This is a sponsored article from AXA Investment Managers.
The robot surgeon moves silently, efficiently, and with pinpoint precision, delicately operating on a patient who will wake to smaller incisions, less blood loss, less chance of infection, and a shorter recovery period.
This futuristic scene – almost unimaginable just a few years ago – has become a reality in thousands of operating theatres worldwide as robotics transforms the way we live as well as work, from robot surgeons to self-driving cars to factory ‘cobots’.
Robot surgery is just one technological evolution AXA Investment Managers (AXA IM) has been tracking closely since 2015 with its global Robotech strategy which focuses on healthcare along with industrial automation, transportation, and technology enablers.
“The market for robotic surgery is large and growing,” said Tom Riley, lead manager of the strategy, who expects the field to expand from mostly hernia and colorectal procedures in the US to general surgery worldwide.
“There are numerous benefits of robotic surgery for patients, including reduced scarring from smaller incisions, lower infection rates due to cleaner environments, and potentially greater procedural precision from robots compared to traditional human surgery,” Riley explained.
Surgery aside, AXA IM is cognisant of the technology sector’s potential for capturing data in healthcare and the accompanying benefits.
“The increasing availability and connectivity of data is helping facilitate continuous remote monitoring of patients’ conditions, to detect changes and escalate concerns,” he added.
“This data could result in the earlier identification of patient ailments, helping deliver treatment sooner and reducing conditions’ severity.”
The emergence of robot surgeons reflects the robust health of the robotics sector as its technology increasingly influences more aspects of our daily lives. According to current estimations, the global robotics market is expected to grow by 10-15% a year until 20251.
To capture this growth, AXA IM’s investment strategy year-to-date has been to maintain a prudent, broad-spectrum approach.
“It is our belief that investing in a broad range of robotics and automation opportunities provides a bigger universe from which to do our stock selection and provides more balance to an overall portfolio,” Riley said.
“With our long-term investment approach, we typically don’t make significant shifts in the portfolio’s allocations, either sectorally or geographically. However, we do seek to take profits in areas that we see as being more expensive, rotating into areas where we see more value.”
Looking ahead to 2019 and beyond, Riley believes the potential for industrial and manufacturing capex in the US could provide a supportive backdrop for the robotics sector in the months ahead.
“More broadly, we expect innovation to continue at a rapid pace, with continued improvements in connectivity and semiconductors that are crucial components of the robotics and automation ecosystem,” he said. “Further developments in software and areas such as artificial intelligence and big data analysis are also likely to broaden the applications of automated systems.”
There also remains vast potential in emerging markets where whole working populations are shifting away from low-paid jobs. China, for instance, is a particularly promising landscape as its robot density – the number of robots per 10,000 workers – is still less than 15% of that of South Korea, the leading robotic country1.
“Continued innovation in technology will see collaborative robots – ‘cobots’ – join the factory floor, working alongside humans to complement human skill gaps,” Riley said.
In addition, the auto industry has enormous room for growth as it edges towards the challenging technology of self-driving cars.
“We believe that while fully functioning autonomous vehicles remain some way off from a technological and regulatory point of view, auto manufacturers will move ever closer toward adopting these technologies,” he added.
“We believe technological rollout will continue to be incremental, with increased semiconductor content year-on-year, which should be supportive for our auto component suppliers.”
At a time of geopolitical turmoil and global economic malaise, the prognosis for the robotics sector appears exceptionally healthy as its influence and positive benefits extend to more areas of our everyday lives.
For further information, please email: firstname.lastname@example.org
Sources: AXA IM as at November 2018
1 IFR, World Robotics (2015).
This is for information purposes only and does not constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services and should not be considered as a solicitation or as investment advice.
The content herein may not be suitable for retail clients. No financial decisions should be made on the basis of the information provided.
In Singapore, this document has been issued by AXA Investment Managers Asia (Singapore) Ltd. (Registration No. 199001714W). In other countries, this document has been issued by AXA Investment Managers Asia Limited. References to “AXA IM Asia” below shall be references to AXA Investment Managers Asia (Singapore) Ltd. or AXA Investment Managers Asia Limited as appropriate. This document has not been reviewed by the Securities and Futures Commission in Hong Kong (“SFC”).
This document has been prepared and issued for institutional/professional investors only, and not intended for general circulation. They are strictly confidential, and must not be reproduced, circulated, distributed, redistributed or otherwise used, in whole or in part, in any way without the prior written consent of AXA IM Asia. They are not intended for distribution to any persons or in any jurisdictions for which it is prohibited.
Such information may be subject to change without notice. The data contained herein, including but not limited to any backtesting, simulated performance history, scenario analysis and investment guidelines, are based on a number of key assumptions and inputs, and are presented for indicative and/or illustrative purposes only.
The information contained in this document is not an indication whatsoever of possible future performance and must be considered on this basis. Information herein may be obtained from sources believed to be reliable. AXA IM Asia has reasonable belief that such information is accurate, complete and up-to-date. Any views, opinions or recommendations (if any) that may be contained in such information, unless otherwise stated, do not reflect or constitute views, opinions or recommendations of AXA IM Asia.
This document has been prepared without taking into account the specific personal circumstances, investment objectives, financial situation or particular needs of any particular person. Nothing contained within this document shall constitute an offer to enter into, or a term or condition of, any business, trade, contract or agreement with the recipient or any other party. This document shall not be deemed to constitute investment, tax or legal advice, or an offer for sale or solicitation to invest in any particular fund. If you are unsure about the meaning of any information contained in this document, please consult your financial or other professional advisers. The data, projections, forecasts, anticipations, hypothesis and/or opinions herein are subjective, and are not necessarily used or followed by AXA IM Asia or its affiliates who may act based on their own opinions and as independent departments within the organization.
Investment involves risks. You should be aware that investments may increase or decrease in value and that past performance is no guarantee of future returns, you may not get back the amount originally invested. Investors should not make any investment decision based on this material alone.
© 2018 AXA Investment Managers. All rights reserved.
This is a sponsored article from AXA Investment Managers.