Thematic investing – pioneers put their money on megatrends

The Technological Transformation megatrend is closely related to the fourth industrial revolution and encompasses technologies such as autonomous vehicles, 3D printing, nanotechnology, the internet of things (IoT), artificial intelligence (AI) and cloud computing. This megatrend also boosts the development of digital platforms, enabling network-based business models such as Airbnb and Uber. Technological Transformation is often signified by rapid and non-linear change which can be misunderstood by investors, creating interesting investment opportunities.

The world is faced with several sustainability challenges that require swift solutions. These challenges are so broad that they easily make up their own megatrend. Driving forces behind this megatrend are the growing scarcity of natural resources, increased environmental awareness and increased regulation, which serve as a vital catalyst for change. This megatrend is driving many changes, from more sustainable food production to cleaner energy systems and more efficient use of materials.

Demographic and Social Change is a diverse megatrend, defined by an ageing global population, new generations of digital natives and a rising middle class in emerging countries, such as China and India. These seismic shifts affect consumption patterns and present both challenges and opportunities. Trends related to demographic shifts are usually predictable and play out slowly. That’s why investors don’t always understand their long-term economic ramifications.