Our thematic equity investments track disruptive secular growth themes – including safety, water, and AI & robotics – and are managed by a team with decades of thematic investing experience. The team taps markets that have the potential to grow at a rate superior to that of the broader global economy thanks to a range of long-term secular growth drivers. See how this can help you make the most of the innovation and trends shaping the future.
An experienced thematic equities team
Portfolio managers Arnaud Bisschop, Frédéric Dupraz, Simon Gottelier, Karen Kharmandarian and Nolan Hoffmeyer are the latest addition to the multi-affiliate family of leading investment managers at Natixis Investment Managers. The team have, on average, more than a decade of thematic investing experience.
Mohammed Amor, CEO, introduces the team’s approach to global equity investing.
Water is a basic need, not only for human life but also for economic development. It is a limited resource with growing demands placed upon its provision to sustain demographic and economic growth.
With the increasing need to treat or transport water where it is required, and collect it when used to avoid cross-contamination, demand is increasing for the provision of technologies and services to deliver the required quantity and quality of water. The companies participating in this market therefore stand to benefit from its potential growth. We believe that the ever-growing water service industry represents a large, diversified, attractive and differentiated investment opportunity.
As for the automation and technological improvements brought by AI & robotics, they are changing in new and unforeseen ways how we live, interact and do business. This is occurring through the combination of significant advancements in performance capabilities and rapidly declining costs in key enabling technologies. And, as AI & robotics is a ‘general purpose’ technology that is growing exponentially rather than linearly, use cases are already many and growing – from opportunities in industrial automation and healthcare to office tasks and consumer services.
Likewise, the technology rapidly changing our world also creates new risks to the safety of individuals, communities, industries and nation states. As new threats emerge to this basic need, new steps will be taken to mitigate them. That creates a huge opportunity to invest in those market participants that will be on the forefront of the changes in safety.
AI & robotics, safety and water are all ‘themes’ that are becoming more prevalent in every aspect of our daily lives, with each one potentially benefiting from long-term global trends in demographic, environmental, technological or lifestyle factors. We believe they each represent a potentially attractive and differentiated investment opportunity.
Prior to joining Natixis Investment Managers, these managers were part of an extremely well-known and successful thematic franchise. Over time, they have developed and launched a range of thematic funds and together have been involved in the management of more than $21 billion.
This differentiates thematic investing from traditional stock-picking. We are benchmark agnostic, breaking away from market-cap-weighted indices – which give more weight to companies and industries that have won in the past – and focusing instead on the winners of tomorrow. Our investment horizon is therefore inherently long-term.
Our thematic equity investments
We offer unconstrained and concentrated portfolios with a high active share relative to certain global equity indexes. Each one identifies companies with an attractive risk/return profile driven by long-term secular trends and meeting non-financial criteria relating to many ESG issues.
Water – Water is essential to life. One of our most important natural resources, water is affected by global issues, from population growth, urbanization, and increasing regulation to pollution and climate change. Thematics Water Fund invests in companies participating in the provision of water utilities, pollution control and water infrastructure services.
AI and Robotics – Artificial intelligence and robotics are becoming more and more ingrained in every aspect of modern life. Significant advancements are boosting performance and lowering costs across a variety of sectors of the economy – and dramatically shifting the way we do business, live, and interact. Thematics AI and Robotics Fund invests in companies that focus on the provision of products and services powered by AI and/or Robotics.
Safety – Everyday activities – from travel and online shopping to energy production and networking – are secured by forces that are practically invisible. These intangible resources underpin the framework of human safety in our global world today. Thematics Safety Fund invests in companies that offers products and services for the physical and digital protection of individuals, business and government.
Subscription Economy – While some companies and industries were born as subscription services, others are increasingly using subscriptions to monetize their services or products – from video and music streaming to fitness, video games and retail. Shifting consumer preferences, technological innovation and increasing sustainability concerns mean the subscription economy is poised for accelerating future growth. Thematics Subscription Economy Fund invests in companies that provide products or services on a subscription basis.
META – We believe that each of our funds invests in the themes that are driving the future of humanity, society, and the planet. To that end, Thematics META Fund is composed of the strategies within our thematic franchise – offering broad exposure to these critical themes in a single place. It invests directly in equity of companies and is not a fund of funds.
Wellness – It has never been clearer that a focus on mental health, physical activity and diet are among the most effective ways to prevent illness and maintain good health. As such, individual consumers are increasingly focused on being and remaining healthy in body and mind. The Thematics Wellness Fund invests in companies identified as participating or contributing positively to the wellness economy including (but not limited to) food, cosmetics, diagnostics, health data, sports equipment, fitness applications or remote learning.
Thematic Equity Investing Strategies:
Sustainable investing focuses on investments in companies that relate to certain sustainable development themes and demonstrate adherence to environmental, social and governance (ESG) practices; therefore the universe of investments may be limited and investors may not be able to take advantage of the same opportunities or market trends as investors that do not use such criteria. This could have a negative impact on an investor's overall performance depending on whether such investments are in or out of favor.
This material is provided for informational purposes only and should not be construed as investment advice. The views and opinions expressed may change based on market and other conditions. There can be no assurance that developments will transpire as forecasted, and actual results may vary.