The science of thematic investing
Our thematic investing focuses on investing in long-term macroeconomic trends, or “themes,” that are expected to shape the future.
Harnessing the power of megatrends
We believe four powerful megatrends are reshaping our world, revolutionising industries, transforming economies and opening new frontiers for growth for decades to come. Thematic investing is designed to give investors focused exposure to these dynamic investment opportunities.
Demographics
Demographics changes shape long-term economic growth and
investment trends. For example, ageing populations increase
demand for healthcare services and retirement planning, while
rapid urbanisation and growing middle classes fuel infrastructure
development and consumer spending. Understanding demographic
shifts is critical for investors seeking opportunities across
healthcare, real estate, consumer markets and financial sectors.
Environment
Environment. Climate change and the transition to net zero
are transforming economies and reshaping investment
priorities. The rise of green policies and technologies is fuelling
investment in renewable energy, sustainable materials and
energy efficiency. Increased demand for environmentally
friendly solutions is creating opportunities for companies and
investors focused on sustainable growth.
Innovation
Innovation underpins global productivity and economic growth.
Breakthroughs in artificial intelligence, biotechnology, renewable
energy and automation are disrupting traditional industries and
creating new markets. Companies investing in research and
development in these areas are well-positioned to capitalise on these
new opportunities to boost productivity and tackle global challenges.
Geopolitics
Geopolitics influences global markets via trade tensions,
competition for resources and instability. Political shifts,
conflicts and alliances affect industries including defence,
technology and energy. These dynamics create risks (such
as supply disruptions) but also opportunities (such as rising
demand for innovation and security solutions).
Thematic Categories
Thematic investing with us
Across the four megatrends, we have identified seven categories of investable themes. These themes, influenced by the overarching megatrends, offer opportunities for decorrelation, diversification, and sustainable long-term growth.
Clean energy
Natural capital
Social equity
Digital transformation
Healthcare innovation
Consumer
Sovereignty & security
Enablers & Adopters
Maximizing the thematic opportunity
A core principle of thematic investing is the ability to seize opportunities across the entire value chain of each theme. This involves investing not only in the enablers, the innovators driving breakthrough change, but also in the adopters who harness these innovations to transform their businesses. This dual approach combines growth potential with scale and resilience, while broadening diversification and creating stronger return opportunities.
Enablers
Enablers are the innovators who design and deliver the products, services, and technologies at the core of the theme. They supply the “building blocks” of change. These companies often sit at the cutting edge of innovation and can benefit directly from the growing demand for their solutions.
Adopters
Adopters are the users of these innovations, companies across sectors that integrate new technologies or services to strengthen their business models. Through adoption, they can improve efficiency, lower costs, enhance customer engagement, or unlock entirely new revenue streams.
Important information
Marketing communication. For professional investors only.
Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund’s) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.
This is not an exhaustive list of risks. For a complete description and definition of risks, please consult a client relationship manager or the global BNP Paribas Asset Management website: www.bnpparibas-am.com.