The key tenet behind thematic investing is to focus on anticipating large structural shifts across the world in areas such as technology, finance, demographics or consumption.
Emerging markets can either be at the forefront of these large thematic developments, or they emulate developments in more mature economies at their own pace.
The case for the next generation of emerging markets
Sometimes, innovation is driven by the lack of legacy infrastructure or processes in emerging economies, propelling the rapid adoption of cutting-edge technology.
In other areas, progress may be modelled on change that has a precedent in developed economies, therefore creating a more predictable path.
Either way, it is a good idea to use in-depth research to identify the theme, analyse its impact and potential, pinpoint the companies affected and incorporate bottom-up research to single out the best investment opportunities.