A 14-minute watch. 

Watch the latest interviewee in our Octo Selectors Series Peter Askew, CEO and fund manager at T. Bailey Asset Management, talk to us about the importance of themes, managing value and why he favours active managers. 

Peter gives us plenty of case studies where thematic investing has delivered, so long as investors stick with it for the long term.

He says: “What are the long-term drivers of investment returns, particularly in the equities space? They are going to be themes where demand exceeds supply, such as healthcare, infrastructure, nutrition, and some forms of technology.

“These are going to drive returns in the 8-10% per annum range. Find me an economy across the world that’s going to deliver that. It’s really hard. It makes sense to invest thematically, with your geographical allocation a fall out of that.”

Peter also talks through some of his fund choices, though also why he is now beginning to consider passive options.

“If cast you mind back with the benefit of hindsight to March 2009, which was the low point in markets, then all you wanted was market beta so you could go and buy a raft of passives and let them do their job. At this stage of the economic cycle, it’s not so easy. But passives are becoming more definitive and more thematic and so of more interest to us.”

You can read more about Peter and T. Bailey’s approach, as well as his views on the retail financial services market in our profile piece here. He also took part in a 3 Questions interview.