03 Jul 2020

COVID-19’s potential impact on the new mobility ecosystem

COVID-19’s potential impact on the new mobility ecosystem

For Marketing Purposes:

FOR QUALIFIED INVESTORS ONLY– This document is reserved and must be given in Switzerland exclusively to Qualified Investors as defined by the Swiss Collective Investment Scheme Act of 23 June 2006 (as amended from time to time, CISA).

Left-side-image

As part of our guest blog series on thematic investing, MSCI and Lukas Neckermann share their views on Future Mobility. Although public transport and ride sharing services are taking a hit, some areas of the mobility ecosystem could stand to benefit, including micromobility and autonomous delivery.

Mobility-as-a-Service and the COVID-19 shock

Even prior to the COVID-19 crisis, we discussed in our first Thematic Insight1 how the world might be in the midst of the largest transformation in mobility since the advent of the automobile some 120 years ago. Will the current pandemic prove to be a system shock that accelerates the demise of inflexible and unprofitable business models and acts as a catalyst for the growth of more digital and service-oriented businesses in the mobility space? How might industry-wide headwinds affect the new business models and technologies at least in the short-term? 

New industries naturally go through a series of iterations before becoming established. In the first decade of the automobile revolution, the rush to gain a foothold led to a flood of companies producing cars. In 1899 alone, some 60 car manufacturers opened their doors, including Renault, Opel, Fiat, Packard, and the Electric Vehicle Company of New York.2 By the time Henry Ford launched his Model T in 1908, there were 485 different companies producing vehicles in the United States.3

Within the last decade, we have seen a similar dramatic rise of autonomous technology, manufacturing and mobility services companies, fueled by billions in mostly venture capital funding. In California alone, as of May 2020, there were 66 technology companies and manufacturers with permits to test autonomous vehicles.4

A growing database collated by Neckermann Strategic Advisors has over 700 public and private companies involved with different elements of the autonomous Mobility-as-a-Service (MaaS) value chain. A list that doesn’t yet include all the producers of electric, two-wheeled and public transport that contribute to the full mobility ecosystem.

Read the full Future Mobility insight by MSCI or find out more about MSCI’s thematic indices

Left-side-image

MSCI would like to thank Lukas Neckermann, Managing Director of Neckermann Strategic Advisors, for useful discussions and insightful analysis of this megatrend which have greatly facilitated the preparation of this article.

Lukas Neckermann is the author of three books: “The Mobility Revolution” (2015), “Corporate Mobility Breakthrough 2020” (2017) and “Smart Cities, Smart Mobility: Transforming the Way We Live and Work” (2018).

Watch Lukas’ video on Future Mobility

The view from Lyxor

Our world is changing. Technological breakthroughs, economic evolution and the climate emergency are reshaping reality for billions of people. Will your portfolio keep up? 

Each of our Thematic ETFs combines human insight, natural language processing and data analysis techniques in a unique way to identify the companies that matter most, and ensure your portfolio stays one step ahead. As a pioneering ETF provider with a history of innovation, we’ve gone the extra mile to build some truly state-of-the art funds for a new state of mind. 

We’re incredibly excited about this range and hope you can join us in preparing portfolios for change.

Target TER for these Thematic ETFs is 0.45% but has temporarily been decreased to 0.15% until September 2021.

1 “Future Mobility: Understanding a new transport ecosystem”, MSCI, April 2020.
2James Flink: "The Automobile Age" (1990), via https://www.scaruffi.com/politics/cars.html
3https://www.history.com/topics/inventions/automobiles
4https://www.dmv.ca.gov/portal/dmv/detail/vr/autonomous/permit

MSCI Disclaimer

The information contained herein (the “Information”) may not be reproduced or disseminated in whole or in part without prior written permission from MSCI. The Information may not be used to verify or correct other data, to create indexes, risk models, or analytics, or in connection with issuing, offering, sponsoring, managing or marketing any securities, portfolios, financial products or other investment vehicles. Historical data and analysis should not be taken as an indication or guarantee of any future performance, analysis, forecast or prediction. None of the Information or MSCI index or other product or service constitutes an offer to buy or sell, or a promotion or recommendation of, any security, financial instrument or product or trading strategy. Further, none of the Information or any MSCI index is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. The Information is provided “as is” and the user of the Information assumes the entire risk of any use it may make or permit to be made of the Information. NONE OF MSCI INC. OR ANY OF ITS SUBSIDIARIES OR ITS OR THEIR DIRECT OR INDIRECT SUPPLIERS OR ANY THIRD PARTY INVOLVED IN THE MAKING OR COMPILING OF THE INFORMATION (EACH, AN “MSCI PARTY”) MAKES ANY WARRANTIES OR REPRESENTATIONS AND, TO THE MAXIMUM EXTENT PERMITTED BY LAW, EACH MSCI PARTY HEREBY EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. WITHOUT LIMITING ANY OF THE FOREGOING AND TO THE MAXIMUM EXTENT PERMITTED BY LAW, IN NO EVENT SHALL ANY OF THE MSCI PARTIES HAVE ANY LIABILITY REGARDING ANY OF THE INFORMATION FOR ANY DIRECT, INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING LOST PROFITS) OR ANY OTHER DAMAGES EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES. The foregoing shall not exclude or limit any liability that may not by applicable law be excluded or limited.

This article is for informative purposes only, and should not be taken as investment advice. Lyxor ETF does not in any way endorse or promote the companies mentioned in this article. The opinions expressed by Lukas Neckermann are his own, and do not necessarily reflect the views of Lyxor International Asset Management or Societe Generale. Capital at risk. Please read our Risk Warning below.

Important information

FOR QUALIFIED INVESTORS ONLY– This document is reserved and must be given in Switzerland exclusively to Qualified Investors as defined by the Swiss Collective Investment Scheme Act of 23 June 2006 (as amended from time to time, CISA).

This document has been provided by Lyxor International Asset Management that is solely responsible for its content.

LYXOR INDEX FUND - Lyxor MSCI Digital Economy ESG Filtered (DR) UCITS ETF - Acc, domiciled in Luxembourg, LYXOR INDEX FUND - Lyxor MSCI Millennials ESG Filtered (DR) UCITS ETF - Acc, domiciled in Luxembourg, LYXOR INDEX FUND - Lyxor MSCI Smart Cities ESG Filtered (DR) UCITS ETF - Acc, domiciled in Luxembourg, LYXOR INDEX FUND - Lyxor MSCI Disruptive Technology ESG Filtered (DR) UCITS ETF - Acc, domiciled in Luxembourg, LYXOR INDEX FUND - Lyxor MSCI Future Mobility ESG Filtered (DR) UCITS ETF - Acc, domiciled in Luxembourg, (Registered Funds) are collective investment schemes approved by the Swiss Financial Market Supervisory Authority FINMA (FINMA) as foreign collective investment schemes pursuant to article 120 of the Swiss Collective Investment Schemes Act of 23 June 2006 (as amended from time to time, CISA) for distribution in Switzerland to non-Qualified Investors as defined in the CISA. The above mentioned Exchange Trade Funds (ETFs) are listed on the SIX Swiss Exchange.

Financial intermediaries (including particularly, representatives of private banks or independent asset managers, Intermediaries) are hereby reminded on the strict regulatory requirements applicable under the CISA to any distribution of foreign collective investment schemes in Switzerland. It is each Intermediary’s sole responsibility to ensure that (i) all these requirements are put in place prior to any Intermediary distributing any of the Funds presented in this document and (ii) that otherwise, it does not take any action that could constitute distribution of collective investment schemes in Switzerland as defined in article 3 CISA and related regulation.

Any information in this document is given only as of the date of this document and is not updated as of any date thereafter. 

This document is for information purposes only and does not constitute an offer, an invitation to make an offer, a solicitation or recommendation to invest in collective investment schemes.  This document is not a prospectus as per article 652a or 1156 of the Swiss Code of Obligations, a listing prospectus according to the listing rules of the SIX Swiss Exchange or any other trading venue as defined by the Swiss Financial Market Infrastructure Act of 19 June 2015 (as amended from time to time, FMIA), a simplified prospectus, a key investor information document or a prospectus as defined in the CISA. 

An investment in collective investment schemes involves significant risks that are described in each prospectus or offering memorandum. Each potential investor should read the entire prospectus or offering memorandum and should carefully consider the risk warnings and disclosures before making an investment decision. 

Any benchmarks/indices cited in this document are provided for information purposes only.

This document is not the result of a financial analysis and therefore is not subject to the “Directive on the Independence of Financial Research” of the Swiss Bankers Association. 

This document does not contain personalized recommendations or advice and is not intended to substitute any professional advice on investments in financial products. 

The Representative and the Paying Agent of the Funds in Switzerland is Société Générale, Paris, Zurich Branch, Talacker 50, 8001 Zurich. 
The prospectus or offering memorandum, the key investor information documents, the management regulation, the articles of association and/or any other constitutional documents as well as the annual and semi-annual financial reports may be obtained free of charge from the Representative in Switzerland.

In respect to the units/shares of the Funds distributed in and from Switzerland, place of performance and jurisdiction is at the registered office of the Representative in Switzerland.