Thematic investing is about focusing on predicted long-term trends that allow investors to gain access to structural changes that can transform an entire industry. The key is identifying the potential for structural change and investing in it early. Long-term investors need to ensure that their portfolios are adequately positioned for growth opportunities. These structural changes touch every aspect of our lives, like sustainable energy, medical devices, biotechnology, cybersecurity and, of course, digital transformation.
Sustainable energy is energy that meets the needs of the present generations without compromising the ability of future generations to meet their own needs. It’s about finding clean, renewable sources of energy rather than sources that can be exhausted. Renewables are an infinite source of energy and have a smaller environmental impact compared to fossil fuels. Government support and reduced cost make renewables attractive and should lead to further growth in the future.
Medical devices are used for prevention, monitoring and in palliative care in various environments, such as by individuals at home, paramedical staff and clinicians in remote clinics, opticians, dentists and health-care professionals in advanced medical facilities. The aging of the global population will create more opportunities for companies selling medical products and devices.
Water demand is dramatically increasing, not just for human consumption but also for agriculture, livestock and industrial processes. Growing populations and aging infrastructure pose a challenge for urban areas in the provision of drinking water, as well as water for sanitation and sewerage. Climate change is making water shortages worse. Substantial investments are required in technologies and infrastructure that enable efficient management and treatment of water supplies.
Biotechnology uses living cells to develop or manipulate products for specific purposes. It is already part of our daily lives. Only recently biotech has provided one of the main weapons in the fight against the COVID-19 pandemic. It is expected that it will continue to play a vital role in preventing and containing potential pathogens. Today, modern biotechnology is divided into five categories: human, environmental, industrial, animal and plant.
Cybersecurity protects systems, networks, and programs against digital attacks. Such attacks are, usually, aimed at accessing, changing, or destroying sensitive information, money extortion or business interruption. The implementation of effective cybersecurity measures is particularly challenging today, as cybercriminals are becoming more innovative, taking advantage of the huge availability of devices worldwide, hence the rapidly growing demand for cybersecurity-related services.
Technology advances have disrupted every aspect of our lives. Consumer behaviour is changing, the percentage of the population that has access to a smartphone is increasing, and products and services are already being purchased online. The pace of such technological advances will only continue to accelerate.
Global Growth Fund
The Global Growth fund aims to achieve long-term capital growth by investing in sectors with high growth potential. Such sectors include but are not limited to alternative energy, water, infrastructure and bio-technology. The fund has a flexible investment philosophy with regards to sector, market and geographical allocation. Click here for full fund info.