Wealth managers, family offices, pension funds and insurance asset managers are increasing their focus on thematic investing, with half (50%) of them holding 5% or more of their equity strategies in thematic focused funds, according to a new research [1] mandated by fund manager Robocap, the leading investor in robotics, automation and AI listed stocks.
The Robocap UCITS Fund, which is a thematic equity fund focusing on pure-play robotics, automation and AI listed stocks globally, was launched in January 2016 and is managed by a London based specialist team. It has delivered compound annualised net returns (CAGR) of 12% and a net return of 190% since its inception.[2]
Thematic investing is a long-term strategy that invests in the growing trends that shape the future of our society. It covers themes such as artificial intelligence (AI), energy generation, quantum computing, cyber security, or demographic shifts that society is experiencing as our populations get older. Thematic focused funds invest in the companies that are likely to benefit from the development of these trends. Most themes cannot be captured by the traditional sector or geographic focus.
Robocap’s research found that 27% of professional investors have around 5% of their equity holdings in thematic focused funds, 18% have between 5% and 10%, and one in 20 (5%) have more than this. In three years’ time, 38% expect to have between 5% and 10% in thematic funds (20% increase), and 7% anticipate it will be higher than this.
Robotics and AI was considered as having the single biggest impact on the world of the five ‘mega trends’ affecting society, according to the professional investors surveyed, followed by decoupling or fragmentation of the globalized world, fintech, transition to a low carbon economy and then demographic changes.
AI was also identified as offering the most attractive risk/return profile for investors over the next five years, followed by the digital economy, future mobility, security and cyber security. Almost all (99%) of the professional investors surveyed said they use a core/satellite investment approach. ‘Core’ focuses on delivering a client with long-term consistent returns that aim to target their overall investment objectives.
Thematic funds have achieved a more established role within asset and portfolio management. No longer considered esoteric side bets, their managers are highly valued by all of the investors surveyed. Almost two thirds (64%) said that accessing the education and knowledge of managers in thematic funds is becoming “increasingly attractive”.
Jonathan Cohen, founder and CIO of Robocap, said:
“Professional investors have recognised that thematic funds offer access to specialist investment expertise into themes such as robotics and AI where education are important for them and their clients. In the long-term, technological progress is what allows economic growth and brings societal improvements.”
“This is why robotics and AI have a place in client portfolios, not only because they are the technology of the future, but because they are established and already contribute to human society today. We have the firm conviction that robotics and physical AI offer the potential for strong returns in the long term.”
[1] – Robocap commissioned independent research company Pureprofile to interview 100 senior professional investors at pension funds, insurance asset managers, family offices and wealth managers, who collectively manage $1.183 trillion in assets. Respondents were based in the US, UK, Germany, Singapore and Switzerland. The research was conducted during March 2025 using an online methodology.
[2] – As at 30 April 2025. Robocap UCITS USD Institutional Founders Share Class (ISIN IE00BYZB6R47)
