Artificial intelligence (AI) is not only redoing industries but is also a big changeling force for minimizing risks with the investment given. The main driver of this particular change is the Sanlam Global Artificial Intelligence Fund, which is a very dynamic investment vehicle that combines modern technology with global equity markets. Led by accomplished professionals Chris Ford and Tim Day, this fund is not simply AI gambling; it’s a tool for identifying AI chances. Let us look at the specifics that make this fund a top pick among the technology-oriented investment landscape.

Disclaimer: This article is for informational presentations so you get an idea of how things are done in the middle of the day and what to do to improve them. It is important to bear in mind that includes a lot of risk. Always consult a financial advisor before investing in these challenging times. Maybe, this is the most noteworthy.

The Fund’s Mission: Capitalizing on the AI Revolution

Sanlam Global Artificial Intelligence Fund is focused on capital appreciation through investments in AI companies worldwide to cover AI systems development, AI adoption, and AI business model improvement. This is like having companies in different sectors such as healthcare technology, consumer goods, and technology giants like NVIDIA and Microsoft. It is different from a conventional tech fund; Sanlam’s investment approach is not confined since its target market includes companies of various sizes (nimble innovators to leaders who have been in the field for a long time) as long as AI is the main driver of the company’s success.

Key Stats (as of January 31, 2025):

• Fund Size: £1.37 billion (up 60% since 2023).
• Top Holdings: Alphabet (5.66%), NVIDIA (5.12%), Amazon (4.95%), Microsoft (3.91%), Tesla (3.20%).
• Ongoing Charge: 0.60%.

The Secret Sauce: AI-Powered Stock Selection

What sets this fund apart is its proprietary AI system, which scans thousands of financial statements for keywords like “algorithm,” “sensing technology,” and “data analytics” to identify companies embedding AI into their DNA. This isn’t just about tech buzzwords—managers Chris Ford and Tim Day combine this AI-driven screening with rigorous fundamental analysis, focusing on cash flow, balance sheets, and ESG factors.

The Process:

AI Screening: Filters companies with market caps above £250 million.

Sector Agnosticism: Half the portfolio spans non-tech sectors like healthcare and consumer goods.

Fundamental Checks: Ensures revenues are tied to AI through five pillars: algorithms, sensing, applications, computing power, and data.

Performance: Riding the AI Wave

While past performance isn’t guaranteed, the fund’s track record is compelling. Over the past year, it delivered a 37% return (as of January 2025), outperforming its Morningstar Global Tech benchmark by 5.6%. Recent updates highlight strategic shifts, such as trimming positions in overvalued “Magnificent 7” stocks and exploring opportunities in AI-driven healthcare and industrial automation.

Notable Milestones:

• Reached £1 billion in assets under management (AUM) by February 2024.
• Outpaced 90% of peers in the Sector Equity Technology category over three years.

The Brains Behind the Fund: Chris Ford and Tim Day

With decades of combined experience in global equities, Ford and Day bring a unique blend of tech-savvy and traditional investing rigor. Ford, a former Pictet and Schroders manager, emphasizes AI’s “transformative potential,” while Day’s background in US equities adds geographic balance. Their collaboration ensures the fund remains agile in volatile markets.

ESG Integration: Investing Responsibly in the AI Age

Sanlam doesn’t overlook sustainability. The fund integrates ESG factors by assessing corporate governance, environmental risks, and social impact. For instance, it avoids companies with opaque AI ethics and prioritizes those using AI to solve global challenges, such as climate modeling or medical diagnostics.

Risks and Considerations

While the fund’s growth focus offers upside, it’s not without risks:

• Concentration: The portfolio holds ~35 stocks, with significant exposure to smaller companies.
• Market Sensitivity: AI stocks can be volatile, as seen in 2022’s tech selloff.
• Valuation Pressures: High-growth sectors like AI often face valuation swings.

The Future of AI Investing: What’s Next?

AI adoption is increasing, and the Sanlam team has identified industries such as autonomous vehicles, precision agriculture, and AI-driven cybersecurity as the areas for growth. Chris Ford points out, “We are in the AI economic impact phase, up until this moment”.

Conclusion: A Fund Built for Tomorrow

The Sanlam Global Artificial Intelligence Fund is not only trendy but also strategically situated to succeed as AI changes the world economy. In the case of investors looking for the high-potential sector trend, it represents a good mix of AI-based quantitative analytics, careful sector diversification, and a team of experienced professionals and, therefore, a quite strong offer.
Interested in learning more? Explore the fund’s latest updates and holdings here.