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