Eight trends. One portfolio
Invest in global Megatrends through a single diversified portfolio.
Seize global MegaTrend opportunities
The digital economy. Urban expansion. The depletion of natural resources. These are some of the trends that reflect our changing way of life. These and other Megatrends provide an investment opportunity focussed on long-term global trends.
1. Ageing population
One of the most lasting demographic changes in human history
Right now, Japan is the only country in the world where 30% of the population is over 60 years old. But by 2050, 55 countries are predicted to follow suit. Developments in medical diagnostics and treatments as well as improvements in our quality of life are helping us to live longer, and companies that focus on healthcare and biotech will benefit from this trend.
Percentage component within FAM MegaTrends and selected funds.
Janus Henderson Global Life Sciences
Global fund for the health care sector.
Invesco Global Consumer Trends
Focuses on identifying new trends.
Percentage of the total FAM MegaTrends
Source: Fineco Asset Management
2. Innovative cancer treatments
Rising cancer deaths: research focus
By 2040 global cancer deaths will increase by 72%, from 9.5 to 16.3 million. In response, companies are investing in the tech and the research for better diagnosis and treatment. With 83% of cancer survival being attributed to new treatments, we’re on the right path. But there’s still a long way to go.
Percentage component within FAM MegaTrends and selected funds.
Candriam Equities L Oncology Impact
This fund invests in listed companies that develop and/or sell products and services for the treatment of cancer, capable of innovating surgery, radiotherapy and cancer drugs.
Percentage of the total FAM MegaTrends
Source: Fineco Asset Management
3. Increasing water scarcity
Global demand for water is on the rise
Water is an irreplaceable and essential resource. Population growth, urbanisation and dietary changes are increasing industrial water demand.Water consumption has increased nine-fold since 1900, and it’s destined to grow even more, driven by urbanisation and greater industrial and agricultural consumption.
Percentage component within FAM MegaTrends and selected funds.
Parvest Aqua
Global fund that invests in companies operating in the water and/or related sectors.
Percentage of the total FAM MegaTrends
Source: Fineco Asset Management
4. Self-driven electric vehicles
By 2040 we’ll only drive electric cars
Political, environmental and economic factors are revolutionising mobility concepts, shifting towards a sustainable future. Taxes for motor vehicles are increasing across countries, and it’s predicted that we’ll all be driving electric vehicles by 2040. Companies like Daimler and Google are focussing on putting self-driven vehicles on the market within the next few years.
Trend opportunities
Manufacturers of efficient vehicles,
components and alternative fuels
Percentage component within FAM MegaTrends and selected funds.
Global X Autonomous & Electric Vehicles ETF
The fund invests in companies involved in the development of technologies for self-driven vehicles, electric vehicles ("EVs"), EV components and materials.
Percentage of the total FAM MegaTrends
Source: Fineco Asset Management
5. Climate and environmental changes
The trend that will define the planet’s future
An increase in floods, fires, tornadoes and hurricanes are just some of the visible signs of climate change now raising frequent alarms. 18 of the 19 hottest years have been recorded since 2001. We’re not doing enough to reduce the amount of CO2 emissions, the plastic recycled or the waste produced as industrialisation progresses.
Percentage component within FAM MegaTrends and selected funds.
Nordea 1 Global Climate & Environment Fund
Global Climate and Environment Fund, launched in 2008 to invest in innovative companies that promote an environmentally sustainable society.
Percentage of the total FAM MegaTrends
Source: Fineco Asset Management
6. Future Smart Cities
Smarter solutions for overcrowding
Cities occupy 2% of the earth's surface but contain more than 50% of the world’s population, and generate 80% of the world's economic production. Cities must find smarter solutions to manage infrastructure and expansion in a more efficient, sustainable way, and improve quality of life.
Percentage component within FAM MegaTrends and selected funds.
Pictet SmartCity
A global equity fund that invests primarily in companies that contribute to or benefit from global urbanisation.
First Trust Cloud Computing ETF
This fund tracks the performance of companies actively involved in cloud computing.
Percentage of the total FAM MegaTrends
Source: Fineco Asset Management
7. Fintech developments
The financial ecosystem is becoming increasingly digitised.
Artificial intelligence, big data and new technologies such as Blockchain are forcing banks and insurance companies to continuously innovate. Starting with China and India, the explosion of e-commerce and the growing popularity of online payments is opening up the fintech market to an additional 2 billion people.
Trend opportunities
Companies adopting or developing fintech
solutions and technologies
Percentage component within FAM MegaTrends and selected funds.
Robeco Global FinTech Equities
The fund invests in equities from developed and emerging countries around the world, which benefit from the increasing digitisation of the financial sector.
First Trust Indxx Innovative Transaction and Process ETF
This ETF invests in companies around the world that actively use, invest, develop or offer products that benefit from blockchain technology.
Percentage of the total FAM MegaTrends
Source: Fineco Asset Management
8. The drone revolution
A new market on the rise
The market for drones is developing rapidly outside the military sphere. According to PCW it will reach $127 billion by 2020 and create 100,000 new jobs by 2025. Both industrial and commercial applications of drones are intended to reshape traditional industries like retail, real estate, agriculture and emergency services.
Percentage component within FAM MegaTrends and selected funds.
ETFMG Drone Economy Strategy ETF
This strategy seeks to make the most of growth opportunities related to drones and invests in drone manufacturers and components.
Percentage of the total FAM MegaTrends
Source: Fineco Asset Management
EIGHT GLOBAL TRENDS *
ONE SINGLE INVESTMENT
| Smart cities | 25% | |
| Ageing population | 17.5% | |
| Fintech | 17.5% | |
| Water | 10% | |
| Climate and environmental changes | 10% | |
| Oncology | 7.5% | |
| Drones | 7.5% | |
| Self-driven electric vehicles | 5% |
Invest now on
FAM MegaTrends takes advantage of the opportunities of 8 major world trends, through a single diversified portfolio actively managed by Fineco Asset Management.
Invest now on FAM Megatrends
With just one product you can invest in eight trends that are changing the world.
You can invest in the future with a minimum subscription of £100.
The Funds are selected methodically by a dedicated management team.
Global megatrends
FAM Megatrends' portfolio looks at funds that exploit four large, interconnected world Megatrends. Read all about it in our brochure.
1/4 - Demographics
US Population
(Millions)
United Nations (UN) reports(1) predict the world's population will increase by more than 1 billion by 2030. This unprecedented growth is not evenly distributed geographically or generationally. The world's population is ageing, due to advances in medicine and technology. Millennials are also increasingly influencing consumption, spending and employment models. Geographically, the incremental effect is noticeable in both developed and developing countries, but the trend is more evident on the Asian continent. In fact, there are more people over 65 in Asia than the entire population in United States of America, and it’s expected that in the next 25 years there will be more people over 65 in Asia than people in the Eurozone and North America combined.
2/4 - Sustainability
Yearly CO2 concentration
According to NASA, global temperatures have increased by 1.9°F since 1880. Plus, 18 of the 19 hottest years ever recorded have occurred since 2001.(2) Satellite data clearly show a shrinkage of the polar ice caps, with a consequent rise in sea levels at a speed of more than 3 mm per year. At the same time, carbon dioxide levels in the air are at their highest in over 650,000 years, largely due to agriculture, deforestation and the use of fossil fuels. These alarming effects are likely to be exacerbated by the growing global population unless more efficient fuels, materials and processes are identified to help reduce humans' impact on the planet.
Source: climate.nasa.gov
3/4 - Urbanisation
In 1990, there were only 10 so-called "megalopolises" on the planet with a population of 10 million. Today, the number of mega-cities in the world has almost tripled, to 28. In fact, in 1950 30% of the world's population lived in urban areas, but this percentage is expected to increase to 66% by 2050. With such huge population growth, cities must adapt to different demands of their residents.
Source: esa.un.org/unpd/wup/Publications/Files/WUP2014-Highlights.pdf
Global urban and rural population (1950-2050)
Population (millions)
4/4 - Technology & Innovation
Technological developments are improving productivity at rates never seen before. Innovations in robotics, artificial intelligence and communication technologies are driving radical change in traditional industries like retail, manufacturing, agriculture, transport, medicine and finance. The pace of this change is exponential, and when machines capable of learning faster than humans are developed there will be disruptive effects. It’s predicted that 60% of all professions could see 30% or more of their main activities automated. (3) This process of automation will inevitably lead to the replacement of jobs with machines, but it also boosts potential for industry and the creation of new professions. Automation and process efficiency will have the positive effect of concurrently reducing costs and improving available products, benefiting standards of living. The internet of things is becoming more popular in the modern world: coffee machines, refrigerators, lighting, heating and even doorbells can be controlled via tablets and smartphones. The data available to Gartner estimates that in 2016 there were 6 billion "things" connected to the Internet. By 2020 this number will rise to over 20 billion.
Source: esa.un.org/wup
Increased productivity due to technological development
There is no guarantee of a positive return or repayment of the initial capital.