Japanese investors develop taste for robotics

Artificial_intelligenceFunds investing in artificial intelligence and robotics have overtaken monthly dividend payout funds in Japan in terms of assets – a sign of their growing popularity. The funds appeal to Japanese investors because of their long-term outlook, which seeks to capitalise on trends that will influence technology for years to come, said Cerulli Associates, a research company. “Because of the nature of these funds, the countries they invest in are mostly developed ones, such as the US, Japan and Germany,” said the firm. “The main sectors invested in include information technology, consumer goods and healthcare, which are seen as adding to corporate value as well as companies' stock prices.” Despite the enthusiasm for these products, some commentators worry investors do not understand the sector they are buying into. Another concern is that AI and robotics funds will prove to be a fad. “Long-term growth potential was seen as a selling point of Brazilian real-based funds, whose boom proved to be short-lived, as assets in 2017 fell to almost a quarter of their peak in 2010,” said Cerulli Associates. “Some observers wonder if a similar story will be repeated in the case of AI-themed funds.” ©2018 funds global asia

Executive Interviews

INTERVIEW: Operational challenges

Jun 09, 2018

Caroline Higgins of Northern Trust tells George Mitton about A-share inclusion, ETF Connect and why Cayman funds predominate in the region.

INTERVIEW: Making a name

Apr 18, 2018

Formed by a merger in 2012, Old Mutual Global Investors was little-known in Asia. Carol Wong, managing director for Asia-Pacific, is changing that. She talks to George Mitton.


SINGAPORE ROUNDTABLE: Optimism versus caution

Oct 23, 2018

The impact of financial technology, developments in Asian passporting and the promise of new markets in Thailand were among the topics discussed by our panel. Chaired by George Mitton in Singapore.

HONG KONG ROUNDTABLE: a long-term project

Jun 09, 2018

Our panel discussed robo-advisers, ETF Connect, and why the mutual recognition of funds (MRF) scheme will take time to develop. Chaired by George Mitton in Hong Kong.