How do you achieve long-term objectives in an environment of uncertainty without sacrificing agility? This is the question being asked by many pension funds and institutional asset managers facing persistent macroeconomic uncertainty, shifting policy dynamics and heightened market volatility. Thematic indices are a compelling solution - not merely as performance trackers, but as forward-looking allocation tools aligned with the ongoing structural transformations in Europe’s economic fabric.
Aligning long-term liabilities with structural trends
Thematic indices are not built on past market winners. Instead, they offer investors exposure to the sectors, technologies and innovations that are expected to shape the future. For long-term investors like pension funds, whose mandates demand both capital preservation and sustained growth, these indices provide an efficient mechanism to allocate capital towards secular growth themes that offer risk-adjusted returns over extended horizons.
“As a flexible, forward-oriented investment vehicle, thematic indices allow institutional investors to calibrate their portfolios in response to structural shifts - from demographic evolution and technological disruption to energy transition and digital sovereignty,” notes Tim Rohkemper, Head of Indices at Euronext.
With customisable designs and a broad thematic range, from A and digital health to cybersecurity, robotics and sustainable infrastructure, thematic indices support asset managers’ increasing demand for precision-aligned exposure that reflects specific ESG, innovation, or regional growth priorities.
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