Digital wealth manager, Moneyfarm has introduced thematic investing which will allow customers to invest in a series of growth-oriented themes covering Technology, Sustainability, Society, or a mix of all three, known as Multi-trend.
Moneyfarm believes this will allow customers to target growth and boost their portfolios by adding an additional level of customisation to their investments. The robo-advisor is also offering clients a cashback deal worth up to £750 if they make new deposits before the end of April this year.
Clients who deposit between £5000 and £9999 will be eligible for £100, those that add between £10000 amd £19999 will receive £200, there is £500 on offer for deposits of between £20000 and £49999 and those who invest £50000 or more will be entitled to £750.
What is thematic investing?
Thematic investing is a form of targeted investment that focuses on specific big-picture trends and themes, that are seen as being part of our future.
It covers areas such as transformative technologies, the environment and resources, health and healthcare, and society and lifestyle.
Moneyfarm thematic investments themes include:
- Technology
- Sustainability
- Society
- Multi-trend (all three combined)
Moneyfarm describes thematic investing as:
“a way for you to invest in the long-term trends, innovations and stories that are shaping our future and transforming the way we live”
In an article published in April last year, the FT estimated that more than $800 billion, or almost £670 billion, was being managed in thematic equity funds. Up from just $71 billion in 2011.
According to fund research house Morningstar, the investment style can trace its roots back to 1948, and assets under management in the sector tripled between 2019 and 2021. Pictet Asset Management of Switzerland and US-based BlackRock are the largest managers in the thematic investing space.
Which other providers offer thematic investing?
Many money managers and brokers offer thematic investing including IG Group which offers a range of thematic baskets for short-term trading or longer-term investment, around ideas that include recession, inflation, electric vehicles, cannabis and ESG with their Smart Portfolios.
CMC Invest, lets you invest in themes via ETFs, but you have to pick your own.
Dodl, AJ Bell’s investing app lets you invest in the in-house themes such as UK Top 100, Across the pond, Going east, Be more specific.
Moneyfarm rival Nutmeg doesn’t specifically offer thematic investing but it does utilise a range of 1800 ETFs which could be used to create thematic portfolios.
Wealthify don’t offer thematic investing either though they do offer an ethical investment portfolio. Instead they look to build portfolio’s based on an investors risk appetite.
CMC Markets offers more than 20 thematic baskets for its clients to trade, alongside custom-built baskets that have been curated by noted city analysts Joe Kunkle and Trevor Neil.
Whilst eToro offers dedicated thematic investment portfolios, based on geographic or sector-oriented themes, for example, the LaTam economy, China tech or utilities.
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