CPPIB tracks four ways the pandemic is changing us to hone its investing strategy
The coronavirus pandemic has triggered at least four changes to consumer and workplace behaviour that will have long-term impacts on investing, according to a new report from the Canada Pension Plan Investment Board.
The adoption of e-commence among older consumers, with online purchasing continuing even after non-essential businesses were allowed to resume operations, is among the key trends likely to have an impact, according to the report.
The investment management organization behind Canada’s largest pension plan is also anticipating long-term impacts on healthcare and privacy policy with a shift towards online and telephone healthcare and the attending concerns over sharing personal data.
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The CPPIB report suggests investors, including the pension giant, will also be tracking the impact on cities and infrastructure, including changes in commuting and other travel and mobility trends, as well as a potential shift of populations away from the largest, most densely-populated urban centres.
In terms of the impact on global supply chains, the report suggests beneficiaries of the pandemic will include providers of supply chain software and automation.
“Radical” changes in behaviours occurred during lockdowns imposed to slow the spread of COVID-19, largely driven by health and economic concerns as well as political uncertainty, according to CPPIB, with potentially long-lasting effects. These are being taken into consideration as the $434 billion fund makes investing decisions.
“As COVID-19 impacts consumers, businesses and governments, we continue to monitor and assess the changing landscape as part of our ongoing risk management efforts, and to identify new investment opportunities,” said Leon Pedersen, managing director and head of thematic investing at CPP Investments.
CPPIB Investments’ research included interviews with companies in its portfolios and with partners, as well as custom surveys of consumers and supply chain managers.
Wednesday’s report was co-authored by Caitlin Walsh, senior portfolio manager, and portfolio manager Ruby Grewal. It is a product of Thinking Ahead, a lab within CPPIB created to assess large global issues and identify emerging trends.
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