Evolving Trends

Discover a single point of access to the five major long-term growth themes we have identified in the entire evolving economy

Investing in the trends an evolving economy has to offer

Economies and companies are evolving to take advantage of megatrends such as new technology and shifting demographics – and we believe equity investors need to adapt too.

Companies are increasingly global and multi-sector in their approach, but many investors’ approach to equities has remained the same. This means that investors could be missing out on potentially higher equity returns by continuing to base their equity allocation solely on traditional geographic or sector approaches.

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 60s [1].

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 next decade, as around 3bn people are expected to move from poverty into the middle class [5].

Our solution

Evolving Trends offers investors a single point of access to high-quality companies benefiting from one or more of the five major growth themes within the evolving economy. While these structural themes are not new, we believe we are still in the relatively early stages of accessing their investment potential.

 

Sources:
[1] United Nations, Department of Economic and Social Affairs, Population Division, 2017
[2] Bank of America Merrill Lynch – Higher Online Penetration Primer, Euromonitor, October 2020
[3] International Federation of Robotics 2020
[4] International Renewable Energy Agency, November 2020
[5] OECD as at December 2018


This promotional communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.
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.
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