Thematic equities: the next frontiers in AI
Where are the next investment opportunities in AI? We detail three themes that we think will drive the future of AI.
In 2015, the United Nations developed a set of 17 global sustainable development goals (SDGs).
We believe these goals are a blueprint for achieving a better and more sustainable future for all.
The SDGs address major global sustainability challenges, including poverty, inequality, climate change, environmental degradation, peace, justice, and technological innovation. All these challenges need significant public and private investment by 2030.
The financing gap is the difference between the current level of funding and the amount of investment required to achieve the 17 goals. Research estimates that trillions of dollars in additional investments are needed annually to achieve the SDGs by 2030.
We view this gap as an opportunity for companies to address unmet needs. Businesses can help to tackle the most pressing issues facing the world.
In our view, companies are more likely to deliver superior long-term financial returns if they align their business strategy with the SDGs. Many companies will benefit from the rising demand for SDG-related products, services and infrastructure. These should contribute positively to society and the environment.
We offer four SDG-aligned strategies, which are based on asset class, region or reporting needs.
The UN estimates Asia Pacific countries will achieve less than 10% of their measurable SDG targets by 2030. For the most innovative businesses, this lack of progress creates a significant untapped market. It’s these types of companies in which we look to invest.
Emerging markets (EM) need more than $4.2 trillion in annual investment to achieve the SDGs by 2030. Our Strategy seeks to access this opportunity by investing in companies actively addressing the SDGs through their business activities and/or products.
Our 'profit with purpose' corporate bond portfolio provides access to EM sustainability opportunities while generating income at a lower risk compared to equities.
A more diverse opportunity, we aim to provide long-term growth by investing in globally listed companies. These businesses must deliver attractive financial returns while intentionally developing products and services that contribute to quantifiable, positive social and environmental outcomes.
We have experienced, cross-asset investment teams in multiple global locations. They leverage independent, in-house expertise from abrdn’s sustainability group.
Introduced by the European Commission (EC) and effective in March 2021, the Sustainable Finance Disclosure Regulation (SFDR) is a disclosure regulation which requires fund managers like abrdn to provide sustainability-related information about the funds they offer. The goal is to ensure investors have the information they need to make investment decisions in line with their sustainability goals and preferences. Articles 8 and 9 of the SFDR respectively prescribe the detailed disclosure requirements for products that promote environmental or social characteristics and products that have sustainable investments as their objective.