25 MAY 2023

Riding the wave of AI: Cape's innovative journey

At Cape, we believe in the immense opportunity of Artificial Intelligence (AI) going forward, yet appreciate complexity in terms of finding the optimal way to gain exposure, whilst aligning our interests with those of our clients and potential clients.

As a company passionate about the future and innovation, we wanted to seize the opportunity presented by the disruptive mega-trend of AI. That's why we swiftly embarked on researching the theme in 1Q23 and looked at ways to play it in the most efficient manner. We ended up creating our own product as opposed to buying one of existing ETFs or funds in the market, for a variety of reasons.

What did we do?

Our Equities team wasted no time in creating two distinct beneficiary pockets to capture the essence of the AI revolution. The first one consists of AI enablers – companies that provide the crucial infrastructure and means for AI to develop, innovate, and grow. These are the driving forces behind the AI revolution, and we wanted to ensure our clients could reap the rewards by investing in these game-changers that are likely to benefit first.

The second beneficiary pocket includes the utilizers – companies that are actively integrating AI into their daily business operations and making it accessible to consumers. These companies are at the forefront of AI adoption, leveraging its potential to transform industries and creating tangible benefits for end-users. By including them in our investment offering, we enable our clients to capitalize on the real-world applications and opportunities arising from AI.

Eventually, a few clear leaders and winners will emerge (hopefully from within our portfolio), that will set the stage for future innovations that are beyond our current horizon (think internet of 2000 evolving into e-commerce, social media, and beyond).

Chart 1

In order to expediate the launch, we introduced an Actively Managed Certificate (AMC) that is designed to capture this opportunity in a focused, concentrated and as pure as possible manner. This was initially offered exclusively to Cape clients and portfolios but was eventually extended to external investors as well. It was launched in April 2023, and is providing transparency and daily liquidity to investors who are interested in finding an attractive risk-adjusted method of gaining longer-term exposure to the theme.

Blown away!

The results speak for themselves. Although it is still early days, since its inception in March, our AMC share class has soared, delivering an impressive almost 20% growth. This outstanding performance has not only outperformed the MSCI index by a substantial margin of 16.86%, but has also surpassed the expectations and performance of established competitors in the market (both active and passive ones).

Graph

Curious to learn more? Our Equity portfolio managers, Tian and Thomas, are waiting to share their insights with you. They have played a pivotal role in the success of our AI investment offering and are ready to guide you on this exciting journey going forward.

As we continue to ride the wave of AI, Cape remains dedicated to innovation and staying at the forefront of the evolving investment landscape. Our commitment to aligning our interests with those of our clients and potential clients is unwavering. Join us in seizing the boundless opportunities presented by AI and unlock your potential for success.

Invest in the future with Cape and let the power of AI propel you forward.

Tian Xia
Thomas Williams

p.s. While AI was not the author of this editorial it was the creator of our cover image, which is one of a collection generated specifically for Cape using MidJourney.

Back to all

Connect with us

Area(s) of interest
This field is for validation purposes and should be left unchanged.

Utoquai 55
8008 Zürich
Switzerland

Asset Management
+41 43 888 45 60

Wealth Management
+41 43 888 60 60