Our philosophy and process

We have been considering themes as a key part of our ‘mosaic’ investment process since our inception in 1978. Themes seek to identify the major areas of structural change in the world. This structural change can be political, economic, social, technological, or environmental; its impact will manifest across traditional economic sectors, and will be significant in magnitude and long-term in duration. Themes are a critical element of our idea-generation process and, alongside evaluation of fundamentals and ESG considerations, constitute a key component of our valuation of securities.

The Future Life strategy draws upon research linked to our healthy demand and population dynamics themes. It is our view that global demographic change, specifically associated with the ageing of populations, will present growing consumer demand for innovative solutions in areas such as health care, leisure, financial services, housing and travel. The Future Life strategy seeks to invest in companies that are well placed to thrive in providing such solutions. We categorise these companies through four sub-themes: care & support, financial security, health innovation, and living better.

Investment team

Our Future Life strategy is managed by a team with a wide range of backgrounds and varied experience. The portfolio management team is supported by experienced industry, credit and responsible investment analysts. Our investment professionals work as part of a single investment team, which promotes perspective on the investment landscape, strong idea generation and the swift implementation of investment ideas.

Strategy profile

Objective

The strategy aims to achieve long-term capital growth by predominantly gaining exposure to companies located worldwide that are expected to benefit from the investment opportunities associated with the ageing of the global population and the changes this will drive in consumer demand for products and services.

Performance benchmark

MSCI AC World NDR

Typical number of equity holdings

30-50

Strategy size

Below £200m

Strategy inception

January 2021
Future Life strategy brochure

Brochure

More detail on the strategy’s investment approach.

Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.

Key investment risks

  • There is no guarantee that the strategy will achieve its objective.
  • This strategy invests in global markets which means it is exposed to changes in currency rates which could affect the value of the strategy.
  • The strategy may invest in emerging markets. These markets have additional risks due to less developed market practices.
  • A fall in the value of a single investment may have a significant impact on the value of the strategy because it typically invests in a limited number of investments.
  • The strategy may invest in small companies which may be riskier and less liquid (i.e. harder to sell) than large companies. This means that their share prices may have greater fluctuations.
  • The strategy may use derivatives to generate returns as well as to reduce costs and/or the overall risk of the strategy. Using derivatives can involve a higher level of risk. A small movement in the price of an underlying investment may result in a disproportionately large movement in the price of the derivative investment.
  • The strategy follows a thematic investment approach, which typically leads it to focus on and invest in some industrial sectors more than others. This may cause it to perform differently to strategies that use a broader selection of investment themes as part of their security selection process.