Explore our insights
insights by topic
contact us
8 Marina Boulevard, #03-01
Tower 1, Marina Bay Financial Centre Singapore 018981
+65-6534-5115
Singapore, Individual
Change
The views expressed are those of the author at the time of writing. Other teams may hold different views and make different investment decisions. The value of your investment may become worth more or less than at the time of original investment. While any third-party data used is considered reliable, its accuracy is not guaranteed.
In part one of Tech WELLcovered, we explored how tech is augmenting work and unlocking our true creative potential. In part two, we profiled how tech disruption is evolving how we have fun, creating vast possibilities for experiences tailored to our interests. Here, we highlight how innovation is helping you control your own destiny with improved guidance for every life stage.
Key points
- Tech is helping you navigate future life stages with far fewer unknowns. Innovations like AI, machine learning, and genomic sequencing offer you the foresight to make well-informed choices that enhance the probability of fulfilling your full potential.
- The investable opportunity sets fueling such progress span every industry, including companies in the financial services, health care, and consumer tech sectors leveraging AI, machine learning, cloud computing, and/or genomic sequencing technologies.
- As these innovations offer enormous breadth and depth of investable opportunities, we think investors need to draw on a wide range of research resources to future-proof their portfolios.
How may AI help you?
Navigating new life stages — like education, relationships, health care, and retirement — has long been filled with uncertainty. In the past, you may have sought guidance from friends or relatives on the best path forward, read self-help books, or scoured the internet. But this advice was rarely data-driven and often not suited to your individual needs, making it challenging to chart a clear path to achieving your goals.
Today, in every life stage and across industries, tech innovations like AI and machine learning are harnessing big data to offer personalized insights and assistance to everyone. This progress reduces unknowns by using hard data to overcome human error and anecdotal inconsistency, boosting your probability of success by enabling you to make more-informed decisions.
Let tech be your guide
Take health care, for instance, which was primarily reactive in the past. Today, innovations offer proactive medical insights, enabling you to take control of your health care journey. For example, genomic sequencing at birth, for cancer patients, and even for healthy adults could soon be the standard of care, allowing for preventative and personalized medical treatments. In addition, wearable medical devices like smart watches or clothing and household items like smart mirrors or toilets will help monitor your health on an ongoing basis. The widespread investment opportunities these innovations present span biopharma companies, genetics-based diagnostics firms, sequencing equipment companies, and medical device manufacturers and supply chains.
Importantly, technology’s potential for diagnostic guidance reaches far beyond health care. The need to uncover hidden patterns, unknown correlations, market trends, customer preferences, and other impactful information to help optimize outcomes is applicable across every industry and life stage.
We’re excited about the compelling opportunities we see from today’s rapid innovation in personal finance data analytics. This progress was made possible by the shift to cloud computing from the inefficient, on-premises technology that has incumbered many financial services firms for decades.
One company is leveraging machine learning to analyze its customers’ finances and offer bespoke, data-driven advice — like how best to get out of debt or which bills to pay off first to improve credit scores. By also using cloud computing, it can run billions of predictive models for its clients each day.2 Similarly, robo-advisors increasingly harness these innovations to provide financial planning with guidance customized for your particular goals — from saving for your child’s college education to preparing for retirement to buying a vacation home.
AI is also offering unique insights into relationships, aiming to make finding a partner slightly less of a leap of faith. Though often overlooked as an investable area, online dating is an innovative and fast-growing industry (Figure 1). One major online dating company is harnessing big data to help match prospective partners that are best suited to each other, adjusting its algorithms based on each individual’s characteristics, preferences, and ongoing actions on its mobile app. In the future, not only will data-driven matching offer increasingly suitable partners from more in-depth personal data but dating companies could also use this data to help plan ideal dates based on your shared interests, your city’s available options, and your budget.
Figure 1
The benefits (and drawbacks) of big data
The future will likely see companies combine data across your education, career, health, finances, and personal life. This will help offer synergistic, personalized guidance on how best to fulfill your aspirations and enable increasingly proactive and impactful decision making. For example, if genomic testing shows you are likely to require specific medical treatment in the future, a financial planning company may suggest ways to save enough to cover the related costs based on your finances. A career advisor may even propose new, higher-earning job opportunities based on your educational and career backgrounds.
While data-driven foresight has its merits, it has also raised privacy concerns. Companies will have huge repositories of personal data, including sensitive health and financial information. Data privacy and security will therefore continue to be key areas of risk, potential regulation, and consumer advocacy. The regulatory effort aims to ensure that customers retain control of their sensitive personal information and benefit from the resulting insights (and opportunities) made possible by this new technology, while mitigating the associated risks.
Witnessed. Experienced. Fulfilled.
Untangling uncertainty is a lifelong challenge. Fortunately, companies are harnessing data-driven insights to help us navigate every life stage — creating limitless investable opportunities, spanning across supply chains, high-performance chips, cloud computing, software, and professional services.
Notably, these technologies don’t just give individuals the foresight to potentially fulfill their aspirations. They can also do predictive analytics on a larger scale — possibly helping to solve some of the world’s most challenging problems — such as health care inequality, energy efficiency, and other ESG issues.
As tech’s use cases rapidly expand across industries, we think investors need to keep an open mind to the opportunities, cast a wide net, and take advantage of deep research capabilities. Is your tech exposure ready to capture this potential?
1 Source: US Food and Drug Administration statement, January 2019. | 2 Source: ZDNet. January 2020. | 3 Source: Company investor reports, 2021.
Key topics and themes
Authored by
RECOMMENDED FOR YOU
Showing
of
Insights Posts
Consumer tech: Buy the dip or bide your time?
We explore the potential opportunities offered by the recent sell-off in the consumer tech sector, highlighting areas like gaming, online dating, and more.
Continue reading
Quick Take
2022-08-31
Tech WELLcovered: Legacy redefined
Tech innovations are breaking down barriers, enabling us all to leave legacies of progress through the ways we allocate our capital and live our lives. Join us on a journey to witness the past, experience the present, and build a better future — all while capturing tech’s pervasive investable opportunities.
Continue reading
Article
2022-11-30
Tech WELLcovered: Legacy redefined
Tech innovations are breaking down barriers, enabling us all to leave legacies of progress through the ways we allocate our capital and live our lives. Join us on a journey to witness the past, experience the present, and build a better future — all while capturing tech’s pervasive investable opportunities.
Continue reading
Article
2022-11-30
Step into the metaverse
The metaverse is dominating tech headlines. Here, we explore the hardware infrastructure upgrades required to make this innovation possible and highlight the opportunities this creates for the Asia tech sector.
Continue reading
Article
2022-08-31
Tech WELLcovered: experience transformed
5G, AI and augmented reality will soon offer exponentially more options for experiences outside of work — with each activity personalised for your interests. Join us on a journey to witness the past, experience the present and transform the way you see the future of fun and the investable opportunities it creates.
Continue reading
Article
2022-10-31
Rising short-termism in fintech has a silver lining
Global Industry Analyst Matt Ross looks at the fintech sector as an example of the long-term alpha opportunity that may be available to patient equity investors.
Continue reading
Article
2022-03-14
“Buy now, pay later” is at a turning point
For Portfolio Manager Matt Lipton, recent developments have strengthened his conviction that up-and-coming “buy now, pay later” companies cannot and should not be ignored by banks and other legacy players in the global payments space.
Continue reading
Quick Take
2021-11-30
Tech WELLcovered work reimagined
We believe today’s workplace innovations are just the beginning of a multi-decade transformation. Join us on a journey to witness the past, experience the present and reimagine how the future of work is creating investable opportunities.
Continue reading
Article
2022-08-31
The coming wave of disruption in financial services
Portfolio Manager Matt Lipton explains why some financial companies are finally catching up with other sectors that have long benefited from structural change driven by technological innovation — and why some incumbents will be left behind.
Continue reading
2022-08-31
Chinese regulation: Lessons from after-school tutoring
Investment Director Graham Proud distills our China and EM equity specialists’ views on China’s latest regulatory move — including why investors shouldn’t jump to conclusions regarding potential implications for Chinese internet companies.
Continue reading
Article
2021-10-31
Widespread tech innovation: Don’t miss the forest for the really big tree
We explore the innovations driving a multi-decade journey of disruption and highlight the importance of in-depth research to capturing this opportunity.
Continue reading
Article
2022-05-31
Game on: Fintech disruptors vs old-school banks
Fintech companies are forcing traditional banks to up their game and rethink their business strategy, including the products they offer. Global Industry Analyst Matt Ross takes a closer look.
Continue reading
Article
2021-08-31
The hidden growth story in Japan tech
Learn why the hidden growth story within Japanese tech is one of our highest conviction themes, especially in the wake of the COVID-19 crisis.
Continue reading
Article
2022-03-31
The world’s hub of innovation
We profile Asia technology in the 2020s, outlining the long-term case for the sector after its strong rebound in recent months.
Continue reading
Article
2022-03-29
URL References
Related Insights
DISCLOSURES
Past results are not necessarily indicative of future results and an investment can lose value. Funds returns are shown net of fees.
Source: Wellington Management
© 2022 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. The Overall Morningstar Rating for a fund is derived from a weighted average of the three, five, and ten year (if applicable) ratings, based on risk-adjusted return. Past performance is no guarantee of future results.
The content within this page is issued by Wellington Management Singapore Pte Ltd (UEN: 201415544E) (WMS). This advertisement or publication has not been reviewed by the Monetary Authority of Singapore. Information contained on this website is provided for information purposes and does not constitute financial advice or recommendation in any security including but not limited to, share in the funds and is prepared without regard to the specific objectives, financial situation or needs of any particular person.
Investment in the funds described on this website carries a substantial degree of risk and places an investor’s capital at risk. The price and value of investments is not guaranteed and may fall or rise. An investor may not get back the original amount invested and an investor may lose all of their investment. Investment in the funds described on this website is not suitable for all investors. Investors should read the prospectus and the Product Highlights Sheet of the respective fund and seek financial advice before deciding whether to purchase shares in any fund. Past performance or any economic trends or forecast, are not necessarily indicative of future performance. Some of the funds described on this website may use or invest in financial derivative instruments for portfolio management and hedging purposes. Investments in the funds are subject to investment risks, including the possible loss of the principal amount invested. None of the funds listed on this website guarantees distributions and distributions may fluctuate and may be paid out of capital. Past distributions are not necessarily indicative of future trends, which may be lower. Please note that payment of distributions out of capital effectively amounts to a return or withdrawal of the principal amount invested or of net capital gains attributable to that principal amount. Actual distribution of income, net capital gains and/or capital will be at the manager’s absolute discretion. Payments on dividends may result in a reduction of NAV per share of the funds. The preceding paragraph is only applicable if the fund intends to pay dividends/ distributions. Performance with preliminary charge (sales charge) is calculated on a NAV to NAV basis, net of 5% preliminary charge (initial sales charge). Unless stated otherwise data is as at previous month end.
Subscriptions may only be made on the basis of the latest prospectus and Product Highlights Sheet, and they can be obtained from WMS or fund distributors upon request.
This material may not be reproduced or distributed, in whole or in part, without the express written consent of Wellington Management.