How to start an investment conversation?

Welcome to Weekly Investment Conversation Starters No. 70

?? Did you know?

1. People spend on average USD 219 monthly on subscription services?

(Source:?2022 survey commissioned by C+R Research)

2. Nearly 49% of Americans try to lose weight each year?

(Source: Centers for Disease Control and Prevention)

3. The annual rate of increase in atmospheric carbon dioxide over the past 60 years is about 100 times faster than in the past?

(Source: annual report - NOAA’s Global Monitoring Lab)

3?? topics to start an investment conversation

1. The subscription economy is everywhere with 78% of adults international currently subscribed to one or many services.
2. The obese population has more than doubled since 1980 and is expected to keep rising as per-capita GDP rises in the developing world.
3. The levels of carbon emissions are rising, driving the need for decarbonization innovations.

1. Money for nothin' and your news for free …

Well, not quite for free anymore …

?? In the news

The digital transformation of the news industry has been quite brutal. While people got accustomed to free news, new business models based on digital subscriptions have emerged and are becoming more prevalent.

?? How do people consume news today?

1. Digital devices: 53%
2. Television: 33%
3. Radio: 7%
4. Print publications: 5%

The newspaper industry has faced significant pressure in recent years, as digital devices have taken over.

?? What digital news portals are leading?

• Facebook is seeing its popularity eroded
• Video based platforms are gaining more and more traction
• Newest platforms like TikTok are growing faster

News consumers' habits and interests are changing, with younger generations more attracted to short-form videos.

?? The secret sauce

Online subscription models like the one developed by the New York Times are showing promising results.

Their secret sauce: an online-first publication with a newspaper, rather than a newspaper with a website.

?? Investment thought

UBS CIO Long-term Investment Theme: E-commerce

With consumers benefiting from faster internet speeds, advancements in mobile applications, and integration of VR/AR features, more goods and services are purchased online, including news services.

?? Opportunities

Some of our strategies invest in companies that are embracing the subscription economy.

2. Are you beach body ready?

?? In the news

If you’re trying to lose weight and you’re sick of watching what you eat, researchers have some good news: watch the clock instead.

?? What did researchers find?

1. Participants didn’t change what they ate but ate it between noon and 8 p.m.
2. They achieved significant, sustained weight loss that was comparable to people who cut their daily calories by 25%.
3. Dieters in both groups lost about 4% of their body weight after a year.
4. People in a control group gained about 1% more weight in the year.

?? What is the reason behind this?

• The idea is to compress eating time into six to eight-hour period per day.
• This reduces the amount of insulin your body produces.
• Insulin controls how your body uses and stores blood sugar.
• Reducing insulin plays a role on how the body stores fat.

Time-restricted eating has emerged as a popular alternative for losing weight, as it is simpler than counting calories and doesn't require any change in your pantry.

?? Investment thought

UBS CIO Long-term Investment Theme: Obesity

The obese population has more than doubled since 1980 (Source : WHO) and is expected to keep rising as per-capita GDP rises in the developing world.

The economic cost of obesity is growing and is making this condition a top priority.??

?? Opportunities

Some of our strategies invest in companies that are providing solutions to fight obesity and health risks associated with it.

3. What if carbon emissions were visible??

?? In the news

This NASA animation visualizes the ebb and flow of carbon dioxide emissions released in the atmosphere over Europe, the Middle East and Africa, in 2021.

It may not be a pretty video, but it's something we all need to see …

?? Why should you watch this video?

1. It helps conceptualize the weight of something that you can't normally see ...
2. It shows just how much of these gases is being put out, especially in the northern hemisphere.
3. The model also helps to understand the interactions between carbon sources and carbon sinks.

?? How does it work?

• Earth's carbon sources (mainly from fossil fuels) are shown as a thick, smoggy, and toxic-looking orange color.
• Burning crop residue in central Africa is shown in a rusty red.
• Earth's on-land carbon sinks pulse in green as they swallow excess CO2.
• Ocean-borne carbon sinks pulse in blue.

?? Investment thought

UBS CIO Long-term Investment Theme: Clean Air and Carbon Reduction

Population growth and urbanization across the globe are driving the need for decarbonization innovations as levels of carbon emissions are rising.

?? Opportunities

Some of our strategies invest in companies developing technologies and powering solutions to reduce carbon emissions.

About Investment Conversation Starters

Hand-picked for relationship managers and investment advisors,?Weekly Investment Conversation Starters?is a series of ideas to start a conversation with clients, spark their curiosity and gauge their appetite for thematic investment.

If you like these, you can:

• Consult the?previous editions?of Weekly Investment Convo Starters
• Ring my bell (??) and follow?#InvestWithFunds?for more stories about these long-term investment themes

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