The science of thematic investing
Our thematic investing focuses on investing in long-term macroeconomic trends, or “themes,” that are expected to shape the future.
Harnessing the power of megatrends
We believe four powerful megatrends are reshaping our world, revolutionising industries, transforming economies and opening new frontiers for growth for decades to come. Thematic investing is designed to give investors focused exposure to these dynamic investment opportunities.
Demographics
Demographics changes shape long-term economic growth and investment trends. For example, ageing populations increase demand for healthcare services and retirement planning, while rapid urbanisation and growing middle classes fuel infrastructure development and consumer spending. Understanding demographic shifts is critical for investors seeking opportunities across healthcare, real estate, consumer markets and financial sectors.
Environment
Environment. Climate change and the transition to net zero are transforming economies and reshaping investment priorities. The rise of green policies and technologies is fuelling investment in renewable energy, sustainable materials and energy efficiency. Increased demand for environmentally friendly solutions is creating opportunities for companies and investors focused on sustainable growth.
Innovation
Innovation underpins global productivity and economic growth. Breakthroughs in artificial intelligence, biotechnology, renewable energy and automation are disrupting traditional industries and creating new markets. Companies investing in research and development in these areas are well-positioned to capitalise on these new opportunities to boost productivity and tackle global challenges.
Geopolitics
Geopolitics influences global markets via trade tensions, competition for resources and instability. Political shifts, conflicts and alliances affect industries including defence, technology and energy. These dynamics create risks (such as supply disruptions) but also opportunities (such as rising demand for innovation and security solutions).
Thematic Categories
Thematic investing with us
Across the four megatrends, we have identified seven categories of investable themes. These themes, influenced by the overarching megatrends, offer opportunities for decorrelation, diversification, and sustainable long-term growth.
Clean energy
Natural capital
Social equity
Digital transformation
Healthcare innovation
Consumer
Sovereignty & security
Enablers & Adopters
Maximizing the thematic opportunity
A core principle of thematic investing is the ability to seize opportunities across the entire value chain of each theme. This involves investing not only in the enablers, the innovators driving breakthrough change, but also in the adopters who harness these innovations to transform their businesses. This dual approach combines growth potential with scale and resilience, while broadening diversification and creating stronger return opportunities.
Enablers
Enablers are the innovators who design and deliver the products, services, and technologies at the core of the theme. They supply the “building blocks” of change. These companies often sit at the cutting edge of innovation and can benefit directly from the growing demand for their solutions.
Adopters
Adopters are the users of these innovations, companies across sectors that integrate new technologies or services to strengthen their business models. Through adoption, they can improve efficiency, lower costs, enhance customer engagement, or unlock entirely new revenue streams.
Important information
This material is issued by BNP PARIBAS ASSET MANAGEMENT Malaysia Sdn Bhd, an investment management company holding a Capital Markets Services Licence under the Capital Markets and Services Act 2007 of Malaysia, having its principal place of business at Vista Tower, Level 48D, The Intermark 348 Jalan Tun Razak 50400 Kuala Lumpur, Malaysia. This material has not been reviewed by the Securities Commission Malaysia.
This material is produced for information purposes only and does not constitute:
- an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
- investment advice.
Opinions included in this material constitute the judgement of the investment management company at the time specified and may be subject to change without notice. The investment management company is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the financial instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for an investor’s investment portfolio.
Given the economic and market risks, there can be no assurance that the financial instrument(s) will achieve its/their investment objectives. Returns may be affected by, amongst other things, investment strategies or objectives of the financial instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to financial instruments may have a significant effect on the results presented in this material. Past performance is not a guide to future performance and the value of the investments in financial instrument(s) may go down as well as up. Investors may not get back the amount they originally invested.
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, performance may at times be better or worse than the performance of relatable strategies that do not apply such standards.