Invesco has launched the China Healthcare Equity Fund, a UCITS-compliant SICAV which will be available to institutional and retail investors in the UK and a number of authorised countries across Europe.
The Fund aims to deliver long-term capital growth by investing primarily in a concentrated portfolio of Chinese healthcare companies. Such companies will mainly be listed on the Shanghai or Shenzhen Stock Exchanges and traded via Stock Connect; the fund may also invest in securities listed or traded on other international exchanges.
The Fund will employ a growth-orientated strategy by focusing on healthcare mid-cap stocks investing in Chinese companies with sustainable growth potential that fall in the five healthcare subsectors set to benefit from key growth trends in China, such as preimmunisation, technology advancement and reform. The sub- sectors include medical devices, contract research organisations/contract development and manufacturing organisations, drug manufacturers, medical services and vaccine producers.
Under the management of Senior Fund Manager, Chris Liu (Invesco Hong Kong Limited) based in Hong Kong, the Fund will benefit from on-the-ground company research and adopt a high-conviction, bottom-up approach. The Fund’s portfolio will typically consist of 30-40 stocks.
Invesco has a strong presence in China, with a breadth of operations and capabilities covering both public and private markets. Invesco launched its first Chinese equities fund in 1992 and the first Sino-American funds management joint venture Invesco Great Wall in 2003, which now manages over USD66 billion in assets. Invesco Great Wall may support Chris Liu by providing a non-binding sub-advisory service. Globally, Invesco manages USD120 billion in China-related assets.
“We’ve launched our first China healthcare equity fund to embrace the takeoff of China’s healthcare sector,” says Chin Ping Chia, Head of China A Investments, Business Strategy and Development at Invesco. “The China healthcare sector has strong potential to expand due to robust growth in healthcare spending underpinned by a rise in wealth and an aging population, making healthcare a hugely important sector for China’s society and economy. An active approach to investing in the healthcare market will allow us to capture such opportunities.”
Andrew Lo, Head of Asia Pacific at Invesco, says: “Invesco has been managing capabilities in China for nearly 30 years and has deep, on the ground expertise. By launching this fund we are able to bring our local healthcare expertise to the global market and offer wider investment opportunities to our clients. As China’s RMB6.8 trillion healthcare industry continues to expand, we foresee rising interest from global investors which makes the need for a China A-Shares healthcare fund greater than ever.”