There are trends that come and go through our lives at different speeds and with different impact - trends that are either forgettable or occasionally memorable. And then there are the profound socio-economic and political forces of change that permanently transform how we live and work.
Thematic investing goes far beyond trendspotting to identify those transformative forces of change that could permanently alter our lives and behaviors, creating unprecedented opportunities - opportunities that come with a new future shaped by change.
Catalysts of Change
It might begin with an invention or idea. It could result from a decision or reaction. It could happen overnight or even over decades. Whatever it is, it permanently transforms our lives in the spirit of progress. Over time, some of those catalysts of transformative change have included:
Capitalize on Change:
The Potential Benefits of Thematic Investing
Thematic investing requires a fundamental understanding of the impact of long-term economic, political, and social trends on regions and sectors, which reveals investable opportunities. Thematic investors develop proprietary views on how the second- and third-order effects of structural trends will create hot spots or discontinuities in certain sectors and regions where value and risk will be concentrated."
- McKinsey & Company, From Indexes to Insights: The Rise of Thematic Investing, December 2014