Thematic investing carries different risks compared to our other investment styles. For example:

• It provides exposure to smaller companies that could be more likely to fail than larger, established ones.
• The underlying trend may not evolve as expected. For this reason, thematic investments are typically left for longer to allow them to benefit from the trend’s potential growth.
• The Thematic portion of these portfolios has a greater exposure to foreign currencies.

To allow for sufficient exposure to thematic ETFs, Thematic investing is only available for risk level five and above. However, your portfolio will always be managed by our experts in line with your risk appetite, and in a globally diversified portfolio, so your pot should experience the level of volatility that you’re comfortable with.

The investment style Thematic investing is only available for clients with a risk level of five or above due to the nature of this investment strategy. To ensure your Thematic investing pot is focused on your chosen theme it must be exposed to a certain amount of equities that focus on the trends underlying this theme. For risk levels one to four – which have a higher overall allocation to bonds, a lower-risk asset – the thematic allocation would be too small, and could no longer be considered ‘thematic’.

In risk levels one to four, portfolios are managed with a greater emphasis on minimising foreign currency risk. The Thematic portion of Thematic portfolios has a greater exposure to foreign currencies, particularly the US Dollar. This makes these portfolios unsuitable for lower risk investors.

You can start investing with £100 for a Junior ISA or Lifetime ISA, or £500 for a stocks and shares ISA or General Investment Account. Thematic investing is not currently available for pensions. You will also need to have a suitable risk appetite, as this investment style is only available for risk level five and above.

While we recommend all clients invest their money for three to five years, Thematic investing is a longer-term strategy due to its future-focused nature. You should be comfortable leaving your investments for long enough to give them enough time to benefit from the trend’s growth. If you plan to withdraw in the shorter term, you may be better suited to one of our other investment styles. 

Our investment team actively manages the majority of your globally diversified portfolio, making frequent adjustments based on news, data and analysis. The Thematic portion of your portfolio is solely focused on your chosen theme and requires less intervention, so is not actively managed. However it will be regularly rebalanced, and reviewed at least annually. Due to the long term nature of Thematic investing, the ETFs in the Thematic portion will likely not change frequently.

Nutmeg manages your investments for you, so you don’t need to be an experienced investor to choose Thematic investing. However, you should plan to leave your investments for enough time to allow them to benefit from the trend’s potential growth. We always recommend investors have short-term access to at least three months' worth of living expenses before investing.

Each of our themes are based on extensive research and built by our team of experts. So, all you need to do is choose the theme that you think has the greatest potential.

Thematic investing is suited to investors who are keen to harness the growth opportunities of long-term trends and are comfortable leaving their investments to grow. As Thematic investing may experience more volatility (ups and downs) and has greater risk for potential losses during times of market stress than our other investment styles, you should be somewhat comfortable with these potential risks and will need to have a risk level of at least five out of ten.

Our management fee is 0.75% on the first £100k and 0.35% thereafter, including VAT where applicable. All Nutmeg portfolios are also impacted by investment fund costs and are subject to the effects of market spread. Read more about Nutmeg cost and charges. 

Trends emerge as a result of innovation and structural change – such as ageing populations or advances in technology. They shape our future – from how we live and work to the infrastructure of the world around us – are already ingrained in our day to day lives, and the growth of these trends is set to accelerate in the coming decades. 

The themes, including Resource transformation do not incorporate incorporate environmental, social and governance (ESG) considerations. This theme will likely have exposure to a variety of renewable and non-renewable materials and energy sources.

For those looking to incorporate ESG considerations into their investment portfolio, we’d recommended looking into our Socially responsible portfolios.

You can choose a Thematic investment style for a stocks and shares ISA, Junior ISA, Lifetime ISA and General Investment Account. However, this investment style is not currently available for pension pots.