Why invest in edutainment?

We develop skills and acquire knowledge best when we are actively engaged in the learning process. Edutainment brings the solutions, content, systems and tools that enable the world of digital media and entertainment into an educational setting. This in turn makes the learning process not only more cost-efficient and scalable, but also more personal, interactive and effective.

What is more, innovations provided by edutainment are making education more accessible and affordable for people everywhere. Digital solutions can reach students in remote regions of the world at a fraction of the costs of the traditional approach, aligning well with the United Nations’ 4th Sustainable Development Goal.

The digitalization of society and the spread of automation also imply fundamental changes to job profiles worldwide and drive a need for continuous retraining and upskilling. Innovative solutions and technologies can help address these issues, providing the flexibility to learn anytime and anywhere.

Why now?

The education industry – one of the most important sectors of the global economy – is undergoing a digital revolution. A booming job market, the “Great Resignation”, and the shift to hybrid forms of learning and working are creating tremendous business opportunities for companies in the EdTech sector. In the post-pandemic landscape, new and more efficient forms of education delivery are emerging and redefining our understanding of what education is, who provides it, and how.

In the Credit Suisse (Lux) Edutainment Equity Fund, we have built a portfolio of disruptors and innovators that are improving the efficiency and effectiveness of education, lifelong learning, and career mobility. We seek exposure to companies that are helping to lower the rising cost of education, enable more accessible, flexible, and engaging learning, and improve access to jobs and career enhancement opportunities.

Risks

• No capital protection: investors may lose part or all of their investment in this product.
• Political developments concerning the education industry could have a significant adverse impact on the edutainment sector.
• Exposure to smaller companies can result in elevated short-term volatility and may carry liquidity risk.
• A higher concentration in specific sectors may fall out of investor favor at certain points in time.
• There are risks arising from a factor bias toward a growth investment style with an overweight in small- and mid-cap stocks in particular. 
• Since the fund focuses on highly innovative companies, volatility can be significantly elevated. Exposure to emerging markets may result in even higher volatility.