MEGATRENDS


Megatrends are the origin of all other themes that have been presented so far in this brochure, hence providing as many growth drivers to capture thematic alpha.
  

Why megatrends ?

A megatrend is a driving force of human activity’s development bringing long-term, profound changes to the societies in which it unfolds. History is not, indeed, static but filled with change. Administrative centralisation, rural flight, generalisation of wage labour, are a few well-documented examples of deep-set trends that have given birth to our modernity.

Whereas a historical retrospective of past megatrends can help us achieve a better understanding of our present, the identification of ongoing megatrends provides a means to anticipate what our future will look like. The demographic and social changes, economic shifts, technological breakthroughs, and environmental challenges of our time are spreading at an unprecedented pace. As they require adaptations in all sectors and from all society members (governments, businesses, individuals), they point to where value creation will take place in the near future.

The study of contemporary megatrends thus ties in with the predictable future, a future that can be modelled on the basis of estimated figures. For instance, world population growth, emergence of new economic powers, artificial intelligence development and resource scarcity stand among noticeable megatrends whose impact for the future can already be quantified.






Our approach

To harness the potential of these megatrends, we have turned them into usable investment leverages. Proximity with the management teams, which enables us to get continuous and transparent information about each underlying strategy, combined with the creation of dedicated tools as well as with our long-standing experience of thematic investing have contributed to establish a dynamic theme allocation process.

The management of the megatrends theme thus attempts to capture the various long-term growth drivers related to the themes that we hold in our portfolio, all the while seeking to boost or at least preserve the overall performance on the short and middle terms by favouring profiles most suited to the identified market phase.

Such approach to thematic investing through dynamic allocation relies on convictions that we build during a monthly expert committee as well as on the basis of internal macro-economic scenarios. Those convictions are then adjusted with the risk associated with each of the themes in order to determine their respective weights in the final allocation.

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Past performances are not a reliable indicator of future performances of the funds and of the funds manager.