EquitiesSep 15 2022

How do thematic funds fit within portfolios?

Supported by
Allianz Global Investors
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Supported by
Allianz Global Investors
How do thematic funds fit within portfolios?
(Vardan Papikyan/Unsplash)

Fruschki adds: “Mega-trends have always existed. [They] influence how consumers and businesses view the world but have very long-term time horizons. Because they are very broad, they also remain rather vague from an investor’s perspective. They therefore do not provide a good investment guidance.

“Themes are more precisely defined cut-outs. They provide a clear understanding of the targeted investment universe.

"Despite a narrower definition, they still allow for a long-time horizon and a sufficiently broad investment universe for diversification. We also differentiate between longer-term themes and shorter-term topics or sub-themes and actively allocate between these as is needed to extract alpha.” 

Aamina Zafar is a freelance journalist

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