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Is the economy the health of a country?

Healthcare
China: tan lejos, tan cerca
Categoría
Investment funds
Tipo de contenido
Actualidad
Tiempo de lectura
minutos
Publicado
14 Nov 2022
In a way, yes, because an economically developed country is inconceivable without developed health care. As countries grow economically, whether they are emerging economies or not, their society demands more and better quality health care.

Why invest in this trend?

  • A country that grows economically also grows in health care.
    Nations such as China and India, which represent a large part of the world's population, will increase this demand in the coming years in proportion to their economic growth as a country.
  • Longer life expectancy, higher health spending.
    Those over 65 spend three times more on health care than the rest of the population. A population that, by 2050, is expected to be double the current one due to the increase in life expectancy that, in turn, originates from the development of health.
Invest in health care 1
Investment in health is one of the fundamental aspects for the development of a society, and recent events have once again highlighted this.
Due to the pandemic, health systems have reached their maximum capacities, reminding us of something that we all know: the need for constant investment in the health sector, both public and private.
  • When you invest in healthcare, the results are always visible.
    In the last 10 years, the approval of new drugs has grown by 113%. This greater scientific productivity is due to improvements in research, processes, technology and the high capital investments made.
  • A positive correlation: new medicines, greater sale of medicines.
    The ageing of the population brings with it new challenges for the pharmaceutical industry, which is responsible for improving the quality of the last stage of life. A growing population, as its need to use drugs grows.

Health expenditure per capita

$14,000 $12,000 $10,000 $8,000 $7,153 2,7x $19,098 $6,000 $4,000 $20,000 $18,000 $16,000 $2,000 0 Adultos < 65 años Adultos > 65 años
Source: CMS Data on total HC expenditure, 2014.
Las ventas se multiplican por 50 desde el año 2000 Venta de medicamentos de gran éxito (LHS)# de medicamentos de gran éxito (RHS) $300 $299 bn $250 $200 $150 $100 $50 2000 $0 0 10 20 30 40 50 60 70 80 90 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Source: Janus Henderson, ISI Research, a 31 de diciembre de 2020.
Forecasts indicate that healthcare will be one of the fastest growing sectors in the coming years.
Health care is the best performing sector out of the top five and worst sectors in the last ten years.

Average 10-year difference between the top 5 and bottom 5 in each sector

Performance difference in %


Source: Janus Henderson Analytics, at 31 December 2021.

When we think of health it is logical to think of medicine. However, to reach new challenges, medicine needs the support of other disciplines such as biology, biochemistry, or molecular biology.

  • Advances in gene therapy.
    New research offers the potential to treat more than 7,000 genetic diseases. Of those 7,000 diseases, 95% currently have no available treatment.
  • From chemotherapy to immunological treatment.
    One of the objectives of health care is to leave behind indiscriminate chemotherapies and radiation therapies for new, more specific treatments that boost our immune system.
Lower healthcare

Within the health sciences sector, the investment universe of our fund is mainly made up of companies that we can divide into four groups:

  • Pharmaceuticals
  • Biotechnology
  • Medical care
  • Medical devices and technology

What do the experts think?

  • United Nations: Health is included in three of the eight Millennium Development Goals, and no one doubts its contribution to the attainment of all the others, particularly those related to the eradication of extreme poverty and hunger, education and gender equality.
  • United Nations: Every day 17,000 fewer children die than in 1990, but more than five million children still die every year before the age of 5. Since 2000, measles vaccines have prevented nearly 15.6 million deaths. Despite advances worldwide, under-5 mortality remains high in sub-Saharan Africa and South Asia. Four out of five deaths of children under five occur in these regions.

Our investment proposal

Invest in funds through shares in infrastructure corporates around the globe.

The value of investment funds1 can fall as well as rise, and you may get back less than you invested.


ISIN
Fund
Risk profile
FX
Investment Policy
Minimum contribution
Fact sheet/Subscribe
LU0880062913
JPM GLOBAL HEALTHCARE
Advanced
EUR
35000 €
LU1477743386
BELLEVUE HEALTHCARE STRATEGY
Advanced
EUR
1000 €
LU0255978776
PICTET HEALTH
Advanced
EUR
1000 €
LU0251853072
AB INTERNATIONAL HEALTH CARE PORTFOLIO
Medium/High
EUR
1000 €