The team that manages Norwich Union’s Sustainable Future funds is looking at the risks and opportunities the world’s obesity epidemic poses investors.
The team that manages Norwich Union’s Sustainable Future funds is looking at the risks and opportunities the world’s obesity epidemic poses investors.
As experts claim that the number of overweight people in the world overtakes the number of malnourished for the first time*, analysts believe the problem has serious implications for companies in the food production and retailing, healthcare, and leisure sectors.
Key facts:
- Obesity has reached epidemic proportions globally. There are more than one billion overweight adults in the world – 300 million of them are obese**
- Obesity rates have risen three-fold or more since 1980 in some areas of North America, United Kingdom, Eastern Europe, Middle East, Australasia and China**
- Childhood obesity is epidemic in some areas. An estimated 17.6 million children under five are estimated to be overweight worldwide**
- The Health Select Committee has estimated that the costs of obesity are Ł3.3-Ł3.7 billion a year***.
Peter Michaelis, manager of the Norwich Union UK ethical fund and Norwich Union sustainable future UK growth fund, said: “Obesity is a key theme for Norwich Union’s Sustainable Future funds; we see this as an investment issue because it can affect companies’ long-term profitability.
“We think that rising trends in obesity pose both a risk and opportunity for companies, and it is important to understand to what extent companies are exposed to this issue and how they are managing it.
“Our view, for example, is that those food companies and retailers that produce high quality food and healthy lifestyle ranges will enjoy an increase in demand for their products; those companies that produce poor quality food with high sugar, salt and fat content risk losing market share as consumers switch to healthier options.
“Healthcare companies that produce treatments for obesity-related illnesses such as diabetes, strokes, heart disease and joint replacements are also likely to see an increase in demand.”
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Press office contacts:
David Gwyer 01904 452828 Out of hours 07800 699508
Notes to editors:
About Obesity
*Prof Barry Popkin, University of North Carolina, of International Association of Agricultural Economists, Brisbane 2006.
**World Health Organisiation - Global strategy on diet, physical activity and health.
***Department of Health.
The World Health Organisation (WHO) says:
- Obesity and being overweight increase the likelihood of people suffering serious chronic illnesses including type two diabetes, cardiovascular disease, stroke, hypertension and some types of cancer
- Obesity accounts for 2-6% of total health care costs in several developed countries; some estimates put the figure as high as 7%.
The Department of Health says:
- The prevalence of obesity in children under age 11 increased from 11% in 1995 to 13.7% in 2003.
About Norwich Union’s socially responsible investment funds
Norwich Union has six socially responsible investment funds. The investment management team is based at Morley Fund Management and is one of the largest and most experienced in the UK. The team is lead by Dr Peter Michaelis.
About Norwich Union
Norwich Union is the UK’s largest insurer. It is a leading provider of life, pensions and investment products and one of the largest financial adviser (FA) providers. FAs provide over 70% of the company's long-term savings business in the UK.
Norwich Union is the UK’s largest general insurer with a market share of around 14%, with a focus on insurance for individuals and small businesses.
Norwich Union’s news releases and a selection of images are available from Aviva's internet press centre at www.aviva.com/media
About Morley Fund Management
Morley Fund Management Limited is the UK-based asset management business of Aviva plc. Firms within the Morley group of companies manage Ł156 billion from offices around the world as at 28 February 2006.
Morley manages both institutional and retail funds under the Morley brand. It also acts as investment manager for a range of retail investment funds, marketed in the UK under the Norwich Union brand, and international funds marketed under the Aviva Funds brand.
Further information about Morley Fund Management can be found at www.morleyfm.com