- By Financial Standard, 11/7/2017
Investment and robo-advice platform provider Quantifeed has created a model portfolio that taps the growing global industry of driverless cars.
The model portfolio comprises companies that are leading the development of self-driving cars, including technology providers and vehicle part suppliers. Current holdings include Tesla, Alphabet, Delphi and Nvidia.
“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” Quantifeed senior quantitative analyst Gaudi Schneider said.
The portfolio also invests in incumbent car manufacturers like Ford as they invest in the development of new systems for hybrid and electric vehicles, which are seen as a necessity for driverless cars given their electric engine as opposed to a combustion engine.
“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,” Schneider said.
“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.”
Quantifeed Australia senior executive for strategic partnerships Graeme Brant said wealth managers across Asia-Pacific are seeking 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 advisers, 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,” Brant said.
He added that Quantifeed has also developed model portfolios for clients investing in other modern global industries, such as 3D printing, robotics and social media.