Ageing and Lifestyle

What do rising life expectancy and ageing of societies mean for investors?

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 among the greatest social, economic and political transformations of our time.

For example, the global 60+ cohort is forecast to grow more than five times as fast as the under-60 population from 2018-20301, creating challenges and opportunities for governments, companies and individuals alike:

Source: World Population Ageing, United Nations, July 2020

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

The investible opportunities of ageing populations extend far beyond the obvious area 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: 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, which focuses on dementia patients

1  Source: All data from the United Nations, correct as at July 2020.

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.

2. Living longer naturally entails higher healthcare costs; preventing and treating age-related chronic diseases will be a 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 (US Center for Medicaid).

Source: US Centers for Medicare and Medicaid Services. Current data, May 2018

3. The retirement savings gap will grow 5% each year from 2015-2050 – that means an additional deficit of $28 billion each day, according to the World Economic Forum. The increasing onus on individuals to save for, and enjoy, longer retirements opens up opportunity for wealth managers opportunity in an underpenetrated market: 52% of global wealth is held by over 50s, but only 26% of retirees globally have ever used a professional financial advisor (HSBC).

Automation

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

Connected Consumer

Just 9% of retail transaction are made online today, which will likely grow as smartphone adoption rises globally

Clean Tech

Huge demographic and environmental changes are forecast to make CleanTech a $1.3 trillion market by 2020

Transitioning Societies

The growth of the global middle class is at a 150-year high, boosting consumption in Asia and the developing world

What is the Evolving Economy?

The Evolving Economy is all about identifying companies that are tapping into multi-decade demographic and technological changes, regardless of their region or sector classifications.
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