The world has experienced enormous upheaval in recent years – culminating in the outbreak of Covid-19 which upended peoples’ lives at a rapid and unprecedented pace. Aside from the pandemic, several influential trends have challenged the norms of how we operate in countries, businesses and our personal lives. Some of these changes were sparked by technological innovations that have revolutionised how we live. Other more concerning matters such as climate change, are being driven by the environment itself, as well as social change bringing inequality to the forefront – prompting governments and businesses to rethink policies and strategies.
The mega trends driving this transformation are not new, but the pandemic has accelerated the speed of transformation. While short-term changes continue to heavily influence tomorrow, they are underpinned by longer-term structural changes that will have a far more lasting impact, particularly for investors. We call it the Age of Transformation.
Capturing the disruptive potential
The coming decades will be defined as an era of change, and there’s little transformation without disruption, but these changes inevitably lead to investment opportunities. Much of the required transformation will result in innovation and invention with the potential to drive positive change in societies, economies, sectors and cultures. For example, switching to cleaner forms of transport will help ease pollution; our homes and cities will increasingly harness smart technology, simplifying our day-to-day existence; and food will be produced by scientists rather than just farmers.
Investigating tomorrow’s tomorrow
From an investment standpoint, there is a growing need to identify these transformational trends. We can no longer rely on the status quo for investment opportunities but should ask questions of where industries will go and what the wider impact of these changes will be. The answers will present opportunities that may be impossible to imagine today.
In an environment where very little will remain unchanged, investors will need help to understand the consequences and impacts of this transformation, as well as to identify the opportunities. At BNP Paribas Asset Management, we want to provide this assistance. Our unbiased, open-minded investigative approach asks the challenging questions, evaluates all the options and seeks out answers where possible. We may not have a crystal ball, but we believe an inquisitive mindset can help investors capture the many opportunities in this Age of Transformation.