What’s happening in the Disruption World?
What’s happening in the Disruption World?
Chinese Internet sector looking attractive after recent sell down
The Chinese Internet sector bore the brunt of selling this year as investors took profits. Chinese technology stocks like Alibaba (-4.5%¹), Tencent (-20.2%²), Baidu (-2.4%¹), JD.com (-37.0%¹) were down as earnings were revised downwards. These companies continue to invest and build their eco systems and infrastructure, and as a result, guided for lower operating margins and profits.
Source: Bloomberg, ¹Year-to-date 30 September 2018 & in USD terms, ²Year-to-date 30 September 2018 & in HKD terms
Leading US insurance provider John Hancock (Manulife subsidiary) adds fitness tracking to all policies
One of the largest life insurance providers in North America will no longer offer policies that do not include digital fitness tracking. John Hancock – an international partner of Vitality – will now sell only “interactive” policies that collect health data through wearable devices such as a smartwatch. However privacy advocates have warned that insurers could use tracking data to punish customers who fail to meet targets – with some critics saying the announcement was “creepy” and “dystopian”.
Source: BBC, Digital Journal, 22 September 2018
Ant Financial expanding technology services to institutions and corporates
At Alibaba Investor Day conference, Ant Financial talked about serving the corporate market and positioning as a technology enabler to complement financial institutions. The company indicates that payment accounts for about 50% of its sales, technology services to partners for 35-40% and financial services for below 10%. It partners with 200 financial institutions including about 100 banks, 60 insurance companies and 40 asset managers to serve consumers in wealth management, insurance and financing, and has hundreds of Cloud clients.
Source: www.pymnts.com/news/b2b-payments/2018/ant-financial-technology-banking/, 20 September 2018
Self-Driving cars can handle neither rain nor sleet nor snow
Bloomberg wrote a story on how self-driving cars still cannot handle poor weather such as fog, rain or snow. It cited how WaveSense, a Boston-region start-up, has built a sensory system that scans 10ft underground and analyses the earth materials within. By combining the sensory data with data from existing autonomous technology (GPS/INS, radar, cameras), it keeps vehicles on track specifically in bad weather and when road markings are unnoticeable. This of course does not resolve the issue of detecting incoming vehicles. It will likely be many years before regulators allow vendors to try to demonstrate viability in low visibility conditions; this is why the warmer locations dominate current testing sites.
Source: Bloomberg, 17 September 2018
Why Facebook just gave you a “trustworthiness rating”
Facebook is apparently now assigning users a trustworthiness score as part of its effort to crack down on misinformation—here’s what that means. Don’t panic: Such a score might seem reminiscent of an authoritarian government, but it’s really just a perfectly reasonable way to apply machine learning to the problem of fake news. Essentially, a person’s previous behaviour in reporting posts as fake is considered by the algorithm that prioritizes posts for moderators. That’s necessary because people sometimes report a story as fake if they don’t agree with it.
Source: MIT Technology Review, 21 August 2018
The above is based on information available as of 30 September 2018 unless otherwise stated. References to specific corporations/companies and/or their trademarks are not intended as recommendations to purchase or sell investments in such corporations/companies nor do they directly or indirectly express or imply any sponsorship, affiliation, certification, association, approval, connection or endorsement between any of these corporations/companies and Lion Global Investors Limited or the products and services of Lion Global Investors Limited. Opinions and estimates constitute our judgment and along with other portfolio data, are subject to change without notice.
LionGlobal Disruptive Innovation Fund (“Fund”) was incepted on 28 March 2017. As of 28 September 2018, the Fund’s SGD Class A Net Asset Value is S$1.226. Learn more about the Fund at www.lgidirect.com.sg/disruptiveinnovationfund
Lion Global Investors Limited (“LGI”) is a company incorporated in Singapore and a member of the OCBC group.
This publication is for information only. It is not an offer or solicitation for the purchase or sale of any securities/investments and does not have regard to your specific investment objectives, financial situation or particular needs. All applications for units in our funds must be made on application forms accompanying the prospectus. You should read the prospectus and Product Highlights Sheet for details, available and may be obtained from Lion Global Investors Limited (“LGI”) or any of its approved distributors, before deciding whether to subscribe for or purchase units of the Fund. Investments in the Fund are not obligations of, deposits in, guaranteed or insured by LGI or any of its affiliates and are subject to investment risks including the possible loss of the principal amount invested. The performance of the funds is not guaranteed and the value of units in Fund and the income accruing to the units, if any, may rise or fall. Past performance, as well as any prediction, projection, or forecast on the economy, securities market, or the economic trends of the markets are not necessarily indicative of the future or likely performance of the funds. Any opinion or estimate provided in the publication is made on a general basis and is not to be relied on by investors as advice. Investors must make their own assessment of the relevance, accuracy, adequacy and reliability of the information provided and make such independent investigations as they may consider necessary or appropriate for the purpose of such assessment. LGI reserves the right to make changes and corrections to its opinions expressed here at any time, without notice. Accordingly, no warranty is given and no liability is accepted for any loss arising directly or indirectly as a result of you acting on any information, opinion, forecast, or estimate contained herein. You may wish to seek advice from a financial adviser before making a commitment to purchase the Fund. In the event that you choose not to seek advice from a financial adviser, you should consider carefully whether the Fund is suitable for you. The Fund may invest in financial derivative instruments such as futures, options, warrants, forwards and swaps for hedging purposes or for the purpose of efficient portfolio management.
The references to any particular company is intended for illustration purposes only and is not indicative of Lion Global Investors Limited’s intention to invest in such company or a recommendation to readers to invest in the securities of such company or its products or services.
LGI, its related companies, their directors and/or employees (collectively known as “Related Persons”) may have positions in the products mentioned in this publication. LGI and its Related Persons may be engaged in purchasing or selling the products mentioned in this publication for themselves or their client. LGI does not take into consideration the tax implications of the income earned as the tax position of each person is different. Investors are advised to seek independent tax advice on their personal tax position arising from investing in the fund.
© Lion Global Investors Limited. All rights reserved. (UEN/Registration No. 198601745D). LGI is a Singapore incorporated company, and is not related to any corporation or trading entity that is domiciled in Europe or the United States (other than entities owned by its holdings companies).