Thematic investing: A practitioner’s guide
Thematic investing presents equity investors with the unique opportunity to gain exposure to forces that are rapidly reshaping the global economy. Matt Bullock, EMEA Head of Portfolio Construction & Strategy, explores the opportunity-set from a client point of view.
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- With the pace of change in the global economy increasing, investors have the opportunity to hone their exposure to innovative business models that will command a greater share of aggregate corporate earnings.
- Thematic investing provides an avenue for equity investors to increase their allocations to these transformational forces across an array of sectors.
- To maximize the benefits of thematic investing, investors must select themes that are neither too narrow nor too broad in scope while also avoiding the practice of “theme washing”.
Thematic investing is a topic that comes up a lot in client conversations. As explored in our recent article, Access transformational change with thematic investing, a select number of foundational themes are reshaping the world and, consequently, will likely become major drivers of future equity market returns. It is a different way of approaching the equity opportunity-set but needs to be approached in the right way. Here, we provide a guide to key considerations.Download PDF