Thematic investments have moved more into focus in recent years, establishing themselves as an independent investment strategy.
On the one hand, they are attractive because they follow so-called megatrends, which are causing lasting change in the world we live in. On the other hand, they are often associated with topics that affect our everyday lives and are thus easy to grasp.
A current example is the energy transition theme, which has gained importance because of the growing interest in sustainability, the increasing evidence of climate change and, last but not least, the consequences of last year’s energy crisis.
Megatrends are demographic, ecological and economic structural developments, as well as social and technological ones, that are helping create enduring change in the world.
We strive to understand these megatrends and aim to translate them into tangible investable themes.
Defining investment themes: Boom or bust?
A deep understanding of how megatrends are impacting the long-term prospects of the industries concerned is required to translate them into tangible investment themes.
Ultimately, the goal is to discover industries whose businesses are set to experience an extended boom while also avoiding those that are adversely affected.
The booming industries should grow structurally, meaning that their growth should go beyond the business cycle, both in terms of dynamics and duration.
The key elements we keep an eye on are high entry barriers within each industry, as this protects the position and profitability of established players, and competitive forces that are developing due to the expected structural change.
Sticking with the example of energy transition, the key question is how established players in the power market or the automotive industry react to the developing “new world” and its new set of rules.
How are utilities adapting to the growth of renewables? What does the electrification of our cars mean for the existing value chains in the automotive industry? Which companies will drive the new industry cycle?
While these are the key longer-term questions, not only do changing market structures and market forces matter, both nationally and internationally, but so do companies, which always move with the business cycle.
These companies also often face government interventions that either influence structural change, accelerate it or even slow it down.
Historically, such interventions have sometimes led to the overstimulation of an industry, followed by a shake-out. A very prominent example of this is clean energy from 2012 to 2016.
Analysing companies: Leader or laggard?
Once we have identified an investment theme, we determine which companies are in a position to profit from the expected structural changes.
We also look at which companies will suffer from these trends because their business models are not suited to keep pace with the changes.
Simply put, the task is to understand the comparative advantages and disadvantages of each industry and to separate the likely winners from the likely losers of structural change.
To achieve that, you require a thorough understanding of a theme’s value chain, the strengths and weaknesses of the companies involved, and the related opportunities and threats that are looming.
Furthermore, a comprehensive toolkit is needed to analyse the economic and financial consequences for the companies in focus.
Seizing the investment opportunity: Bull or bear?
While the assessment helps us to build the basis for thematic portfolios by separating leaders from laggards, further analysis must be done when it comes to the actual investment opportunity.
As always, when investing in equity markets, it is important to compare one’s own growth expectations with those of the market – especially in phases of euphoria – as market participants tend to overestimate the short-term growth potential.
This is especially true for rather narrow themes characterised by only a small number of thematic market leaders, such as rare earth elements (2011) or hydrogen (2021).
If this comparison of one’s own expectations with the market’s expectations leads to the realisation that the latter is too optimistic, then it does not seem advisable to chase the market.
In such a situation, it makes much more sense to forego a theme or parts of it. After all, even thematic investing is tactical investing.
When it comes to thematic investments, investors should also refrain from focusing on only a small number of companies as the forecasting horizon is long and cluttered with uncertainty.
Instead, they should take a diversified investment approach along the entire value chain that the investment theme represents.
In the case of clean energy, this includes modules and systems, wind equipment, solar materials, and energy storage, as well as power producers and distributors.
While last year was challenging for thematic investments, since they suffered quite strongly due to their growth bias, it is important not to lose sight of the strength of the underlying megatrends.
In that sense, we consider 2022 as a year when long-term growth estimates were repriced, but not one where long-term structural trends were reassessed, because one thing is for sure: the only constant is change.
Carsten Menke is head of next generation research at Julius Baer
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
MATCH INFO
Tottenham Hotspur 1
Kane (50')
Newcastle United 0
In-demand jobs and monthly salaries
- Technology expert in robotics and automation: Dh20,000 to Dh40,000
- Energy engineer: Dh25,000 to Dh30,000
- Production engineer: Dh30,000 to Dh40,000
- Data-driven supply chain management professional: Dh30,000 to Dh50,000
- HR leader: Dh40,000 to Dh60,000
- Engineering leader: Dh30,000 to Dh55,000
- Project manager: Dh55,000 to Dh65,000
- Senior reservoir engineer: Dh40,000 to Dh55,000
- Senior drilling engineer: Dh38,000 to Dh46,000
- Senior process engineer: Dh28,000 to Dh38,000
- Senior maintenance engineer: Dh22,000 to Dh34,000
- Field engineer: Dh6,500 to Dh7,500
- Field supervisor: Dh9,000 to Dh12,000
- Field operator: Dh5,000 to Dh7,000
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
The specs: 2018 Mercedes-AMG C63 S Cabriolet
Price, base: Dh429,090
Engine 4.0-litre twin-turbo V8
Transmission Seven-speed automatic
Power 510hp @ 5,500rpm
Torque 700Nm @ 1,750rpm
Fuel economy, combined 9.2L / 100km
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
From exhibitions to the battlefield
In 2016, the Shaded Dome was awarded with the 'De Vernufteling' people's choice award, an annual prize by the Dutch Association of Consulting Engineers and the Royal Netherlands Society of Engineers for the most innovative project by a Dutch engineering firm.
It was assigned by the Dutch Ministry of Defence to modify the Shaded Dome to make it suitable for ballistic protection. Royal HaskoningDHV, one of the companies which designed the dome, is an independent international engineering and project management consultancy, leading the way in sustainable development and innovation.
It is driving positive change through innovation and technology, helping use resources more efficiently.
It aims to minimise the impact on the environment by leading by example in its projects in sustainable development and innovation, to become part of the solution to a more sustainable society now and into the future.
COMPANY%20PROFILE
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
How to apply for a drone permit
- Individuals must register on UAE Drone app or website using their UAE Pass
- Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
- Upload the training certificate from a centre accredited by the GCAA
- Submit their request
What are the regulations?
- Fly it within visual line of sight
- Never over populated areas
- Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
- Users must avoid flying over restricted areas listed on the UAE Drone app
- Only fly the drone during the day, and never at night
- Should have a live feed of the drone flight
- Drones must weigh 5 kg or less
No%20Windmills%20in%20Basra
%3Cp%3EAuthor%3A%20Diaa%20Jubaili%3C%2Fp%3E%0A%3Cp%3EPages%3A%20180%3C%2Fp%3E%0A%3Cp%3EPublisher%3A%20Deep%20Vellum%20Publishing%C2%A0%3C%2Fp%3E%0A
Timeline
2012-2015
The company offers payments/bribes to win key contracts in the Middle East
May 2017
The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts
September 2021
Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act
October 2021
Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence
December 2024
Petrofac enters into comprehensive restructuring to strengthen the financial position of the group
May 2025
The High Court of England and Wales approves the company’s restructuring plan
July 2025
The Court of Appeal issues a judgment challenging parts of the restructuring plan
August 2025
Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision
October 2025
Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange
November 2025
180 Petrofac employees laid off in the UAE
Specs
Price, base: Dhs850,000
Engine: 3.9-litre twin-turbo V8
Transmission: Seven-speed automatic
Power: 591bhp @ 7,500rpm
Torque: 760Nm @ 3,000rpm
Fuel economy, combined: 11.3L / 100km
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Walls
Louis Tomlinson
3 out of 5 stars
(Syco Music/Arista Records)
UAE currency: the story behind the money in your pockets
Can NRIs vote in the election?
Indians residing overseas cannot cast their ballot abroad
Non-resident Indians or NRIs can vote only by going to a polling booth in their home constituency
There are about 3.1 million NRIs living overseas
Indians have urged political parties to extend the right to vote to citizens residing overseas
A committee of the Election Commission of India approved of proxy voting for non-resident Indians
Proxy voting means that a person can authorise someone residing in the same polling booth area to cast a vote on his behalf.
This option is currently available for the armed forces, police and government officials posted outside India
A bill was passed in the lower house of India’s parliament or the Lok Sabha to extend proxy voting to non-resident Indians
However, this did not come before the upper house or Rajya Sabha and has lapsed
The issue of NRI voting draws a huge amount of interest in India and overseas
Over the past few months, Indians have received messages on mobile phones and on social media claiming that NRIs can cast their votes online
The Election Commission of India then clarified that NRIs could not vote online
The Election Commission lodged a complaint with the Delhi Police asking it to clamp down on the people spreading misinformation
Race card
6.30pm: Handicap (TB) $68,000 (Dirt) 1,200m
7.05pm: Meydan Cup – Listed Handicap (TB) $88,000 (Turf) 2,810m
7.40pm: UAE 2000 Guineas – Group 3 (TB) $125,000 (D) 1,600m
8.15pm: Firebreak Stakes – Group 3 (TB) $130,000 (D) 1,600m
9.50pm: Meydan Classic – Conditions (TB) $$50,000 (T) 1,400m
9.25pm: Dubai Sprint – Listed Handicap (TB) $88,000 (T) 1,200m
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