What to buy now

An exchange-traded fund (ETF) explicitly targeting the rise of the silver pound is the iShares Ageing Population UCITS

ETF (LSE: AGED), one of iShares’ “megatrend ETFs”. This aims to invest in companies that derive a large proportion of their revenue from people aged 60 or older. Around half the fund is invested in healthcare companies, including Regeneron technologies, a biotechnology company, and Carl Zeiss, which specialises in optical technology.

The other half of the fund is invested in financial firms, although with 359 holdings the ETF is very thinly spread. The average price/earnings (p/e) ratio of shares in the fund is 17.5 and the ongoing charge is 0.40% a year.

If you would prefer an actively-managed fund focused on a smaller number of healthcare companies, then Kasim Zafar of EQ Investors recommends the Baillie Gifford Health Innovation Fund. Launched in December last year, it invests in companies at the cutting edge of healthcare and biotechnology. Major holdings include Moderna, which apart from the Covid-19 vaccine is also working on vaccines for cancer (the second-largest cause of deaths for over 75s) and Shockwave Medical, which is pioneering a non-invasive way to unblock arteries. The fund has an ongoing charge of 0.60% a year.

The cruise-ship industry has been badly hit by Covid-19 restrictions. Still, an ageing population means that its long-term prospects are excellent since the elderly make up a disproportionate number of its customers. Norwegian Cruise Line

Holdings (NYSE: NCLH), which despite its name operates in the Mediterranean, Alaska, Caribbean, Bermuda, Hawaii and US west coast, is well worth a look. While its revenue fell by around 80% last year and it currently only has three ships in service, the rest are expected to come back into use over the next few months; 2022 revenue is expected to return to just under 2019 levels by next year, by which time it should start making a profit again.

The rise in the number of elderly people with large amounts of money to invest is good news for the investmentmanagement industry. Matthew Tillett of the Brunner Investment Trust particularly likes St. James’s Place (LSE: STJ). It may not be the cheapest option for investors when it comes to asset or wealth management, but shareholders can hardly complain: its earnings more than doubled between 2016 and 2020 and are expected to keep growing at a strong rate. This more than justifies the fact that it trades at 22 times 2022 earnings.

Another financial adviser and asset manager Tillett expects to do well from the rise in demand for financial advice is America’s Charles Schwab

(NYSE: SCHW). It has targeted the mass market, investing heavily in technology in order to keep costs low.

This has resulted in revenue nearly doubling between 2015 and 2020, while earnings per share have increased by

125% during the same period. With sales growing by around 10-15% a year, and Charles Schwab set to take advantage of economies of scale, the 2022 p/e of 21 looks more than reasonable.