Longevity, Falling Fertility Impacting Markets

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May 13 (Bloomberg) -- Katie Koch, Head of Global Portfolio Solutions International at Goldman Sachs Asset Management, discusses topics covered at the company’s 2014 EMEA Ideas Summit including how demographics are shaping economies. She speaks with Manus Cranny on Bloomberg Television’s “On The Move.” (Source: Bloomberg)

300 clients here at the goldman sachs idea summit -- ideas summit.

I was looking at the rundown of subjects.

Demographics is a really hot topic at the moment.

How do you look at the world and its ever exploding population?

The reality is actually that we will live in a world with people that are a lot older and the total population will be smaller.

To keep your spine that is falling fertility and increased longevity.

Talk to me a little more about that.

The falling fertility have to do changing demographics?

Women perhaps deciding to have kids until they're older.

Is that the driving force?

Women being more educated is a huge driving force.

We estimate that in the least about companies -- countries, the fertility rate can drop by 5.25 children.

The displacement rate around the world is 2.1. shopping fertility, not just develop market issue, also developing market issue areas thailand and vietnam, both have lower fertility rates than europe.

You mentioned europe.

There is a great stat you mention of the u.k.. talk me through that.

I think it crystallizes what is happening here.

On the one hand you have the falling fertility, on the other you have increased longevity, because of course you have had a gleason science and medicine and so we are all living longer.

In the u.k., there are 12,000 people, roughly, that have reached the age of 100. everyday, we're are adding five hours to the average lifespan.

In the u.k., specifically, we have 8 million people alive that will reach 100. hopefully, you and i will be two of those people.

I am not too sure if i will resort hundred club.

I'm happy at 75. tell me what that means to goldman sachs.

We will come to that in a moment in terms of the power of the purse.

Tight together that strand for me which is to graphics, growth, longevity, fertility.

Order a look at that from an asset management point of view?

In the pension world, if we are all living longer, pension liabilities will go up.

That is hard for the pension funds.

From an investment perspective, just to give an example, one thing we would give an example of would the nappies.

Two years ago, they sold more geriatric nappies and baby nappies.

The opposite is happening in nigeria, where you are an explosion of baby nappies.

Is a very simple example to say that those big transaction can have a big impact, even when you look at the world bottom-up.

There's a paper i read.

I know you are with one of your colleagues last night when activist paper.

I got as far as the power of the purse.

It is fascinating, because this is about women come access to capital, and the consequences of women with access to capital.

Some of the numbers in this are quite mind blowing in terms of gdp and in terms of the per capita income.

Talk me through the top line of the paper.

I co-authored a paper called giving credit where it is due.

The conclusion is very consistent with all the research we have done on women and developing economies.

If we elevate the status of women and girls in developing countries, we will also elevate the economic performance of those countries.

The headline of this paper is that we look around the world in developing countries.

We think about 70% of women are either guns -- unserved.

We think we can add 12% of those countries after 2020. how you close that gap?

Is very important because a way to close it is to prove that women are good credit.

More importantly, there are millions of women in the developing world that are inspiring -- that are aspiring entrepreneurs.

We need to make sure that they get access to the finance at they need the dice can appreciate that.

It will expand their loan book profitably to lending to women.

It is just a matter of making sure that is a global community, we make the resources available to match the ambitions of those women.

Katie, enjoy the day.

I think you're due on stage in a few minutes.

Enjoy the moderation.

Thanks for having us here today.

Always a pleasure.

Back to you, mark.

Pulses coming up and roughly 30 minutes time.

A strong line up today.

Are we the dream team?

The replace dream team.

This text has been automatically generated. It may not be 100% accurate.


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