What is thematic investing?
Thematic investing means that your investment strategy is focused on long-term megatrends rather than on picking individual companies or sectors. The aim is to capitalise on opportunities created by global megatrends. Examples of such themes could be anything from disruptive new technology to the rise of a new middle class in emerging markets.
Why thematic investing?
Right now, solving global sustainability challenges appears to be a theme that could prove profitable in the near future. This gives investors a unique window to address these challenges and at the same time to invest in trends with a strong potential for excess return. Thematic investing also allows you to invest in areas you’re particularly interested in.
What are megatrends?
Individual structural shifts can be grouped into broader trends which can, in turn, be grouped into even larger megatrends. These large megatrends represent significant socioeconomic shifts, affecting us all. Megatrends differ from one another, as they have different focuses and they develop at a different pace. This opens up plenty of investment opportunities.
Nordea’s three megatrends to look out for
We at Nordea have identified three overarching megatrends that are shaping the world, and we offer a selection of funds or ETF’s for each theme:
- Technological Transformation
- Sustainability Challenges
- Demographic and Social Change