Disruptive technology
Invest in innovators and beneficiaries of the global digital transformation
The opportunity
Advances in disruptive technologies are fundamentally changing industries, society and the global economy. Led by global secular growth themes such as, but not limited to, cloud computing, artificial intelligence (AI), robotics/automation and Internet of Things (IoT), they are enabling new transformative business models. Artificial intelligence, for example, is accelerating across sectors such as financial services and energy, with generative AI revenue expected to reach USD 1.3 trillion by 2032.¹
These technologies and more are moving at an unprecedented speed. disrupting all sectors in their path by making many traditional business models obsolete. Essentially, these innovations go beyond the evolving technology industry itself, impacting nearly every industry sector and delivering exciting long-term growth opportunities for investors.
Strategy highlights
Powerful secular growth theme
Our disruptive technology strategy seeks to invest in innovative technologies “disturbing” the old system. The strategy aims to capture multiple technology themes, like AI, foundational technologies, IoT, cloud computing, robotics/automation, and emerging technologies, across different industries such as financial services, communications, industrials, energy, consumer goods and healthcare.
Global multi-sector approach
The combination of philosophy, process and people is the foundation of our tried and tested formula. The team selectively invests across multiple technology themes, sectors, regions4, and market capitalisations, targeting a broadly diversified portfolio of technology names. As such, the strategy is well-positioned to capture multiple drivers of global innovation enabling the digital transformation.
High-conviction investment approach
The investment team maintains a high-conviction, concentrated portfolio, with a high active share.² It combines top-down perspectives of the themes driving global technology innovation with disciplined fundamental bottom-up stock research to identify companies that are resilient and have an enduring competitive advantage, and what we believe are trading at attractive valuations . ESG factors are integrated within the investment process.3
Team and expertise
Our disruptive technology strategy is actively managed by lead portfolio manager Pamela Hegarty, a seasoned information technology and communication services sector expert with 28 years of industry experience5 and a background in ESG investing. Pamela serves as a key member of our growing Boston-based US and Global Thematic Equities team that includes portfolio managers, research analysts, and investment specialists with extensive track records and deep industry expertise.
The team sits within BNP Paribas Asset Management’s wider Fundamental Active Equity (FAE) investment group, supported by a global network of fundamental investors. In addition, Pamela and the US and Global Thematic Equities team benefit from access to our global technology research resources, global trading and risk management platform, as well as dedicated Sustainability Centre, Quantitative Research Group, and Macro Research team.
Investment Risks
Investments are subject to market fluctuations and other risks inherent to investing in securities. The value of investments and the income they generate may rise or fall and it is possible that investors may not recover their initial investment. The strategy may be exposed to specific risks including,
- Concentration Risk,
- Extra-Financial Criteria Investment Risk,
- Equity Risk,
- and Small Cap, Specialised or Restricted Sectors Risk.
The strategy may also be exposed to specific risks related to investments in Mainland China, including changes in PRC taxation risk and risks related to Stock Connect. For a complete description and definition of the strategy’s generic and specific risks, please refer to the Prospectus and KID. For additional details regarding the risks, please refer to the prospectus.
Related insights
[1] “Generative AI races toward $1.3 trillion in revenue by 2032,” Bloomberg Intelligence, 8 March 2024
[2] Active share: Active share measures the percentage of stock holdings in a portfolio that differs from the stocks held in the benchmark index.
[3] ESG: Environmental, Social, and Governance. ESG assessments are based on BNP Paribas Asset Management’s proprietary methodology, which integrates all three aspects of E, S and G.
[4] The strategy may be exposed to emerging markets including China.
[5] BNP Paribas Asset Management, as of 31 March 2026
Important information
Marketing communication. For professional investors only.
Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.
This document is directed only at person(s) who have professional experience in matters relating to investments (“relevant persons”). Any investment or investment activity to which this document relates is available only to and will be engaged in only with Professional Clients as defined in the rules of the Financial Conduct Authority. Any person who is not a relevant person should not act or rely on this document or any of its contents.
Equity strategies may be exposed to other risks defined below:
MARKET RISK: This is a general risk that affects all investments. Price for financial instruments are mainly determined by the financial markets and by the economic development of the issuers, who are themselves affected by the overall situation of the global economy and by the economic and political conditions prevailing in each relevant country
EQUITY RISK: The risks associated with investments in equity (and similar instruments) include significant fluctuations in prices, negative information about the issuer or market and the subordination of a company’s shares to its bonds. Moreover, these fluctuations are often amplified in the short term. the risk that one or more companies suffer a downturn or fail to grow can have a negative impact on the performance of the overall portfolio at a given time. There is no guarantee that investors will see an appreciation in value. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment.
INTEREST RATE RISK: The value of an investment may be affected by interest rate fluctuations. Interest rates may be influenced by several elements or events, such as monetary policy, the discount rate, inflation, etc.
CREDIT RISK: This is the risk that may derive from the rating downgrade of a bond issuer to which the strategies are exposed, which may therefore cause the value of the investments to go down. Strategies investing in high-yield bonds present a higher than average risk due to the greater fluctuation of their currency or the quality of the issuer.
LIQUIDITY RISK: This risk arises from the difficulty of selling an asset at a fair market price and at a desired time due to a lack of buyers.
COUNTERPARTY RISK: This risk is associated with the ability of a counterparty in a financial transaction to fulfil its commitments like payment, delivery and reimbursement.
OPERATIONAL AND CUSTODY RISK: Some markets are less regulated than most of the international markets; hence, the services related to custody and liquidation for the strategy in such markets could be more risky.
DERIVATIVES RISK: When investing in over-the-counter or listed derivatives, the fund aims to hedge and/or to leverage the yield of its position. The attention of the investor is drawn to the fact that leverage increases the volatility of the strategy.
CAPITAL RISK: The investments in the funds are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial outlay, the funds described being at risk of capital loss.
ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) INVESTMENT RISK: The lack of common or harmonized definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, the strategy’s performance may at times be better or worse than the performance of relatable funds that do not apply such standards.
This is not an exhaustive list of risks. For a full description of risks associated with each fund, please consult a client relationship manager or the global BNP Paribas Asset Management website: www.bnpparibas-am.com.