Why Innovation May Deserve a Core Role in Growth Portfolios

Key takeaways:

  • Investors commonly hold broad-category equity funds as a core allocation and theme-specific strategies as satellite allocations. The increasing impact of “innovation” on the entire economy may blur that approach.
  • Key growth drivers over the next 5 to 10 years could be a driving force for fund selection and portfolio construction.
  • Investors may benefit from making an innovation-focused strategy a core allocation in their portfolio – an evolution of the traditional core-satellite balance.

​

​

Figure 1: AI innovation diffuses from tech into every GICS sector

​

​

​

​

​

​