Ageing and Lifestyle

What is the Ageing & Lifestyle theme?

Ageing and lifestyle describes the changing ways that people are living across the globe as life expectancies rise. Ageing populations are one of the greatest social, economic and political transformations of our time.

For example, the global 60+ cohort is forecast to grow significantly faster than all other age groups – tripling in size between 2000 and 2050 - creating challenges and opportunities for governments, companies and individuals alike:

Forecasted change in global population size between 2000 and 2050

Source: World Population Ageing, United Nations, 2015

What are the potential benefits of the Ageing and Lifestyle theme?

The investible opportunities of ageing populations extend far beyond the obvious areas of healthcare. The changing lifestyles and needs of older generations could represent a multi-decade growth opportunity for investors. By 2030, two-thirds of over-60s’ consumption growth in developed markets will be spent across multiple industries dedicated to living well, from beauty and fitness, to travel and entertainment.1

Meanwhile other industries like real estate, financials and healthcare will have to rapidly adapt to retiring and elderly generations’ needs.

We invest in companies operating across four areas associated with the economic implications of longevity:

  • Silver Spending: Industries dedicated to living well; beauty/aesthetics, personal care, fitness, housing, travel, leisure and entertainment.
  • Treatment: Companies seeking sustainable treatment solutions for the coming generations.
  • Wellness: The wellness industry includes preventative medicine, personalised treatments, nutrition, beauty and anti-ageing treatments.
  • Senior Care: Markets for senior housing and specialist assisted living facilities, such as Memory Care that focuses on dementia patients.

ageing population areas of investment

Why do ageing populations matter for investors now?

1. We have reached a tipping point of ‘peak youth’ – the global number of adults aged 65+ now outnumber children under 5.

 

ageing global population chart showing exponential growth in people aged 65+

Source: UN as at March 2018

 

2. Living longer naturally incurs higher healthcare costs; preventing and treating age-related chronic diseases will be key driver of healthcare spending over next five years. 10,000 Americans hit the age of 65 every day, at which point personal healthcare spending doubles.2

Healthcare spendings by age

increased spending in elderly healthcare

Source: US Centers for Medicare & Medicaid Service. Latest data available at May 2018. 

 

3. The retirement savings gap will grow 5% a year from 2015-2050 – that means an additional $28bn of deficit each day, according to the World Economic Forum. The increasing onus for individuals to save for, and enjoy, longer retirements gives wealth managers opportunity in an underpenetrated market.

Insights

The Evolving Economy

What you need to know about longevity in 9 charts

Increasing life expectancies are one of the greatest socioeconomic transformations of our time, with significant implications for companies and investors alike.

The Evolving Economy

What does the silver dollar mean for investors?

Older generations are an often overlooked driver of global spending. Discover what increasing longevity means for companies and consumption.

The Evolving Economy

What are companies doing to tackle the impending dementia crisis?

As life expectancies continue to rise, dementia is likely to become one of the world’s most challenging medical conditions, affecting an ever-larger proportion of the population.

Automation

Forecast to grow 10-15% annually until 2025*, the robotics industry is rapidly changing how we live and work

Connected Consumer

Only 13% of global retail sales are transacted online, which will likely increase as smartphone adoption rises globally*

Clean Tech

As a result of huge demographic and environmental changes, Clean Tech is forecast to become a $3 trillion market by 2025*

Transitioning Societies

The growth of the global middle class is at a 150-year high, boosting consumption in Asia and the developing world*
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The Evolving Economy at AXA Investment Managers

  • Established thematic investor

    30-year track record of thematic investing and product innovation

  • Innovative research structure

    Collaborative research structure to prioritise Evolving Economy exposure over traditional geographic and sector information

  • Deep insight to performance drivers

    Our proprietary thematic exposure database quantifies Evolving Economy exposure across a universe of c.11,000 companies*

  • Active, long-term approach

    We distinguish between short-term investment hype and investment reality by focusing on long-term commercial viability.

1 United Nations, data correct as at July 2020
2 Health-care dilemma: 10,000 boomers retiring each day, CNBC, 3 October 2017
3 We’ll live to 100 – how can we afford it? World Economic Forum, May 2017

*Automation - IFR World Robotics Report 2017, latest available data as of March 2018.
*Connected Consumer - Citi Research, Citi GPS “Technology at work v3.0”, August 2017
*Ageing & Lifestyle - US Department  of Commerce, latest data available as of March 2018
*CleanTech - Financier Worldwide, “Investing in the clean technology revolution”, January 2016
*Performance Drivers - AXA IM, correct as at 29 December 2017

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