Capitalising on the longevity economy - Investment Conference 2019 - Fidelity International
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Capitalising on the longevity economy Investment Conference 2019
As the world ages, social trends will disrupt long-held patterns of behaviour Ned Salter Head of Equities Fidelity International
What is the longevity economy?
What is the longevity economy?
What is the longevity economy?
A new class of age 50+, controlling vast swaths of personal wealth
They are technologically fluent
They’re enjoying life
Investing in education
And keeping fit
Investors can capitalise on those facts, but we must be mindful of key social trends and how they’ll influence behaviour of the oldies
Girl Power
It’s not just because women like to shop
Women control 64% of consumer purchases ($5-$15 trn US alone)
Women also make up 66% of informal caregivers, focus on eldercare
Yet men make up 83% of the tech-oriented roles at Google
And only 3% of venture backed tech companies have female CEOs
97% of creative directors at marketing firms are men
3%
97%
Women MenWomen earn more than $18 trn per year
2018 GDP
$15.5 trn
2018 GDP
$21.4 trnA crisis of wellbeing
Three in four of us have felt so stressed in the last year we’ve been 'overwhelmed' or 'unable to cope'
The percent of over-50’s who feel lonely has doubled in a decade
Wellness is now > $4.2 trn industry per year
Wellness Market Growth (USD bn)
1,200
2015 2017
1,000
800
600
400
200
-
Personal Care, Healthy Eating, Wellness Fitness & Mind- Preventive & Traditional & Wellness Real Spa Economy Thermal/Mineral Workplace
Beauty, & Anti- Nutrition, & Tourism Body Personalized Complementary Estate Springs Wellness
Aging Weight Loss Medicine and Medicine
Public HealthThis isn’t going to work
We need more human contact
And a move towards de-digitization?
Many assume that innovation spending will rise forever
Connectivity Enablers, Network Builders and Innovators (in USD Million)
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
$3,000
$2,000
$1,000
$0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E
Enablers Network Builders Innovators
Source: IDC, IHS, Bain, Morgan Stanley, JP Morgan, e-marketeer, New Zoo, Magna, 2018.Moral Authority
Children today are holding adults more accountable than ever
Teens in the U.S. spend $91 bn, $211 bn when you include parents
Patterns of behaviour are changing, not just patterns of spending
Flight shaming in action Personal choices to reduce your contribution to Swedish air passenger numbers fall due to flight shaming climate change
Staying ahead of social trends
Financials / Health Industrials / Nat. Resources
Consumer Real Estate Care Cyclicals & Utilities TMT
39
32 13
44
7Staying ahead of social trends
Family of signals & nudges
1) Behavioural finance
5) Technical & Quantitative
2) Intelligence
4) Cross-asset signals
Primary Research
3) FIL ESG ratings
Alternative Data
e.g. web scraping, sentiment analysis
satellite imageryStaying ahead of social trends
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