Innovation Portfolio

Innovation remains one of the central growth drivers of the global economy. Technological disruption, digital transformation, and new business models are changing industries and markets at an accelerating pace.

• Market potential: Studies show that by 2030, around 50% of global economic growth will be driven by innovative technologies and business models.
• Drivers: Artificial Intelligence & Machine Learning, Medtech, Blockchain, Payment Processing, System Software, Automation, Cloud Computing, Cyber Security, E-Mobility, Battery Technologies, Semiconductors, Biotechnology, and Robotics.
• Relevance: These themes not only shape the technology sector but also have a deep impact on industry, consumer markets, and services.

Innovation is more than a trend – it forms the foundation for sustainable growth and offers investors the opportunity to participate early in the technologies of the future.

The Innovation Portfolio combines stability with targeted dynamism.

• Manager selection: The strategy selects 10 funds or ETFs based on a clear core/satellite approach.
• Core holdings: Four global technology funds (T. Rowe Price, Columbia Threadneedle, Franklin Templeton, BlackRock World Technology) form the foundation. These managers have large research teams specializing in technology sub-sectors, with deep expertise and many years of experience.
• Satellites: ETFs allow efficient and cost-effective coverage of specific themes such as Payment Processing, Semiconductor Technologies, Artificial Intelligence, Blockchain, Quantum Computing, Biotechnology, Cyber Security, Robotics & Automation, Digitalization, Clean Energy, and Battery Technologies.
• Diversification: Through funds and ETFs, the portfolio invests in more than 500 stocks – significantly reducing idiosyncratic risk and creating a broad, intelligent base.
• Flexibility: If no momentum is identified in certain sub-sectors, the portfolio can temporarily hold cash in the satellite portion. This reduces risks and enables systematic exploitation of opportunities in new trends.

The portfolio is actively managed and systematically aligned with market trends.

• Selection principle: Investment where structural growth drivers coincide with strong momentum.
• Core = Stability
  Satellites = Driving Future Growth
• Flexibility: The investment level may vary between 40% and 100%, depending on market conditions and momentum signals.
• Diversification: Global diversification across sectors and regions, reduction of stock-specific risks through the fund and ETF structure.

Active risk management is an integral part of the strategy.

• Market risks: Increased volatility, rapid style or sector rotations.
• Thematic risks: Dependence on specific technology sectors.
• Our control measures:
  • Systematic momentum screening (absolute and relative momentum)
  • Reduction of segments with declining strength
  • Building liquidity reserves when no momentum is identified
  • Broad diversification across funds and ETFs to significantly reduce stock-specific risk

The Innovation Portfolio offers investors an intelligent combination of manager selection, core/satellite approach, and momentum control.

Core holdings ensure participation in long-term global technology growth. Satellite investments specifically enhance the dynamics in future-oriented themes. In the absence of momentum, liquidity is held defensively – a strategy that reduces risk while creating flexibility for new opportunities.

Thus, the portfolio is optimally positioned to provide investors with access to the key innovation drivers of the coming decade – fact-based, systematic, and with disciplined risk management.