Select your investor profile:

This content is only for the selected type of investor.

Institutional investor?

Thematic investing

A new approach to global equity investing

Thematic investing aims to identify the companies that will succeed in the future by focusing on the structural forces shaping our world: megatrends.

A future powered by global megatrends

If you look around, there can be no doubt that the world is currently experiencing a period of upheaval. Monumental shifts are occurring in many disparate categories of human activity, from geopolitics, to the environment, the economy, society and populations.

The knock-on effects are changing human habits on a global scale and forcing people to adapt and evolve at an unprecedented rate. For instance, major demographic transitions, such as population growth, will increasingly present considerable logistical challenges for society for years to come.

By identifying megatrends, we believe we can select the long-term winners in the global stock market – Hans Peter Portner, Head of Thematic Equity Investments

National governments are being pressurised into adopting multilateral regulatory frameworks to allay fears of climate change and entrench notions of sustainability. And evolving consumer behaviour and demand is revolutionising the global commercial operating system, resulting in, for example, ever faster transmission of information via digital networks.

These seismic changes are transforming the very nature of human existence. Therefore, how we react to these changes will be just as important, as it will determine not only our futures, but those of the coming generations.

Traditional investment approaches are based on indices that list companies by their market value – in other words, firms that have succeeded in the past. Our thematic strategies, on the other hand, aim to harness the potential of the companies that will succeed in the future.

At Pictet Asset Management, with the help of advisers including the Copenhagen Institute for Futures Studies, we have endeavoured to analyse the key drivers behind our changing future. As a result we have identified what we believe are the 14 megatrends that are shaping the world, in a disruptive, pervasive and self-sustaining manner.