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
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.
Ageing and lifestyle
The number of over-60s6 is expected to triple in size between 2000 and 2050, creating challenges for companies and individuals.
Only 18%7 of global retail sales are transacted online, which will likely increase as smartphone adoption rises globally.
Forecast to grow 10-15% annually until 20258, the robotics industry is rapidly changing how we live and work.
Innovative companies are creating solutions to address pressures on scarce natural resources and the need for greenhouse gas emission reduction.
The growth of the global middle class is at a 150-year high9, boosting consumption in Asia and in the developing world.
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.