"I would also say, some of the valuations around are not attractive, a company recently raised more than $100mn and it isn’t actually sure what its product will be yet.”
Levene says he regards wealth management as being one of the areas where AI will have a substantial impact that will create an investment opportunity.
He previously told FT Adviser that he was sceptical of the investment case for some of the robo-advisers that came to the market, but says there are now “tens” of firms he believes will disrupt the wealth management market – “they are too early at this stage for me to invest in but we are watching them,” Levene says.
Seager-Scott says one should not dismiss thematic investments entirely, but instead be conscious of the risks.
He says: “That’s not to say I dismiss thematic investing out of hand, I just think one has to be wary of mistaking a great story for an investment opportunity. As for how to buy it, I don’t think there’s a definitive answer, and it is important to look at a portfolio overall.
"If you invest through funds that already look to tilt towards themes such as AI, then you probably don’t want to over-concentrate with a specialist fund.
"However, if your managers are sticking-to-their-knitting in other styles and you believe there is long-term investment scope, then adding a specialist fund is probably a reasonable approach – but be prepared for some hype-driving volatility, which may not be in the direction you would like.”
David Thorpe is investment editor of FTAdviser
