“Companies associated with these platforms should generate more than $50 trillion worth of business value and wealth creation over the next 10 to 15 years,” said Leggi. “If you look at the current value today, these companies are estimated at less than $6 trillion.”
One key criteria ARK looks for: The cost decline associated with the technologies should be at a tipping point -- making it affordable to the wider public.
CPR Asset Management Global Disruptive Opportunities Fund
Focus: Companies benefiting from disruptive business models
2019 Returns: 38.85%
Top Holdings: Teladoc Health, SolarEdge Technologies, Twilio
The mega trends that CPR focuses on include demographic and social changes, globalization, technological revolution and environmental challenges.
The firm estimates that by 2050, the world’s population will total 9.7 billion and the number of people aged 60 and older will more than double. This will foment a 50% rise in energy consumption by 2030. It also expects 50% of patients with chronic conditions to rely on virtual health assistants by 2022.
Thematic investing “offers higher and sustainable growth opportunities that we want to benefit from over the longer term,” said Estelle Menard, deputy head of global thematic equities at the firm. “It’s storytelling. Once people understand the themes, they are more likely to invest.”
CPR AM Silver Age Fund
Focus: Demographics, aging, health
2019 Returns: 24.4%
Top Holdings: Vivendi, L’Oreal, Roche Holding
CPR’s Silver Age Fund seeks to invest in sectors that benefit from the aging population. The components provide a glimpse at the diversity of thematic funds: Top holdings include digital and pay TV provider Vivendi, anti-aging cream manufacturer L’Oreal, and pharmaceutical giant Roche Holding.
Since inception in 2009 it has generated an average annualized return of 11.3%, compared with about 7.8% for the MSCI Europe Index.