The objectives of this solution are to identify the most relevant investment themes – based on long-term trends – and to the stocks that are most correlated and/or impacted by the themes.
Through alternative data and a proprietary analysis methodology, FinScience selects both the most value-added themes and the stocks associated with each theme, and every day collects metrics that describe and analyse the connection between the theme and the stocks.
In a world where many investment decisions are made on the basis of past experience or historical data, thematic investing is a forward-looking alternative. It aims to capitalise on future trends by identifying macro themes today with a high probability of flourishing in the coming years and decades. This is also why thematic investing is attracting an increasing interest from investors.
According to Morningstar, the number of funds available to investors has also grown substantially, with 154 thematic funds being launched in 2019 alone, bringing the total number to 923.