Thematic Investing: More Than Just a Good Story

Big global trends such as technological disruption, urbanization and the energy transition offer exciting thematic stories for equity investors. But for thematic investing to work, investors need clear criteria to define lasting themes and a coherent process for building portfolios with real return potential and thematic purity. Above all, thematic portfolios must be constructed with the same rigor, discipline and risk-management controls as any active equity portfolio.