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CONTRIBUTORS

Serena Perin Vinton, CFA

Portfolio Manager
United States

Joyce Lin, CFA

Portfolio Manager
Co-Director of Research
United States

Robert Rendler, CFA

Portfolio Manager
Research Analyst
United States

The latest industrial transformation appears to be here and is accelerating due to the pace of innovation and the need to build resiliency in the system. The COVID-19 pandemic, trade war and geopolitical instability each highlighted the dangers of overly concentrated supply chains and long lead times. Manufacturers experienced the pressures of supply-chain risk as unfilled orders, delayed shipments and surging prices wreaked short-term havoc on their business models. Companies are now accelerating the evaluation of reshoring or nearshoring manufacturing capabilities to build better flexibility into their operations. The factory of the future is going to go beyond simply adopting new technologies and digitalization: We believe concepts such as resiliency and sustainability will be a cornerstone of their design. From a technology perspective, this transformation will encompass automation, robotics, smart systems, virtualization, Internet of Things (IoT), big data analysis, machine learning and artificial intelligence (AI).

Topics covered in this publication include:

  • Industrial digitalization
  • Sustainability and resiliency
  • Massive capital investments

Read the full paper to learn more about the next industrial renaissance.

WHAT ARE THE RISKS?

All investments involve risks, including possible loss of principal.

Equity securities are subject to price fluctuation and possible loss of principal.

To the extent the portfolio invests in a concentration of certain securities, regions or industries, it is subject to increased volatility.

Investments in fast-growing industries like the technology and health care sectors (which have historically been volatile) could result in increased price fluctuation, especially over the short term, due to the rapid pace of product change and development and changes in government regulation of companies emphasizing scientific or technological advancement or regulatory approval for new drugs and medical instruments.

IMPORTANT LEGAL INFORMATION

This material is intended to be of general interest only and should not be construed as individual investment advice or a recommendation or solicitation to buy, sell or hold any security or to adopt any investment strategy. All investments involve risks, including possible loss of principal. There is no guarantee that a strategy will meet its objective. Performance may also be affected by currency fluctuations. Reduced liquidity may have a negative impact on the price of the assets. Currency fluctuations may affect the value of overseas investments. Where a strategy invests in emerging markets, the risks can be greater than in developed markets. Where a strategy invests in derivative instruments, this entails specific risks that may increase the risk profile of the strategy. Where a strategy invests in a specific sector or geographical area, the returns may be more volatile than a more diversified strategy.

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