As investment, pension, and tax regulations evolve, we are excited to share a new development: Thematic portfolios. These portfolios offer a fresh avenue for investors, focusing on today’s change-makers and tomorrow’s disruptors.
Our portfolios are designed around three key themes that reflect the trends shaping our future. They enable you to concentrate on specific areas while ensuring global diversification and risk management.
These themes encompass advancements in artificial intelligence, innovative technologies, the transformation of our energy systems, and shifts in resource utilization.
What is Thematic Investing?
Thematic investing is a strategic approach that targets trends poised to contribute to—or capitalize on—long-term structural changes within society. These changes might include technological advancements, demographic shifts (such as population growth or decline), and our evolving relationship with natural resources.
Unlike traditional investment strategies, which focus on specific regions or sectors, Thematic investing aims to identify the companies and sectors that will lead disruption and innovation over the coming decades.
Why Have We Launched Thematic Portfolios?
Thematic investing opens up an exciting new frontier for long-term investors.
Industries such as robotics, artificial intelligence, energy, water resources, healthcare, and digital transformation are expected to experience significant growth in the coming years. Our Thematic portfolios target these burgeoning trends by investing in carefully selected exchange-traded funds (ETFs).
Currently, most thematic investment opportunities require a DIY approach, which can be challenging without in-depth knowledge. Since our inception, Nutmeg has aimed to make investing more accessible, as demonstrated by the launch of our Fully Managed portfolios in 2010. Our new Thematic portfolios are a continuation of that mission.
By choosing a theme that interests you, you can benefit from our investment team’s expertise in managing the portfolio on your behalf. Our approach combines innovative ideas with sound portfolio management, resulting in risk-adjusted, globally diversified portfolios that are regularly rebalanced and reviewed at least annually.
What Themes Are Available?
We offer three distinct themes we believe will significantly influence the future:
- Resource Transformation: This theme focuses on how we utilize energy and resources to meet future demands, featuring both renewable and non-renewable energy sources, materials essential for electrification, and increasing global clean water needs.
- Evolving Consumer: This theme revolves around the changing needs of the global population, highlighting the growing significance of digital products and services, the implications of an aging population, and emerging healthcare solutions along with the rising affluence of consumers in emerging markets.
- Technological Innovation: This portfolio invests in technologies shaping the contemporary landscape, including robotics, automation, cloud computing, cybersecurity, semiconductor demand, and advancements in artificial intelligence.
Our investment team has spent considerable time researching these themes and selecting appropriate ETFs. For more in-depth information about their process and themes, click here.
How Do Our Thematic Portfolios Work?
Our Thematic portfolios have been designed with careful attention to investors’ needs, dividing your portfolio into two sections:
- Thematic Portion: This part of your portfolio is invested in ETFs focused on your selected theme. The allocation depends on your risk level; for instance, if you’re at risk level 5, 10% of your portfolio will be Thematic, while at risk level 10, it will rise to 20%. This portion is reviewed annually and rebalanced regularly, requiring less frequent adjustments due to the long-term trends they target.
- Actively Managed Portion: The remaining segment consists of actively managed funds that invest across a globally diversified range of ETFs. This part—making up 80-90% of your portfolio depending on risk level—is not confined to your chosen theme. Our experienced investment team continually monitors the portfolio and makes strategic changes based on market events, research, and analysis.
This structure allows you to pursue promising trends while ensuring your portfolio maintains a risk-adjusted and globally diversified approach, blending the best aspects of both worlds.
If our Thematic portfolios have sparked your interest in Thematic investing, click here.
Risk Warning
As with all investments, your capital is at risk. The value of your Nutmeg portfolio can fluctuate, and you may receive less than your initial investment. Forecasts are not reliable indicators of future performance. Thematic investing carries specific risks and may not suit everyone. There is no guarantee that trends will lead to positive investment outcomes. All Nutmeg themes, including Resource Transformation, may encompass a range of renewable and non-renewable resources and should not be regarded as incorporating ESG considerations.
Let me know if you need any further adjustments!