What are Transitioning Societies?
The ongoing growth of the global middle class is a historical shift and almost 90% of the next billion entrants into the middle class will be in Asia1 .
This significant demographic shift is likely to bring a consumption boom in the developing world, as consumption patterns likely move from fulfilling basic needs to more aspirational purchases.
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What do Transitioning Societies mean for investors?
This demographic growth is mirrored by potential opportunities for investment growth. Equity investors can look to companies serving the changing consumption patterns of societies across frontier, emerging and developed markets – from healthcare companies providing access to medicines, to infrastructure projects connecting people and societies.
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.
Automation
Forecast to grow 10-15% annually until 2025 2, the robotics industry is rapidly changing how we live and work.
Connected consumer
Only 18%3 of global retail sales are transacted online, which will likely increase as smartphone adoption rises globally.
Ageing and lifestyle
The number of over-60s 4 is expected to triple in size between 2000 and 2050, creating challenges for companies and individuals.
Clean Tech
Innovative companies are creating solutions to address pressures on scarce natural resources and the need for greenhouse gas emission reduction.
Evolving trends
Discover a single point of access to the five major long-term growth themes we have identified in the evolving economy.
Risks
No assurance can be given our strategies will be successful. Investors can lose some or all of their capital invested. Our strategies are subject to risks including geopolitical risk and liquidity risk. Investments may be affected by movements of foreign exchange rates, changes in laws or restrictions applicable to such investments, changes in exchange control regulations or price volatility.
Disclaimer
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This page is for informational purposes only and does not constitute on the part of AXA Investment Managers or its affiliated companies an offer to buy or sell any investments, products or services and should not be considered as a solicitation or as investment, legal or tax advice. The strategies discussed herein may not be available in all jurisdictions and/or to certain types of investors. Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision. Any reproduction of this information, in whole or in part is, unless otherwise authorised by AXA IM, prohibited.