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What drives the Asian consumer? – Wellness

What drives the Asian consumer? – Wellness

The pandemic has worked like a wake-up call, reminding us all how valuable and critical it is to stay healthy. Even before the pandemic, people in Asia were already starting adopt healthier lifestyles. This was a result of an ageing population and rising incomes leading to raised awareness of health benefits. In China alone, the number of certified marathons in 2019 reached more than 1,800, increasing from below 150 in 2015. 

Figure 1: Almost half a billion people in Asia will be aged 65 or over by 2025
Figure 1: Almost half a billion people in Asia will be aged 65 or over by 2025
Source: LHS – World Health Organization. As of December 2019 (latest data available). RHS – Bain & Company, 2020. Asia-Pacific Front Line of Healthcare Report 2020 (latest available data).

From the supply side, healthcare companies are continuously developing and growing their product offerings. For example, biotech and pharmaceutical companies are formulating a wide range of product pipelines for specific medical symptoms and medical services providers, such as hospitals and clinics, are ramping up to offer localized services.

From a structural perspective, we see Asia as a region where large unmet medical needs and fast-growing innovations are combining to drive transformation in the healthcare space.

There have been significant fundraising activities in the healthcare sector recently. More and more companies have listed in different parts of Asia, forming a large and high growth universe for investors to tap into. The Asia Consumer Demand Fund has an overweight in the healthcare sector including select pharmaceutical and medical device companies. These have been a key contributor to the fund’s outperformance in the past.

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Investment Risk

  • The value of investments and any income will fluctuate (this may partly be the result of exchange-rate fluctuations) and investors may not get back the full amount invested. As a large portion of the fund is invested in less developed countries, you should be prepared to accept significantly large fluctuations in the value of the fund. The fund may invest in certain securities listed in China which can involve significant regulatory constraints that may affect the liquidity and/or the investment performance of the fund.

Important Information

  • Data as at 30.04.2021, unless otherwise stated. This document is marketing material and is not intended as a recommendation to invest in any particular asset class, security or strategy. 

    Where individuals or the business have expressed opinions, they are based on current market conditions, they may differ from those of other investment professionals and are subject to change without notice.