Morningstar - Q1 2023 - 4

Contributors
Magazine
Kenneth Lamont
" During the global pandemic, many thematic funds
tracking themes like cybersecurity or digital
payments produced headline-grabbing returns and
attracted heavy net inflows on a global scale, "
says Morningstar senior analyst Kenneth Lamont.
But did those trend-following investors understand
the risks they were taking? " With more money
flowing into more new thematic funds, the need
for clarity and to look beyond a compelling
narrative became even greater. We found investors
increasingly asking the same questions, "
says Lamont, who covers European passive funds
at Morningstar UK. This issue's Spotlight article
( " Investors Love Themes, but They're Not Always a
Breeze, " Page 27), cowritten by Lamont, cuts
through the hype.
Jack Shannon
The private equity market has exploded in
recent years, and more mutual funds are getting
in on the action, or trying to. ( " Tracking Unicorns in
Mutual Funds, " Page 34.) But senior manager
research analyst Jack Shannon cautions investors
to temper their expectations: " The earlier you
get in the more upside potential you have, but by
the time most mutual funds invest, these are
already pretty mature companies with a clear path
to go public. " On the other hand, the typical
fund shareholder is also unlikely to suffer steep
losses. " The biggest players like T. Rowe Price and
Fidelity want to be able to say that they got
into something like Uber before it went public, "
Shannon says, " but they don't want to be
in a position where they're in the news cycle for
having to write down something because they
valued it too aggressively. "
Christian Montenegro
Illustrator Christian Montenegro captures the
cacophony of thematic investing for this issue's
cover. " When I realized any industry could
be the focus of a thematic fund, I pictured myself
as an investor at a surrealistic crossroad, trying
to choose between, say, space technology or
the food industry, " he says. " It's an overwhelming
list! " Montenegro first learned his craft at the
atelier of influential comics artist Alberto Breccia
and then studied graphic design at the University
of Buenos Aires. His work has appeared in
Argentina and around the globe. This is his second
cover illustration for Morningstar magazine.
4
Morningstar Q1 2023
Editor-in-Chief Jerry Kerns
Managing Editor Laura Lallos
Editorial Board Bryan Armour, Hortense Bioy, Wing Chan, Lee Davidson,
Adam Fleck, Charles Gross, Jon Hale, Mathew Hodge, Michael Holt,
Thomas M. Idzorek, Paul D. Kaplan, Dan Kemp, Alec Lucas, Alex Morozov,
Don Phillips, Jeffrey Ptak, Katie Rushkewicz Reichert, Daniel Rohr, Janet
Yang Rohr, Madison Sargis, Jeffrey Stafford, Timothy Strauts, Lorraine Tan
Contributors Valerio Baselli, Christine Benz, Andrew Bischof, Dimitar
Boyadzhiev, Preston Caldwell, Jackie Choy, Jader Dutra, Zachary Evens,
Susan Hu, Nichola James, Charles Keenan, Kenneth Lamont, Tom
Lauricella, Dan Lefkovitz, Katherine Lynch, Neil Macker, Travis Miller, Lia
Mitchell, Brian Moriarty, Matias Möttölä, Sena Ozyapi, John Rekenthaler,
Dave Sekera, Jack Shannon, Kyle Stanford, Elizabeth Templeton, Tim Wong
Art Director Alex Skoirchet
Designer Paul Zdon
Illustrator Christian Montenegro
Photographers Matthew Gilson, Sarah Rice, Matt Roth, David Woolfall
Copy Editor Mike Eiler
Proofreader Mary Kate Chambers
Publisher Sheila Berleman
Director of Advertising Sales Stuart Roge
Regional Sales Directors Dan Atkinson, Tony Lignelli, Joanna Sawyer
Morningstar, Inc.
CEO Kunal Kapoor
Managing Director, Design David Williams
Editor-in-Chief Adley Bowden
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https://www.morningstar.com/authors/1780/kenneth-lamont https://www.morningstar.com/authors/2372/jack-shannon
Morningstar - Q1 2023

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