Invesco unveils China healthcare vehicle

Invesco has launched its first China Healthcare Equity Fund, focusing on mid-cap stocks with sustainable growth potential.

The fund aims to deliver long-term capital growth by investing primarily in a concentrated portfolio of Chinese healthcare companies.

Those companies will mainly be listed on the Shanghai or Shenzhen Stock Exchanges and traded via Stock Connect, but the fund may also invest in securities listed or traded on other international exchanges.

The fund will employ a growth-orientated strategy by focusing on healthcare mid-cap stocks investing in Chinese companies with sustainable growth potential that fall in the five healthcare subsectors set to benefit from key growth trends in China, such as pre-immunisation, technology advancement and reform.

Under the management of senior fund manager, Chris Liu based in Hong Kong, the fund will benefit from on-the-ground company research and adopt a high-conviction, bottom-up approach, Invesco said. The portfolio will typically consist of 30-40 stocks.

Chin Ping Chia, Head of China A Investments, Business Strategy and Development at Invesco, said: “The China healthcare sector has strong potential to expand due to robust growth in healthcare spending underpinned by a rise in wealth and an aging population, making healthcare a hugely important sector for China’s society and economy. An active approach to investing in the healthcare market will allow us to capture such opportunities.”