WELL-BEING & LIFESTYLES
Why Well-Being & lifestyles?
Emerging new lifestyles are increasingly oriented towards self-fulfillment through pleasure consumption.
- Global wealth creation
Spending related to well-being is accelerating thanks to global wealth creation, which is expected to reach €334 trillion in 2021. Economic growth has contributed to an increased consumption across all generations and social classes. In addition to this underlying trend, consumption is undergoing profound changes that can generate a significant growth potential.
- The quest for experiences
Demand is shifting from materialism to real-life experiences, which will help shape identity, create life-long memories and reinforce connections to other people. As an illustration of this, the share that US consumers spend on live experiences and events has increased by 70% since 1987.
- The influence of digitisation
With more than 3 billion Internet users worldwide, digitisation is another strong driver of changes in lifestyles. E-commerce is growing at a sustained pace. Social networks allow for easy sharing and rapid growth of new lifestyles. Many brands have pushed digitisation into their marketing strategies, offering products and services that connect the consumer to the brand.
Furthermore, these powerful shifts benefit from a key catalyst: Millennials. Born after 1980, they are fueling the market with a set of distinct values, priorities and expectations, shaped by the world of increasing connectivity and rapid change they grew up in. Millennials already account for a substantial part of discretionary consumption and are likely to become the greatest spender generation in history.
As this generation moves further into adulthood, they are gaining greater purchasing power and are forcing companies to re-examine their business models and marketing strategies.
% consumption in GDP of OECD members and North America
Our approach relies on American psychologist Abraham Maslow’s work in which he shows that three “emotional needs” related to well-being are particularly important for individual motivation.
The need for Belonging to a community can be fulfilled through social networks for instance. Luxury goods carry differentiation and social prestige which contribute to satisfying the need for Esteem. As for the need for Self-Actualisation, it can be achieved through new experiences such as travel and adventure.
We invest in companies that sell products or provide services which increase well-being by satisfying one of these three needs.
Our universe is composed of about 400 stocks and extends to eight well-being related sectors: Automobile, Wealth Management, Digital Economy, Tourism, Leisure, Wellness, Luxury, Sport & Textile.
Such an investment universe is robust in terms of sales and earnings. Companies related to the well-being & lifestyles theme offer high growth rates thanks to their capacity to innovate or differentiate themselves.
Past performances are not a reliable indicator of future performances of the funds and of the funds manager.