Certified Environmental Social and Governance Analyst (CESGA) EFFAS Practice Test 2025 - Free CESGA Practice Questions and Study Guide

The statement that thematic-themed investments are biased towards large and mid-cap companies is indeed false. Thematic investments typically focus on trends or themes that can encompass a range of company sizes, including small, mid, and large-cap companies. This approach allows investors to target sectors of the economy or specific themes that are poised for growth based on societal, environmental, or technological changes, regardless of the size of the companies involved.

In contrast, thematic investments can often involve smaller companies that are innovators within a theme, such as renewable energy or sustainable agriculture, which may not be represented by larger, well-established firms. Thus, many thematic investment strategies will include a blend of different sizes to capture the full spectrum of opportunities tied to particular themes, particularly in rapidly evolving sectors.

The other statements are accurate reflections of thematic investments. They typically do focus on companies that are actively involved in tackling sustainable development challenges and can include themes such as renewable energy, water management, and advancements in mobility solutions. The emphasis on sustainability and addressing global challenges often leads to a diverse portfolio that aligns with broader impact goals, not limited by company size.