For many years we have been increasingly treating our pets not just as loved members of the family but having the same status as our children or partners. ‘Pet Humanisation’ is a Global Megatrend that has actually accelerated due to the effects of Covid-19 and is unlikely to reverse in coming years.
This interesting Megatrend is easily evidenced in how much money we are prepared to spend on their health, what we feed them, and what priority they hold in our overall household decision making. It is also obvious from the choice of services available to pet owners, and the outrageous prices for ‘designer breeds’.
As an investor, this all gives rise to a couple of interesting questions: Why is this occurring, and what businesses are taking advantage of this phenomenon?
“Recent surveys* have thrown up some interesting data. Not only have pet owners found comfort in their pets through Covid isolation, but their pet’s health is as important as their own, and they intend increasing expenditure on it.”
“The really interesting thing is that these results are most stark in younger age cohorts, Millennials and Gen Z, and we know these cohorts will be the largest contributor to global retail expenditure over the coming decades”.
Megatrend Investment Manager has selected several businesses associated with animal health that are highly profitable, innovative and well managed.
Mr Kotecha noted, “Zoetis (Ticker ZTS) is a $5bn plus revenue firm that is highly profitable and a global supplier of animal pharmaceuticals. We have owned this stock for many years, and it has typically outperformed the benchmark by around 13% over that time.”
Insync manages a concentrated Global Quality Equity portfolio across 16 Megatrends like Pet Humanisation and has an enviable 10-year track record of posting sustainable growth and relatively low volatility. Insync is doing all the heavy lifting for investors interested in taking advantage of these long runways of growth through some of the world’s best businesses.
For more insights on Insync’s approach to megatrend investing visit insyncfm.com.au
* Survey: Based in responses of 8-10 on 10-point scale of agreement, IDEXX U.S. Pet Owner Research Study fielded July 2020, n= 600 pet owners
Mr Monik Kotecha
CIO
Insync Funds Management
0413 768 480
mkotecha@insyncfm.com.au
Wes Gillett
National Manager Distribution
Insync Funds Management
0408 904 530
wgillett@insyncfm.com.au