Thematic Investing through Ancoria

Ancoria Insurance
October 2021
Ancoria Insurance
Thematic Investing through Ancoria

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 device/technology, biotech, cyber security and, of course, digital transformation.

 

Sustainable energy

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.  

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Market Commentary

Slowing economic activity, rising inflation, political uncertainty and default fears in the Chinese property sector was the story in Q3. Developed market equities closed the quarter marginally higher, in contrast with Chinese and Emerging Market equities which experienced losses of 6% and 8% respectively. During September however Chinese equities staged a comeback, rising 1.3%, while developed market equities experienced losses in excess of 3%. Government bond yields rose sharply in the final weeks of September, as persistent overshoot in inflation readings during the quarter and a relatively more hawkish tone from Central Banks around the world prompted investors to re-think the attractiveness of long duration fixed income assets. A spike in energy prices due to a combination of heightened demand and limited supply, coupled with broadening inflation pressures due to production and supply chain bottlenecks make the fixed coupon payments provided by bonds to look more and more unattractive. For the time being, investors don’t seem to demand  materially higher interest rates to continue funding governments around the world, but if inflation turns out to be rather sticky, it is hard to see how this will continue to be the case.

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Ancoria's Top Performing Funds
(as at 30/09/2021)
Fund Name YTD % (EUR) YTD % (SEK)
Commodity33.8635.53
Ancoria/Carnegie Russia29.1730.78
India25.9627.53
Real Estate22.6224.15
USA20.5122.01
High Dividend Sweden17.8119.28
About Ancoria Insurance
About Ancoria Insurance
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Telephone +357 22 551300 Email info@ancoria.com
Address 36 Laodikias Street, Strovolos, 2028 Nicosia, Cyprus
www.ancoria.com
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