Thematic investing should be active, says Schroders

The report, Thematic Investing Set to Transform Asset Management?, which was written by Broadridge, interviewed 90 fund selectors in Europe, Asia Pacific and North America during the first quarter this year.

These fund buyers said thematic equity investing, defined as “an approach which aims to gain exposure to companies which will benefit from clear long-term structural changes resulting from political, economic and social forces”, was increasingly core to client portfolios.

Overall, since 2017 thematic portfolios have represented almost 40 per cent of all equity fund net sales.

Data from FTAdviser’s sister title Asset Allocator shows more than 70 per cent of active model portfolio ranges run by wealth managers now have exposure to one or more thematic funds, up from 50 per cent at the start of 2020.