A recent survey by BNP Paribas found that more than 80 per cent of investors were “familiar or very familiar” with thematic investment, suggesting thematic investing has become more mainstream.
The research report of almost 200 institutional investors and intermediary distributors in Europe, Asia and North America saw a 20 per cent increase in European usage since 2020 – 65 per cent of European investors are already using thematic strategies compared to the 46 per cent recorded in the previous survey.
Overall, 8 per cent of investors were not familiar with thematic investing, rising to 18 per cent in the US. Non-users were held back by concerns over performance (49 per cent) and high fees and costs (41 per cent).
Yet at the same time, usage of thematic strategies by Asian investors fell to 34 per cent from 54 per cent in 2020. Appetite among North American investors is lower still, with 43 per cent not intending to invest.
Despite differences across the world, investors showed clear interest on the opportunity for thematic investing. When asked about their plans for the next three years, 70 per cent of all respondents said they planned to increase their focus on thematic investment.
This thematic investment growth is said to be fuelled by investor need for positive impact (70 per cent) as well as the expectation of enhancing investment returns (63 per cent).
But how does this interest among institutional investors compare with retail investors?
Please answer in the poll below.
ima.jacksonobot@ft.com
