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Institutional Spotlight
September 2019

Sustainable Thematic Returns in a Growth-challenged World


Today’s low growth environment is expected to become the norm, partly due to shrinking labour forces and over-leveraged economies. Moreover, countries also have to cope with the rapid depletion of natural resources and surging carbon emissions.
How can investors find attractive returns in such an environment?
An interesting strategy we highlight today is to combine Sustainable and Thematic investing. Why?
  • Sustainable investing: helps to capture valuable insights that would have otherwise been overlooked by traditional investing frameworks.
  • Thematic investing: harness long-term structural growth opportunities.
Combining sustainability and thematic investing leads to finding high quality growth companies. Valuations of such stocks may seem expensive; but one must not forget the effect of compounding returns, which is especially crucial in a low-growth environment.
             

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