Silver Haired Economy

Invest in companies benefiting from growth in demand for products and services from ageing populations in developed economies. Buy shares of companies such as HCA Holdings, Challenger and Prudential Financial.

1.4 billion people will be aged over 60 by 2030

US ‘silver haired economy’ worth US7.1 trillion dollars

Spending power of people over 60 to reach 15 trillion by 2020

Over half of US spending by those over 25 is on non-healthcare products

Most of the industrialised nations in the world, including Australia, have an ageing population. This is a trend common to developed countries, which experience a fall in birth rates as well as increase in longevity with increasing wealth and prosperity. While this phenomenon has social implications, it has a bigger impact on the economies of the ageing countries. According to the UN population database, the number of people in the 60+ category will grow from 841 mn in 2013 to ~2 billion by 2050. UN also predicts that people in the 65+ group will outnumber children below 5 years of age by 2047. This has wide-ranging implications for demand for certain products and services. Euromonitor estimates spending power of the 60+ category to reach US$15 trillion by 2020.

Certain sectors of the economy will be primary beneficiaries of this demographic trend. Pharmaceutical companies, which produce drugs to treat age related illnesses like Alzheimer’s or Parkinson’s disease, as well as healthcare providers and medical equipment manufacturers are likely to see a healthy growth in demand for their products. Financial services firms which provide retirement planning, investment and wealth management services will also likely benefit. Last but not the least, the consumer sector that provides senior care, senior travel & leisure services are also key beneficiaries.

In the Silver Haired Economy Vue, we seek to benefit from this global mega trend that is underway. Some of the companies in our Vue include HCA Holdings, Challenger Ltd and Amplifon S.p.A.

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