While nearly 90% of investors are familiar with thematic investing, intermediaries have noted a 4% decrease in current usage, according to BNP Paribas Asset Management’s Thematics Barometer.
Despite the slight downtick, institutional investors showed a 10% increase in interest for thematic investing in the future. European investors specifically have bought in throughout recent years, with adoption rising from 46% in 2020 to 61% in 2024.
Pieter Oyens, global chief marketing officer at BNPP AM, said: “With the increasing pace of change in the economy, investors have told us in this survey that they continue to commit capital to thematic investments driven by the search for impact and investment returns. Thematic investments provide an alternative to traditional strategies and are a compelling way for investors to align portfolios with the trends shaping the future.”
Across themes, private markets have seen a bump in the past year, with an 11% rise in investors developing thematic offerings. The drive is backed by plans from 60% of institutional investors to add focus to the area in thematic investing. Equity, however, remains the dominant asset class.
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Almost two-thirds of thematic investors have a primary goal of “achieving positive impact” with their investments, with improved investment returns and “an innovative and disruptive approach” as other top themes. Within sustainability, 60% put their focus on renewable and clean energy. For innovation and disruption, the primary prospect was AI, favoured by 75% of respondents, followed by healthcare innovation.
Constance Chalchat, chief sustainability officer for BNP Paribas CIB and Global Markets, said: “The results demonstrate how investors continue to be increasingly interested in sustainability thematics. The ongoing thematic focus of investors on renewables and clean energy, alongside an evolving interest in resilience, water, adaptation, AI and demographics in this years’ survey, highlights the importance investors place on these issues.
“The opportunities these themes present as a performance driver also provide important insights on the investment horizon ahead.”
Renewable and clean energy experienced a 15% increase in interest by respondents since the 2020 survey, led primarily by the APAC region. Water has also drawn an increase in interest, specifically from European investors. While water appealed to 29% of European investors in 2020, it jumped to 38% in 2024. Emphasis on diversity and inclusion as a thematic decreased across the globe with the exception of North America. However, mobility nearly doubled from 6% interest in 2023 to 11% in 2024.
