The forces shaping our World

What are Megatrends and why should I invest?


Megatrends are the powerful socio-economic, environmental and technological forces that shape our lives. The digitisation of the economy, the rapid expansion of cities and the depletion of the Earth’s natural resources are just some of the structural trends transforming the way countries are governed, companies are run and individuals live their lives.

Megatrends are reshaping our world.



Our themes and selected funds

Click on the MegaTrends icons to find out our themes
Demographics
Sustainability
Urbanisation
Technology & Innovation

Janus Henderson Global Life Sciences Fund

This actively managed global health care fund seeks to invest in companies that address unmet medical needs or make the health care system more efficient. The portfolio is balanced across the pharmaceuticals, biotechnology and services/devices subsectors.

 

Invesco Global Consumer Trends

Shifting demographics are also changing the way we consume: this fund is focused on identifying the trends and companies that are driven by changes in demographics, standards of living and connectivity.

Candriam Equities L Oncology Impact

This fund invests in listed companies that develop and or sell products and services for the treatment of cancer. The universe includes companies whose products make a difference to patients in the diagnosis, profiling and treatment of cancer.

This includes companies that show innovation in surgery, radiation and oncology drugs. The universe ranges from big caps to smaller companies.

Nordea 1 Global Climate & Environment Fund

The Nordea 1 Global Climate and Environment Fund was launched in 2008 to invest in innovative companies that advance an environmentally sustainable society and generate attractive returns by recognising the research gap in this area.

Global X Autonomous & Electric Vehicles ETF

This ETF seeks to invest in companies involved in the development of autonomous vehicle technology, electric vehicles (“EVs”), and EV components and materials.

This includes companies involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt.

Parvest Aqua

Global equity fund investing in companies that provide technology, products and services relating to the water value chain. This includes water distribution, management, treatment and analysis as well as irrigation.

Pictet SmartCity

Global equity fund investing mainly in companies that contribute to the global urbanisation theme or benefit from it. These companies typically operate in mobility & transportation, infrastructure, real estate or sustainable resource management sectors.

 

First Trust Cloud Computing ETF

This fund tracks the performance of companies actively involved in the cloud computing industry. This may include pure play cloud computing (direct providers such as network hardware/software, storage, cloud computing services) and non-pure play (companies that provides goods and services in support of cloud computing technology).

Robeco Global FinTech Equities

This actively managed fund aims to profit from the opportunities stemming from the digitization of the financial sector. In constructing their portfolio, the team seek to find balance across 3 segments: well-established companies that already stand out from their peers; companies that help the financial industry to develop and implement technology; and less established companies that have the potential to become tomorrow’s winners.

 

First Trust Indxx Innovative Transaction and Process ETF

This ETF provides exposure to companies that are actively using, investing in, developing, or have products that are poised to benefit from blockchain technology. Eligible securities are classified into 3 categories: Enablers (actively developing blockchain technology); Users (using blockchain technology); and Explorers (companies exploring the incorporation of blockchain technology into their business).

ETFMG Drone Economy Strategy ETF

This strategy seeks to capture the growth opportunity in drone flight, and invests in manufacturers of drones and drone components, as well as those companies and industries best positioned to benefit from this new technology.

Themes in action

The table below illustrates the performance of various investment themes compared with the broader equity market (MSCI World index). Historically, different investment themes have dominated at different points in time, and selecting the right themes at the right time is vital. It is our goal to construct a portfolio of carefully researched and chosen themes which, properly constructed, can outperform the global equity market.

To be included in our portfolio,
these Megatrends must be:

1
TRUE
Factually proven with data driven research and statistical significance

2
IDENTIFIABLE
Can we witness these Megatrends in action?

3
DURABLE
Expected to grow further over the long term (10 years +)

4
INVESTABLE
Do companies operate in this space and can the Megatrend be captured
within an accessible investment opportunity?

Our Megatrends

1/4 - Demographics

The global population is forecast to increase by over 1 billion by 2030, according to reports published by the United Nations (UN) . This unprecedented rate of growth is not evenly distributed either by geography or by generation. The world’s population is getting older, facilitated by improvements in medicine and technology, and increasingly the ideals of the millennial generation will begin to have an influence over employment patterns, consumption and expenditure. Geographically, the effect is visible in both developed and emerging nations, however it is most pronounced in Asia. There are already more over-65s in Asia than there are people in the United States; in the next 25 years, there will be more over-65s in Asia than the populations of the Eurozone and North America combined.

2/4 - Sustainability

According to NASA, global temperatures have increased by 1.9*F since 1880, and 18 of the 19 warmest years on record have occurred since 2001 . Meanwhile, satellite data illustrate the shrinking of the polar ice caps, resulting in sea levels which are rising at a rate of over 3mm per year. And at the same time, carbon dioxide levels in the air are at their highest in 650,000 years, attributable in large part to the human desire for agriculture, deforestation and the burning of fossil fuels. These alarming effects are only likely to be exacerbated by the growing global population unless we can identify more efficient fuels, materials and processes to reduce our impact on the planet.

3/4 - Urbanisation

In 1990 there were only 10 cities in the world with a population exceeding 10 million – the so-called ‘megacities’. Today the number of worldwide megacities has nearly tripled to 28. In 1950, 30% of the world’s population lived in urban areas, and that’s forecast to increase to 66% by 2050. With the corresponding growth in population over this time, towns and cities as we know them will have to adapt to the changing demands of their citizens.

4/4 - Technology & Innovation

Developments in technology are improving our productivity at a faster pace than ever before. Innovations in robotics, artificial intelligence and communications technology are shaking up traditional industries such as retail, manufacturing, agriculture, transport, medicine and finance. The pace of change is exponential, and machines capable of learning faster than humans will be disruptive: 60% of all occupations could see 30% or more of their constituent activities automated . While this inevitably means that certain jobs will be replaced by machines, it also means that the potential for new and emerging industries and opportunities is greater than ever before. More automated and efficient processes will also have the positive effect of driving down costs, allowing us to afford better products and therefore improving our standards of living. And increasingly, our world is becoming ever more connected to the ‘Internet of Things’. Gartner estimates that in 2016 there were 6 billion ‘things’ connected by the internet; by 2020, that will rise to over 20 billion.
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