Megatrends are very real economic, social, technological and environmental forces reshaping the world as we know it. These long-term structural changes are undeniable, and backed by proven data.
Source for all data unless otherwise indicated: PWC, November 2016, https://www.pwc.com/gx/en/government-public-services/assets/five-megatrends-implications.pdf. 1Source: United Nations, 2019, World Urbanization Prospects 2018: Highlights
Western economic dominance is waning
China and other “developing” countries are shifting from production to consumption economies
Emerging markets are increasingly exporters of capital and innovation
Countries have different demographic trajectories
Some societies are ageing rapidly or even shrinking, limiting their workforce and straining healthcare systems
Other societies are young and growing, creating larger labour and consumer markets
In the 1950s, 30% of the world lived in cities1
Today, the figure is 55%, and is expected to reach 68% by 2050, requiring massive investment in smart infrastructure1
The number of megacities (>10m inhabitants) is set to increase from 33 in 2018 to 43 by 20301
AI, automation, sensors and other frontiers of R&D are boosting productivity
New industries are being created, and old ones are being reshaped
Mobile technology, cloud computing, data analytics, the internet, and machine learning will keep transforming our world
Global warming, extreme weather and rising sea levels put traditional methods of farming and fishing under pressure
Resource scarcity is a critical issue, particularly clean water and energy
The need for sustainable solutions matters now more than ever
The new economy is redefining sectors and changing business models. Portfolios built around traditional sector definitions can be very constraining. Does a Financials allocation make the best of fintech? Or does the Industrials sector reflect the latest in robotics and AI innovation? Disruptive forces at play mean investors now have to look at the world differently than they might have before.
Consumer goods
Telecoms
Energy
Healthcare
Financials
Industrials
Information tech
Utilities
Rise of Gen Y (+Gen Z)
Internet & social media
Renewables, lithium & battery tech
Med tech, higher longevity & healthy living
Software engineering
Robotics, AI & machine learning
Cloud computing & big data
Decentralised energy & smart energy
Millennial consumers
Comm. services
Clean energy
Digital health
Fintech
Automation
Internet of things
Smart grids
Source: Lyxor International Asset Management. For illustrative purposes only. This is not a recommendation.
Smart Cities
Digital Economy
Future Mobility
Disruptive Technology
Millennials
In truth, we can’t say for sure which specific companies or technologies will take off. That’s why we’ve diversified each of our thematic exposures across a number of related concepts, products and services.
Future mobility for example isn’t just about electric cars – it’s about the whole value chain of autonomous vehicles, EV batteries and components, shared mobility, and the metals and mining companies supplying battery manufacturers.
Most themes overlap, converge and reinforce each other. For example, a bet on disruptive technologies is an indirect bet on the digital economy, artificial intelligence and more. That’s why some stocks appear in more than one of our thematic ETFs.
