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Portfolio perspectives | Video - 8:29 MIN

Thematic investing – Alchemy or the one-solution mix

2 Authors - Portfolio perspectives
06/12/2023 · 2 Min

In this Thematic Investing video, our experts discuss the ins and outs of impact investing, how it relates to sustainable thematic strategies and how to allocate to themes such as the energy transition and climate change.  

Jane Ambachtsheer, Global Head of Sustainability, highlights the growing interest in investments that intend to have an additional and measurable social and/or environmental impact alongside an attractive return. She also discusses what sets apart impact investing and sustainable thematic strategies that are focused on areas such as water and food.

Mark Richards, Head of Flexible and Absolute Return, sets out how multi-asset portfolios can incorporate themes, while being mindful of their long-run nature, the interplay with macroeconomics, and the need to deliver appealing returns. He outlines our approach to determining how much risk to take, how to translate thematics into investments and how to compare thematic strategies and more traditional market indices.


Please note that articles may contain technical language. For this reason, they may not be suitable for readers without professional investment experience. Any views expressed here are those of the author as of the date of publication, are based on available information, and are subject to change without notice. Individual portfolio management teams may hold different views and may take different investment decisions for different clients. This document does not constitute investment advice. 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 outlay. Past performance is no guarantee for future returns. Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions). Some emerging markets offer less security than the majority of international developed markets. For this reason, services for portfolio transactions, liquidation and conservation on behalf of funds invested in emerging markets may carry greater risk.
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.

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