On the 6th August I looked at ‘investing in the 50+ market’ and could only find one fund manager that had constructed a fund that would benefit from the aging profile.
The UK’s Sunday Times 20 July 2003 (Money section) published an article by David Budworth who also considered this subject. Many thanks to an old friend for pointing it out to me.
This article asked a few ‘city types’ the sectors and shares they thought would do well because of the changing demographic and economic profile of the UK. I am afraid this article is not online, unless you want to buy it, so here is a summary of the findings. The pundits identified the following as the sectors/shares to watch.
HEALTCARE. Merck (blood-pressure drugs), Pfizer (Viagra), Zimmer (artificial joints), Smith & Nephew (hip and knee replacements)
LEISURE. Carnival (Cruise operators), Ryanair and Easyjet (cheap flights)
FINANCIALS. Pension and investment companies. They highlighted Aviva (because of its pan-European presence)
PROPERTY. McCarthy & Stone (retirement homes)
RETAILERS. Kingfisher (company behind B&Q), Wyevale Garden Centres (obvious)
I reckon this is boring and unimaginative list of sectors and companies and takes a very narrow view of the corporate winners and losers. I think a much greater influence is going to be those companies that understand the importance of the 50+ group and then do something about it.
