– Artificial intelligence (AI) is already a material part of EM — most visibly through a handful of globally essential semiconductor champions. The catch is that EM’s exposure to AI is far more concentrated than most allocators realize, which makes understanding and managing that concentration an active portfolio management question.
Speaker
- Lydia So, Portfolio Manager
Currently the mega-cap semiconductor companies and other AI-related companies dominate the Top 20 holdings in popular passive EM vehicles and the EM benchmark. As for the Growth and Income Fund, the Top 20 holdings are more diversified across industries and non-AI-related companies.
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- Sources: Bloomberg; ALPS Fund Services, Inc.; Seafarer.