Leading provider of B2B digital wealth management solutions in Asia Pacific, Quantifeed, today launched a model portfolio to capture the opportunities of the growing global industry of self-driving cars.
Quantifeed’s model portfolio includes a selection of companies leading the development of self-driving cars, including technology providers and vehicle part suppliers.
“We’ve carefully selected companies who are currently benefiting from the new automotive technologies around the world or are expected to benefit from it in the near future”, said Quantifeed’s Senior Quantitative Analyst, Gaudi Schneider.
Current holdings in the initial portfolio include:
- Tesla (NASDAQ: TSLA), a U.S. based manufacturer whose market capitalisation overtook Ford and General Motors this year, despite its much lower production numbers.
- Alphabet (NASDAQ: GOOGL), which is currently developing its project Waymo, one of the most advanced and ambitious undertakings in the field of fully self-driving cars.
- Delphi (NYSE: DLPH), a U.K. based vehicle parts supplier, given its record growth in the segments used in Advanced Driver Assistance Systems (ADAS), connectivity (vehicle-to-vehicle or vehicle-to-infrastructure) and in-car-entertainment systems.
- Nvidia (NASDAQ: NVDA), a U.S. based manufacturer of high performance processors. Its products are used for gaming, self-driving car technology, artificial intelligence, visualisation and data-centres.
Spurred by Tesla’s initial success, incumbent car makers like Ford (NYSE: F) also invest greatly in the development of new systems for the development of hybrid or electric vehicles (EV). Hybrids and EVs are viewed as a necessity for self-driving cars, as their electric engine can more easily integrate with an electric device compared to combustion engines.
“While the relationship between incumbent carmakers, vehicle part manufacturers and new entrants from Silicon Valley is sometimes portrayed as a competition, we at Quantifeed view it as a symbiotic relationship,” said Quantifeed’s Senior Quantitative strategist Gaudi Schneider.
“The different industries in our model portfolio bring different skills to the table. The tech companies supply computing power, connectivity, integration, innovation and artificial intelligence that have found use in other domains and are now being transferred to the automotive industry.
“The carmakers are familiar with the industry-specific long planning and development cycles, which take several years, the management of a vast supply chain, and the high safety requirements,” he explained.
Graeme Brant, Quantifeed’s Senior Executive for Strategic Partnerships in Australia, said that wealth managers across the APAC region are looking for more engaging investment opportunities for their clients.
“A portfolio tracking the performance of companies involved in the emerging self-driving cars industry is valuable for advisors, not only because of the potential growth that represents for their clients’ portfolios, but also because it’s a sector that can bring significant diversification benefits”, he said.
“Similarly, at Quantifeed we have developed model portfolios for our clients with other modern global industries, like 3D printing, robotics and social media, all of which can benefit advisors to increase their engagement with customers,” he added.
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Quantifeed’s automated investment platform allows financial institutions to offer advisors and customers a digital wealth management experience under their own brand. Quantifeed’s software and financial models provide banks, brokers and wealth planners with a configurable solution to suit their wealth management objectives. Firms can reach hundreds of thousands of consumers quickly and economically. The platform hosts portfolios of stocks, funds and other asset classes across all major global markets. Investing solutions can be based on risk assessment, life goals and thematic ideas. Quantifeed offers a library of portfolios for asset allocation, thematic investments and other trading strategies.
The company was founded by former investment banking executives Alex Ypsilanti, CEO, and Ross Milward, CTO, in Hong Kong in 2013.