Thematic investing - an alternative to benchmarks?
In today’s financial markets there is perhaps too much information, too much choice, too much opportunity, and unfortunately too many pitfalls. Cutting through all the conflicting opinion and advice can be hard work and requires a lot of discipline
For this reason, it is important to regularly take a step back and survey the bigger picture – to analyse the longer-term trend rather than the deviations around it.
In the first of our series on thematic investing, we take a look at some of the limitations of benchmarks, and discuss why a thematic approach to equity investing may be better suited to some investors.
In this paper we discuss…
How most benchmarks are capitalisation weighted and arbitrarily constructed, which can create limitations for some investors
Why an alternative approach to filtering investment opportunities may be to identify stocks highly exposed to secular investment drivers
Some preferred themes which exhibit high exposure to our secular investment drivers
Read the full report here.