The funds cashing in on the global healthcare crisis
Monday, September 9, 2013
Healthcare and biotechnology companies have had a storming few years on a global scale, with the UK pharmaceutical sector getting in on the action this year too.
The FTSE World Healthcare Index has made 71.49 per cent over the past three years, according to data from FE Analytics, with the FTSE World index, which includes stocks from all sectors, up 38.59 per cent.
While all sectors go through periods of outperformance, advocates point out that the success of the healthcare industry is being driven by long-term trends that make it a good prospect for the adventurous investor.
An aging population in the developed world means that people are living longer and demanding more care while they do so, often in the form of medicine.
As developing countries climb out of poverty they are also proving to be a source of demand for better and more sophisticated treatments.
Innovation is also driving the development of more sophisticated drugs, utilising new areas of scientific knowledge.
Nathalie Flury, manager of the JB Health Opportunities fund, says that these factors should allow the sector to outperform for some time to come.