HSBC Asset Management Launches Sustainable Healthcare Fund
The fund will be co-managed by Dr. Nathalie Flury and Dr. Michael Schröter, Co-Heads of Sustainable Healthcare Equity, who both joined HSBC AM in Switzerland earlier this year.
One of the main sustainability challenges facing the healthcare sector today is cost. As medical costs continue to grow, a basic social need becomes increasingly inaccessible to much of the population. The fund, which is aligned with UN SDG Goal 3, Good Health & Wellbeing, aims to address this challenge and drive social impact without sacrificing on performance. The fund will be fully ESG integrated and invest in a range of 35-40 companies with a bias towards mid-caps, long-term engagement, low turnover and active management interactions. These companies will have both a clinical benefit and cost savings focus, and aim to make healthcare more affordable. There will be no fixed allocations across geographies, sub-subsectors, company stages, and/or profitability.
Dr. Nathalie Flury and Dr. Michael Schröter, Co-Heads of Sustainable Healthcare Equity, said: “The current healthcare model is not sustainable and patient outcomes are being negatively impacted alongside the industry and investors. This fund aims to address this inequality and invest in companies that are offering different approaches through new treatment options, technology and innovative business models.”
As healthcare spending consistently outpaces GDP growth across markets, rising costs are straining healthcare systems globally which results in access restrictions. In 2018, global spending on healthcare reached USD 8.3 trillion, or 10% of global GDP1. In the US, which accounts for nearly half (42%) of global healthcare expenditure total spend is projected to increase by over 50% in the next eight years alone2.
Investing in companies that focus on healthcare innovation can reduce the overall cost for all stakeholders in the system (below). Companies that create new treatments, devices, diagnostics, digital-health and services can all play their part in achieving this.
- Payers, for example insurers, stay within budget while ensuring quality care for their covered population
- Doctors have no prescription restrictions imposed by payers
- Patients have access to best suited treatments for their disease
- Industry, for example healthcare companies, recovering R&D investments plus profit
- Investors are appropriately rewarded
Patrice Conxicoeur, Chief Executive Officer, Southeast Asia, HSBC Asset Management, said “As a leading global asset manager with a strong commitment to sustainability, we have a responsibility to not only help clients achieve their long-term financial objectives but also channel capital towards a more sustainable future. The launch of the HSBC GIF Sustainable Healthcare Fund highlights our dedication to delivering relevant responsible investment solutions that provide value for investors and create a positive impact for society.”
In 2020, HSBC AM set out its strategy to re-position its business as a core solutions and specialist emerging markets, Asia and alternatives focused asset manager, with client centricity, investment excellence and sustainable investing as key enablers. As part of its investment strategy, the firm continues to incorporate environmental, social and governance (ESG) factors into its investment process and deliver innovative solutions to generate sustainable, long-term returns for investors to meet their sustainable investment objectives and support the sustainable development goals.
The HSBC GIF Global Equity Sustainable Healthcare Fund will be distributed by HSBC Singapore to its Private Banking clients from 28 July 2021 and subsequently to all retail banking customers by end of this quarter.
The HSBC GIF Global Equity Sustainable Healthcare Fund (the “Fund”) is a Recognised Scheme in Singapore and this News Release publication has not been reviewed by the Monetary Authority of Singapore.
Media enquiries:
Betty Fong | +65 6658 4103 | betty.c.y.fong@hsbc.com.sg
Note to Editors
- WHO, ‘Global spending on health 2020: weathering the storm’
- Bloomberg, Centers for Medicare and Medicaid Services, 2021
For journalists only and should not be distributed to or relied upon by any other persons.
Disclaimer
This document does not constitute an offering document and should not be construed as a recommendation, an offer to sell or the solicitation of an offer to purchase or subscribe to any investment.
This document is for information only and is not an investment recommendation, research, or advice. Any views and opinions expressed are subject to change without notice. It does not have regard to the specific investment objectives, financial situation, or needs of any specific person. Investors and potential investors should not invest in the Fund solely based on the information provided in this document and should read the prospectus (including the risk warnings) and the product highlights sheets, which are available upon request at HSBC Global Asset Management (Singapore) Limited (“AMSG”) or our authorised distributors, before Investing. You should seek advice from a financial adviser. Investment involves risk. Past performance of the managers and the Fund, and any forecasts on the economy, stock or bond market, or economic trends that are targeted by the Fund, are not indicative of future performance. The value of the units of the Fund and income accruing to them, if any, may fall or rise and investor may not get back the original sum invested. Changes in rates of currency exchange may affect significantly the value of the investment. AMSG has based this document on information obtained from sources it reasonably believes to be reliable. However, AMSG does not warrant, guarantee or represent, expressly or by implication, the accuracy, validity or completeness of such information.
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HSBC Asset Management
HSBC Asset Management, the investment management business of the HSBC Group, invests on behalf of HSBC’s worldwide customer base of retail and private clients, intermediaries, corporates and institutions through both segregated accounts and pooled funds. HSBC Asset Management connects HSBC’s clients with investment opportunities around the world through an international network of offices in 25 countries and territories, delivering global capabilities with local market insight. As at 31 March 2021, HSBC Asset Management managed assets totalling US$621bn on behalf of its clients. For more information, see www.assetmanagement.hsbc.com/uk
The Hongkong and Shanghai Banking Corporation Limited
The Hongkong and Shanghai Banking Corporation Limited is the founding member of the HSBC Group. HSBC serves customers worldwide from offices in 64 countries and territories in its geographical regions: Europe, Asia, North America, Latin America, and Middle East and North Africa. With assets of $2,959bn at 31 March 2021, HSBC is one of the world’s largest banking and financial services organisations.