Medical investment enthusiasm large-scale get together

The fund's enthusiasm for investing in the medical sector has gradually shifted from single product over-equalization of pharmaceutical stocks to the intensive distribution of medical industry thematic funds. Among the top ten fund companies, five companies such as Wells Fargo, Castrol, Guangfa, Huaan, and Fangfangda have all recently deployed medical and health care markets.

In addition to the currently-issued Wells Fargo Healthcare Fund, the CSRC’s new fund application notice has been published, and 7 other funded subject funds, including GF China Securities Medicine ETF and Jiashi CSI Healthcare ETF, are pending approval or are awaiting issuance.

Medicine is becoming a hot market segment. According to wind statistics, in the past 21 quarters since 2008, the fund has exceeded the health care industry for 20 quarters; the CSI Pharmaceuticals Index has achieved an annualized return of about 22% since 2005.

According to IMS, the world's leading medical consultancy, China will become the world’s second largest medical market after the United States in 2015, with more than a quarter of global growth coming from China. Guosen Securities pointed out in its mid-year strategy report that “China's pharmaceutical (20.52, -0.38, -1.82%) market is expected to perform in the US market for the 1980-2000 gold growth period in the next 5-10 years, and the mid- to long-term valuation of the Chinese pharmaceutical sector is relatively Reasonably low."

With the continuous development of our aging society, the demand for medical care will continue to rise. At present, China has a population of 1.33 billion, a huge population base, and a stable population growth, so that the pharmaceutical industry has unparalleled demand potential. At present, there are 186 million elderly people over the age of 60 in China, accounting for 14.01% of the total population. Their prevalence of chronic diseases is significantly higher than that of other age groups. Per capita medical expenditure is 6-7 times that of other age groups.

The strong logic of this is that these must not be changed by the economic crisis! The worse the world is, the greater the demand for drugs will be. If the world is better, the demand for high-end health care products will be greater!

The Wells Fargo Healthcare Industry Fund not only focuses on the rapidly growing pharmaceutical industry, but also includes products or services currently provided by non-core businesses that are affiliated with the healthcare industry, and in the future these products or services are expected to become the main source of profit for the company. It is hopeful that the pharmaceutical stocks will be wiped out.

As the only product actively managed in the medical industry fund reported this year, Wells Fargo Health Care will select individual stocks based on the characteristics of the gradual differentiation of the domestic medical market. Wells Fargo Fund stated that in the future, with the gradual deepening of aging and medical reform, the future pharmaceutical industry may be further divided and the active fund-picking pharmaceutical fund is expected to win further.

In addition, the performance of the Wells Fargo Fund in equity investments also provides reference for the development of the above products. Wind data shows that as of June 30th, the 9 rich countries under the national flag have managed to control partial stock funds actively. Since the beginning of this year, the rate of return has outperformed the broader market. Among them, three of the fund's rankings rank among the top 1/2 camps of similar funds.