investing in global system changes.

economics-led. 

As with all fundamental system changes, today’s transformations are driven not by ideology or policy, but by economics. Efficiency, productivity, innovation, real-world solutions – the systems that win will be those that outperform the incumbents.  

This is the pattern of history – new systems emerging that bring scalable solutions to the structural challenges of the day. Where the shift from wood-burning to coal power solved the energy crisis of the 17th century, and the transition to railways solved the capacity and efficiency limitations of horse-drawn carriages, today’s system transformations focus on the climate crisis, nature loss, failing healthcare systems, and the consequences of changing social demographics. 

In the face of these challenges, our established economic system has become unsustainable – we have reached the limits of scalability, efficiency, and resource availability. Now, however, humanity’s endless capacity to innovate has put us on the verge of an economic revolution that will come to define the future of our species and our planet. 

Forward-thinking businesses are recognising the emergence of new economic systems by adapting their business models to enable continued, sustainable growth. Led by economics, these innovators and early adapters are driving the transition to a new economic end-state. 

From today’s linear, wasteful, unsustainable model, we are moving to a net-zero, nature-positive, socially constructive, and digitally enabled economy.

our strategy.

Through science-based analysis and partnerships we have built with experts across numerous disciplines, we put our understanding of system change at the heart of our investment approach. Across our investment universe, we seek to understand how the deep-rooted transformations taking place in energy, industrial, consumer, health, financial, and digital systems will impact business models and long-term profitability. Across these systems we believe opportunities are emerging where the market is mispricing the risks and opportunities created as climate change and extreme weather, nature degradation and biodiversity loss, and social fragmentation and an ageing demographic force long-term system changes on today’s established economic model.

Having identified those businesses that we believe are set to benefit from the transition, we deploy fundamental analysis to search for price dislocations, where the commercial opportunity has been mispriced by markets yet to wake up to the system changes happening beneath their feet. 

While we always take a long-term approach, we are not targeting returns at an unspecified future date – but now. By overlayering system change analysis with fundamental, bottom-up analysis, we build diversified, risk-managed, high-conviction global and thematic portfolios, founded not on hope or the changing winds of public policy, but on economic fundamentals. 

We are living through a unique time
 

We are living through a time of great uncertainty. But it is also a time of unprecedented opportunity. In a tumultuous economic environment, system change analysis provides a means to ground investment outlooks in economic reality. Put simply, the world is changing, and investors must change with it. What worked yesterday will not work today. 

We believe that sustainable investing is essential for preserving and growing our clients’ wealth over the long term. Away from the short-term noise and the latest ‘breaking news’, the tectonic plates of global system change are shifting. As we transition to a net-zero, nature-positive, socially constructive, and digitally enabled economic end-state, businesses and investors must take action, or risk missing a once-in-a-century economic revolution.