�۶���Ƶ

We believe that the trend of innovation as a driver of long-term equity market performance will continue, despite potential near-term economic challenges and tariff headwinds.

We have identified three thematic drivers of transformational innovations—artificial intelligence, power and resources, and longevity—which we think will likely deliver a significant share of global corporate profit growth in the years ahead.We also see compelling opportunities for sustainability-focused investors, particularly in energy and health care, given the ongoing global emphasis on energy security and improved health outcomes.

Uncertainty around the tech sector remains. The semiconductor industry still faces potential tariffs, and increased costs from supply chain relocations could pose challenges to tech companies. Details of Trump's overhaul of the AI diffusion rule introduced by former President Joe Biden remain to be seen. But global AI spending outlook is encouraging as new entrants (including China AI, neoclouds, and enterprise and sovereign cloud providers) increase their investment in the technology. In fact, we expect global AI capex spending to grow by 60% this year to USD 360bn, and by another 33% in 2026 to USD 480bn. Latest company and survey data have also reflected strong AI demand, with US Census Bureau data suggesting the AI adoption rate could cross the 10% threshold by the end of this year. For comparison, it took US e-commerce 24 years to reach such market penetration. Additionally, revenue growth at leading global could platforms for the March quarter was steady at 24% year over year, highlighting strong AI monetization

The world is entering a transformative era of electricity consumption, with demand projected to grow at a breakneck pace of nearly 4% annually through 2027—a sharp acceleration from 2.5% in 2023—adding the equivalent of Japan’s yearly usage each year. This surge is fueled by rapid industrialization, widespread air conditioning adoption, broader electrification, and the explosive growth of data centers. In fact, advanced economies are reversing years of stagnant demand, with the US and Europe seeing renewed growth driven by electric vehicles, heat pumps, and digital infrastructure. Emerging markets’ electricity use has also continued to outpace GDP growth.

We think this transformative shift highlights the urgent need for infrastructure investment to support the energy transition, AI expansion, and industrial electrification. We see compelling opportunities across the value chain in power grids, renewable energy, storage, and industrial electrification. The sector trades at a discount despite expectations for superior, durable profit growth, positioning investors to benefit as fundamentals reassert themselves.

The longevity market is transforming the global economy as life expectancy rises and populations age. We see two main groups: “drivers” (pharma, medtech, health care services) leading advances in healthy lifespan, and “beneficiaries” (consumer, financial, real estate, and industrial sectors) adapting to evolving demographic needs.

Pharma, medtech, and health care services
US firms are at the forefront of metabolic disease innovation, particularly with GLP-1 drugs for obesity and diabetes—an area where revenue is forecast to grow at a 12% compounded annual growth rate (CAGR) through 2030. The global health care sector’s market opportunity is projected to reach USD 2.2 trillion by 2030, supported by rising demand for treatments targeting obesity, oncology, Alzheimer’s, and cardiovascular disease.

Consumer, financial, and real estate sectors
Consumer companies in healthy nutrition and wellness are well-placed to benefit from the shift toward healthy aging. Financial services firms can address growing retirement needs, with global wealth pools projected to grow 6-7% annually through 2030. Insurance and annuity products, as well as increased private market allocations, offer further opportunities. The longevity trend also supports demand for senior housing, wellness services, and specialized health care real estate, including independent and assisted living facilities.