June 2023
The extension of lifespans will revolutionize the way we live in the next decade, and offer new investment opportunities in a burgeoning longevity economy. Listen to our podcast below.
To download the transcript, click here.
The Opportunity
Breakthroughs in medicine and improvements in public health measures have extended global life expectancy from 67 years to 72 in the last 20 years, at a time when fertility rates have also fallen. This demographic shift is changing societies and economies worldwide, especially in the U.S.
Governments and corporations are responding to aging populations by creating a longevity economy, where policies, research and products are focused on keeping people active and healthy for longer.
While markets have been aware of this secular trend for some time, many investment opportunities are only just emerging, as prior Covid-induced healthcare funding and medical research bear fruit. Today we find ourselves at an inflection point, where chronic age-related illnesses like Alzheimer’s could soon be treatable. There is also a strong pipeline of biotech, pharmaceutical and diagnostic tools coming to market.
Key Stats
The Longevity Economy Basket
We have created a longevity economy basket consisting of 20 securities, in six key products and service categories within the healthcare and consumer sectors. The basket includes exposure to pharmaceuticals, medical devices, life sciences tools and diagnostics, fitness apparel and equipment, as well as household and personal products.
Contact us to learn how you can invest today in tomorrow’s transforming world.
Footnotes
1. Alzheimer Association, Factsheet, Mar. 2020
2. IQVIA Forecast Link, IQVIA Institute, Nov. 2022
3. The IQVIA Institute Feb. 2023
Potential Risks
Daily pricing: On a daily basis, the Delta-one note will move up and down 1:1 with the underlying basket of stocks. Due to market factors, the Delta-one note will be valued at intrinsic value only at maturity.
Default by issuer: The delta-one note is structured by BNY Mellon Wealth Management, as debt, which is similar to holding a bond. BNY Mellon Wealth Management receives no compensation from the Issuer. All payments on the delta-one notes are subject to the creditworthiness of the Issuer and Guarantor, if any. BNY Mellon Wealth Management will continually monitor the credit quality of the issuer and make appropriate recommendations as needed.
Limited liquidity: BNY Mellon Wealth Management will source liquidity both from the issuers and the secondary market. However, liquidity is not guaranteed. Investors should be prepared to hold the security through maturity.
Dividends/gains excluded: While dividends are not paid, there is an adjustment factor, paid at maturity, that will incorporate some of their value. The amount is specified upfront and fixed for the duration of the note.
Tax considerations: A tax opinion is included in the prospectus of each deal, which is typical of long-term capital gains for investments held for more than one year.
Returns of a Delta One Note will differ based on expiration dates and market conditions. Investors should read the applicable information statement or prospectus documents (including prospectus supplements and pricing supplements) carefully before investing.
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