Healthcare
Investing in an evolving healthcare ecosystem
Why invest in healthcare?
Great challenges create great opportunities
Our starting point is to look at the challenges facing the sector. We look for areas where demand and costs are rising, but access and outcomes are note. Looking at these pressure points and finding the companies that address these challenges is where we think the key to long-term value creation lies.
Exposure to a broad universe
Healthcare provides access to broad thematic and style exposures: defensives, cyclicals, demographic and consumer trends. Overall, the sector has low correlation to the business cycle with long-term growth powered by demographics and innovation. It is a long-cycle, highly regulated industry with enduring competitive moats and high barriers to entry.
Specialist expertise a vital factor
Finding outperforming companies relies on being able to identify the most compelling new developments across a broad range of disciplines. Our experienced specialist team brings years of healthcare industry and academic knowledge to managing the portfolio, backed up by our global equity analysis capabilities.
Our expertise
Experienced specialist team
Our team brings together longstanding healthcare portfolio management experience with medical and biotech expertise. We have leveraged this experience to create a long-term healthcare transition framework to help guide stock selection.
Focused on structural trends
There is growing demand for healthcare, driven by demographic trends. Within this, we seek to balance value creation and defensive commercial franchise growth with smaller capitalisation innovation opportunities.
Integrated ESG approach
We bring our depth of experience and breadth of knowledge in responsible investing to assess ESG factors as part of the investment process, reducing exposure to related risk factors.
Team and expertise
Portfolio managers Chris Eccles and Catherine Tennyson share responsibility of covering healthcare, supported by Cinney Zhang on the highly innovative biotech sector.
Find out more about investing in healthcare with BNP Paribas
Our healthcare strategy invests in shares of listed healthcare companies including producers of pharmaceuticals, biotechnology firms, medical device and instrument manufacturers, distributors of healthcare products, care providers and managers and other healthcare services companies.
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Risk factors
The value of investments may fall as well as rise and you may not get back the full amount invested.
The list below of risk factors is not exhaustive. Please refer to the prospectus & KID/KIID supplement for full product details and complete information on the risks.
- Equity risk
- Smaller companies risk
- Currency risk
- Industry sector or region risk
- Liquidity risk
- Stock lending
Important information
Marketing communication. For professional investors only.
Past performance or achievement is not indicative of current or future performance. Performance is calculated net of fees unless otherwise stated.
Any views expressed here are those of the author as of the date of publication, based on available information, and subject to change without notice. This material does not constitute investment advice.
Investments are subject to market fluctuations and the risks inherent in investments in securities. The value of investments and the income they generate may go down as well as up and it is possible that investors will not recover their initial investment. There is no guarantee that the performance objective will be achieved.
Investing in emerging markets, or specialised or restricted sectors is likely to be subject to a higher-than-average volatility due to a high degree of concentration, greater uncertainty because less information is available, there is less liquidity or due to greater sensitivity to changes in market conditions (social, political and economic conditions).
Environmental, social and governance (ESG) investment risk: The lack of common or harmonised definitions and labels integrating ESG and sustainability criteria at EU level may result in different approaches by managers when setting ESG objectives. This also means that it may be difficult to compare strategies integrating ESG and sustainability criteria to the extent that the selection and weightings applied to select investments may be based on metrics that may share the same name but have different underlying meanings. In evaluating a security based on the ESG and sustainability criteria, the Investment Manager may also use data sources provided by external ESG research providers. Given the evolving nature of ESG, these data sources may for the time being be incomplete, inaccurate or unavailable. Applying responsible business conduct standards in the investment process may lead to the exclusion of securities of certain issuers. Consequently, (the Sub-Fund’s) performance may at times be better or worse than the performance of relatable funds that do not apply such standards.
This is not an exhaustive list of risks. For a complete description and definition of risks, please consult a client relationship manager or the global BNP Paribas Asset Management website: staging.bnpparibas-am.co.uk.