Is your portfolio positioned for these 6 key investing themes?

Shareholders in international fund manager Magellan Financial Group Ltd (ASX: MFG) have enjoyed outstanding returns over the past five years with the share price experiencing a meteoric rise of 1,740%.

Unit holders in the firm’s flagship Global Fund will also be pleased with returns achieved – over the five-years to June 2014 they’ve enjoyed a compound return of 16.6% per annum, providing them with outperformance of 5.1% against the benchmark.

Hamish Douglass, Lead Portfolio Manager, recently released his report to unit holders of the Magellan Global Fund. Given the firm’s track record of outperformance, his views on current investment opportunities are worth noting…

  1. Emerging market consumption continues to grow.
  2. US interest rates set to “normalise” over the next two years as the US economy recovers.
  3. The move to a cashless society is a trend set to accelerate.
  4. US housing market is in recovery mode.
  5. Entrenched global technology and software companies will continue to be attractive investments.
  6. Internet and e-commerce businesses are increasing their competitive advantage.

While Magellan is an international investor and the majority of its portfolio is invested in US-based global businesses, domestic investors still have numerous ways to invest in the key themes outlined by Douglass.

For example, James Hardie Industries plc (ASX: JHX) is one way investors can gain exposure to a recovering US housing construction market. For exposure to a cashless society firm’s including Commonwealth Bank of Australia (ASX: CBA) and Mint Wireless Limited (ASX: MNW) have both developed mobile payment solutions. While a company which could be set to benefit from global adoption of its software is accounting solutions provider XERO FPO NZ (ASX: XRO).

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Identifying key themes which will provide your portfolio with a tailwind is a smart way to invest. Before you dig deeper into the above six themes however there's one other stock which has the wind at its back and I urge you to discover...The Motley Fool has issued a firm "BUY" rating on this small but ultra promising ASX company... and you can get the name and code FREE right now. Click here for your free copy of "The Motley Fool's Top Stock for 2014."

Motley Fool contributor Tim McArthur does not own shares in any of the companies mentioned in this article. The Motley Fool owns shares in Xero.

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