Megatrends are the origin of all other themes that have been presented so far in this brochure, hence providing as many growth drivers to capture thematic alpha.
Why megatrends ?
A megatrend is a driving force of human activity’s development bringing long-term, profound changes to the societies in which it unfolds. History is not, indeed, static but filled with change. Administrative centralisation, rural flight, generalisation of wage labour, are a few well-documented examples of deep-set trends that have given birth to our modernity.
Whereas a historical retrospective of past megatrends can help us achieve a better understanding of our present, the identification of ongoing megatrends provides a means to anticipate what our future will look like. The demographic and social changes, economic shifts, technological breakthroughs, and environmental challenges of our time are spreading at an unprecedented pace. As they require adaptations in all sectors and from all society members (governments, businesses, individuals), they point to where value creation will take place in the near future.
The study of contemporary megatrends thus ties in with the predictable future, a future that can be modelled on the basis of estimated figures. For instance, world population growth, emergence of new economic powers, artificial intelligence development and resource scarcity stand among noticeable megatrends whose impact for the future can already be quantified.