United States, Institutional

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The next generation of thematic investing: Tapping into the forces of structural change

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We think thematic investing should look forward, not backward, going beyond traditional benchmarks to access the disruptive trends and innovative companies transforming our world. Our Next Generation Thematic Team researches investment themes across the globe linked to economic development and applies decades of experience to seek the companies that, in our view, will benefit from these structural trends. 

How investors can benefit from a thematic approach

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The future is global

Our world is becoming more globalized, with businesses expanding their scale across sectors and countries. As a result, we believe global issues — such as climate change and social inclusion — and global opportunities require and benefit from global solutions.

Our three pillars of thematic investing 

To identify opportunities within economic development, the Next Generation Thematic Team focuses on three key structural trends: inclusion, sustainability, and innovation. 

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Inclusion

Structural forces are broadening access to health care, education, finance, and the digital economy, creating new patterns of consumer behavior and preferences.

meet some of our next generation thematic experts

Insights

FAQs: Next generation thematic investing

Building thematic solutions is a three-step process. First, we identify long-term structural themes leading to economic development, resulting in investable universes. Security selection is the next step; here, we conduct fundamental, bottom-up security research to deliver targeted exposure to companies we believe will be thematic winners. Finally, we construct a portfolio, using a contribution-to-risk framework and proprietary theme-ranking models to balance risk exposure with medium-term conviction across themes.

Traditional investing often relies on benchmarks, which are inherently backward looking. Companies that have succeeded in the past are not necessarily likely to succeed in the future. Focusing on themes, rather than sectors or benchmarks, maximises exposure to the future.

While we don’t anticipate a change in our three overarching structural themes — innovation, sustainability, and inclusion — each of these encompass a range of thematic opportunities. For example, within inclusion, the team explores opportunities within health care and education and learning. These underlying themes can and do change as the opportunity set evolves.

Contact the team

Please fill out the form with any questions for the team. 

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