risks.

The following risks may be materially relevant but may not always be adequately captured by the summary risk indicator and may cause additional loss: Concentration risk, Emerging market risk and Active management risk.

glossary.

Golden Age

The silver economy, a golden opportunity.

This is a golden age for baby boomers and seniors. The generation of retirees is growing as much as three times faster than other population cohorts, and seniors are often much wealthier than younger people.¹

Our Golden Age strategy taps into the rise of the ‘silver economy’, offering investors the chance to benefit from this long-lasting secular trend.

1 Source: Population Division of the Department of Economic and Social Affairs of the United Nations Secretariat; ECB Statistics Paper Series No 2, April 2013, US Census Bureau 1983-2013.

25% over 65

Population in G8 countries in 2050¹

5% pa growth

For silver economy in Europe²

5% pa growth

For global healthcare costs this decade³

1. Source: LOIM. For illustrative purposes only
2. Source: Silver Economy Study (European Commission) For illustrative purposes only
3. Source: LOIM, CMS (cms.gov), WHO (who.int/news-room/fact-sheets/detail/dementia) For illustrative purposes only.

the age of shrinking and older populations.

In developed markets, the over‑65 group is growing three times faster than younger generations. The US alone sees 10,000 baby boomers retire every single day.¹Today’s baby boomers and seniors are often relatively well off, owning up to three-quarters of wealth in some developed countries.²

This has resulted in a ‘silver economy’ where people are living longer and spending more. Their habits affect businesses across a range of sectors, including consumer goods, financial services, e-health and personal well-being.

Please watch this video to learn more about these Golden Age opportunities.

Video

harnessing the silver economy.

As the world ages, the silver economy is growing.

In our view, this broad-based structural trend will continue to gather speed, and firms that effectively cater to this generation are likely to see their customer base expand each year.

Source : LOIM , illustratives purposes only.

capturing silver alpha.

The silver economy is creating opportunities across multiple sectors, which we believe can be best captured through four core sub-themes:

ageing universe of opportunities.

baby boomer brands.

Baby boomers remain loyal to their favoured brands and are often willing to pay more for them.

For example, women over 50 spend three times more on skincare than younger women, using more and higher-priced products. This phenomenon benefits companies that have been able to establish a credible long-term brand presence with older consumers.

Key baby boomer brands include:
pension providers.

As life expectancy continues to rise, the looming pensions bill will be too large for governments to fund alone. This means today’s standard public pension schemes will become unaffordable in most countries.

However, public awareness of personal responsibility is growing. There is increasing recognition that even generous pensions may need to be supplemented with financial planning. In particular, wealth managers and other financial services providers that respond to the baby boomer opportunity early will have a competitive advantage.

Key names in the provision of pensions and associated financial services include:
e-Health.

Healthcare is embracing new digital tools to become cheaper and more effective.

By 2026, AI healthcare applications could generate savings of USD 150 billion annually. In addition, robo-assisted surgery is estimated to grow to a USD 49 billion industry. Companies that aim to develop tools to make healthcare cheaper and more efficient should benefit from a larger market share.

Key names in eHealth include:
healthy ageing.

The UN declared the 2020s to be the decade of healthy ageing. It strongly advises countries to prepare now for ageing societies.

For example, healthy behaviour is considered the best prevention against illness. Obesity has been shown to cause diabetes, heart disease, stroke, osteoarthritis and some cancers. Measures to promote healthy behaviours include moving diets away from packaged food, encouraging greater participation in exercise and sports, and promoting regular and sufficient sleep.

Companies supporting healthy ageing include:

Any reference to a specific company or security does not constitute a recommendation to buy, sell, hold or directly invest in the company or securities. It should not be assumed that the recommendations made in the future will be profitable or will equal the performance of the securities discussed in this document.

why us?

LOIM’s Global Trends offering seeks to capture long-term themes such as digitalisation, consumer brands and healthy living, which are all underpinned by LOIM’s extensive expertise in sustainable investing.

LOIM manages close to USD 2bn across several thematic strategies, such as Global FinTech, Global Prestige and Golden Age.

These strategies all invest in companies selected for their solutions and tools addressing some of the most acute problems facing our world.

The investment team maintains privileged contacts with thought leaders in the demographics field, which helps them keep a finger on the pulse of this theme.

The team is led by Henk Grootveld, who joined LOIM in January 2020 from Robeco and has over 20 years of expertise in thematic investment. Henk is supported by Christian Vondenbusch, a highly experienced Senior Portfolio Manager with a demonstrated track record in thematic investing and a specialisation in financials.

our strategy.

investing in long-term social change

Our Golden Age strategy aims to invest in companies globally that focus on innovation to address the needs of today’s retiree community, tapping into the potential for above-average organic revenue growth.

The focus is on companies capable of generating sustainable and repeatable excess economic returns – particularly those that the market is mispricing.

This results in a high-conviction portfolio of 40-60 stocks, which seeks to invest in companies that have the potential to offer above-market growth and returns at attractive valuations – businesses that help today’s retirees lead longer, healthier, financially secure and fulfilling lives.

investment process.

We believe sustainability will drive future return potential.

We adopt a three-pillar approach to finding sustainable businesses, looking for those with sustainable financial models, sustainable business practices and sustainable business models.

Financial models
We look to identify excess economic returns, focusing on companies with capital efficiency, cash generation and limited dependency on external capital.
Business practices
The team also considers extra-financial information (Environmental, Social and Governance criteria) aimed at avoiding the worst corporate practices and controversies, which can be damaging both to society and to investment returns.
Business model
We tap into one of the biggest structural mega-trends of our times: ageing demographics. We believe that finding business models that we consider truly innovative is key to identifying companies with staying power through economic cycles.

investment team.

	Henk Grootveld Lead Portfolio Manager, Health Trends
	Christian Vondenbusch Investment Team

contact us.

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more about our funds.

Past performance is not a guarantee of future results. If the funds are denominated in a currency other than that in which the majority of the investor's assets are held, the investor should be aware that changes in rates of exchange may affect the value of the funds' underlying assets. The portfolio risk management process includes an effort to monitor and manage risk, but does not imply low risk.

view more funds

insights.

equities Asset Management

Will China grow old before it grows rich?

February 16, 2023

Can China transition to a high-income economy without the favourable demographic tailwinds that helped shape the preceding four decades?

equities Asset Management

In the demographic winter, will we prefer pets to children?

October 17, 2022

For the US, Europe, China and Japan, booms in the number of working-age people are subsiding. As these societies age, what economic and social challenges await?

investment viewpoints Asset Management

Investment megatrends to watch in 2022

December 22, 2021

What will consumer brands bring to the metaverse in 2022, and how will digitalisation advance healthcare? We chart the near future of major megatrends.

white papers Asset Management

Investing in the demographic deficit

September 1, 2021

A demographic deficit will have far-reaching consequences that also present a number of potential growth opportunities.

global perspectives Asset Management

What happens when a demographic dividend becomes a deficit?

August 23, 2021

The depletion of the workforce in the largest economies will have economic consequences, affecting inflation, healthcare and pensions reforms, and societies.

loim tube Asset Management

Webinar | Welcome to the decade of Healthy Ageing

August 19, 2021

Watch the replay of our Webinar

The United Nations General Assembly declared 2021-2030 to be the Decade of Healthy Ageing. This major theme brings together governments, private sector, civil society, academics.

discover more

important information.

Lombard Odier Funds (hereinafter the “Fund”) is a Luxembourg investment company with variable capital (SICAV). The Fund is authorised and regulated by the Luxembourg Supervisory Authority of the Financial Sector (CSSF) as an Undertaking for Collective Investments in Transferable Securities UCITS under Part I of the Luxembourg law of the 17 December 2010 implementing the European directive 2009/65/EC, as amended (“UCITS Directive”). This marketing document particularly relates to Climate Transition, a Sub-Fund of LO-Funds (hereinafter the “Sub-Fund”). The Management Company of the Fund is Lombard Odier Funds (Europe) S.A. 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