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“Investing for Tomorrow: Thematic Ideas Monthly Performance”: What the future sustainability holds

Updated: 3 days ago

The report is published in June, 2022 by LGT group (the largest Private Banking and Asset Management group in the world that is wholly owned by an entrepreneurial family)


The report shared is providing key trends in the technology-related sector. Specifically in this article, we will go through some overall outstanding movement of risky assets, then will discuss mainly mentioned trends in sustainability businesses.



Sustainability businesses are experiencing strong progress.


In terms of Climate Change, solar-related solutions are growing in popularity: the soaring of US solar thanks to new imposition on imported solar panels, or the very strong demand for US residential solar because of shorter payback periods. Yet Xinyi Solar (Growth Driven) in China experienced a falling in solar glass price and rising raw material costs.


That being said, it is expected the decarbonisation race accelerates globally with green stimulus support across renewable power such as solar or wind, especially in the context of an environmentally-conscious younger generation.


With regard to Food sustainability, healthy, natural, nutritious food including plant-based proteins has been of great interest and demand to consumers due to the Covid-19 pandemic, leading to seeking for sustainable sourcing and farming practices, as well as recyclable packaging.


Lastly, the Electric Vehicle is expected to penetrate more in coming years thanks to government policies. Transportation-as-a-service such as battery supply chain, green materials is also of clear signal to become key beneficiaries.


But it is Chinese Tech that leads the board.


Recent outperformance reflects that managers increasingly come back to China/HK at a gradual pace thanks to economic-boosting activities post lockdowns. Better than expected growth in ecommerce as well as rationalizing the food delivery business. This wave also creates a basement for climate tech in general heading towards more development


Besides, the defensiveness and high-quality characteristics of the healthcare sector make it a safe-haven during market corrections, especially shown through the continual outperformance of large cap biopharma, managed care, distributors and life science tools.


Reading the full report: https://drive.google.com/file/d/1vT7ogtSMN7zu93o_Jyu8LAZKR-yJpDOB/view?usp=sharing


(Appendix)

Thematic investing is an approach which focuses on predicted long-term trends rather than specific companies or sectors, enabling investors to access structural shifts that can change an entire industry, helping explore the opportunities then enhance portfolio and align investments.