Megatrends: Forces that investors cannot ignore
The Future of High Returns
Megatrends are likely to fundamentally change the way we live. The papers in this collection touch on a number of developments that financial markets simply cannot ignore, such as ageing populations, digital assets and decarbonisation. Before you dive into the content, however, the Savvy team would like to remind you of recent improvements to our website aimed at making it easier for our members to find exactly what they are looking for. You can read about the changes here.
LONG-TERM ALLOCATION
The Long View: Investing in the future (Baillie Gifford, 2022)
When looking to identify megatrends – those powerful macro forces likely to shape markets and economies for years to come – investors ought to consider Moore’s Law, the potential for hyper-connected networks, and the circular economy.
Asset Class Views for the Most Critical Long-term Risk (Amundi, May 2022)
For compliance reasons, this paper is NOT accessible in the United States
In order for long-term capital allocation to be successful in building wealth, investors need to consider as many long-term risks as possible. Climate change is one such risk and a major element that is shaping global markets.
DIGITALISATION
Crypto Investing: Powerful diversifier or portfolio kryptonite? (PGIM, 2022)
Cryptocurrencies, and digital assets more broadly, are slowly becoming more established as investment opportunities. PGIM presents insights from a number of their investment professionals on the crypto megatrend.
Digital Assets: Separating fact from fiction (State Street, May 2022)
Digital assets are quickly becoming part of institutional investors' portfolios as the world moves towards a future in which digitalisation becomes more embedded into everyday life.
SaaS Technology and Hedge Fund AUM Growth (Finbourne Technology, 2022)
Hedge funds must remain nimble in order to deliver on their risk-return expectations. In part, this means adopting new technologies and looking at the world differently.
How Family Offices Should Approach Digital Assets (TFOA, 2022)
The digital assets sector and crypto investing has progressed markedly in the last five years. Whilst not a traditional asset class, family offices may need to develop an approach.
How Digital, Social, and Economic Shifts Will Impact the Industry (PIMFA, 2021)
The asset management industry is not immune from the impact of social, economic and digital shifts that are affecting the world and reshaping how they do business.
Global Macro: Central bank digital currencies (Insight Investment, 2022)
For compliance reasons, this paper is only accessible in the United States
Digitalisation doesn't just mean new infrastructure or new ways of doing business. It also entails a new way of thinking about money. Central bank digital currencies may come sooner than many think.
HEALTHCARE INNOVATION
Capitalizing on the Biomedical Revolution (Janus Henderson Investors, 2022)
Science has progressed considerably over the past century. Nowhere is this more visible than in the healthcare industry with biotech breakthroughs leading the way, creating investment opportunities.
Video: Navigating a Golden Age of Healthcare Innovation (T. Rowe Price, 2022)
For compliance reasons, this paper is only accessible in certain geographies
The golden age of healthcare innovations has created plenty of opportunities but also risks. Investors should focus on those healthcare businesses with strong fundamentals.
GREEN INVESTING
ESG Megatrends: Climate change (Aegon AM, 2022)
Climate change is an ESG megatrend acknowledged by some of the largest institutions in the world, including the World Economic Forum. Capital allocators will need to factor this megatrend into their models.
The Next Generation of Decarbonisation Infrastructure (Partners Group, 2022)
The next generation of investors are keener to decarbonise the economy. A core pillar of our interconnected world is the infrastructure system. This paper looks in detail at how to decarbonise it.
