Best In Class  

Best in class: Smith & Williamson Artificial Intelligence

This initial screen takes the universe down to about 400 potential ideas with fundamental analysis of these companies then undertaken, based on five elements of AI.

These are: the use of algorithms, sensing, applications, high-powered computing and data. This enables the managers to create a purity score, which shows the percentage of revenue generated by AI, or the percentage impact on growth.

In addition to this, the managers will still want to understand the key fundamentals of their stocks such as cash generation, debt levels and stock valuations.

These factors are not ignored simply because it is a fund with a growth approach. The minimum market cap size for a holding is $250m. 

The fund is also well-diversified in that it is both global in nature and is exposed to more than just technology.

Since launch in June 2017, it has returned 76.3 per cent. Having fallen 25 per cent in the initial sell-off this year, it has since recovered quickly and, from the market high in February to date, is only down 4.5%. It has an ongoing charges figure of 0.82.

Change is clearly upon us and this fund is ideally positioned to tap into these new behavioural trends for growth.

Darius McDermott is managing director of FundCalibre