MICHEL PIREU: Thematic investing is a lot more accessible thanks to new tools
Strategy can help identify opportunities created by long-term structural trends or themes
Investors are constantly looking for new and promising ideas to capitalise on themes that will drive tomorrow’s markets. Their search is popularising thematic strategies. The idea is not entirely new. Some investors (mainly institutional) have been deploying thematic strategies for years in an attempt to generate superior returns and evolve traditional index investing. Broadly speaking, thematic investment seeks to capture, across asset classes and around the world, the opportunities created by long-term structural trends and the medium-term cyclicality often associated with these trends. One of the great benefits of thematic investing is that investors can choose to invest in trends or themes that align with their values. The key challenge is successfully identifying and capitalising on themes, the latter possibly being the more challenging of the two given how history is littered with examples of prospering industries that, at the time, provided no indication of which firms would ...
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