Thematic investments – adapt and thrive

Thematic investments – adapt and thrive

16 April 2021Reading time: 2 minutes

Today's world is fast-moving - at least that's the impression we might get in the course of our often hectic everyday lives. Nevertheless, many areas of our lives are influenced by long-term developments that have come to be known as megatrends. Against this backdrop, thematic investments that can be used to capture these megatrends could create added value in an investment portfolio and set it up well for future success.

Why thematic investing in the first place?

As well as shaping our everyday lifes, long-term trends also have a huge impact on the economy and can even drive the global capital markets. Some trends have such a strong impact that they open up opportunities over a longer period of time. Therefore, themes need to be identified at an early stage and the leading companies in this field have to be identified - and then this should be made "investable" in an efficient way.

Technology trends and sustainability are just a few of the major structural trends, which emerged from, for example, environmental, demographic, behavioral, and socio-economic developments and have a lasting impact on our private lives and businesses. Companies that adapt and thrive will be the winners. Anticipating and taking advantage of such shifts and identifying their future structural winners is the main objective of our thematic investment strategies.

Theme-oriented investors could gear their portfolio to profiting from a potential upswing in the share prices of companies that are relevant to their chosen theme. Identifying these companies is crucial, but that’s easier said than done.

After all, it becomes clear in the course of managing the portfolio that active thematic investments can only be successful if they do not entail an excessive workload. Who can keep so many individual stocks under continual observation themselves and still have time to keep on top of the many transactions involved? Regular buying and selling can easily lead to an explosion in transaction costs, making implementation in the portfolio more expensive and eroding much of the potential return.

One possible solution: theme certificates, which allow you to invest in themes and trends efficiently. With just one transaction, buying a participation product like this allows investors not only to gain fast access to the market, but also to invest efficiently in their chosen thematic index. They additionally remain flexible throughout the investment period without having to make any adjustments themselves. The dynamic theme index ensures that the theme is replicated diversified and transparent. Effort, time taken and costs can thus be minimized while strategically buying in expertise.

Why Vontobel thematic investments?

As one of the market leaders in structured investment solutions, Vontobel offers high added value in thematic investing because we identify thematic trends at an early stage and also make them "investable". We see transformation as an opportunity and invest specifically in companies that are facing new challenges. In doing so, we take a long-term view with strategies that have a high relevance over decades and try to understand how investment opportunities arise from change. We use an active investment approach and advanced research methodologies to identify the winners of tomorrow.

Intelligent investment strategies give you access to (mega) trends and strategies with our Vontobel Tracker Certificates on selected thematic investments. It can be particularly important to invest in the trend before the broad masses. Fast market access and a certain flexibility regarding adjustments to changing market conditions are therefore important. Thematic certificates make this possible.

With Vontobel Tracker Certificates on a themativ index, investors can participate almost 100% in the upside potential, but also in potential losses - taking into account the deduction of a management fee. The investor also bears the insolvency risk of the issuer.

 

Discover our thematic certificates

19/05/2021 01:36:12

 

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