ROBO
ETP gets a Hold / BUY
Impact Investment Rating©.
BUY
= INVEST
in innovative
basic needs &
impact tech with
disruptive
change
& global
exponential growth goals.
HOLD
= WAIT
for (more) transparency
on transformation ambition
& progress towards
more impact, ESG
& SDG opportunities clearly
embracing 'New
Capitalism'.
ROBO
ETP is 'Available, Affordable but
invests in few basic
needs sectors so it is
less Attractive and
gets HOLD.
Impact
Sectors add up to 25%.
Health
Robotics 8%, Food & Agriculture 6%, Energy 3% (?), 3D Printing 3%, Security & Surveillance 3%, Consumer Products 2%.
(?) Robo solar panel cleaning is a growth market.
NB Analyses of especially large caps (mixed activities) will show more health & impact activities. Eg. top holding Nvidea, (gamel)computers hardware, is active in deep learning & medical imaging analysis. More: http://www.nvidia.com/object/fy17-sustainability-report.html
NB Analyses of especially large caps (mixed activities) will show more health & impact activities. Eg. top holding Nvidea, (gamel)computers hardware, is active in deep learning & medical imaging analysis. More: http://www.nvidia.com/object/fy17-sustainability-report.html
ROBO ETP also gets BUY because of it's Impact Tech profile with ''disruptive innovation & inclusive growth'' potential & financial growth guestimates of Robotics & Artificial Intelligence (AI)
ROBOTICS
is a thematic / macrotrend investment
in a disruptive technology, not necessarily impact
sectors (basic needs,
underserved people) or impact (people,
planet, place, process) with the exception of paradigm,
disruptive change in the
5P's of impact as defined by Brian Treldstad in HBR. See visual.
The
ROBO ETP portfolio is 50-50
allocated in Applications
& Technology and
according to Etfdbase in
Artificial
Intelligence, also a
disruptive impact /
megatrend.
SECTORS
Applications: Manufacturing & Ind. 16% Logistics Automation 9%, Healthcare 8% Food & Agriculture 6%, Energy 3%, 3D Printing 3%, Security & Surveillance 3%, Consumer Products 2%; Technology: Computing, Processing & AI 18%, Actuation 14%, Sensing 10% Integration 8%.
Applications: Manufacturing & Ind. 16% Logistics Automation 9%, Healthcare 8% Food & Agriculture 6%, Energy 3%, 3D Printing 3%, Security & Surveillance 3%, Consumer Products 2%; Technology: Computing, Processing & AI 18%, Actuation 14%, Sensing 10% Integration 8%.
3Q2017
ROBO Global R&A Index + 49%
Total
return by sub sector, year to date (%)
Actuation
+ 90% Industrial Manufacturing + 60%
Sensing
+ 57% Logistics Automation +
56%
Security
& Surveillance + 54% Healthcare + 47%
Food
& Agriculture + 47%
Computing, Processing & AI + 45%
Integration
+ 33% 3D Printing + 19%
Consumer
Products + 9% Energy - 26%
F&F
Listing
in Amsterdam, London en op Nasdaq
Price
about 13e of 41US$.
AuM:
2,2 Billion US$
ISIN:
IE00BMW3QX54
& US3015057074
Dividend:
–, de
ETP reinvesting
Costs:
0.95%
MORNINGSTAR
Impressive
financial performance, sustainability is average with 3
Globes.http://www.morningstar.nl/nl/ETP/snapshot/snapshot.aspx?id=0P0000Z9T7
DIVERSIFICATION
ROBO
has broad exposure with 89 holdings, equity
stocks in less accessible stockmarkets & currency:
Japan, Taiwan, China, Israel etc: 50%
(USA
40 and Eurozone, France & Germany 11%)
ROBO
was the 1e Robotics ETP issued in 2013 by
specialist ROBOGlobal.
In
January it attracted 200 million US$ (+10%) reaching 2,2 billion US$
AuM. Because (rumor around the brand) or in spite of fierce
competition by BOTZ
newly launched in Sept 2017 and attracting 2 billion US$ in 4 months.
(more below)
ROBO
Asset Class Allocation
according to ETFDbase* :micro caps16%, small 16%, mid
28% (↓)
& large cap 39% (↑).
I regard this as extra attractive since I have had the
QQQ
Powershares ETP
with 100
American Nasdaq listed largecaps Lost of Tech
& Health no
finance. (My return +78%).
https://www.invesco.com/portal/site/us/investors/etfs/product-detail?productId=QQQ
ETFdbase
offers ETP
profilee with fast scan visuals, data
pies
and it adds asset class micro caps. Mn
I like microcaps because the
can be new young flexible companies, more disruptive &
impact minded. Of course they can be bought by large caps or
investment funds:)
Note
that the ETFdbase data is a bit behind on new data from ROBO
(and BOTZ) Factsheets (because of quarterly updates &
changes).
#INNOVATION
7
ROBO holdings are listed in the 2017 RB50 benchmark: ABB, Fanuc,
Intuitive Surgical, iRobot, NVIDIA, Omron &
Yaskawa.
The
impact potential of Robotics is huge
IBMs
Watson is
the basis of the 1e
robo ETP Equbot
AND
delivers 90%
diagnostic accuracy in lungcancer.
HEALTH
ROBOTICS
My
interest in ROBO is sparked not only by the impact potential of
Robotics & AI as such but applying it in healthcare.
ROBO
states 8%
(pure) health
sector holdings: o.a.
Intuitive Surgical
(ISR & Nasdaq at 400US$), Mazor
Robotics (ISR)
Cyberdyne
(TYO), Jenoptik
(Optiks
& Lifescience)
Germany, Advantech/healthcare
MRI,
X-Ray, ultrasound (Tai),
Accuray
(radiation robo arm (VS), Renishaw
precision
measurement
& healthcare
(6% revenue with operational loss), Tecan
group
automated workflow solutions for laboratories in the life sciences
sector. …
NB
A closer analysis of the holdings will reveal more impact
(sub-sectors).
Eg
in ROBO 3Q2017
report page 4 'AI
is hot'
NUANCE
COMMUNICATIONS unveiled its Open AI Marketplace for diagnostic
imaging for developers, data scientists, and radiologists. More than
20,000 radiologists already use its PowerScribe cloud-based reporting
platform.
http://roboglobal.com/system/pdf_attachments/documents/000/000/646/original/RoboGlobal_EarningsReport_3Q17.pdf?1512143147
Real-time Applications: Hospital Logistics, Routine Surgeries, Rehabilitation, Elderly Care, Exoskeletons. Areas to Watch: Biotech**, Complex Surgeries, Nanobots.
**Biotech
is often listed as Health
Tech
e.g. in iShares Exponential
Technology
ETP (199 holdings, 31% healthcare)
F&F
Medical Robotics Market Value: $11.4 billion by 2020, a CAGR of 22.2% (Source: MarketsandMarkets)
Medical
Robotics & Computer-assisted Surgery: The Global Market
Published
- May 2017| Analyst - Aneesh Kumar| Report Highlights
The
global surgical robotics and computer-assisted surgery market reached
nearly $3.5 billion
in 2015.
This market is expected to increase from $4.0
billion in 2016 to $6.8 billion in 2021
at a compound annual growth rate (CAGR) of 11.3%
for 2016-2021.
https://www.bccresearch.com/market-research/healthcare/medical-robotics-mrcas-market-hlc036g.html
AGRICULTURE
Raven
Industries VS
(1,61% van de 6)
presents
itself as 'precision
agriculture'' & 'Feeding
a growing population by improving agricultural efficiency around the
world' #SDG2.
It has the Raven SmartYield Pro Harvest system.
Raven has a CSR webpage and an Impact Report 'Through our technology, products, and services, we help grow more food, produce more energy, protect our environment, and allow others to live safely. However, our purpose extends beyond creating these solutions — it defines our corporate behavior.''... ''Pursuit of purpose is a key component to achieving success. At Raven, our purpose is to Solve Great Challenges. Through that purpose, we design and produce technology that positively affects people and societies from around the globe''.
No ESG KPI's only grants, volunteerism, scholarships...
Impact report 2017: https://cdn.ravenind.com/general-uploads/Raven-Impact-CSR-Report-2017-reduced.pdf
CSRHub Total 47, Community 50, Employment 49, Environment 50, Governance 38. Below the average in electronic equipment & manufacturing.
Roboglobal mentions John Deere (Deere & Co, autonomous machinery: 0,96%) and Trimble (GPS systems and navigation technology that guide and help automated machinery such as tractors: 0.9%) as agriculture investments.
Roboglobal marketing: http://roboglobal.com/exploring-the-investable-space-of-agricultural-robotics
Raven has a CSR webpage and an Impact Report 'Through our technology, products, and services, we help grow more food, produce more energy, protect our environment, and allow others to live safely. However, our purpose extends beyond creating these solutions — it defines our corporate behavior.''... ''Pursuit of purpose is a key component to achieving success. At Raven, our purpose is to Solve Great Challenges. Through that purpose, we design and produce technology that positively affects people and societies from around the globe''.
No ESG KPI's only grants, volunteerism, scholarships...
Impact report 2017: https://cdn.ravenind.com/general-uploads/Raven-Impact-CSR-Report-2017-reduced.pdf
CSRHub Total 47, Community 50, Employment 49, Environment 50, Governance 38. Below the average in electronic equipment & manufacturing.
Roboglobal mentions John Deere (Deere & Co, autonomous machinery: 0,96%) and Trimble (GPS systems and navigation technology that guide and help automated machinery such as tractors: 0.9%) as agriculture investments.
Roboglobal marketing: http://roboglobal.com/exploring-the-investable-space-of-agricultural-robotics
F&F
Agriculture & Food Robots
Agricultural
robots market Sep
2017, Allied Market Research, $3,840)
The
global agricultural robots market is estimated to account for a
market revenue of $2,927
million in 2016 and is
expected to reach to
$11,050 million in 2023.
Oct
2017, 203 pages, Meticulous Market Research, $4,175
Global
Food Robotics Market is expected to reach
$2.2 billion by 2022
supported by a CAGR of
12.5% during the forecast
period of 2017 to 2022.
Drivers
include lack of
skilled workforce, increasing food safety regulations, rising demand
for advanced food packaging and growing demand to improve
productivity.
More:
http://roboglobal.com/30-new-research-reports-forecast-significant-growth-for-robotics-industry#
CONSUMER
PRODUCTS
I
like top holding iRobot, 2%
the consumer products, with home
cleaning robots (dry &
wet) It is global leader with an excellent distribution network, and
stiff (price)competitors.
Home robots support busy families, the elderly &
disabled.
It
won a robotics award in 2017 and it is active in core
business acquisition
& Venture Capital.
Impact
DNA:
iRobot 's Board member Mohammed
Ali is
also
board member
of Oxfam America.
In
2016 iRobot divested
from Security &
Defense. Robots have
developed from lifesaving (mine/bomb detection, surveillance) to
offensive, killer bots.
NB
ROBO does not exclude Defense,
in the prospectus it points out the regulatory risks for Defense
contracting. ROBOs
ETP competitor BOTZ (GlobalX) has
Qinetiq a
British manufacturer of Talon: an
unmanned
Robot
for Security, Defense and Military.
Qinetiq works for British & US government.
Security
The
Global Explosive Ordnance Disposal (EOD) Robot market is valued at
$5.98 billion in 2016 and
is expected to reach $8 billion by the end of 2022,
growing at an annual CAGR of 4.6%.
Source:
http://roboglobal.com/30-new-research-reports-forecast-significant-growth-for-robotics-industry#
THEMA
/ MEGATREND Growth expectations
RoboGlobal Defining the Universe of Robotics & Automation for Investors (3Q2017 pdf 14 pag.) http://www.roboglobal.com/system/pdf_attachments/documents/000/000/429/original/ROBOGlobal_Q32017.pdf?1502394251 Growth Robotics 2013 – 2020 10% per annum to 80 Billion US$ & AI from 8.2 billion US$ in 2014 to 70 billion US$ in 2020. The GlobalX (BOTZ) infographic puts the financial sector, robo advisors lonely at the top with growth from 255 billion US$ AuM now, growing to 2.2 trillion US$ in 2020. https://www.globalxfunds.com/robotics-and-artificial-intelligence/
Resources Roboglobal: 30 industry reports
COLLEAGUE & COMPETITOR
ROBO
has a competitor since sept 2017: BOTZ (Global X issuer
of 50 ETPs) with also over 2 Billion US$s AuM according to ETFdbase.
BOTZ costs are a bit lower with 0,68% (ROBO 0,95%) it has only 29
large caps holdings.
Robotics
is ''hot'' with investors, in January 2018 BOTZ raised 25%, 650
million US$. Note that investment funds have lost considerably to
ETPs.
Personally
I prefer ROBO to BOTZ because of the small sized portfolio (less
diversification) with 29
large caps (more mixed activities & less impact
as core activity). Etfdbase calls BOTZ an Industrial
Equity versus ROBOs Technological Equity.
Intuitive
Surgical (Isr) a
health
robotics corp and Robo RBB 50 benchmark is
a top portfolio holding with 7.77%, compared to ROBO's at least 8%
for health robotics.
ROBO
& BOTZ share 25
holdings (of
29)
BOTZ
(also) offers exposure to
Japanese corporations
(50%) no Chinese, Taiwanese and 1% Israel (so it buys Intuitive
Surgical at Nasdaq) NB
BOTZ holds 3.99% Aerospace
& Defense in British
Defense
corp Qinetiq (USA supplier) compared to ROBOs 3% Security
& Surveillance.
Again
ROBO does not exclude Defense.
BOTZ
performs well on information on long term market development with an
excellent Infographic:
https://www.globalxfunds.com/robotics-and-artificial-intelligence/
ROBO
versus BOTZ on: http://etfdb.com/tool/ETP-comparison/ROBO-BOTZ/
Blogger:
Bit simple, no number of holdings comparison or asset class
allocation.
CONCLUSION
ROBO
ETP gets a Hold / BUY Impact Investment Rating©.
The
ETP is 'Available, Affordable but
less Attractive in impact sectors holdings: HOLD.
BUY
for 'disruptive
innovation' & growth expectations for
Robotics
& AI
and its allocation to Health
Robotics 8%, Food & Agriculture 6%, Energy 3% (?), 3D Printing 3%, Security & Surveillance 3%, Consumer Products 2% = 25%
(?) Robo solar panel cleaning is a growth market.
RECOMMENDATIONS
I
would prefer a ROBO & AI ETP with more health
holdings & impact sectors. As Robotics & AI corporations have
mixed business models adding corps with 50% or 33% health, agro etc
is an option.
An
impact (ambitions) analysis of ROBOs 89 holdings & more impact
marketing can increase its impact rating.
ROBOTICS
Robotics
is seen as a technology trend that will change the nearby
future and makes an attractive long term investment.
John
'PPP' Elkington describes its importance in his Breakthrough
Forecast & Business Models just as Wheb Sustainable AM.
Robotics
is #innovative & #efficient it wil lower resource consumption*
en deliver better safer products by lowering ''human error
risk''
Automobile (supply chain) is active with robotics, but that is also the largest investor in Clean Tech PLANET IMPACT. (Green Transition Scorecard).
Mn
Manufacturing, Military & Defense en Transportation also
Medicine & Agriculture will be disrupted according to
GlobalX (BOTZ)
I
focus on PEOPLE impact: robots doing physically hard or
monotonous. Labor & refer to UN Sustainable development Goals
#SDG8 innovation #SDG9 efficiency (descriptions below).
Robotics
& automation will clearly cause loss of labor & employment
in existing professions, but I am optimistic and a
historian so I see job creation in new professions
without underestimating risks, negative effects and a though
transition and adaptation period.
Opportunities:
economic growth, diversification and new professions such as robot
designers, builders, maintenance repair & refurbishing and
training (the trainers).
One
of robotics leading nations is Japan that
has to deal with both ageing & high labor costs
megatrends at a fast pace.
ISSUES
Conflict
Minerals, metals, are an
(exclusie) issue
in robotics to monitor.
iRobot mentioned it in the SEC
filings.
Rare
metals are a resource & costs ESG risk factor.
Health
Artificial
Intelligence:
compliance & privacy
#SDG8: Promote
inclusive and sustainable economic growth, employment and
decent work for all
Roughly
half the world’s population still lives on the equivalent of about
US$2 a day. And in too many places, having a job doesn’t guarantee
the ability to escape from poverty. This slow and uneven progress
requires us to rethink and retool our economic and social policies
aimed at eradicating poverty.
A
continued lack of decent work opportunities,
insufficient
investments and
under-consumption lead to an erosion of the basic social contract
underlying democratic societies: that all must share in progress. The
creation of quality jobs
will remain a major challenge for almost all economies well beyond
2015.
Sustainable
economic growth will require societies
to create the conditions that allow people to have quality jobs that
stimulate
the economy while not harming the environment.
Job
opportunities and decent working conditions are also required for the
whole working age population.
Global
unemployment increased from 170 million in 2007 to nearly 202
million in 2012,
of which about 75
million are
young women & men. Nearly 2.2 billion people live below
the US$2 poverty line
and that poverty
eradication is only possible through stable and well-paid jobs.
470
million jobs are needed globally for new entrants to the labour
market between 2016 and 2030.
Sustain
per capita economic growth in accordance with national circumstances
and, in particular, at least 7 per cent gross domestic product growth
per annum in the least developed countries
- Achieve higher levels of economic productivity through diversification, technological upgrading and innovation, including through a focus on high-value added and labour-intensive sectors
- Promote development-oriented policies that support productive activities, decent job creation, entrepreneurship, creativity and innovation, and encourage the formalization and growth of micro-, small- and medium-sized enterprises, including through access to financial services
- Improve progressively,
through 2030, global resource
efficiency in consumption and production and endeavour to decouple
economic growth from environmental degradation,
in accordance with the 10-year framework of programmes on
sustainable consumption and production, with developed countries
taking the lead
- By 2030, achieve full and productive employment and decent work for all women and men, including for young people and persons with disabilities, and equal pay for work of equal value
- By
2020, substantially reduce the proportion of youth not in
employment, education or training
(#NEET)
- Take
immediate and effective measures to eradicate forced labour, end
modern slavery and human trafficking and secure the prohibition and
elimination of the worst forms of child labour, including
recruitment and use of child soldiers, and by
- Protect labour rights and
promote safe and secure working environments for all workers,
including migrant workers, in particular women
migrants, and those in precarious employment
- By 2030, devise and
implement policies to promote
sustainable tourism that creates jobs and promotes
local culture and products
- Strengthen the capacity
of domestic financial
institutions to encourage and expand access to
banking, insurance and financial services for all
- Increase Aid
for Trade support for developing countries, in
particular least developed countries, including through the
Enhanced Integrated Framework for Trade-Related Technical Assistance
to Least Developed Countries
By
2020, develop and operationalize a global strategy for youth
employment and implement the Global
Jobs Pact of the
International Labour Organization
#SDG9: Build
resilient infrastructure, promote sustainable industrialization and
foster innovation.
Investments
in
infrastructure – transport, irrigation, energy and information and
communication technology
– are crucial to achieving sustainable development and empowering
communities in many countries. It has long been recognized that
growth in productivity and incomes, and improvements in health and
education outcomes require investment in infrastructure.
Inclusive
and sustainable industrial development is the primary source of
income
generation,
allows for rapid and sustained increases in living standards for all
people, and provides the technological solutions to environmentally
sound industrialization.
Technological
progress is the foundation of efforts to achieve environmental
objectives, such as increased resource and energy-efficiency. Without
technology and innovation, industrialization will not happen, and
without industrialization, development will not happen.
