In the search for attractive investment ideas, more and more investors are discovering actively managed thematic funds. With good reason, as these vehicles offer an easy way to invest in megatrends that are likely to have a significant impact on humanity and its future development. Examples include global issues such as climate change, digital transformation or, more specifically, the topic of water. The funds invest in companies that have technologies and innovative solutions for the challenges ahead and should benefit disproportionately from the growth of these future trends with their products and services.
Such an investment can be extremely worthwhile. This can be seen, for example, in one of the most popular indices in the water sector, the "S&P Global Water" index, whose total return since 2004 is 634.2 percent according to Bloomberg. Over the same period, the MSCI World Index has achieved a significantly lower increase of just 404.7 percent, while the broad Swiss Performance Index (SPI) has only risen 256.8 percent.
Thematic funds offer more than attractive potential returns. By focusing on selected economic developments and social megatrends, they overcome the traditional boundaries of investment funds. As a result, they offer another advantage: thanks to their special characteristics, they are suitable as an interesting addition to a broad, traditional equity portfolio, thereby expanding the investment universe. At the same time, they provide an additional diversification effect and thus enrich the overall portfolio.