The Car of the Future Vue is a portfolio dedicated to investing in the future of the automotive industry. Every quarter our investment team conducts a thorough review of this portfolio, taking into account recent earnings and related news flow, and provides our investors with an update on its performance and any changes made to the Vue.
The Car of the Future Vue has had a solid performance over the last year (1 Mar 2017 – 28 Feb 2018), generating a total return of +24.42%. As a means of comparison, the ASX returned +10.10% over the same period.
The stocks that contributed most to performance were TE Connectivity (NYSE: TEL+38.96%), Autoliv (NYSE:ALV+37.70%), Tesla (NASDAQ: TSLA +35.64%), and Infineon (ETR:IFX +30.29%)
Three of our strong performing automotive industry stocks
Autoliv Inc. (NYSE:ALV)
One of the factors for Autoliv’s strong performance over the last year is that in September 2017 the company announced it intends to split into two companies following a strategic review by management.
The Swedish firm said it intended to create two publicly traded companies, one focused on legacy Autoliv businesses such as passive safety equipment such as airbag systems – and one focused on electronics, which includes radar products and advanced driver assistance software which will be named “Veoneer”.
The company believes both businesses are undervalued and hopes the split will make them both more appealing to investors. The split will most likely be completed by the third quarter of 2018.
TE Connectivity Ltd (NYSE:TEL)
TE Connectivity was recently named a 'Top 100 Global Innovator' for the seventh consecutive year by Clarivate Analytics. This report which is released annually, profiles the most innovative organizations in the world, that are consistently focused on strong research and development activities, while protecting their IP and achieving commercial success.
The 2017 Top 100 Global Innovators report honours the most innovative corporations and institutions in the world by analysing proprietary data including patent volume, patent-grant success rates, global reach and invention influence.
Infineon Technologies AG (ETR:IFX)
German chipmaker Infineon Technologies and Chinese auto manufacturer SAIC Motor Corp. have agreed to set up a joint venture to make power modules (an Infineon specialty) for the Chinese electric vehicle market.
The joint venture, to be named SAIC Infineon Automotive Power Modules and headquartered in Shanghai, will make the power modules at Infineon’s plant in Wuxi, China. Volume production is due to start in the second half of 2018.
SAIC Motor will hold a 51 percent stake in the joint venture and Infineon will own the rest. Although China’s auto market for conventional automobiles (ICE) slowed sharply in 2017, an industry body said earlier this year sales of new energy vehicles (NEV) would likely grow by 40 percent in 2018, topping 1 million vehicles.
The Chinese plug in electric vehicles (PEV) market represented over 50% of the 1.2 million plug-in EVs sold worldwide in 2017.
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
Past Performance is not a reliable indicator of previous performance. See how our performance is calculated.