Why resilient supply chains are helping drive equity outperformance

Quick recap

Pandemic disruptions revealed supply chain fragility, while geopolitical risks, protectionism, and decarbonisation needs have accelerated change. The world is shifting towards localised supply chains, increased security spending, intensified technology competition, reshoring of industries, and a stronger focus on security and infrastructure.

As a result, traditional supply-chain models have been challenged, and companies are adapting to meet the growing demands from this change. The reshaping of global supply chains, technologies, and energy systems therefore offers significant investment opportunities.

There are three broad supply chain themes that we believe offer opportunities for investors:

1. Resilient supply chains

We invest in companies that are shortening, simplifying, and localising their supply chains. This reduces their vulnerability to disruption caused by events like Covid-19, Brexit, and political trade barriers.

Trade transformation – companies operating in sectors such as logistics, reshoring, domestic manufacturing, technology, and energy independence.

National security, cyber and defence – companies exposed to rising defence and public safety spending, and cybersecurity.

2. Technology independence

We like companies that benefit from governments prioritising domestic intellectual property, research and development, and production. This ensures technological independence amid geopolitical tensions.

Robotics and automation – companies exposed to industrial automation and design, construction, and the operation of robots.

Sustainable technology – firms working with renewable energy sources like solar panels and wind turbines, and electric vehicles (EVs).

3. Decarbonisation and energy security

We favour companies that are onshoring their energy production and investing in local energy sources and renewables to improve energy efficiency and security. Raw materials are essential components needed for the technology and energy transition.

Resource scarcity – businesses exposed to raw materials needed for the energy evolution and technology developments. These include companies involved in mineral extraction and processing, those exposed to compounds and advanced materials, and renewable fuels and infrastructure.

Sustainable infrastructure – corporations working with energy-efficient buildings and electric trains.

Potential winners in logistics infrastructure

Our thematic approach – combining quantitative and qualitative analysis – is designed to identify the most likely winners from supply chain transformation. Among them are WiseTech Global and Descartes Systems Group, two companies enabling the digital infrastructure that underpins more resilient and adaptive supply chains.

Australia's WiseTech Global is a leading provider of freight forwarding and customs execution software. Its CargoWise platform is consolidating a fragmented logistics market, driven by the digitalisation of global trade and rising regulatory complexity. For the portfolio, WiseTech offers differentiated exposure to logistics infrastructure software, with resilient subscription economics and a customer base anchored by major freight forwarders.

Canadian multinational technology company Descartes Systems Group operates the Global Logistics Network, a platform connecting shippers, carriers, and customs authorities. As e-commerce and compliance demands grow, Descartes’ deeply integrated network provides essential connectivity and high barriers to entry. This investment broadens our exposure to logistics software and strengthens our positioning within the resilient supply chains pillar.

Final thoughts…

Supply chain evolution is continuing to change how companies make and ship their goods. This transformation is likely to span decades, presenting an exciting opportunity for investors to spot long-term success stories.

Companies are selected for illustrative purposes only to demonstrate the investment management style described herein and not as an investment recommendation or indication of future performance.