Disruptive technology
Invest in innovators and beneficiaries of the global digital transformation
The opportunity
Advances in disruptive technologies are fundamentally changing industries, society and the global economy. Led by global secular growth themes such as, but not limited to, cloud computing, artificial intelligence (AI), robotics/automation and Internet of Things (IoT), they are enabling new transformative business models. Artificial intelligence, for example, is accelerating across sectors such as financial services and energy, with generative AI revenue expected to reach USD 1.3 trillion by 2032.¹
These technologies and more are moving at an unprecedented speed. disrupting all sectors in their path by making many traditional business models obsolete. Essentially, these innovations go beyond the evolving technology industry itself, impacting nearly every industry sector and delivering exciting long-term growth opportunities for investors.
Strategy highlights
Powerful secular growth theme
Our disruptive technology strategy seeks to invest in innovative technologies “disturbing” the old system. The strategy aims to capture multiple technology themes, like AI, foundational technologies, IoT, cloud computing, robotics/automation, and emerging technologies, across different industries such as financial services, communications, industrials, energy, consumer goods and healthcare.
Global multi-sector approach
The combination of philosophy, process and people is the foundation of our tried and tested formula. The team selectively invests across multiple technology themes, sectors, regions4, and market capitalisations, targeting a broadly diversified portfolio of technology names. As such, the strategy is well-positioned to capture multiple drivers of global innovation enabling the digital transformation.
High-conviction investment approach
The investment team maintains a high-conviction, concentrated portfolio, with a high active share.² It combines top-down perspectives of the themes driving global technology innovation with disciplined fundamental bottom-up stock research to identify companies that are resilient and have an enduring competitive advantage, and what we believe are trading at attractive valuations . ESG factors are integrated within the investment process.3
Team and expertise
Our disruptive technology strategy is actively managed by lead portfolio manager Pamela Hegarty, a seasoned information technology and communication services sector expert with 28 years of industry experience5 and a background in ESG investing. Pamela serves as a key member of our growing Boston-based US and Global Thematic Equities team that includes portfolio managers, research analysts, and investment specialists with extensive track records and deep industry expertise.
The team sits within BNP Paribas Asset Management’s wider Fundamental Active Equity (FAE) investment group, supported by a global network of fundamental investors. In addition, Pamela and the US and Global Thematic Equities team benefit from access to our global technology research resources, global trading and risk management platform, as well as dedicated Sustainability Centre, Quantitative Research Group, and Macro Research team.
Investment Risks
Investments are subject to market fluctuations and other risks inherent to investing in securities. The value of investments and the income they generate may rise or fall and it is possible that investors may not recover their initial investment. The strategy may be exposed to specific risks including,
- Concentration Risk,
- Extra-Financial Criteria Investment Risk,
- Equity Risk,
- and Small Cap, Specialised or Restricted Sectors Risk.
The strategy may also be exposed to specific risks related to investments in Mainland China, including changes in PRC taxation risk and risks related to Stock Connect. For a complete description and definition of the strategy’s generic and specific risks, please refer to the Prospectus and KID. For additional details regarding the risks, please refer to the prospectus.
Thematic investing
Shaping tomorrow’s investment opportunities
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Related insights
[1] “Generative AI races toward $1.3 trillion in revenue by 2032,” Bloomberg Intelligence, 8 March 2024
[2] Active share: Active share measures the percentage of stock holdings in a portfolio that differs from the stocks held in the benchmark index.
[3] ESG: Environmental, Social, and Governance. ESG assessments are based on BNP Paribas Asset Management’s proprietary methodology, which integrates all three aspects of E, S and G.
[4] The strategy may be exposed to emerging markets including China.
[5] BNP Paribas Asset Management, as of 31 March 2026
Important information
This material is issued by BNP PARIBAS ASSET MANAGEMENT Malaysia Sdn Bhd, an investment management company holding a Capital Markets Services Licence under the Capital Markets and Services Act 2007 of Malaysia, having its principal place of business at Vista Tower, Level 48D, The Intermark 348 Jalan Tun Razak 50400 Kuala Lumpur, Malaysia. This material has not been reviewed by the Securities Commission Malaysia.
This material is produced for information purposes only and does not constitute:
- an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
- investment advice.
Opinions included in this material constitute the judgement of the investment management company at the time specified and may be subject to change without notice. The investment management company is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the financial instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for an investor’s investment portfolio.
Given the economic and market risks, there can be no assurance that the financial instrument(s) will achieve its/their investment objectives. Returns may be affected by, amongst other things, investment strategies or objectives of the financial instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to financial instruments may have a significant effect on the results presented in this material. Past performance is not a guide to future performance and the value of the investments in financial instrument(s) may go down as well as up. Investors may not get back the amount they originally invested.
Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the strategies described being in risk of capital loss. There is no guarantee that the performance objective will be achieved.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, performance may at times be better or worse than the performance of relatable strategies that do not apply such standards.
This is not an exhaustive list of risks. For a complete description and definition of risks, please consult a client relationship manager or the global BNP Paribas Asset Management website: staging.bnpparibas-am.co.uk.