Introducing the new Thematic Index by Tematica Research
— PRESS RELEASE —
Tematica Research Unveils The Thematic Index – An Alternative to Outdated Sector Investment Strategies
Handily outpacing the S&P 500 in the first half of 2016, the Thematic Index offers a holistic view of influences that can drive or stifle portfolio growth
Washington, D.C., July 18, 2016 – Today, Tematica Research, LLC is publicly unveiling its Thematic Index, designed to reflect the firm’s proprietary thematic investment approach by tracking over 150 companies across more than a dozen of the company’s investment themes. The thematic investing approach developed by Tematica Research looks at the intersection of evolving economics, demographics, psychographics, and technologies combined with regulatory and legislative mandates to identify pronounced thematic tailwinds that impact business and consumers, forcing companies to adapt or get left behind. Taking a cue from Tematica’s proprietary investing themes ranging from the Connected Society and Aging of the Population to Content is King and Guilty Pleasure, the Thematic Index reflects those companies positioned to benefit most from thematic drivers while sidestepping those that are most likely to hit a thematic wall.
Through the first six months of 2016, Tematica Research’s Thematic Index rose 9.28 percent, versus the S&P 500’s gain of just 2.69 percent. Strong performance on an absolute and relative basis was driven by a number of Tematica’s proprietary investing themes including Affordable Luxury, Aging of the Population, Cash-strapped Consumer, Content is King, and Scarce Resources. This performance continued the Thematic Index’s market-beating streak vs. the S&P 500 on a pro-forma basis from 2011 to 2015.
“In our view, the S&P 500’s industry and sector perspective is outdated in how it looks at the markets, using a perspective that is not only limited in scope, but is incapable of identifying investable tailwinds and business stalling headwinds,” said Christopher Versace, Chief Investment Officer Tematica Research. “By taking a holistic approach that examines the shifting economic, demographic, psychographic and technological landscapes, our Thematic Index provides a catalyst first view that cuts across industries. This view is enhanced not just by sector-based data points, but by distilling and corroborating signals from a wide range of sources to determine which companies have a thematic tailwind at their back or are about to run headfirst into a headwind.”
Many indexes ignore the fact that companies are increasingly moving beyond their traditional sectors — not simply expanding into new ones, but actually shaping other existing and emerging sectors. For example, traditionally viewed technology companies like Apple Inc. (AAPL) are addressing and influencing many other markets, from media to consumer apps and even payment methods that put them well beyond their original target markets and keep them firmly entrenched in our Connected Society investing theme.
Other companies, such as Boeing (BA), are benefitting from thematic tailwinds. Both Boeing and Airbus (EADSY) have recently boosted their respective aerospace outlooks over the next two decades, largely due to the improving socioeconomics in emerging markets that are part of Tematica’s Rise & Fall of the Middle Class investing theme.
“Today our principal business model is our published research through the Tematica Investing newsletter and Tematica Pro trading service; however, we are exploring ways in which both institutional and individual investors can utilize our proprietary thematic index via model portfolios and exchange traded funds (ETFs),” said Versace.
The Thematic Index is composed of more than 150 companies across more than a dozen investing themes including: Affordable Luxury; Asset Lite Business Models; Cash Strapped Consumer; Cashless Consumption; Content is King; Disruptive Technologies; Economic Acceleration/Deceleration; Fattening of the Population; Food with Integrity; Fountain of Youth; Guilty Pleasure; Safety & Security; Scarce Resources; and Tooling & Retooling.
