The Thematic Innovation Fund, managed by Jean-Pierre Chevalier, turned five at the end of March. Besides it’s undeniable performance history, discover the ingredients that make it a must-have for any portfolio with a U.S. equity component.
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- Jean-Pierre Chevalier Portfolio Manager |
I am passionate about innovation. 95% of my reading turns out to be just noise. It’s in the remaining 5%, where the thematic style is combined with a strategy of in-depth analysis of innovators and dominants, that it gets interesting!
The balance between tomorrow’s winning innovators and dominant companies: a strategy that stands the test of time
The Thematic Innovation Fund is an equity fund composed of large U.S. companies that benefit from the thematic style, take advantage of technological advances and thrive in an ever-changing environment. It's a different way to invest with a focus on innovation.
The thematic style focuses on four major groups supported by four exponential technologies that group 40 investment themes and a potential of over 900 securities.
- Intelligent connectivity: artificial intelligence
- Next-generation genomics: DNA sequencing
- Intelligent energy: renewable energy and battery technologies
- Industrial digitization: robotics
When selecting securities, Jean-Pierre Chevalier applies a barbell strategy, meaning the search for tomorrow’s big winners on the innovators side that create change while making sure to be invested in the right dominant companies that enjoy these changes on the other side. He particularly enjoys this strategy, as it helps with risk management compared to some of the more "pure" high risk innovation strategies.
The Thematic Innovation Fund: a high-performance fund!
Although past returns are not guaranteed in the future, the Thematic Innovation Fund still posts undeniable performance. See for yourself!
*Managed internally from 2016 to 2018, before the Fund was offered in the iA range of funds.
The Fund’s percentile ranking** as at March 31, 2021
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3 months |
1 year |
2 years |
3 years |
4 years |
5 years |
No. of peers |
|
57 |
25 |
7 |
11 |
16 |
13 |
331 |
** The percentile ranking is provided from a third-party segregated fund universe provider where net returns are grossed up to adequately compare iA segregated funds to the industry seg and mutual funds within the U.S. Equities category.
What the U.S. market has in store for 2021 and the hype cycle explained
During the first edition of the “Let’s Talk” webinar, where Jean-Pierre was the guest, he shared his vision of U.S. market projections for 2021 and explained Gartner’s analysis of the hype cycle in depth and how it applies to the funds he manages. The hype cycle is a model that has been used successfully for the last five years to determine when it’s time to invest aggressively in a theme.
Timing of the various topics discussed:
- U.S. market projections – 8:17
- JP's investment strategy – 13:38
- The hype cycle explained – 21:00
- Practical applications of the hype cycle in the Fund’s portfolio – 29:48
You can also access his most recent monthly commentary and watch or rewatch a video made with Jean-Pierre from the 2018 launch of the Thematic Innovation Fund in Segregated Funds, where he explains with concrete examples what thematic style is all about.
About Jean-Pierre Chevalier
Jean-Pierre Chevalier is Portfolio Manager, U.S. Equities for iA Investment Management (iAIM). He joined the iAIM team in 2011 and has 12 years of experience in investments. He manages approximately CA$1.6 billion. He has a bachelor’s in business administration from Université Laval and is a CFA charterholder.
With respect to segregated funds, he manages the Thematic Innovation Fund and the U.S. Equity Fund. He co-manages the Global Equity Fund, the Global True Conviction Fund and the North American Equity Fund.
