What is thematic investing?
Thematic investing aims to identify the companies that will succeed in the future by focusing on the structural forces shaping our world today: megatrends.
Benefits of thematic investing
Investing in themes has a number of potential benefits:
Long-term capital growth
Active stock selection
Access to early-stage companies
Megatrends are the powerful socio-economic, environmental and technological forces that transform our planet and affect the world economy in a persistent and profound manner. For example, sustainability, the network economy and globalisation are megatrends.
We know that companies that are able to adapt by creating innovative products and services which meet the new demands of this changing world should benefit from unrivalled growth potential.
Where Megatrends connect
Our thematic strategies are positioned where several megatrends meet. The more megatrends at play in any area, and the stronger their influence, the more compelling the investment theme becomes.
Our range of thematic strategies
To maximise the potential pool for investment opportunities, we adopt a global approach that ignores the constraints of benchmarks. Our strategies typically focus on companies providing solutions to global challenges and aim to deliver better outcomes not just for investors, but for everyone.
Investing for a better future
Sustainability has long been central to our company, which is why we are at the forefront of our industry in incorporating environmental, social and governance (ESG) criteria into all our investment processes – not least for our thematic strategies.
Integrate ESG factors into all investments processes
Engage with companies and goverments
Exercise voting rights
Act as stewards of responsible investing
Be transparent with clients on EGS criteria
“Traditional investing is based on indices that list companies by their market value, i.e. firms that have succeeded in the past. Our thematic strategies aim to harness the potential of companies that will succeed in the future.”
What are the risks?
We believe that investing in themes offers great potential for investors. There are risks however, and it’s therefore important to find an experienced manager to manage these.
Thematic strategies could invest in emerging markets, where investments can be higher risk and more volatile, or have investments denominated in a foreign currency meaning a change in exchange rates could affect their value.
Past performance is not a guide to future performance. The value and income of an investment can fall as well as rise and you may not get back the amount originally invested.