“Thematic Investing” describes investment approaches which focus on certain economic, corporate, social or technological themes, rather than specific companies or sectors, enabling investors to access the long-term trends or transition, regardless of their region or sector classifications, changing the way you work or live.

Companies are growing ever more widely and multi-sector in their approach, but many investors’ approach to equities remains the same. This means that investors could be missing out on potentially higher equity returns by continuing to base their equity allocation solely on traditional geographic or sector approaches. We believe that investment sector definitions must evolve to meet the reality that the economy is increasingly complicated and connected than ever before.

We’ve identified trends or transitions that we believe will shape the way companies operate in future or change the way we work or live, which will also have a radical impact on equity investors and give investors access to the best opportunities for long-term structural growth.

A thematic investment approach aims to help investors:

• Tap into drivers of long-term change and growth
• Better identify companies’ longer-term prospects
• Articulate particular investment convictions

We believe that thematic investing should fundamentally seek long-term outcomes for investors and is therefore a rational rather than fashionable approach. While a theme can cover just about any trend you can imagine, the most successful ones tend to be clearly definable, investible, revenue-generative, and long-term.

While thematic investing generally outperforms in the long run, it can be risky. To keep your risk under control, our portfolios include “rebalancing” to make exposed with risk at comfortable point with your risk appetite.