Investing in the trends an evolving economy has to offer
Companies are increasingly global and multi-sector in their approach, but many investors’ approach to equities has remained the same.
We believe that the trends captured by the evolving economy give investors access to the best opportunities for long-term structural growth, by identifying companies that are tapping into multi-decade demographic and technological changes, regardless of their region or sector classification.
The evolving economy trends shaping the pace of change are:
- Ageing and Lifestyle: The global share of people aged 60+ will increase by 42% from 2018 to 2030, 5 times faster than the under 60s1.
- Connected Consumer: Only 13% of global retail sales are transacted online, with COVID-19 likely to further accelerate the shift from offline to online.2
- Automation: The global robotics market is expected to grow around 10-15% a year until 2025.3
- Clean Tech: It is estimated that annual investments in renewable energy will need to triple to $800bn by 2050 to fulfil key global decarbonisation and climate goals.4
- Transitioning Societies: A major wealth shift is set to occur over the net decade, as around 3bn people are expected to move from poverty into the middle class.5
- United Nations, Department of Economic and Social Affairs, Population Division, 2017
- Bank of America Merrill Lynch – Higher Online Penetration Primer, Euromonitor, October 2020
- International Federation of Robotics 2020
- International Renewable Energy Agency, November 2020
- OECD as at December 2018
What is the Evolving Economy?
Discover the five themes that we believe will shape the way companies operate in future.Find out more
To help people invest in the companies that are embracing these changes, we have adapted our internal research capabilities to incorporate the five main trends that we believe represent the future for long-term fundamental growth investing.
No assurance can be given that the Evolving Trends strategy will be successful. Investors can lose some or all of their capital invested. The Evolving Trends strategy is subject to risks including counterparty risk, geopolitical risk and the impact of any techniques such as derivatives.