James Moncrieff 
David Price 
Dear clients,
Robotics + AI + sensors = next level automation
Despite trade wars and US policy changes, the trends we invest in remain intact. The world will continue to automate and digitise to cope with smaller workforces, provide better healthcare, defend against cybercrime and live with climate change.
Two of our investment partners, James Moncrieff and David Price, recently visited Hannover Messe, one of the world’s major industrial automation and robotics trade shows. Marrying robotics with AI and the latest sensors is taking automation to a whole new level. A few years ago, a robot could not lift an object out of a box. Now this:
Robots are revolutionising manufacturing, warehousing and even medical procedures. This creates strong demand for the products and services supplied by AMETEK, Amphenol, Intuitive Surgical, Cadence Design Systems and Synopsys – all holdings in our portfolios.
Our selective approach is key, as James notes: “There are now so many automation companies, you need to be really surgical about which part of the value chain you get exposure to.”
The eyes have it
One exhibitor at the Messe, Keyence, is a new addition to our portfolios. Based in Japan, Keyence is a world leader in machine vision – sensors that improve productivity and also quality control, such as checking that circuit boards are assembled correctly.
The number of robots per employee is set to grow at 10%pa this decade, but growth in demand for sensors will be double that.
Europe 2.0
We noticed a strong Chinese presence at the Messe. ‘Made in China’ is not the insult it once was. China is producing increasingly sophisticated products and European companies will need to innovate to compete on price and quality.
David was struck by the benefit we get from thinking about technology adoption in its wider context. Industrial analysts might not think to look at Accenture, but it was clear from our conversations that many companies aren’t ready to adopt robotics yet. Consultants like Accenture will help them get there.
Our priority, as always, is to protect and grow your assets. We will continue to dig deep on all aspects of our stocks, working in your best interests.
Best wishes,
The Investment Team
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