Growing population, urbanization and an aging society are trends that are both inexorable and persistent. They will have a huge impact on many aspects of our lives and will have a lasting effect on our world. Our aim is to find the right companies that will benefit from these three game-changing mega trends we have identified.
Why invest in the fund?
Because it is a convenient way to invest in a diversified investment strategy with rigorous risk management.
Invest for a better tomorrow: The fund invests in companies which are solution providers for the challenges of tomorrow and are future winners.
Diversification: A global equity portfolio allocating to multiple themes instead of one or few single improves diversification and the portfolio’s risk profile.
Sustainability: The portfolio has a strong sustainability profile in addition to thematic positioning.
A winning team: Pairing Chief Investment Officer (CIO) identified longer term investment themes with the portfolio construction expertise of Asset Management.
Simplicity: It has never been easier to access the UBS CIO Wealth Managements Longer Term Investment Ideas.
What are the megatrends?
The world is changing at a rapid pace. We have identified three game-changing mega trends and are investing in the most promising longer-term investment themes derived from them. Invest with us for a better tomorrow.
Global population is expected to almost reach 10 billion inhabitants by 2050 from a current 7.3 billion. The vast majority of this population growth will occur in low and middle-income countries.
The trend of moving from rural areas to cities continues. By 2030, nearly 9% of the world’s population will live in just 41 megacities with more than 10 million inhabitants each.
The world population is aging, and is becoming more concentrated in emerging/developing countries. The number of people aged 60+ will exceed the number under 25 in developed countries by 2030.
Long Term Investment Themes. Our preditctions for 2050 (EN, 5:18 min.)
Why invest in long term investment themes?
Population growth, urbanization and an aging society are trends that are both inexorable and persistent. They will have a huge impact on many aspects of our lives and will have a lasting effect on our world. Our aim is to find the right companies that will benefit from these trends.
- Who ensures the efficient use of resources?
- Who benefits from the aging population?
- Who organizes more and more people in less and less space?
Investment themes in a nutshell
Energy efficiency in a nutshell (EN, 1:55 Min.)
Water scarcity in a nutshell (EN, 1:31 Min.)
Long Term Investment Themes
Rising living standards and urbanization in emerging markets increase the demand for waste management and recycling solutions.
Rising wages and demographic challenges will put pressure on manufacturing costs and drive investments in automation solutions.
Urbanization and the continued expansion of megacities in emerging markets are driving growth in the demand for infrastructure investment.
The aging of the global population and the growth of the over-65 age group will create more opportunities for companies selling medical products and devices.
The amount of water suitable for human consumption is limited and the resource is unevenly distributed. Despite this, demand for clean water is constantly growing.
Urbanization and rising per-capita GDP will contribute to an ever-greater prevalence of obesity – including in emerging markets – in the coming decades.
With growing populations and higher incomes in many economies, the need for efficient management of farmland increases.
Security and safety impact every aspect of life including governments securing their country's infrastructure, enterprises protecting their data as well as consumers’ ability to trust products like baby food, smoke detectors and fire alarms.
The “baby boom” generation is progressively reaching retirement age, and demand for assisted-living facilities is expected to accelerate in the years to come.
More and more regulations are being put in place to improve air quality and reduce CO₂ emissions. Solution providers that offer technologies to reduce emissions should benefit most from stricter emission regulations.
As we age, our cells are more likely to mutate in ways that cause cancer. We can expect the number of patients diagnosed with cancer to continue to outpace population and GDP growth.
EM healthcare spending will gain urgency in the next 10 years due to rapidly graying populations and rising demand from urban middle classes.
Stricter regulations and rising demand for energy drive the need for energy-efficient technologies. Effective energy efficiency is essential for enabling end-users to reduce power consumption at the source.
Economies around the world are increasingly dependent on the services sector, requiring education and specialized training to produce knowledgeable workers. As a result, this improves people’s career prospects and reduces the risk of unemployment.
Asia will drive mass global migration from the countryside to cities over the next two decades. Mass Transit Rail (MTR) systems have proven highly cost-effective transport solutions for Asia’s megacities.
Portfolio managers could benefit from an aging population and baby boomers reaching retirement age.
The need for energy efficient transportation, regulatory changes and technological advances will lead to greater electrification of cars, autonomous driving and new car-sharing mobility concepts. This opens opportunities in particular for electronics and electric components related to electrification and autonomous driving.
Global electricity demand is increasing due to population growth, urbanization and technological advances. Renewable energy enjoys an advantage over fossil fuels traditionally burned to generate electricity as renewables are an infinite source of energy and have a smaller environmental impact. Political support and falling costs make renewables attractive and should lead to further growth in the future.
Generic drugs are low-priced copies of offpatent medicines. Generic drugs are cheaper and allow for a broader access to care. Meanwhile healthcare spending is rising consistently and healthcare systems are focusing more on value for money, supporting generic drug demand.
How to invest in UBS Equity Long Term Themes?
UBS Fund Gate offers comprehensive information about the fund in its diffrent unit classes.
Please contact us for an advisory consultation
Telephone: 0848 848 052
- The fund invests in equities and may therefore be subject to high fluctuations in value. For this reason, an investment horizon of at least five years is required
- The fund pursues an active management style, which means that performance can deviate substantially from that of its reference index
- The fund can use derivatives, which may result in additional risks (particularly counterparty risk)
- The fund does not hedge local currency exposure. Changes in currency exchange rates may have an impact on fund value
- These aspects require a corresponding risk tolerance and capacity