Investment Professionals

5G investments for your clients

Aug 05, 2020

The story of 5G is more than just an added boost to your phone and home wifi, it could transform the way we live and do business. From this perspective, it may form part of your clients’ growth investments now and into the future. What is 5G? Fifth generation wireless (5G) is a technology infrastructure system allowing communications and data access on-the-go, much in the same way that previous generations including the currently used 4G offered. While 5G was coming anyway, the COVID pandemic may see some companies accelerate their plans to access 5G-enabled technology, particularly automation, both as a safeguard against future lockdowns or simply to allow them to continue basic operations in the current environment1. Verizon estimates that “by 2035, 5G will enable $12.3 trillion of global economic output and support 22 million jobs worldwide”2. How to incorporate 5G exposure into your clients’ portfolios? In a typical investment portfolio, clients are highly likely to have some exposure to 5G already, in the form of telecommunications companies or companies which manufacture phones and other IT systems. However, it may be valuable to consider the broader 5G supply chain for a more diversified exposure. It extends from underlying technology suppliers and producers, such as companies like Qualcomm or National Instruments creating specialised chips and semi-conductors used in devices to create access to 5G, to companies creating technology and software for industrial automation, robotics and artificial intelligence which will advance substantially from the use of 5G, like Ocado or Daifuku. Much of the supply chain is dominated by robotics, automation and AI companies which is where an ETF like ETFS ROBO Global Robotics and Automation ETF (ASX code: ROBO) can assist with exposure to the 5G transformation. For more information on investing in 5G and ETFS ROBO Global Robotics and Automation ETF (ASX: ROBO), please contact us. Client Services Trading Phone +61 2 8311 3488 Email: sales@etfsecurities.com.au Phone +61 2 8311 3483 Email: primarymarkets@etfsecurities.com.au [1] https://insights.roboglobal.com/as-the-covid-19-storm-rages-on-3-waves-of-growth-are-on-the-horizon [2] https://www.verizon.com/about/our-company/5G/how-5g-can-power-industrial-internet-things

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Investing in the transformation of supply chains for your clients

Jul 06, 2020

The COVID-19 pandemic may be accelerating the trend towards using robotics, automation and artificial intelligence to enhance supply chains. Our dependence on human labour forces has been highlighted as we face scarcity of some basic grocery essentials during lockdown periods. ROBO Global, the index provider of ETFS ROBO Global Robotics and Automation ETF (ASX code: ROBO), discusses how robotics, automation and AI are transforming supply chains in a new paper. Read the article Many of the world’s largest companies are already focused on accessing robotics, automation and AI in their supply chains. Amazon is a well-known global example of this, using KIVA robots in their warehouses, while domestically, Coles is partnering with UK online grocer Ocado to use their software and technology for automation. Investors may be less aware of the companies supporting transformation and the specific areas of the supply chain they are set to disrupt. ROBO Global anticipate five key supply chain areas accelerating: Automated warehouse solutions assisting with inventory access and inspection. Warehouse picking and packing using robots to assist with social distancing as well as efficiency. Online grocers with automated fulfilment, warehouses and contactless delivery. Micro-fulfilment such as curbside pick-up for smaller retailers. Prepared food delivery using ‘ghost kitchens’ to maximise capacity of restaurants. For more information on investing in robotics, automation and AI, click here or contact us. Sales Trading Phone +61 2 8311 3488 Email: infoAU@etfsecurities.com.au Phone +61 2 8311 3483 Email: capitalmarkets@etfsecurities.com.au

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Webinar Recording: Investing in the essential - healthcare & biotechnology

Jul 06, 2020

Recorded on the 2nd July 2020. In this webinar, we discussed: What biotechnology is and how it is different from broad healthcare Why investors should look outside Australia to the US How biotechnology is being used to fight COVID-19 What the future of biotechnology and healthcare look like Volatility and how to allocate to biotechnology in your portfolio To watch the webinar recording, please click here.

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Global biotechnology in your clients’ portfolios

Jun 23, 2020

Biotechnology has hit the headlines during the COVID-19 pandemic as companies race for vaccines and treatments, but its growth prospects extend beyond this period. Australian investors may be well familiar with this industry, given the dominance of CSL, but may be missing exposure to the international market, in particular, the US, the global centre of biotechnology. Download the full article here What is biotechnology? Biotechnology is a sub-industry of the healthcare sector and specifically refers to technologies that use biological processes, capturing companies that focus on research, development, manufacturing and/or marketing of products based on biological and genetic information. The different types of biotechnology include biological drugs, vaccines, immunotherapy, gene therapy, orphan drugs and genetic engineering. The US is typically viewed as the centre of global biotechnology due to the size of its market and the world-renowned US Food & Drug Association (FDA) approval process. The US industry is valued at US$113.bn, approximately 14.2x the size of the Australian biotechnology industry[1]. Why use global biotechnology in your clients’ portfolios? A growth investment a. Biotechnology is predicted to be valued at more than US$729bn by 2025, compared to US$295bn today[2]. b. The industry will benefit from increased spending in healthcare. The US, for example, is expected to average 5.4% annual increases in national health spending through to 2028[3]. Diversification away from concentrated Australian industry a. Biotechnology can be a high-risk industry, as well as lucrative. Average development costs for developing a drug are estimated at more than US$2.1bn and processes can take 10 years or more for approvals – assuming the drugs are successful[4][5]. Biotechnology performance has also benefited from highly active mergers and acquisitions (M&A) activity, expected to continue in the future. a. M&A for biotechnology was valued at US$23bn in 2019 with predictions of increased activity for 2020[6]. How to invest in biotechnology? You can consider direct shares or managed options for your clients’ portfolios. Direct shares may be a riskier option due to the high failure rates of drug testing and long periods of development. Managed options such as ETFS S&P Biotech ETF (ASX code: CURE) may offer broader exposure across a number of companies. For more information about investing in biotechnology, click here or contact us using the details below. Investor Relations Institutional Trades Phone +61 2 8311 3488 Email: infoAU@etfsecurities.com.au Phone +61 2 8311 3483 Email: capitalmarkets@etfsecurities.com.au [1] https://www.ibisworld.com/au/industry/biotechnology/1901/ [2] https://www.gminsights.com/industry-analysis/biotechnology-market [3] https://www.healthleadersmedia.com/finance/national-health-spending-growth-projected-54-annually-through-2028 [4] Deloitte Centre for Health Solutions, Unlocking R&D Productivity, 2018. [5] https://www.phrma.org/en/Advocacy/Research-Development/Clinical-Trials [6] https://assets.ey.com/content/dam/ey-sites/ey-com/en_gl/topics/life-sciences/life-sciences-pdfs/ey-firepower-report-2020-how-will-deals-done-now-deliver-what-the-health-ecosystem-needs-next-v2.pdf

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Clean energy in your clients’ portfolios

Jun 10, 2020

Battery technology investments could be the answer for clients with an interest in the environment and a desire to incorporate this within their portfolios. Renewable energy and electric cars are set to take over fossil fuels as a source of energy in coming decades, but to do so, battery technology and storage will be critical. Renewables and battery technology Renewable energy, namely solar and wind power, are intermittent power sources. To rely on these is to require reliable energy storage in the form of batteries. Likewise, electric cars are completely dependent on battery storage to operate. The South Australian Hornsdale Power Reserve is the largest example in the world of battery storage for renewable energy, making Australia one of the leaders (surprisingly, given our coal industry) in transformation. Wind and solar energy are forecast to supply around 48% of world electricity needs by 2050, with battery technology, gas peakers (turbines or engines that burn natural gas) and dynamic demand anticipated to drive market penetration of solar and wind by more than 80% according to BloombergNEF[1] . To accommodate this growth, utility scale battery energy storage capacity is expected to more than double by 2022, while the market for battery technology is anticipated to reach $90bn by 2025, growing more than 12%[2][3] . How to invest in battery technology? The value chain for battery technology ranges from mining companies, mining for metals like lithium, to manufacturers of battery storage and storage technology providers. All are potential beneficiaries of the anticipated growth in this industry. There are a range of ways to access battery technology in your clients’ portfolios. Direct shares in value chain component companies with the bulk of their revenue related to this area, such as mining companies like Pilbara Minerals or battery manufacturers. Direct shares in broader companies which still include exposure to battery technology, such as Panasonic. Managed funds, either active options or ETFs such as ETFS Battery Tech & Lithium ETF (ASX code: ACDC) which offer exposure across the industry. For more information about ETFS Battery Tech & Lithium ETF (ASX code: ACDC) or investing in battery technology for your clients, please contact us. Sales Trading Phone +61 2 8311 3488 Email: sales@etfsecurities.com.au Phone +61 2 8311 3483 Email: primarymarkets@etfsecurities.com.au This document is communicated by ETFS Management (AUS) Limited (Australian Financial Services Licence Number 466778) (“ETFS”). This document may not be reproduced, distributed or published [1] https://about.bnef.com/new-energy-outlook/ [2] www.forbes.com/sites/mergermarket/2020/02/18/the-future-of-battery-energy-storage-is-upon-us/#d5b173d4a185/ [3] www.mordorintelligence.com/industry-reports/global-battery-market-industry/

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Webinar Recording: Gold - A Precious Metal for Portfolios, 2020

Jun 02, 2020

Recorded on the 27th May 2020. This webinar focuses on the alternative asset that is gold. In this webinar, we discussed: Gold's strategic and tactical place in a portfolio Understanding gold's valuation factors: The short, medium and long-term price drivers Examining the recent rise of gold The future outlook To watch the webinar recording, please click here.

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