The site you are about to enter is intended for Australian wholesale clients only (as that term is defined in section 761G of the Corporations Act 2001 (Cth)) and is not intended for distribution to, nor should it be relied upon by, retail clients. Newton Investment Management Limited (Newton) is authorised and regulated in the UK by the Financial Conduct Authority (FCA). Newton is providing financial services to wholesale clients in Australia in reliance on ASIC Corporations (Repeal and Transitional) Instrument 2016/396, a copy of which is on the website of the Australian Securities and Investments Commission, www.asic.gov.au. The Instrument exempts entities that are authorised and regulated in the UK by the FCA, such as Newton, from the need to hold an Australian financial services license under the Corporations Act 2001 for certain financial services provided to Australian wholesale clients on certain conditions. Financial services provided by Newton are regulated by the FCA under the laws and regulatory requirements of the United Kingdom, which are different to the laws applying in Australia. This information is made available by Newton Investment Management Limited and BNY Mellon Investment Management Australia Ltd (AFSL 227865).
With populations getting older, bigger and richer, the health-care sector must adapt to meet these challenges
Upheaving health care
As incomes grow and lifestyles change in the developing world, populations in mature economies are ageing and health-care services are being pressured by severe budgetary constraints. At the same time, an increase in out-of-pocket health-care spending is fuelling the growing consumerisation of health care. As a result, the health-care sector must adapt to meet the changing needs of the world, which presents opportunities and pitfalls for investors.
What matters most?
To help focus our analysis of health-care trends, we focus on the growing wellness industry, renewed efforts in preventative health care, the demands of ageing populations, the increasing accessibility of health-care services and a growing focus on personalisation in the medical sector, though we remain conscious of other forces in health care too.
The increasing adoption of Western-style diets globally and a recognition of the role of diet in disease also point to potential changes in patterns of chronic disease, food consumption and government policies.
Data and disease
In terms of opportunities, digitalisation and technology are changing the face of health care for everyone. Data is king, so companies that can offer real value to medical providers may be poised to grow. We also see opportunities in robotics, biotechnology and a renewed focus on vaccinations and fitness as preventative care.
However, there are also risks. As data comes to underpin health-care decisions, this leaves companies in this space open to catastrophic data breaches. Cybersecurity will be key – but it comes at a price. Regulation and litigation will also continue to be key considerations for firms, among other concerns.
We believe that by considering the world’s myriad companies through the core trends in our healthy demand theme, we can identify exciting new investment opportunities and avoid costly risks.
The industry for health-care products and services is growing rapidly. Ageing populations are fuelling demand in developed economies, and increasing incomes and changing lifestyles are creating new markets in emerging economies. ‘Healthy demand’ looks at the opportunities and the risks.
Meet the team
We have a research group for each theme, made up of analysts, portfolio managers and other members of the investment team, that collaborate on new thematic ideas and analysis. Here are the co-leaders in the healthy demand theme group.
Portfolio manager, UK equities
Global analyst, health care
Portfolio manager, global equities
Our key areas of focus
Healthier choices drive a greater consumerisation of health care. Wellbeing and over-the-counter brands benefit from the repositioning of patients as consumers, while the app economy is likely to expand both awareness and greater consumer choice.
Prevention entails earlier detection and intervention, reducing disease burden, and delivers better health-care outcomes for patients and payers. Active monitoring of chronic conditions leads to improved management and lowers overall treatment costs.
In an ageing society, the greater health demands of the older population reflect the chronic diseases of the elderly. Long-term care moves into the home environment. There are opportunities to extend and improve quality of life. Better health also drives demand for leisure and travel.
Increasing demand and greater access to better value solutions expands the use of health care around the world. The adoption of Western-style diets changes health-care requirements in many emerging markets, while electronic health (eHealth) opportunities democratise access, and improve the speed of treatment.
Health care becomes very personal as patient data unlocks value. Genomic health and DNA sequencing transform treatment options and increases awareness. Targeted therapies improve outcomes, particularly in cancer. The personalisation of health data also increases demand for security and regulation.
A deep dive into…
Wellness and the consumer
From jade rollers and gluten-free everything to Fitbits and juice cleanses, taking care of your health and wellbeing has become the purview of the individual, and we are now more aware than ever of our own health.
Individual Investors will be redirected to bnymellon.com
This is a financial promotion. Issued by Newton Investment Management Limited, The Bank of New York Mellon Centre, 160 Queen Victoria Street, London, EC4V 4LA. Registered in England No. 01371973. Newton Investment Management is authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN and is a subsidiary of The Bank of New York Mellon Corporation. Newton is providing financial services to wholesale clients in Australia in reliance on ASIC Class Order 03/1099, a copy of which is on the website of the Australian Securities and Investments Commission, www.asic.gov.au. The Class Order exempts entities that are authorised and regulated in the UK by the FCA, such as Newton, from the need to hold an Australian financial services license under the Corporations Act 2001 for certain financial services provided to Australian wholesale clients on certain conditions. Financial services provided by Newton are regulated by the FCA under the laws and regulatory requirements of the United Kingdom, which are different to the laws applying in Australia.
Material in this publication is for general information only. The opinions expressed in this document are those of Newton and should not be construed as investment advice or recommendations for any purchase or sale of any specific security or commodity. Certain information contained herein is based on outside sources believed to be reliable, but its accuracy is not guaranteed. You should consult your advisor to determine whether any particular investment strategy is appropriate. This material is for institutional investors only. Past performance is not a guide to future performance. Your capital may be at risk. The value of investments and the income from them can fall as well as rise and investors may not get back the original amount invested.
This material is for Australian wholesale clients only and is not intended for distribution to, nor should it be relied upon by, retail clients. This information has not been prepared to take into account the investment objectives, financial objectives or particular needs of any particular person. Before making an investment decision you should carefully consider, with or without the assistance of a financial adviser, whether such an investment strategy is appropriate in light of your particular investment needs, objectives and financial circumstances.
This information is made available by Newton and BNY Mellon Investment Management Australia Ltd (AFSL 227865). This information is confidential and is only provided to Australian wholesale clients (as that term is defined in section 761G of the Corporations Act 2001 (Cth)). This is not an offering or the solicitation of an offer to purchase an interest in any financial product referred to in this website. This content is for general purposes only and should not be relied upon as financial product advice. This content has been prepared without taking into account the objectives, financial situation or needs of any person. Before making an investment decision an investor should consider the appropriateness of the information in this website having regard to these matters and read the disclosure document relating to a financial product. Investors should also consider obtaining independent advice before making any investment decisions. Investments can go up and down and to the extent that this website contains any past performance information, past performance is not a reliable indicator of the future performance of the relevant investment or any similar investment strategy.
Newton Investment Management Limited is exempt from the requirement to hold an Australian financial services licence in respect of the financial services it provides to wholesale clients in Australia and is authorised and regulated by the Financial Conduct Authority of the UK under UK laws, which differ from Australian laws.