What are transitioning societies?
This significant demographic shift is likely to bring a consumption boom in the developing world, as consumption patterns move from fulfilling basic needs to more aspirational purchases.
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 20253IFR World Robotics Report 2017, latest available data as of March 2018, the robotics industry is rapidly changing how we live and work.
Connected consumer
Only 18%4Statista, 3rd Feb 2022 of global retail sales are transacted online, which will likely increase as smartphone adoption rises globally.
Ageing and lifestyle
The number of over-60s5US Department of Commerce, latest data available as of March 2018 is expected to triple in size between 2000 and 2050, creating challenges for companies and individuals.
Clean Economy
Innovative companies are creating solutions to address pressures on scarce natural resources and the need for greenhouse gas emission reduction.
Metaverse
The Metaverse is driven by companies that, from our perspective, have the potential to generate strong growth over the next decade.
Disclaimer
This document is for informational purposes only and does not constitute investment research or financial analysis relating to transactions in financial instruments as per MIF Directive (2014/65/EU), nor does it 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 solicitation or investment, legal or tax advice, a recommendation for an investment strategy or a personalized recommendation to buy or sell securities.
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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