Cerulli Associates reports European investment industry continues to develop thematic offerings
Asset managers in Europe running thematic strategies have been hit by the sell-off in high-growth stocks, as markets have reacted to fears of inflation, rising rates, and an economic slowdown, says research firm Cerulli Associates.
However, the cooling of risk appetite has not curbed the introduction of new products.
“The assets under management of thematic strategies have slumped 14.3 per cent, as growth stocks have become one of the targets of a wider sell-off in global markets. However, new products are still being brought to market,” says Fabrizio Zumbo, director, European asset and wealth management research at Cerulli Associates.
Examples of fund development include Neuberger Berman’s launch of its Next Generation Space Economy fund, Global X’s addition of a Uranium UCITS ETF to its thematic product suite, and Eurex’s launch of its first futures contracts on thematic indices earlier this year. In addition, Cerulli research indicates that the metaverse has been attracting the interest of investors in Europe.
There are signs that some investors are going against the sell-off trend, aiming to take advantage of weaker prices to accumulate fund assets. “Investors continuing to bet on one or more themes remain hopeful that investment performance in the sector returns to its previous heights,” says Zumbo. Managers will continue to investigate new industries as they emerge and will carve out the best long-term ideas within existing industries to attract local investors.