Capitalising on the longevity economy Investment Conference 2019 - PowerPoint PPT Presentation

Capitalising on the longevity economy Investment Conference 2019

As the world ages, social trends will disrupt long-held patterns of behaviour Ned Salter Head of Equities Fidelity International

What is the longevity economy?

What is the longevity economy?

What is the longevity economy?

A new class of age 50+, controlling vast swaths of personal wealth

They are technologically fluent

They’re enjoying life

Investing in education

And keeping fit

Investors can capitalise on those facts, but we must be mindful of key social trends and how they’ll influence behaviour of the oldies

Girl Power

It’s not just because women like to shop

Women control 64% of consumer purchases ($5-$15 trn US alone)

Women also make up 66% of informal caregivers, focus on eldercare

Yet men make up 83% of the tech-oriented roles at Google

And only 3% of venture backed tech companies have female CEOs

97% of creative directors at marketing firms are men 3% 97% Women Men

Women earn more than $18 trn per year 2018 GDP $15.5 trn 2018 GDP $21.4 trn

A crisis of wellbeing

Three in four of us have felt so stressed in the last year we’ve been 'overwhelmed' or 'unable to cope'

The percent of over- 50’s who feel lonely has doubled in a decade

Wellness is now > $4.2 trn industry per year Wellness Market Growth (USD bn) 1,200 2015 2017 1,000 800 600 400 200 - Personal Care, Healthy Eating, Wellness Fitness & Mind- Preventive & Traditional & Wellness Real Spa Economy Thermal/Mineral Workplace Beauty, & Anti- Nutrition, & Tourism Body Personalized Complementary Estate Springs Wellness Aging Weight Loss Medicine and Medicine Public Health

This isn’t going to work

We need more human contact

And a move towards de-digitization?

Many assume that innovation spending will rise forever Connectivity Enablers, Network Builders and Innovators (in USD Million) $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019E 2020E 2021E 2022E 2023E 2024E 2025E Enablers Network Builders Innovators Source: IDC, IHS, Bain, Morgan Stanley, JP Morgan, e-marketeer, New Zoo, Magna, 2018.

Moral Authority

Children today are holding adults more accountable than ever

Teens in the U.S. spend $91 bn, $211 bn when you include parents

Patterns of behaviour are changing, not just patterns of spending

Flight shaming in action Personal choices to reduce your contribution to Swedish air passenger numbers fall due to flight shaming climate change

Staying ahead of social trends Financials / Health Industrials / Nat. Resources Consumer Real Estate Care Cyclicals & Utilities TMT 39 32 13 44 7

Staying ahead of social trends Family of signals & nudges 1) Behavioural finance 5) Technical & Quantitative 2) Intelligence 4) Cross-asset signals Primary Research 3) FIL ESG ratings Alternative Data e.g. web scraping, sentiment analysis satellite imagery

Staying ahead of social trends

Important information This document is for intermediaries only and not for external distribution. All external distribution requires prior written approval from Fidelity. FIL Limited and its subsidiaries are commonly referred to as Fidelity or Fidelity International. Fidelity, Fidelity International, the Fidelity International logo and F symbol are trademarks of FIL Limited. The information contained in this material is only accurate on the date such information is published on this material. Opinions or forecasts contained herein are subject to change without prior notice. Reference to specific securities mentioned within this material (if any) is for illustrative purpose only and should not be construed as a recommendation to the investor to buy or sell the same. Investment involves risks. Past performance is not indicative of future performance. Please refer to the relevant offering documents for further information including the risk factors. If Investment returns are not denominated in HKD/ USD, US/HK dollar-based investors are exposed to exchange rate fluctuations. This material may contain materials from third parties which are supplied by companies that are not affiliated with any Fidelity entity ("Third Party Content"). Fidelity has not been involved in the preparation, adoption or editing of such third party materials and does not explicitly or implicitly endorse or approve such content. Any opinions or recommendations expressed on third party materials are solely those of the independent providers, not of Fidelity. Third Party Content is provided for informational purposes only. The material is issued by FIL Investment Management (Hong Kong) Limited and it has not been reviewed by the Securities and Futures Commission (“SFC”).