Technologies that disrupt the healthcare sector offer investors a tantalising way to tap into ageing demographics but funds in the space are not without risks and do not automatically score highly on ESG considerations either.
A big advantage of such technologies is their ability to reduce healthcare costs by, for example, lowering recovery periods in hospitals, says GinsGlobal Index Funds managing director Anthony Ginsberg.
“Governments and industry are under pressure because of the rising costs, and the US healthcare premiums, essentially, have almost doubled in the US in the last decade,” Ginsberg says.
The number of funds tapping into these type of trends are increasing.
There are 10 funds with collective assets under management of £5.6bn in the Investment Association universe with a health focus, according to FE Fundinfo. Wellington Global Health Care Equity, the largest at £1.8bn, has delivered the strongest performance over five years returning investors 84.7%.
Healthcare innovation is also a theme in MSCI’s recently launched disruptive technologies index.
HANetf, a white label ETF provider, together with Gins Global Investment Management, developed the Han-Gins Indxx Healthcare Innovation Ucits ETF (WELL).
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