OUR EXPERTISE
Life Care



INVEST IN THE HEALTH OF HUMANITY

DEMOGRAPHICS CALL OUT FOR LIFE CARE

Every life is precious

Covid-19 reminds us that in modern times, society values every life around the world.

This is not a moral judgement or a social analysis. The data shows societies around the world view life as increasingly precious. We can put numbers to this 'value'. Over time, each country tends to increase health care spend as its GDP rises. Not only increase the overall health spend, but increase to increase it as a percentage of its GDP. This can continue beyond a mere phase; in the US, healthcare spending has been a growing proportion of GDP for more than five decades.1

Healthcare Spending Rising Globally as percent of GDP
LifeCare_EN_1.png

 

Where Demographics Meets Innovation

Healthcare has been a megatrend for three decades, with a clear path for continued need and continued growth. Covid-19 has merely made healthcare a daily headline. After the pandemic, we expect healthcare to continue to be a long-term megatrend, even if it is perhaps less often in the news.

Developing nations are developing a middle class – and desire for healthcare. More mature economies have maturing populations. The majority of health care expenditures occur after the age of 60. This trend requires not only more healthcare, but different solutions and more innovation. More need for physical care – such as robots to lift and carry.

Investment Characteristics

Healthcare spending is relatively resistant to economic fluctuations. Equity valuations, conversely, can fluctuate with technological breakthroughs and market psychology. As for many thematic investments, the characteristics of healthcare strategies make them best-suited to a core/satellite strategy. As for many technologies and innovations, there can be a 'winner-take-all' difficulty. A generalist portfolio with only a small number of names devoted to a particular theme can forecast the theme correctly, but miss the few super-star equities. Combining an investment in a generalist strategy with an investment in a single-theme strategy, managed by sector specialists, has a greater chance of capturing the benefit of the theme. 

Lifecare Breakdown by Sub-Sector
LifeCare_EN_2.png

Why Candriam?

Candriam brings a 20-year proven track record of health care investing, most notably in biotechnology and oncology. We have a diverse and a stable healthcare investment team, with more than Є 4 billion in healthcare assets under management. Our Lifecare team members bring specialized health technology skills, such as advanced biology and healthcare degrees,

These are combined with investment experience and skills; for example, one of our portfolio managers holds both a PhD in biological science and a CFA. They also work closely with our demographic investment specialists, and our Environmental, Social, and Governance analysts, a function Candriam has performed in-house since 2005.

Be a part of it. Invest in Humanity.

 


1 Centers for Medicare & Medicaid, CMS.gov, accessed 19 September, 2019