| New Product Development
As part of AP’s exclusive asset manager, Nine Points Investment Management (NPIM), ThemeCatcher’s investment strategy combines thematic ETFs (high-growth investments with common themes) with downside risk management tools and defensive investments to reduce risk. Index investing is dominated by mega cap stocks. The top five stocks make up 23% of the S&P 500. Not only do these enormous companies lack the growth potential of smaller companies, index investing no longer provides its most important benefit—diversification. Thematic ETFs are the answer, offering emerging growth potential. However, all investors have behavioral flaws. The more volatility a security has, the more flaws are exposed, making thematic investing difficult. The NPIM team set out to create a product that could allow for thematic exposure in a way that reduces volatility and, ultimately protects investors’ capital from large downswings.