Pets – a growing economy
Do you know a dog which lives outside most of its life? Instead, “Darling” is more likely to yawn out of a king-size bed. Today, pets are part of the family for many people. They are no longer farm animals. They are companions, friends or therapy partners. This reflects a trend that can provide interesting opportunities for investors.
Thematic investing in megatrends
The pet boom is more than just a fad. It is the result of various social developments: millennials say that money does not matter when it comes to their pets, while at the same time, China is discovering its love for pets due to its increasing prosperity. Thematic investing creates new opportunities in investing in megatrends: the new pet economy.
Megatrend: Demographic and Social Change
Millennials:
– Most likely age group to state "money is no object" when it comes to their pets1
– No the biggest pet owning age demographic with 32% of total pet ownership2
Ageing population:
– Older generation, with adult children and higher disposable incomes, are the biggest spenders on their pets3
– Expected to represent 33% of US population by 2030
Changing social attitudes:
– Attitude shift: pets have moved from the yard to the house to the bed
– 95% of US pet owners consider their pets to be part of the family4
China´s rising affluence:
– China´s middle class has joined pet lovers of the world
– China's pet care market is expected to benefit from a 19% compound annual growth in pet food spending between 2021 and 20305
Why Allianz Pet and Animal Wellbeing?
The global market for pet-related products and services is growing. Studies show that this momentum is set to continue with a CAGR of over 6% a year6. Pets are a part of the family, and as such they are often given a high level of care regardless of the state of the economy.
The changing demographic and social landscape is one of the megatrends shaping our economic future, from a growing middle class and aging society to shifting millennial attitudes. The fund provides a way to access this megatrend with a high degree of purity. We target mostly pure plays in the pet space, small and mid caps, with some diversification into large caps.
We have extensive experience in thematic investments. Our in-house research division, Grassroots Research®8, and our global investment platform help us to identify new trends. Investors enjoy exposure to innovative young companies as well as established providers.
Did you know...? On average, a dog costs about 16.000 EUR*.*Average life span of a Labrador-Retriever of 13 years, in Germany.
Source: “Amount of the average costs of pets per month, animal and type in Germany in 2021”, Statista, 202
1) 2022 Consumer Affairs survey of 1,000 pet owners
2) 32% 2021-2022 APPA National Pet Owners Survey
3) The World Pet Markets Trend, countries experiencing growth in the pet industry, The Balance Careers
4) Beziehung von Heimtierbesitzern zu ihren Haustieren, Statista, 2020.
5) "China’s pet care spend set for dramatic increase, says Goldman", Financial Times, September 2021 (https://www.ft.com/content/d9b76550-bd18-4f1a-acf1-68fb6616cd65).
6) Projected CAGR (compound annual growth rate) over 6.1% between 2021 and 2027, Global Market Insights, 2021.
7) A performance of the Fund is not guaranteed, and losses remain possible.
8) Grassroots Research® is a division of Allianz Global Investors that commissions investigative market research for asset-management professionals. Research data used to generate Grassroots Research® reports are received from independent, third-party contractors who supply research that, subject to applicable laws and regulations, may be paid for by commissions generated by trades executed on behalf of clients
Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors might not get back the full amount invested. Allianz Pet and Animal Wellbeing is a sub-fund of Allianz Global Investors Fund SICAV, an open-ended investment company with variable share capital organised under the laws of Luxembourg. The value of the units/shares which belong to the Unit/Share Classes of the Sub-Fund that are not denominated in the base currency may be subject to a strongly increased volatility. The volatility of other Unit/Share Classes may be different. Past performance does not predict future returns. If the currency in which the past performance is displayed differs from the currency of the country in which the investor resides, then the investor should be aware that due to the exchange rate fluctuations the performance shown may be higher or lower if converted into the investor’s local currency. This is for information only and not to be construed as a solicitation or an invitation to make an offer, to conclude a contract, or to buy or sell any securities. The products or securities described herein may not be available for sale in all jurisdictions or to certain categories of investors. This is for distribution only as permitted by applicable law and in particular not available to residents and/or nationals of the USA. The investment opportunities described herein do not take into account the specific investment objectives, financial situation, knowledge, experience or specific needs of any particular person and are not guaranteed. The Management Company may decide to terminate the arrangements made for the marketing of its collective investment undertakings in accordance with applicable de-notification regulation. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable at the time of publication. The conditions of any underlying offer or contract that may have been, or will be, made or concluded, shall prevail. The duplication, publication, or transmission of the contents, irrespective of the form, is not permitted; except for the case of explicit permission by Allianz Global Investors GmbH.
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For investors in Switzerland
For a free copy of the sales prospectus, incorporation documents, daily fund prices, key investor information, latest annual and semi-annual financial reports, contact [the Swiss funds’ representative and paying agent BNP Paribas Securities Services, Paris, Zurich branch, Selnaustrasse 16, CH-8002 Zürich - for Swiss retail investors only] or the issuer either electronically or by mail at the given address. Please read these documents, which are solely binding, carefully before investing. This is a marketing communication issued by Allianz Global Investors (Schweiz) AG, a 100% subsidiary of Allianz Global Investors GmbH. The Summary of Investor Rights is available in English, French, German, Italian and Spanish at https://regulatory.allianzgi.com/en/investors-rights.
June 2022 / Admaster #2317498