Thematic investing is an approach which focuses on predicted long-term trends rather than specific companies or sectors, enabling investors to access big, structural changes that affect investing now - and far in the future. At the centre of BlackRock's Thematic investing philosophy lies five mega forces: demographic divergence, digital disruption and AI, a fragmenting world, future of finance and the low carbon transition. As key drivers of the new regime of greater macroeconomic and market volatility, they change the long-term growth and inflation outlook and are poised to create big shifts in profitability across economies and sectors. This creates major opportunities - and risks - for investors.
WHAT IS THEMATIC INVESTING?
Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.
FIVE MEGA FORCES SHAPING OUR FUTURE
Digital disruption and artificial Intelligence (AI)
Technologies transforming how we live and work. More on AI here.
A fragmented world
Globalisation is being rewired as the world splits into competing blocks.
Transition to a low-carbon economy
The transition is set to spur a massive capital reallocation as energy systems are rewired.
Demographic divergence
The world is split between aging advanced economies and younger emerging markets – with different implications.
Future of finance
A fast-evolving financial architecture is changing how households and companies use cash, borrow, transact and seek returns.
NAVIGATE OUR RANGE
Potential to boost productivity
Artificial intelligence can automate laborious tasks, analyse huge sets of data and help generate fresh ideas. Digital disruption goes beyond AI.
Rewiring global supply chains
In a marked departure from the post-Cold War period of increasing globalisation, we see countries favouring national security and resilience over economic efficiency.
Funds investing into this mega force are part of the BlackRock Transition Investing Platform.
A massive reallocation of capital
The transition to a low-carbon economy is set to spur a massive reallocation of capital as energy systems are rewired.
The world is split between aging and younger economies
Aging populations in major economies are poised to limit how much countries can produce and grow. By contrast, selected emerging market economies can benefit from younger populations and growing middle classes.
A fast-evolving financial architecture
A fast-evolving financial architecture is changing how households and companies use cash, borrow, transact and seek returns.