Global Theme Machine_ Theme Performance Momentum into 2025

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the analysis of 93 global themes mapped across nearly 5000 listed companies, conducted by over 200 Citi Fundamental Analysts [1][6][7]. Core Themes and Rankings Most Attractive Themes - The top 10 most attractive themes have seen minimal changes, with the only notable shift being the replacement of Smart Grids by Feminine Health & Fem Tech, which improved its rank from 43rd to 10th due to better Momentum scores, particularly Estimates Momentum [2][9]. Least Attractive Themes - The least attractive themes are predominantly sustainability-oriented, including Green Mobility and Sustainable Materials. These themes rank low due to poor Quality and Momentum characteristics, with expectations of continued underperformance in the short to medium term [3][10]. Performance Metrics - Approximately one-third of the themes outperformed the MSCI World index. The portfolio of Top Themes increased by 3.5% in December, aligning with the MSCI World performance. The long/short strategy (top versus bottom themes) yielded a positive return of 1.42% [4][15]. Notable Performers - Top performers among the themes included: - Risky Business: +5.5% - Mobile Payments: +4.5% - Fintech: +4.6% - Cyber Security: +4.8% [4][24]. Changes in Fundamental Attractiveness - The Creator Economy theme saw the largest improvement, moving from 74th to 34th overall, with significant gains in Price Momentum and Estimates Momentum. Conversely, the Unlocking Value (Spin-offs) theme dropped from 16th to 48th [36][37]. Style-Based Theme Rankings - For value-focused investors, Biofuels and Pension Shortfalls ranked highly, while several healthcare-related themes remained at the bottom of the rankings [40][41]. Conclusion - The report provides a comprehensive overview of the current landscape of global themes, highlighting shifts in attractiveness and performance metrics that can guide investment decisions. The analysis indicates a mixed outlook for sustainability themes while emphasizing the strength of technology and finance-oriented themes [1][8][9].