Janus Henderson: Thematic investing: A practitioner's guide

Thematic investing presents equity investors with the unique opportunity to gain exposure to forces that are rapidly reshaping the global economy. Matt Bullock, EMEA Head of Portfolio Construction & Strategy, explores the opportunity-set from a client point of view.

Key takeaways:

• With the pace of change in the global economy increasing, investors have the opportunity to hone their exposure to innovative business models that will command a greater share of aggregate corporate earnings.
• Thematic investing provides an avenue for equity investors to increase their allocations to these transformational forces across an array of sectors.
• To maximize the benefits of thematic investing, investors must select themes that are neither too narrow nor too broad in scope while also avoiding the practice of “theme washing”.

Thematic investing is a topic that comes up a lot in client conversations. As explored in our recent article, Access transformational change with thematic investing, a select number of foundational themes are reshaping the world and, consequently, will likely become major drivers of future equity market returns. It is a different way of approaching the equity opportunity-set but needs to be approached in the right way. Here, we provide a guide to key considerations.

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These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.

Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.

The information in this article does not qualify as an investment recommendation.

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