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Megatrends Update: Mar 2022

Leading Content on Investment Megatrends

The events unfolding in Ukraine are hard to watch. Much of the resulting investment analysis is reminding us that, historically, geopolitical shocks to the market tend to have a limited effect and are usually mean-reverting. Furthermore, investors are at all times guided to take a long-term view rather than to risk over-tweaking their allocations. It therefore seems prescient to revisit megatrends, those long-term trends with global impact.

Our selection covers environmental and resource concerns, including a paper from Impax Asset Management on biodiversity. Societal evolution is discussed, with contributions on the labour market, population, and social inequality. Technological disruption is well studied by in-depth pieces on the tech trends to be aware of and to start tackling now. Finally, healthcare, with Lazard AM detailing the revolution they believe is already underway.

megatrends mar

Biodiversity Loss and the Role of Investors (Impax Asset Management, Feb 2022)

With the COP15 Biodiversity Conference coming up in April, Impax Asset Management provides a timely take on what investors can do to help address the decline in biodiversity, which will only continue to deteriorate without a change in approach.

Global Macro Trends: Labour in transition (KKR, 2022)

Even before the shock of Covid-19, the labour market had been undergoing structural change. The pandemic has had far reaching consequences for employment, with knock-on effects for wage growth and inflation. Where will the labour market go from here?

The Future of Water (RBC GAM, Feb 2022)

For compliance reasons, this paper is only accessible in certain geographies

Water is increasingly becoming a major environmental as well as a political issue. RBC GAM highlight its scarcity, pollution, varying tariffs and geopolitical tensions as themes to consider. They also look at the most affected industries and how investor engagement could drive change.

Tech Trends 2022 (Deloitte)

This in-depth report from Deloitte uses case studies and insights to outline key technology trends including blockchain, cyber risk, cloud computing, and data sharing. Expectations for tech have shifted, and these trends need to be tackled today.

A Food Revolution to Save the Planet (Candriam, 2022)

For compliance reasons, this paper is only accessible in the UK & Europe

This paper from Candriam centres on the sustainability of the food sector. The authors discuss its current state, challenges, and resource constraints, before looking at whether we should stop eating meat, and developments in low carbon foods.

The Healthcare Revolution Is Happening Now (Lazard AM, Feb 2022)

Healthcare is a megatrend that will shape the future development of our world, so this paper from Lazard AM makes for fascinating reading as they compare the potential impact of the mapping of the human genome to that made by the silicon chip.

Societal Inequality: A global challenge (DWS Group, Feb 2022)

The evolution of inequality is a megatrend of increasing prominence. The good news is that societies are increasingly perceptive of inequality, and country vs country inequality is falling. Inequality within countries though is on the rise.

Annual Research Report: Big Ideas 2022 (ARK Invest)

This annual research report from ARK Invest is focused on the convergence of five innovation trends – AI, robotics, battery technology, DNA, and blockchain. They also identify the disruptive technologies that could be ready to play their part.

Electricity Demand and the Drive to Net Zero Targets (Aviva Investors, 2022)

For compliance reasons, this paper is only accessible in certain geographies

The demand for electricity is expected to climb in the coming decades driven by factors such as fossil fuel reduction, electric vehicles, and heat pump usage. The electricity grid will need to become smarter to cope, generating investment opportunities.

Global Trend Study: Population and society (Roland Berger)

In this first paper of Roland Berger's Trend Compendium, they look in detail at the first of six megatrends forging global development between now and 2050, in people and society. The subtrends covered are population, migration, values, and education.