In this video, fund selectors and asset managers active in the thematic space discuss the pitfalls of a thematic investment style, and how to avoid them.
One of the issues raised was that by the time a thematic fund has been launched, the ship may have already sailed on the theme’s return prospects.
Charles Stanley chief investment officer Patrick Farrell, said: ‘If they were very specific funds then yes, I would argue the ship has already sailed.
‘If someone's coming up with such a specific theme, the problem is they've got nowhere to go. Once that theme plays out, or if there's another risk that starts, you have to sell it. Whereas if there is a watch list of ideas, it can gravitate.’
Speakers in this video include: