The Evolution of the Thematic Funds Landscape and How to Uncover Investment Opportunities

Thematic funds became increasingly popular with the onset of the coronavirus with assets in global thematic funds trebling in value since March 2020. These investment vehicles attempt to harness various secular growth themes, from energy transition to connectivity to artificial intelligence to cannabis to disruptive healthcare technologies.

The menu of global thematic funds has expanded rapidly in recent years, yet the proliferation of funds has also added some confusion to the market, with investors having to sift through a fast-growing supply, some with greater complexity, and some with more refined niches.