Interest in thematic investing has grown markedly in recent years. According to Morningstar, assets under management in thematic funds have more than tripled to USD 595 billion in the last three years. 
While much of this uplift can be attributed to investor expectations of robust long-term performance, thematic funds often have a strong focus on sustainable investing which has also spurred interest.
Upcoming regulatory changes such as the integration of ESG  preferences in investor choices under MiFID II , as well as rising demand from more environmentally and socially conscious investors, mean that interest for sustainably-orientated thematic funds is likely to continue to grow.
Yet, with over 3 000 sustainable funds available to European investors , fund selectors face a huge challenge: How to find investment managers and strategies that can deliver on both performance and their sustainability ambitions. In addition, several myths surround this area that could keep investors from making an effective assessment of potential sustainable thematic funds.
In “Busting thematic investment myths”, our Environmental Strategies Group explores these myths to help investors distinguish between those funds that merely say and those that actually do.
 Source: Morningstar, Global Thematic Funds Landscape Report, May 2021
 ESG: environmental, social and governance
 MiFID II is an EU legislative framework to regulate financial markets in the bloc and improve protection for investors. Its aim is to standardise practices across the EU. Source: https://www.investopedia.com/terms/m/mifid-ii.asp
 Source: Morningstar, as at end December 2020