For Professional Clients and, in Switzerland, for Qualified Investors only. In Israel for Sophisticated Investors only.
English
  • English
  • French
  • German
en
  • en
  • fr
  • de
Filter by theme
Filter by date
Filter by boutique
Filter by theme
Filter by date
Filter by boutique
No posts matching your criteria
Clear theme
Clear all
No posts matching your criteria
Clear date
Clear all
No posts matching your criteria
Clear boutique
Clear all
For Professional Clients and, in Switzerland, for Qualified Investors only. In Israel for Sophisticated Investors only.
English
  • English
  • French
  • German
en
  • en
  • fr
  • de
© 2019. BNY Mellon Investment Management International Limited. All rights reserved.
IDEAS AND KNOWLEDGE TO INSPIRE YOUR INVESTMENTS THINKING
10 October 2019

Disrupt or die? 

Longevity isn’t what it used to be. As the pace of innovation in technology picks up, the average lifespan of companies on major equity indices is shrinking. Consider the following: in 1965 a typical S&P500 company could expect to spend 33 years on the index. By 1990 that average had fallen to 20 years – by 2026 that number is expected to have shrink again, to just 14 years.1

 

The implied churn rate could mean that, over the next 10 years, about half of the constituent companies on the S&P 500 will be replaced.

 

This raises a key question. If the revolving doors of key index constituents turn faster and corporate lifecycles become shorter, how should investors respond? We believe investors can take two paths: harness the disruptors themselves or identify and invest in the beneficiaries of their disruption.

 

George Saffaye, global investment strategist, Mellon.

 

1 INNOSIGHT, Anthony, Scott D et al: ‘2018 Corporate Longevity Forecast: Creative Destruction Is Accelerating’, 2017.

Please note the content on this website is for Investment Professionals only and should be shared responsibly. No other persons should rely on the information contained within this website.

 

Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA or the BNY Mellon funds.

Subscribe to updates