We live in a period where the inflationary context is proving complicated for many investors. Indeed, according to Banque de France publications, in January and February 2023, total inflation (including food and energy inflation) rose to 7%. Several questions then arise for any investor: where to invest? On which asset classes? Is my wealth well distributed? Thematic funds will provide answers to several criteria inherent to the macro-economic context:

• Attractive return potential

•  Wealth diversification

In addition to significantly increasing the return potential of your portfolio, thematic funds prove to be very good diversification tools. Indeed, these investment funds are often decorrelated from traditional assets, and can effectively boost your investment portfolio. Diversifying your wealth further minimizes your exposure if an active class declines. The themes chosen often have good growth prospects, and are generally less impacted by short-term economic fluctuations.

• A future-oriented strategy

Thematic funds are more rooted in current economic issues than other media. Indeed, their primary objective is to aim for long-term growth, by focusing on structural changes. As a result, many investment themes are part of the future main economic and societal challenges.

• A transparent investment

Unlike most financial funds, which are relatively opaque about their management and their investments, these funds can be an opportunity for investors in search of meaning (environmental issues for example). In addition, these investments are easier to apprehend. We know exactly what we are investing in.

• A good potential entry point

Successive interest hikes of late offer investors better entry points than a year ago. However, given the long-term objectives of the funds, and the themes chosen by them, these investments are only intended for investors with a relatively long investment horizon.

Thematic funds have multiplied in recent years, it is therefore necessary to analyze all the financial and extra-financial information inherent to the subjects and themes addressed. Consulting a financial adviser may be particularly appropriate for these investments. However, management companies have specialized in this niche, such as Pictet, offering numerous funds such as Pictet Water, Pictet Biotech or Pictet Clean Energy Transition. BNP Paribas Am also offers its range of funds, notably with BNP Paribas Aqua and BNP Paribas Funds Disruptive Technology. Finally, the management company CPR, specialist in thematic funds, offers several funds such as CPR Invest Hydrogen, or CPR Invest Education.

These funds are available on many contracts: capitalization contracts, life insurance contract, Retirement Savings Plan, or even on a securities account. In addition to the choice of investment vehicles, you must choose your contract carefully, according to your heritage issues and your objectives.

For any additional information, do not hesitate to contact one of our wealth advisors on  +33 1 45 03 80 96.