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Emerge Canada Inc. Emerge Canada Inc.
  • About
    • Our Team
    • Our Story
    • Regulatory Documents
  • Products
    • Emerge ARK ETFs
      • EARK – Emerge ARK Global Disruptive Innovation ETF
      • EAGB – Emerge ARK Genomics & Biotech ETF
      • EAUT – Emerge ARK Autonomous Tech & Robotics ETF
      • EAFT – Emerge ARK Fintech & Biotech ETF
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      • EAXP – Emerge ARK Space Exploration ETF
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      • Emerge ARK Global Disruptive Innovation ETF
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      • Emerge ARK AI & Big Data ETF
      • Emerge ARK Space Exploration ETF
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      • EPWR – Emerge EMPWR Unified Sustainable Equity ETF
      • EPCA – Emerge EMPWR Sustainable Dividend Equity ETF
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      • EPCH – Emerge EMPWR Sustainable Emerging Markets Equity ETF
      • EPGC – Emerge EMPWR Sustainable Select Growth Equity ETF
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      • Emerge EMPWR Unified Sustainable Equity ETF
      • Emerge EMPWR Sustainable Dividend Equity ETF
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Apr 11

Innovation Is a Hedge Against Inflation

  • April 11, 2022
  • Insights

Allocating to innovation requires a long view of how the world will improve and solve its problems. Innovation solves issues in healthcare, industrial development, e-commerce, and transportation to name a few. While disruptive innovation themes are fast-moving, sometimes the stocks themselves need time to overcome hurdles, adoption rates and understanding.

The miracle of innovation is the ability of the world to develop solutions and then for companies to come forward with new technologies. Who would have ever dreamed that 3D printing can make hearing devices, shoes, liver patches, jet engine parts, and new homes? The unthinkable multi-step production models are being condensed right before our eyes. This is resulting in reduced costs, faster development cycles, and the ability to produce in locations where previously this technology was unavailable.

If we need to deliver medicines and vaccines to parts of the world where roads are not developed, then drones can make a meaningful contribution to saving lives. These drones are powered by lightweight batteries with endurance. In places such as South Africa and India, this is happening right now.

So, how can fast-moving innovations, which will improve our quality of life, help fight inflation?

The sub-advisor for Emerge Canada, ARK Invest, conducts long-term research and develops market size estimates and forecasts which extend out past 5 years.  Just some snippets from ARK Invest’s Big Ideas 2022 report:

  • Delivery Drones–are expected to contribute $230 Billion in delivery revenue by 2030[1]
  • Multi-cancer Screening–Liquid biopsies should scale exponentially over the next five years[2]
  • Digital Worlds–Digital Wallets could command nearly $50 trillion in equity market capitalization by 2030[3]
  • Electric Vehicles–Global EV Sales could scale to 40 million units in 2026
  • “By automating the tasks of knowledge workers, AI should boost productivity and lower unit labor costs significantly. “ AI training costs are expected to drop 60% by 2030.[4]
  • “Digital entertainment, advertising and e-commerce is expected to grow at an 18% compound annual growth rate over the next five years.”[5]

Innovation is deflationary, not inflationary.

Within each of these areas, demand will cause new innovations to experience price declines.  For example, the cost of artificial intelligence training has dropped dramatically. The cost of robots and cobots has decreased enabling more businesses to automate and help contend with labor shortages. Labor shortages are causing wages to rise, while automation will hopefully solve some service issues and ease the burden. Tesla has put a major strategic focus on the development of the Tesla Bot “Optimus” to help curb labor shortages for redundant and menial tasks.[6] The cost of batteries has continued to decline and will enable an explosion of electric vehicles and drone usage. With more electric vehicles being to meet demand, the cost will ultimately decline as they are less expensive to maintain and they are not fossil fuel dependent.

And lastly when the cost of sequencing a genome goes below $1000 then insurance providers and health care institutions can recommend, for prevention, the use of sequencing. Enabling the early detection of abnormalities through sequencing may dramatically decrease healthcare spending. Gene-editing technology has the ability to cure thousands of monogenic diseases, which can extend quality of life and reduce treatment costs.[7]

Due to the fears of inflation for investors and consumers there is a sense of urgency to lower costs. For a company to lower costs, they have to find ways to solve pain points economically. They could have struggles with supply chain issues, packaging, and e-commerce challenges. Finding innovative ways to transport materials, package goods, and for faster delivery means margin improvements without prices going higher. If these companies invest in innovative ways to keep their costs down and meet demand, then they contain inflation and help consumers maintain their purchasing power.

Most importantly, the growth rates expected in the above-mentioned areas of innovation exceed on average over 30% compound average increases in enterprise value based on ARK’s research over the next ten years. This wildly surpasses any forecasts for inflation.

  • Equity market returns in the 5 major innovation platforms expected over the next ten years expect a CAGR and Equity market capitalizations of:[8]
    • Artificial Intelligence 26%  $108 Trillion
    • Battery Technology 35%  $32  Trillion
    • Blockchain 43%  $49  Trillion
    • Robotics 51%   $10  Trillion
    • Gene Sequencing 40%  $3.6 Trillion

Important to note, the investor experience in innovation may be volatile at times. As new technologies develop and demand increases, they are subject to evaluation and market pricing by analysts and the street, which may be unaware of the true value developing. Investors in innovation should have a long-term time horizon and be prepared for volatility to benefit from the long-term potential.

For more information on Emerge Canada Inc’s offerings please visit www.emergecm.ca or contact support@emergecm.ca.

The above information is for informational purpose only. Emerge capital management is not responsible for any of the above-mentioned fields and is not responsible for performance of any sectors or particular holdings.

 

[1] ARK Investment Management LLC. (2022). “Big Ideas 2022.” 92. Retrieved from www.ark-invest.com.

[2] ARK Investment Management LLC. (2022). “Big Ideas 2022.” 12. Retrieved from www.ark-invest.com

[3] ARK Investment Management LLC. (2022). “Big Ideas 2022.” 93. Retrieved from www.ark-invest.com

[4] Zatara. “Artificial Intelligence - Enabling Humans to Become Superhuman.” Medium, Coinmonks, 13 Mar. 2022, https://medium.com/coinmonks/artificial-intelligence-enabling-humans-to-become-superhuman-bd82c574d6d4.

[5] ARK Investment Management LLC. (2022). “Big Ideas 2022.” 23. Retrieved from www.ark-invest.com

[6] https://fortune.com/2022/01/27/elon-musk-tesla-optimus-robot-labor-shortage/

[7] ARK Investment Management LLC. (2022). “Big Ideas 2022.” 77. Retrieved from www.ark-invest.com

[8] ARK Investment Management LLC. (2022). “Big Ideas 2022.” 6. Retrieved from www.ark-invest.com

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Anitha Anumala
Operations Analyst
aanumala@emergecm.ca

 

Anitha is a CSC and CPM certified finance professional, and has completed her Masters from Osmania University as a finance major. Prior to joining Emerge, Anitha worked for TD Waterhouse as an Investment Representative, completing unsolicited client orders and helping clients with their registered plans, including their RRSPs, TFSAs, RDSPs and RESPs. Outside of work, Anitha like exploring new places around Toronto, watching documentaries, spending time with close ones, and experimenting with various cuisines.

 

SOPHIE MASSON
Marketing Associate

 

Sophie is a Marketing Associate at Emerge. She graduated Magna Cum Laude from McGill University and holds a bachelor’s degree in English Literature. Prior to working at Emerge, Sophie completed a marketing internship in the Fintech industry. In her free time, Sophie enjoys reading at various coffee shops, working out, and exploring the city of Toronto

 

Darren Gazdag
Director of Business Development,
Eastern Canada
dgazdag@emergecm.ca
P: (437) 826-7486

 

Darren has spent his 20+ year career developing, building and growing strategic relationships within the financial service industry. A charismatic leader with a proven track record of onboarding and partnering with Advisors and creating lasting relationships. Darren’s deep experience with asset managers, independent wealth managers, and some of Canada’s biggest financial institutions extends from front line client facing roles to the senior management.

With strong leadership skills, excellent product knowledge and a consultative selling approach, Darren brings a proven ability to drive the company’s ongoing expansion efforts.

At Emerge Canada, Darren is responsible for working with advisors and financial professionals across Canada and providing them with solutions to meet the needs of their clients.

 

AVIPSHA MITRA
VP of Product Development & Risk
amtira@emergecm.ca
437-253-0594

 

Avipsha Mitra is the Vice President of Product Development and Risk Management at Emerge Canada Inc. Avipsha has over 13 years of experience in the financial industry.

Prior to joining Emerge Canada, she worked at The Northern Trust Company where she held various leadership positions and worked with institutional investors and asset managers, globally. Her experience spans across client servicing and product solutioning, managing operations and financial accounting.

Avipsha completed her Bachelor’s degree as well as Masters in Accounting and Finance from Indian Institute of Management, Kozhikode. She has also advanced her education on Design Thinking – Innovation of Products and Services from Massachusetts Institute of Technology.

Avipsha enjoys travelling and high altitude trekking. She has successfully  completed five treks in the Himalayan region.

 

Todd Riley
Director of Investment Management Services,
Western Canada
triley@emergecm.ca
P: (236) 259-4056

 

Todd Riley is a seasoned professional with over 25 years in the financial industry. He started his career at BMO Nesbitt Burns in Vancouver and went on to work as a VP of Sales and Marketing for several Mutual Fund companies as well as one of the oldest Venture Capital firms in technology startups. Todd has completed the Canadian securities course as well as the Conduct and handbook course, the Mutual Funds course. Todd is a graduate of both Concordia University and the Sauder School of business with a diploma as a Mortgage Broker. Todd is an avid skier in the winter on the slopes as well as a water skier in the course in the summer. Todd and his wife Maureen live in BC spending time with their kids and long walks with our two Aussi Shepheard.

 

Andrew Hungerbuhler
Director of Business Development,
Eastern Canada
ahungerbuhler@emergecm.ca
P: 514-868-8551

 

Andrew is senior sales executive leveraging diverse experience of over 25 years in global asset management, mentoring sales teams, empowering investment advisors to increase risk-adjusted returns and ultimately increase the company’s market share. An entrepreneurial mindset, with experience initiating, heading and managing an investment wholesaling firm for 7 years. In depth understanding of Private Equity, Hedge, Venture Capital, ESG, Emerging Markets, ETF’s,  Private Debt, SMA strategies and the rigor needed to manage a sales territory within a global investment  company. Outstanding communicator; committed to turning problems into solutions  combined with a pedagogical “Teach to Teach” approach to capacity development.  A collaborative leader driven to equip advisors with unique sales strategies to help them sign high net worth clients and providing the necessary tools to achieve their goals and ultimately helping the end user achieve their investment goals.  Andrew is based in Montreal, Canada, speaks English and French and covers Eastern Canada from Ottawa to the Maritimes

Hoyt Lui
Operations Analyst

 

Hoyt Lui is the Operations Analyst at Emerge Canada Inc. Prior to joining Emerge, Hoyt conducted various quantitative projects to create trading and investing strategies. Before then, he worked at Scotiabank Global Banking and Markets, supporting P&L analysis, balance sheet reconciliation and settlement of securities in the bank’s global investment portfolios.

Hoyt received his Master of Finance from Queen’s University, and a BA in Economics from the University of Waterloo. He spends his spare time enjoying outdoor activities with his friends and family, working out at the gym, and geeking out over his next big projects.

 

Vanessa Ho
Sales Director, Ontario
vanessaho@emergecm.ca

 

Vanessa has prior institutional experience at Goldman Sachs and high net worth private banking experience at Credit Suisse. She understands the challenges that advisors face in the constantly changing macroeconomic landscape, and services and supports investment advisors and portfolio managers in Ontario and Quebec to grow their business.

Mackenzie Wood
Advisory Services Manager

 

Mackenzie Wood is the Advisory Services Manager at Emerge. Mackenzie joined the Emerge team in June 2019. Prior to joining Emerge Mackenzie graduated Magna Cum Laude from Buffalo State College where he achieved a Bachelor of Science degree in Economics with a concentration in Finance. As an international student from Ontario, Canada, he played for four years for the Buffalo State Men’s Ice Hockey team. Mackenzie was honored as the 2019 Male Scholar-Athlete of the year and was also nominated to The State University of New York Athletic Conference Men’s Ice Hockey All-Conference Team in 2019. Mackenzie now lives in Buffalo, NY, and often visits family in Simcoe, Ontario.

Allison Langley
Marketing Manager
alangley@emergecm.ca

 

Allison Langley is the Marketing Manager at Emerge. Allison joined the Emerge team officially in June of 2018. She has spent the summers working at Emerge since its inception; supporting advisors, attending conferences and contributing to the founding of the firm. Prior to joining Emerge Allison achieved a Bachelor’s of Science in Biology from Loyola University Maryland where she was the recipient of the Presidential Scholarship, Head Music Director of WLOY Loyola Radio and a member of the women’s rowing team. Allison has dedicated much of her summers to Erie County Medical Centre where she was a research volunteer in the Head & Neck Oncology and Plastics Department. Allison splits her time between Toronto and Buffalo while spending time with her dog, Annie.

Lisa Lake Langley
President, CEO & Founder
llangley@emergecm.com

Lisa Lake Langley is the CEO & President of Emerge Canada Inc. Lisa has over 30 years of investment management industry experience. Prior to founding Emerge, Lisa has worked globally in the financial industry, she worked for over 20 years in Toronto as the President and COO of First Asset Advisory Services where she raised over a billion in assets, and successfully sold the company. She then continued on to work with the Investment Industry Regulatory Organization of Canada (IIROC) as the Vice President of Member Services. Following this Lisa became the Managing Director of Global Product Development for Alliance Trust in Scotland. Lisa then moved back to the United States where served as the COO and Partner for Sandhill Investment Management in Buffalo, NY. She founded Emerge to provide global support to investment managers.

Currently the only female majority owner of a fund/ETF company in Canada, Lisa Langley was named ‘CEO of the Year’ by the 2021 Wealth Professional Awards (WPAs).

She graduated with a BA in Finance from Loyola University Maryland and received her Executive MBA from Kellog-Schulich School of Business Program.

Maha Waseem
Marketing Coordinator

 

Maha likes to call herself an avid researcher and a lover of all things marketing. She holds a Master’s in Management with a focus on Marketing from Ryerson University and a Bachelor’s in Advertising, PR and Media from Middlesex University. Prior to joining Emerge, Maha worked in the education sector as a researcher and a marketer. She also creates marketing content for agencies on a freelance basis. In her free time, Maha enjoys spending time in the great outdoors, catching up with loved ones, and experimenting in the kitchen.

 

MOHAMMAED UJJAINWALA
Operations Analyst


Mohammed is a CFA charterholder and a certified FRM. He has his Bachelors and Masters in Commerce from Mumbai University. Prior to joining Emerge, Mohammed worked with with Fairstone Financials as a Sr. Financial Analyst and with Morgan Stanley’s Product Control Team where he analyzed the drivers of P&L and performed attribution analysis of portfolios. He also worked at SS&C GlobeOp’s where he performed valuations and independent price verifications of OTC Derivatives for Hedge funds.
Mohammed loves travelling and adventure sports, is a self-proclaimed foodie and enjoys spending time with friends and family.

Desmond Alveres
CFO & Director
dalvares@emergecm.com

MBA Finance, Accounting & Strategy, Schulich School of Business, Toronto

BEng Mechanical Engineering, Queen Mary College, London University, UK

Chartered Professional Accountant, Certified Management Accountant (CPA, CMA) with the Chartered Professional Accountant of Ontario

Chartered IT Professional (CITP), Member of British Computer Society (MBCS) with the Chartered Institute for IT

Desmond Alvares is the CFO & Operations Managers at Emerge Canada Inc. Desmond joined Emerge in December 2018. Desmond Alvares’ career spans well over 30 years. Desmond has held senior leadership roles in; KPMG Risk and Resilience Advisory, Investment Industry Regulatory Organization of Canada (IIROC), Investment Management (Private Banking, Investment Banking, Brokerage Houses, Wealth Management and Mutual Funds), Insurance and Retail (Branch Banking, Electronic Banking, Commercial and Personal Loans, Credit Cards, Mortgages). Desmond is a Finance, Operations and Information Technology professional with experience in Business, Project and Finance Management. He received a degree in Mechanical Engineering from Queen Mary College, London University and then received his MBA in Finance, Accounting & Strategy from the Schulich School of Business in Toronto. Desmond currently resides in Toronto with his family.