What are transitioning societies?

The ongoing growth of the global middle class is “a historical shift not seen for 150 years”1 and almost 90% of the next billion entrants into the middle class will be in Asia2.

This significant demographic shift is likely to bring a consumption boom in the developing world, as consumption patterns move from fulfilling basic needs to more aspirational purchases.

What do transitioning societies mean for investors?

This demographic growth is mirrored by potential opportunities for investment growth. Equity investors can look to companies serving the changing consumption patterns of societies across frontier, emerging and developed markets – from healthcare companies providing access to medicines, to infrastructure projects connecting people and societies.

Access other evolving economy themes

To help people invest in the companies that are embracing these changes, we have adapted our internal research capabilities at Framlington Equities to incorporate the five main trends that we believe represent the future for long-term fundamental growth investing.

Evolving Economy

Automation

Forecast to grow 10-15% annually until 20253, the robotics industry is rapidly changing how we live and work.

Evolving Economy

Connected consumer

Only 13%4 of global retail sales are transacted online, which will likely increase as smartphone adoption rises globally.

Evolving Economy

Ageing and lifestyle

The number of over-60s5 is expected to triple in size between 2000 and 2050, creating challenges for companies and individuals.

Evolving Economy

Clean Tech

Innovative companies are creating solutions to address pressures on scarce natural resources and the need for greenhouse gas emission reduction.

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Risks

No assurance can be given our strategies will be successful. Investors can lose some or all of their capital invested. Our strategies are subject to risks including geopolitical risk and liquidity risk. Investments may be affected by movements of foreign exchange rates, changes in laws or restrictions applicable to such investments, changes in exchange control regulations or price volatility.

    Disclaimer

    This promotional communication does not constitute on the part of AXA Investment Managers a solicitation or investment, legal or tax advice. This material does not contain sufficient information to support an investment decision.

    Due to its simplification, this document is partial and opinions, estimates and forecasts herein are subjective and subject to change without notice. There is no guarantee forecasts made will come to pass. Data, figures, declarations, analysis, predictions and other information in this document is provided based on our state of knowledge at the time of creation of this document. Whilst every care is taken, no representation or warranty (including liability towards third parties), express or implied, is made as to the accuracy, reliability or completeness of the information contained herein. Reliance upon information in this material is at the sole discretion of the recipient. This material does not contain sufficient information to support an investment decision.