Thematic Investment Opportunities

Client

A very large Pension Fund investing in Public and Private asset classes across different sectors

Challenge

• Create and Build a Thematic Investment Program for the Fund, backed by futuristic growth trends
• Build the program from scratch
• Understand the vision
• Know the framework
• Understand the requirement
• Priority sectors
• Key constraints
• Portfolio structure
• Investment horizon
• Explore investible, actionable themes that have the ability to provide alpha returns over the long term

Approach

• Practical understanding of the challenges and the deliverables
• Know the requirement & challenges
• Relate it to practical aspects
• Identify long term investible themes through rigorous research & analysis
• Explore and evaluate each of them through test of TAM (total addressable market), SAM (Serviceable Available Market) & SOM (Serviceable Obtainable Market)
• Screen them through test of sustainability, investibility, returns, challenges and headwinds
• Evaluate trends and their stage - Adoption, Emerging, Growth, Maturity and Ageing
• Consider
• Asset Class (Equity, Debt, Real Estate, Commodities)
• Investment Vehicle (Stocks, Bonds, REITs, Futures, etc.)
• Right Allocation and Mix
• Outcome to be backed by
• Rigorous Research
• Deep Dive Opportunity Diagnosis
• Forecasts and Future Analysis
• Risk Assessment

Results

• Fin’s team of portfolio managers and researchers helped create a detailed framework for Thematic Investment Program
• Assisted the client in identifying a set of investible themes based on demographic, technology and consumer trends
• Helped in deploying $500 million funds in identified asset classes and investment vehicles, creating high powered portfolio