products, processes or services that will provide, or will benefit significantly from, technological advances and improvements, aiming to achieve capital growth over the long term. 

This contrarian technology fund takes a distinctive approach by focusing on more “value” stocks rather than the mainstream high-growth and high-momentum segments of the market. It offers well-balanced exposure to core and opportunistic companies across various market caps, geographies, and sectors. 

With a history dating back to 1999, the Fund ranks as one of the longest-standing technology funds in the market. Managed by an experienced portfolio manager and team, based in San Francisco, the team enjoys proximity to Silicon Valley, granting them valuable access to emerging and established tech companies and the latest industry developments.

The Fund boasts a track record of delivering strong and reliable returns throughout its extensive history. It exhibits favourable up-capture during bullish markets, and during market downturns, it has proven highly defensive.

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Franklin Templeton Technology Fund

ISIN: LU0109392836 (USD), LU0889565833 (HKD)

This Fund maintains a focused portfolio comprising the best ideas across 10 technology sub-sectors, driving digital transformation across diverse applications. With a "tried and tested" track record since its inception in 2000, this fund has navigated through multiple market cycles.

It benefits from a large and highly experienced team of over 12 investment professionals, enabling comprehensive coverage of various identified sub-sectors. Lead PM Jonathan Curtis brings over 30 years of investing experience, coupled with a background in electrical and software engineering.

The Fund boasts a history of delivering strong long-term returns when compared to peers and benchmarks. However, given its tilt towards growth factors, the fund may exhibit high volatility during market turbulence.

Click here to re-watch a webinar where Jonathan Curtis conversed with our Chairman and CIO Samuel Rhee on whether the dawn on ChatGTP heralds a new era of for AI and tech investing.

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Mid-to-small cap exposure 

BlackRock BGF Next Generation Technology Fund

ISIN: LU1861216197 (USD), LU2290526834 (HKD)

This Fund focuses on seizing opportunities among companies across different market caps, geographies, and sectors, with a strategic orientation towards long-term growth. It has historically preferred mid-to-small cap companies in non-US regions such as Asian and Europe, setting it apart from other technology funds.

Lead PM Tony Kim brings over 20 years of tech investment experience and has overseen the strategy since 2013, playing a pivotal role in shaping its unique industry-agnostic approach. Situated in San Francisco, the team enjoys proximity to the latest industry developments. The Fund embraces a collaborative workflow, with PMs and analysts collectively covering the entire universe, rather than having specialised sector or regional experts.

In terms of performance, the fund exhibited outstanding returns in its early years, consistent with expectations for a fund managed by a star team with a track record of success. However, it tends to underperform in risk-off environments due to its inherent high-growth and small-cap bias, and it also underweights popular large-cap names. This approach, regardless, results in a low correlation to the broader technology market.

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Funds for Professional Investors (PIs) only

We also offer a broad selection of institutional-grade PI-only funds, hedge funds and private markets across private equity, private credit, absolute return multi-strategy hedge funds.

If you wish to verify as a Professional Investor to access these funds, please contact 

Customise your portfolio in minutes with Fund Smart

Whether you aim to invest in money market funds to gain a relatively stable payout or invest in high-yield funds to pursue potential capital appreciation actively, there’s something for everyone at Endowus. Want to know more about the funds available on our Fund Smart platform? Refer to our investment funds list here for a quick overview at a single glance. 

If you want to invest in a more efficient and easy way, take a look at our model portfolios, using our Best-In-Class Funds as building blocks for various investor needs from short-term cash management, core global portfolios, income portfolios to satellite portfolios for sectors, geographies, and themes. Investors can use these pre-populated templates as a starting point for their portfolios; they can take the template as it is, or make changes to suit their preferences and needs.

Customise your ideal investment portfolio in minutes with Fund Smart. The Endowus Fee for Cash Management via Fund Smart is 0.1% p.a., and for General Strategies is from 0.25%, reinforcing our commitment to reduce the cost of investing, which is one-third of the industry average in Hong Kong.

Not sure how to invest with Fund Smart? Find out everything you need to know in our FAQs.


*Annualised returns are calculated based on the returns of the target share class, and the oldest share class of the fund where the target share class is younger than three years. Three-year returns are based on the period from Oct 2020 to Sep 2023, and five-year returns are based on the period from Oct 2020 to Sep 2018 unless otherwise stated. Returns are translated into USD (except for non-USD funds) and are net of fund-level fees. 

**Where a fund or portfolio has both HKD and USD share classes, the fees of the USD share class are shown. Total portfolio and fund-level fees include fund total fund-level fees.

***Endowus does not charge a preliminary sales charge or any other additional fees, other than the all-in Endowus Fee.


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Complex Products

Some of the funds contained in this article are complex products and investors should exercise caution when investing in these products. Though these products have been authorised by the SFC, authorization does not imply official recommendation. SFC authorization is not a recommendation or endorsement of a product nor does it guarantee the commercial merits of a product or its performance.

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