Episode 159 - Marks on the Markets - Thematic Investing with David Erickson
Oct 9, 2023
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David Erickson, CIO of Ascension Investment Management, discusses thematic investing strategies and the current market environment. Topics include the impact of disruptive themes, faith-based investing, and aligning investments with personal values and faith.
Thematic investing at Ascension Investment Management focuses on capturing disruptive themes like technology and clean energy for long-term growth.
Amidst market uncertainty, David Erickson reflects on potential soft landing scenario while remaining cautious about the lingering effects of interest rate hikes.
Ascension Investment Management utilizes artificial intelligence to enhance efficiency and predict future applications, viewing AI as a transformative tool for work dynamics.
Deep dives
Thematic Investing Focus
Thematic investing approach at Ascension Investment Management shifts from diversification to capturing disruptive themes. By aligning investments with themes like technology, healthcare revolution, and clean energy, the firm seeks long-term growth. They emphasize finding winners in disruptor categories rather than shorting losers, focusing on private equity opportunities to capture thematic investments.
Outlook on Challenging Markets
Amidst market uncertainty, Dave Erickson reflects on the potential soft landing scenario but remains cautious due to lagging effects of interest rate hikes. Concerns arise from economic metrics showing signs of a hard landing. With historical Fed cycles in mind, navigating through economic cycles amidst a pandemic presents unique challenges.
AI's Impact on Investing
Exploring artificial intelligence's potential, they use AI for enhancing efficiency in tasks like summarizing and writing. Seeking to implement internal AI models for data interactions and predicting future applications, they view AI as a transformative tool rather than a job disruptor. Balancing existing tools and emerging AI applications, they anticipate a progressive shift in work dynamics.
Aligning Investments with Values
Ascension Investment Management blends Catholic values with financial investments, emphasizing ethical dealings and supporting socially responsible causes. Their focus on impact investing, beginning from 2014, aims to finance initiatives benefitting the environment and underprivileged communities. Partnering with ethical fund managers who align with shared values underscores their commitment to responsible investing practices.
Balancing Faith and Investment Practices
Despite being a Protestant Christian in a Catholic institution, Dave Erickson finds common ground in integrating faith principles into investment strategies. Acknowledging the importance of works alongside grace, he aligns his Protestant teachings with the Catholic values of Ascension. This alignment drives the focus on ethical investments and impact initiatives that promote positive societal outcomes.
John and Luke are joined by David Erickson, the Chief Investment Officer of Ascension Investment Management for this month’s edition of Marks on the Markets.
Ascension Investment Management helps their clients reach socially responsible investment goals without sacrificing returns. They do this by delivering high-quality comprehensive investment solutions that enable clients to better carry out their mission by allowing them to focus on the big picture.
In this episode, David unpacks their approach in more detail, gives an overview of what he’s seeing in the market, and helps us understand the value of thematic investing.
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