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THIS MATERIAL IS A MARKETING COMMUNICATION.

Deeper Dive into Thematic Investing

Defining Thematic Investing

Thematic investing refers to the process of identifying powerful macro-level trends and the underlying investments that stand to benefit from the materialization of those trends. Many investors already apply principles of thematic investing, such as identifying investments that could benefit in a rising interest rate regime.

But, thematic investing extends far beyond economic policies, and can potentially be most effective when used to identify structural themes.


Using Thematic investing

Investors who apply a thematic investment approach are often returns-focused, either seeking to beat a relative benchmark (e.g. MSCI China or S&P 500) or an absolute return benchmark over the long term.

Beyond serving merely as a growth play, themes can also be utilized to relate investing to an end client, as some prefer making allocation decisions based on things they know and can observe. According to Merrill Lynch1, three-quarters of US Millennials list long term thematic issues as one of their top three determining factors when making an investment decision.

An Unconstrained Approach

Given thematic investing’s agnostic approach, it can have low correlations to other portfolio strategies, which can be particularly useful for investment managers seeking to diversify sources of growth.

Unlocking Thematic Investing with ETFs

A key potential benefit to using thematic ETFs is the ability to access dozens of companies around an investment theme with a single trade.

Traditionally, thematic investing has been limited to more sophisticated institutional investors due to the research required to pinpoint companies with high exposure to a theme and the need to access a variety of international markets for themes that are global in nature.

Passive thematic ETFs (i.e., ETFs that track indexes that) take care of the security selection process and can provide access to a broad set of companies around the world with exposure to a particular theme.

3 Steps for choosing a theme

• Correctly identifying structural shifts

• Finding companies with high exposure to those shifts

• Entering before earnings and forecasts are fully priced in the theme’s potential

Source: 1 Bloomberg, as of 13 Apr 2015.

This document is provided for information and illustrative purposes and is intended for your use only. It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service. The views and information discussed or referred in this document are as of the date of publication. Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements.

Investment involves risk. Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.

Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (HK) Limited (“MAGIHK”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.



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No distribution, solicitation or advice: This document is provided for information and illustrative purposes and is intended for your use only.  It is not a solicitation, offer or recommendation to buy or sell any security or other financial instrument. The information contained in this document has been provided as a general market commentary only and does not constitute any form of regulated financial advice, legal, tax or other regulated service.

The views and information discussed or referred in this document are as of the date of publication. Certain of the statements contained in this document are statements of future expectations and other forward-looking statements.  Views, opinions and estimates may change without notice and are based on a number of assumptions which may or may not eventuate or prove to be accurate. Actual results, performance or events may differ materially from those in such statements. In addition, the opinions expressed may differ from those of other Mirae Asset Global Investments’ investment professionals.

Investment involves risk: Past performance is not indicative of future performance. It cannot be guaranteed that the performance of the Fund will generate a return and there may be circumstances where no return is generated or the amount invested is lost. It may not be suitable for persons unfamiliar with the underlying securities or who are unwilling or unable to bear the risk of loss and ownership of such investment. Before making any investment decision, investors should read the Prospectus for details and the risk factors. Investors should ensure they fully understand the risks associated with the Fund and should also consider their own investment objective and risk tolerance level. Investors are advised to seek independent professional advice before making any investment.

Sources: Information and opinions presented in this document have been obtained or derived from sources which in the opinion of Mirae Asset Global Investments (“MAGI”) are reliable, but we make no representation as to their accuracy or completeness. We accept no liability for a loss arising from the use of this document.

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