Thematic Growth Opportunities

• Investor sentiment has shifted significantly in EMEA and Asia (ex-Japan) equity funds following a $50 billion outflow in the first quarter, with flows reversing strongly over the subsequent three to four months as conviction in growth and recovery returns.
• Only approximately 15% of global companies are projected to grow above 8% over the next three years, a decline from the 25–30% average seen in developed markets over the last 10–20 years.
• More than 50% of global companies are now in a low-growth phase (growing less than 4% or experiencing negative growth), prompting a strategic pivot toward thematic investing to embed growth into portfolios.

The Four Identified Megatrends

• Technological Advancement: Viewed as a cross-sector ecosystem driver rather than a standalone industry, technology remains a primary long-term growth vector across all sectors.
• The New Age Consumer: Defined by the ~2.3 billion millennials (born 1980–2000), this cohort now holds higher annual incomes than Baby Boomers and Gen X, driving a projected 20% rise in consumption over the next five years versus a 5–10% decline in older demographics.
• Healthcare Disruption: Genomic technology costs have plummeted from $2.7 billion in 2003 to roughly $1,000 today, with industry projections suggesting full genome sequencing could soon cost under $100 and be completed within 24 hours, enabling a shift to precision medicine.
• Environmental & Social Sustainability: The fourth megatrend focuses on moving to a socially conscious growth model addressing climate change, water sustainability, and the circular economy.

Government Policy and Market Dynamics

• The EU's 750 billion euro fiscal recovery package, released in response to the COVID crisis, is allocating roughly 50% of its funds specifically toward green themes.
• China's share of global GDP is projected to rise from its current 14% to nearly 40% by the end of the decade.
• Over 400 million Chinese millennials are accelerating the adoption of digital-native consumption and technology, often at a faster pace than in developed markets.
• The investment landscape in China is shifting from foreign multinational exposure to local homegrown players dominating sectors like e-commerce, social media, and online gaming.
• China's new "STAR Market" (equivalent to NASDAQ) will likely encourage emerging companies in sustainability and genomics to list domestically rather than internationally as the country targets carbon neutrality by 2060.