United Kingdom, Professional
Change
This is a marketing communication. Please refer to the Fund Prospectus and KIID and / or offering documents before making any final investment decisions. Please refer to the risks section at the bottom of this page.
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Why do we own it?
We view ServiceNow as a high-quality company with a robust product offering and strong customer loyalty, evidenced by its 98% customer-renewal rate. ServiceNow has been early in commercialising AI-enabled products that leverage a client’s service request history into resources that allow employees to independently solve their own IT or HR issues. We believe these products will offer substantial cost and efficiency gains for customers and extend the duration of returns for ServiceNow. Customers onboarded in 2010 grew their spend with ServiceNow by 25% in 2023. This ability to develop and sell more products to existing customers leads to very efficient and profitable growth. ServiceNow has high free-cash-flow margins and a healthy balance sheet, and it takes a long-term view when investing in further innovation.
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Key points
- In our view, this is an attractive high-quality software business with a robust product range that is growing efficiently through new and existing customers.
- ServiceNow aims to invest $1 billion in ServiceNow Ventures by 2026, focused on innovation in AI and automation.
- The company stands out for its commitment to sustainability: aiming for net-zero emissions by 2030, including reducing emissions across its operations and value chain; using 100% renewable electricity; and supporting a carbon-neutral cloud.
CONSIDER THE RISKS
Investors should consider the risks that may impact their capital, before investing. The value of your investment may fluctuate from the time of the original investment. Please refer to the risks section enclosed. A decision to invest should take account of all the characteristics and objectives described in the prospectus and KIID and/or offering documents. Please refer to the sustainability related disclosures for information on the commitments of the portfolio: https://www.wellington.com/en/legal/sfdr.
1Sources: ServiceNow. Unless stated otherwise, all figures in this document are accurate as of January 2025.
Risks
Capital: Investment markets are subject to economic, regulatory, market sentiment and political risks. All investors should consider the risks that may impact their capital, before investing. The value of your investment may become worth more or less than at the time of the original investment. The Fund may experience a high volatility from time to time. | Concentration: Concentration of investments within securities, sectors or industries, or geographical regions may impact performance. | Currency: The value of the Fund may be affected by changes in currency exchange rates. Unhedged currency risk may subject the Fund to significant volatility. | Emerging Markets: Emerging markets may be subject to custodial and political risks, and volatility. Investment in foreign currency entails exchange risks. | Equities: Investments may be volatile and may fluctuate according to market conditions, the performance of individual companies and that of the broader equity market. | Hedging: Any hedging strategy using derivatives may not achieve a perfect hedge. | Sustainability: An environmental, social or governance event or condition that, if it occurs, could cause an actual or potential material negative impact on the value of an investment.
Please refer to the fund prospectus and KIID for a full list of risk factors and pre-investment disclosures