Invesco has launched a fund that offers investors ‘pure play’ access to Chinese healthcare mid-caps, in anticipation of strong growth in this part of the market.
The Invesco China Healthcare Equity fund will be run by Hong Kong-based Chris Liu and will benefit from Invesco’s on-the-ground company research capabilities.
Liu will adopt a high-conviction, bottom-up approach on the growth-orientated strategy, building a concentrated portfolio of 30-40 Chinese healthcare companies – most of which will be listed on the Shanghai or Shenzhen stock exchanges.
The fund will focus on mid-cap stocks that can tap into the healthcare subsectors set to benefit from key growth trends in China. These include medical devices, contract research organisations, drug manufacturers, medical services and vaccine producers.
Chin Ping Chia, head of China A investments, business strategy and development at Invesco, said: “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.”
Invesco China Healthcare Equity will be available to institutional and retail investors in the UK and Europe.
Invesco has a strong presence in China, with a breadth of operations and capabilities covering both public and private markets. It manages $120bn in China-related assets around the world.
Andrew Lo, head of Asia Pacific at Invesco added: “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.”