Thematic investing

If you’re looking to support a specific social or environmental issue within your portfolio, thematic investing opportunities may be a good fit. You can address water scarcity. Or back green energy efforts. Or apply a “gender lens” to your portfolio so that it embraces efforts specific to women and girls. Today, there are more of these issue-specific investments than ever before. We can help you identify the funds targeting your desired outcomes.
Watch Aubre Clemens, J.P. Morgan Manager Solutions Team, introduce the approach of Thematic Investing.

Thematic investing strategies have the potential to profit from a broad range of social, economic and environmental trends. These include:

  • Population growth
  • Urbanization
  • Emerging market growth
  • Aging populations
  • Technology breakthroughs
  • Natural resource depletion
  • Climate change
  • Evolution of the global financial system

There are several sustainable themes that are well-positioned to take advantage of these trends: renewable energy, water, healthcare, clean technology and waste management.

Popular sustainable investing themes in Europe

Eurosif, 2018 European SRI Study
This pie chart illustrates the percentage of sustainable investment assets allocated to individual categories.

A deeper look: investing in environmental markets

The implications of population growth, rising pollution levels, deteriorating infrastructure and the depletion of the Earth’s natural resources can be felt globally. There is a growing demand for investment in clean energy, water infrastructure, sustainable agriculture and waste recovery, making investments in companies and funds that access these environmental markets attractive for financial return and sustainable impact.

Water as an investment opportunity

The S&P Global Water Index has outperformed the broader market since its inception in November 2001.

Source: Morningstar, monthly returns from November 2001 to December 2018.

 

The S&P 500 index is a basket of 500 of the largest U.S. stocks, weighted by market capitalization. The index is widely considered to be the best indicator of how large U.S. stocks are performing on a day-to-day basis.

 

The S&P Global Water Index provides liquid and tradable exposure to 50 companies from around the world that are involved in water related businesses.

 

The MSCI ACWI is a market capitalization weighted index designed to provide a broad measure of equity-market performance throughout the world. The MSCI ACWI is maintained by Morgan Stanley Capital International (MSCI), and is comprised of stocks from both developed and emerging markets.

This three-line graph, covering the period November 2001 to April 2018, traces the growth in value of the MSCI ACWI Index, the S&P 500 Index and the S&P Global Water Index.
  • Exclusionary screening
    Do you know what's in your portfolio? Are you investing in companies that don't meet your values or standards? We can answer these questions and more.
  • Thematic investing
    If you’re looking to support a specific social or environmental issue within your portfolio, thematic investing opportunities may be a good fit.
  • Impact investing
    Impact investing may be the most exciting of all the sustainable investing strategies. It's intended to generate measurable positive social or environmental impact alongside financial return. Learn more.