WHY MEGATRENDS ARE IMPORTANT FOR INVESTORS

Jan 23, 2019 | Tony Byrne's View

I recently read a BlackRock research study on megatrends, which I found really interesting.

What are megatrends? They are powerful, transformative forces that could change the global economy, business and society. These megatrends are longer term in nature and have irreversible consequences for the world around us.

Megatrends are nothing new. They have been affecting the way we live for centuries. Inventions, such as the light bulb, the induction motor and the electric transformer and so on, led to electricity becoming the driving force behind the second industrial revolution, which quickly changed the world around us. Today we are on the verge of an equally groundbreaking development – the unleashing of data.

The 5 megatrends identified in the report are as follows:

Technological breakthrough;
Changing economic power;
Climate change and resource scarcity;
Demographics and social change;
Rapid urbanisation.
None of these trends exist in isolation as they are interconnected. When the trends collide and overlap, the new investment themes appear.

Fortunately, we have been following megatrends for some time, which is why our sister fund management company, Minerva Money Management, launched its first fund, The CCM Intelligent Wealth Fund, on 16 April 2018. The fund invests in innovative and disruptive companies that are shaping our future. It invests in 9 investment sectors of the future as summarised below:

Biotechnology;
Internet of Things;
Robotics;
3D printing;
Renewable energy;
Bank payment systems;
Transport;
Media;
Longevity.

We consider our fund to be in effect the 4th industrial revolution fund, because we have no doubt that we are in the midst of the latest industrial revolution, which is going to totally transform the world. We think it makes sense to be invested where most of the growth in stock markets is likely to come from over the next 5-10 years. Why invest anywhere else?

We have recently added longevity as the latest investment sector, because it is predicted that this sector will become the largest ever investment sector in the world. Why? Because everyone wants to live a longer and healthier life. What’s more, there are 7 billion people on the planet today and that figure is set to grow to 8 billion by 2030!

We have taken the decision to weigh our fund more heavily into the biotechnology, pharmaceuticals and longevity sectors, because those are the ones we believe offer the greatest investment potential out of all of the sectors we have selected.

So, if you are not already invested in the CCM Intelligent Wealth Fund, what are you waiting for? Contact us today to find out how to invest into our fund. You know it makes sense.

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