A thematic approach to investing could help funds be at the head of the pack by capitalising on tomorrow’s developments rather than the trends of the day.
Tim Unger, Towers Watson senior investment consultant and author of the recent report Capturing long-term themes, which explores thematic investing, said while traditional means of constructing portfolios were all well and good, it was useful to think about what themes a portfolio is exposed to now and in the future.
“The traditional way of building portfolios is more reliant on looking backwards and building on what’s been successful in the past. The idea of thinking about themes is more about thinking what’s going to work in the future,” Unger explained.
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