HgT — A B2B software play driving AI adoption

After more volatile public markets and an ‘uncertainty pause’ in global IT spending in early 2025, the environment has become more favourable for HgT, leading to positive NAV TR in Q2 and Q3. We remain convinced in its equity story as a strong compounder benefiting from the secular digitalisation trend, as illustrated by its healthy NAV TR of 14.5% and 17.8% per year over the five and 10 years. While the consequences of a platform shift like the one now triggered by AI are difficult to predict, HgT’s investment manager is experienced in navigating such disruptive changes and has built extensive AI capabilities to support its portfolio in the adoption journey, with some initial promising outcomes. HgT’s shares now trade at a 16.1% discount to NAV, versus a 10-year average of 8%.