BNP Paribas Asset Management reveals the key findings of its latest survey conducted by Coalition Greenwich on how demographic change has and continues to impact asset allocation decisions.
- 74% of respondents indicated that demographic change has already impacted asset allocation decisions.
- 95% cited new technologies as an important change shaping their investment strategies, closely followed by ageing populations (91%).
- 60% of investors viewed demographic change as an investment opportunity.
The survey found that demographic change has impacted asset allocation decisions for three-quarters (74%) of investors in the past three years and almost all (95%) believe it will have a greater influence on investment decision-making in the next decade. By region, 42% of US investors indicated demographic change has already impacted asset allocation, compared to 78% of those in Europe and 83% in Asia. The impact was most pronounced amongst intermediary investors, with 86% indicating it had already been factored into investment choices, compared with 69% of institutional investors.
Main demographic and societal changes set to impact investment strategies
Almost all investors surveyed (95%) cited the acceleration of digital and new technologies as an important change shaping their investment strategies, closely followed by the impact of ageing populations (91%), changes in consumer spending habits (89%) and population growth in emerging markets (86%).
These findings also reflect the more appealing sectors identified by respondents. Healthcare was identified by almost all investors (91%) as significantly attractive, followed by Technology (84%), Energy (67%), Agrifood (63%), Leisure & Tourism (60%) and Real Estate (59%). Their growing attractiveness is also linked to the pandemic and climate change.
Key regional differences:
- Healthcare was seen as more important in Europe and Asia (both 95%) compared to the US (75%).
- Technology, telecoms and IT were more important in Asia (93%) compared to Europe (81%) and the US (75%).
- For investors in Asia, emerging market population growth was deemed an ‘extremely important’ aspect of demographic change for investment strategy by half of respondents (51%), compared to 21% in Europe and 15% in the US.
- Diversity & Equality was deemed to be an ‘extremely important’ aspect by 30% of US investors, compared to 24% in Asia and 17% in Europe.