Model Factsheet Update [February]

Key Takeaways

• New AI & data center models capture rapid tech growth.
• CHIPS Act model reflects $52.7B US semiconductor reshoring.
• Targeted models address demographics, EV transition, digital payments.
• Dividend models offer monthly income and enhanced ETF yields.
• Core holdings provide low‑beta large‑cap stability.

Pulse Analysis

Thematic investing has moved from niche to mainstream as capital seeks to capture structural megatrends. Tematica’s latest factsheet update mirrors this shift, bundling high‑conviction themes such as artificial intelligence, semiconductor reshoring under the CHIPS Act, and cloud infrastructure into dedicated models. By aligning model composition with policy incentives and technology adoption curves, these strategies aim to deliver outsized returns while managing sector‑specific risk, offering investors a ready‑made framework to tap into fast‑evolving markets.

Core exposure models serve as the portfolio’s backbone, emphasizing low‑beta, large‑cap equities that can weather market turbulence. The EPS Diplomats and Core Holdings models prioritize companies with strong earnings growth and stable cash flows, while the Global and International Core holdings broaden diversification across developed and emerging markets. The Market Hedge Model adds a tactical layer, using daily‑reset inverse ETFs to mitigate downside spikes, a useful tool for risk‑averse investors navigating volatile cycles.

Beyond broad themes, Tematica’s targeted exposure and dividend income models address niche opportunities and income needs. Demographic aging, cash‑strained consumers, cybersecurity, digital payments, EV transition, luxury spending, and the burgeoning space economy each receive dedicated exposure, allowing investors to capture specific demand drivers. Meanwhile, the Monthly Dividend, ETF Dividend, and Enhanced Dividend models provide consistent cash flow, leveraging high‑yield ETFs and options‑based yield enhancement. Together, these updated models equip portfolio managers with a versatile toolkit to balance growth, defensive positioning, and income generation in a rapidly changing economic landscape.