Thematic investing is an investment approach focusing on predicted trends over the long-term rather than particular sectors or companies, allowing investors to enjoy access to structural and one-off shifts capable of altering an entire industry.
These long-term trends may include resource scarcity, changing economic power, climate change, rapid urbanisation and social and demographic shifts driven by the latest technological advances. Sometimes referred to as megatrends, combined, these global factors are inciting structural changes in many different sectors and altering the drivers of an enterprise’s earnings.
What attracts investors to thematic investing?
Thematic investing is innovative enabling investment in the future today, via the very forces currently shaping both society and the global economy. It allows investors to access megatrends via their portfolios and offer quality investments in firms positioned for long-term expansion.
A growing appetite for investors in this approach comes from the requirement to identify potential drivers of return in the future, like technological breakthroughs, from offered equity investments. This presents the opportunity to outperform traditional and more established broad indexes, with a clearer picture of market movements.
By identifying structural change potential early on, investors can put their funds into expected transformations. This can be a key strategy for long-term investors seeking to ensure their portfolios are poised for growth opportunities.
Whether you’re curious about thematic investing or are simply seeking investment advice in Shropshire or Chester, we can help. Our expert team at Hartey Wealth Management offers over 25 years’ worth of experience and practice delivering unbiased investment advice to our client base. Contact us today for financial guidance or any other assistance required.