Wealth managers and family offices are increasing their focus on thematic investing in search of opportunities in new technologies, research commissioned by fund manager Robocap has found.

Its survey of wealth managers, family offices, pension funds, and insurance asset managers showed that 50 per cent were holding 5 per cent or more of their equity strategies in thematic-focused funds.

Thematic investing is a long-term strategy that invests in growing trends, covering themes such as artificial intelligence (AI), energy generation, quantum computing, cyber security, and an ageing population.

Robocap’s research revealed that 27 per cent of professional investors had around 5 per cent of their equity holdings in thematic-focused funds, while 18 per cent had between 5 per cent and 10 per cent, and 5 per cent had more than 10 per cent.

In three years’ time, 38 per cent expected to have between 5 per cent and 10 per cent in thematic funds, and 7 per cent forecast it to be higher than 10 per cent.

The survey also found that robotics and AI were considered as having the largest impact on the five ‘mega trends’ affecting society, followed by decoupling or fragmentation of the globalised world, fintech, transition to a low carbon economy, and demographic changes.

AI was identified as offering the most attractive risk/return profile for investors over the next five years, followed by the digital economy, future mobility, security, and cyber security.

Thematic funds were also found to have become more established within asset and portfolio management, and 64 per cent of those surveyed said that accessing the education and knowledge of managers in thematic funds was becoming increasingly attractive.

“Professional investors have recognised that thematic funds offer access to specialist investment expertise into themes such as robotics and AI where education are important for them and their clients,” commented Robocap founder and CIO, Jonathan Cohen.

“In the long term, technological progress is what allows economic growth and brings societal improvements.

“This is why robotics and AI have a place in client portfolios, not only because they are the technology of the future, but because they are established and already contribute to human society today.

“We have the firm conviction that robotics and physical AI offer the potential for strong returns in the long term.”

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