Robeco’s Trends Investing team follows three megatrends that will shape the future: Transforming Technology, Changing Socio-Demographics and Preserving the Earth. Each one has three sub-trends ranging from the spending power of a rising middle class in emerging markets, to increasing regulation around the world. They derive from the technological, demographic and policy-driven changes that have been shaping the world since the dawn of the internet age, the rise of emerging markets, and the realization that global warming represents a fundamental threat to mankind.
Long-term trends should not be adversely affected by the coronavirus crisis, as in principle, a trend is not susceptible to short-term or sporadic shocks such as epidemics or natural disasters. Yet, the scope and intensity of the crisis triggered by the Covid-19 pandemic obviously raise concerns. Furthermore, the measures taken to contain the spread of the coronavirus beyond the first wave of contagion may require us to change our long-term expectations due to the economic fallout that is accompanying it.
In this article, we discuss the likely impact of the Covid-19 crisis and its economic aftermath on all of the megatrends and sub-trends that our stable of five strategies invests in. Overall, we believe the Covid-19 pandemic and the global recession that is set to follow will not derail or stop the trends that shape our investment strategies.
On the contrary: the crisis may well accelerate the impact of some of them – particularly the usefulness of digitalization in a locked down world – rather than put a brake on them. Indeed, we believe that while the coronavirus crisis will clearly be recessionary in the short term, there are still tailwinds for thematic investing. This is because the Covid-19 crisis has led to:
We believe the Covid-19 crisis will not derail or stop the trends that shape our investment strategiesThe biggest winner of all these changes is clearly our digitalization trend, particularly in fintech, going cashless, and the connectivity needed to facilitate working from home. There will be spin-off advantages for cybersecurity, health care and all forms of e-commerce, all of which were already on an upward trend. The only sub-trend that may be negatively affected is the emerging middle class, whose spending power is diminished until their economies can fully recover.
Markets seem to be largely in agreement with this assessment, as the relative performance of the majority of our trends strategies has been very good, particularly in relation to equity sectors adversely affected by the lockdowns. The high-growth companies that embody the trends space are likely to remain in favor long after the coronavirus crisis is over, making them ideal for investors with their eye on the future.
The information contained on these pages is for marketing purposes and solely intended for Qualified Investors in accordance with the Swiss Collective Investment Schemes Act of 23 June 2006 (“CISA”) domiciled in Switzerland, Professional Clients in accordance with Annex II of the Markets in Financial Instruments Directive II (“MiFID II”) domiciled in the European Union und European Economic Area with a license to distribute / promote financial instruments in such capacity or herewith requesting respective information on products and services in their capacity as Professional Clients.
The Funds are domiciled in Luxembourg and The Netherlands. ACOLIN Fund Services AG, postal address: Affolternstrasse 56, 8050 Zürich, acts as the Swiss representative of the Fund(s). UBS Switzerland AG, Bahnhofstrasse 45, 8001 Zurich, postal address: Europastrasse 2, P.O. Box, CH-8152 Opfikon, acts as the Swiss paying agent. The prospectus, the Key Investor Information Documents (KIIDs), the articles of association, the annual and semi-annual reports of the Fund(s) may be obtained, on simple request and free of charge, at the office of the Swiss representative ACOLIN Fund Services AG. The prospectuses are also available via the website www.robeco.ch. Some funds about which information is shown on these pages may fall outside the scope of the Swiss Collective Investment Schemes Act of 26 June 2006 (“CISA”) and therefore do not (need to) have a license from or registration with the Swiss Financial Market Supervisory Authority (FINMA).
Some funds about which information is shown on this website may not be available in your domicile country. Please check the registration status in your respective domicile country. To view the RobecoSwitzerland Ltd. products that are registered/available in your country, please go to the respective Fund Selector, which can be found on this website and select your country of domicile.
Neither information nor any opinion expressed on this website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco Switzerland Ltd. product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports.