rethink investments.

a new thematic investment framework.

rethink everything^® is a long-standing lens that shapes views on the global economy. As regulators, consumers, and businesses align to accelerate the necessary transformations, our new approach, rethink investments, translates this analysis to the world of thematic investments.

We introduce six high conviction investment themes that are generating new opportunities for investors, initially in the realm of thematic equities, allowing them to look beyond business cycles and investment regimes, and take targeted exposure across regions, sectors, and styles.

Companies we have identified within this framework will all benefit from their exposure via incremental future revenue or earnings growth, in our view. However, material exposure to these themes alone does not mean that they will be good investment opportunities. The fundamental qualities of a company, including its business model, pricing power, innovation, balance sheet, cash flow generation, management team, and sustainability metrics form the bedrock of our choice.

We believe tactical portfolio positioning to exploit shifting market trends should be complemented by exposures to these longer-term, structural drivers of economic outperformance. This allows us to optimise asset allocations as the world’s economic model evolves.

2. rethink new gen.

Alongside rising longevity, a new generation is coming of age and changing global spending power. This ‘new gen’ is increasingly middle-class, digitally native, experience-led, convenience-oriented, lifestyle-and-climate-sensitive. They are overwhelmingly based in emerging markets. Selected technology, telecoms, sportswear, luxury, and beauty companies stand to benefit. New healthcare challenges are also creating new markets, including for wearable devices that measure and analyse personal data. The rethink new gen investment theme captures opportunities from these evolving consumer habits and influences.

4. rethink net zero.

Limiting climate change requires the transition to a net-zero economy. Shifts in energy, materials, and agriculture are key, and firms leading such changes to energy generation and clean transportation should benefit. This theme also explores developments in raw material demand, as well as companies employing circular production processes, recycled and alternative construction materials. More efficient food chains, including dietary changes and technological advances in agriculture, will emerge. We also highlight the ‘enabling services’ behind key system changes, including more efficient production processes and shared mobility.  

6. rethink infrastructure.

The transition to a nature-positive, technology-embedded economy demands an overhaul of the world’s infrastructure. While governments and institutions can catalyse projects, the limits of public finances leave an important role for the private sector and private investors in transforming power, transport, water, and communication infrastructures worldwide. In listed equities, we seek attractive growth opportunities in industrial, utilities and energy companies which are participating directly in the infrastructure boom.