This form of investing enables investors to gain exposure to both megatrends — structural shifts that are reshaping our economy and way of life, and themes — groups of securities with similar properties that support or benefit from those megatrends. These stocks, which often span traditional sector classifications, may offer investors a differentiated way to diversify their equity allocations. Finally, while sustainable themes are relevant for both developed and emerging markets, we believe the economic development opportunities in emerging markets today have the potential to provide substantial tailwinds for these stocks. The risks to sustainable thematic investing include macro and market volatility, and uneven progress toward economic development goals.
