Thematic investing seeks to capture trends playing out in the world around us. It gives investors access to the emerging technologies which shape the ways we work, communicate and travel. Investing in themes helps investors exploit the drivers of long-term, structural change.

The world is going through a huge number of transitions at high speed. These rapid changes provide ample investment opportunities. Some of the key themes are:

Internet & E-Commerce revolutionised the way consumers spend. It disrupted the entire retail sector, allowing some platforms to become some of the largest companies in the world. Euromonitor projects 17% of goods will be bought online in 2021, nearly double from 2016. In 2020, goods bought online globally grew by 24% while store-based sales declined by 7%.

Cloud Computing taps into massive swathes of our economy and society, affecting how we use many of the fundamentals of everyday life. Gartner research projects 70% of organisations using the cloud plan to increase their spending by 18% in 2021 up to $304.9 bn from $257.5 bn last year.

The dramatic increase in remote working globally in 2020 contributed to the acceleration of global spend on Cybersecurity. Fortune Business Insights projects a 12% compound annual growth rate from 2021 to 2028 for the Cybersecurity market, expecting it to grow from $165.8bn in 2021, to $366.1 in 2028.

5G – the next generation of wireless connectivity has arrived. 5G is more than just another technology innovation, but a platform for future innovation. GSMA Intelligence’s Mobile Economy 2020 projects 1.8 billion 5G connections by 2025 with the developed part of Asia and US leading the way.

Block-chain has only scratched the surface of its capabilities. Asset managers believe in the legitimacy of the Block-chain revolution, based on its potential impact across industries and society. Gartner projects $3 trillion in annual business value by 2030 generated by block-chain, with over $175 billion by 2025.