BNY Mellon Investment Manager Sees Growing Wealth and Government Spending Creating Increasing Opportunities
NEW YORK and LONDON, August 27, 2012 — Pharmaceuticals, medical technology and health care infrastructure lead the list of attractive health care opportunities in emerging markets, according to The Boston Company Asset Management.
These trends are identified in a recent white paper from The Boston Company, Global Wealth Creation: The Impacts on Emerging Markets Health Care, which predicts the health care segments that are poised to benefit from continuing economic development in emerging markets.
The expansion of the emerging markets middle class is enabling a growing portion of the population to afford essential care, and increasing government investment in public health care systems also is driving growth for health care services, according to The Boston Company report.
"While the rise in wealth is rapidly transforming health care in emerging markets, significant challenges remain," said Frank J. Goguen, senior research analyst and a co-author of the report. "Investing in the sector requires a selective and fundamental approach to uncover quality companies that will capitalize on the secular growth trends inherent in emerging markets health care."
As an example of the opportunities and obstacles in emerging markets health care, the report points to the rapid expansion of health insurance and the pharmaceuticals industry in China. Yet, among the obstacles that China must surmount are inefficient distribution of pharmaceuticals and a hospital system that often provides haphazard and unreliable levels of care, the report said.
The report points to other trends, both positive and negatives. These include the projected growth of the pharmaceuticals industry in Russia and the overwhelming effects health-care expenses have on rural poverty in India.
Brazil, like its BRIC counterparts, must contend with overcrowded hospital waiting rooms and undertrained operators of medical equipment, the report said. However, The Boston Company sees growth in Brazilian private health insurance and increased public funding for medical facilities and training.
"Success for these emerging countries ultimately will be measured by a rise in life expectancy, a decline in child mortality rates, and healthy economic growth," Goguen said.
The Boston Company Asset Management, a BNY Mellon Investment Management boutique, provides investment management services for corporate, public, mutual funds and Taft-Hartley retirement plans, endowments and foundations.
BNY Mellon Investment Management is one of the world's leading investment management organizations and one of the top U.S. wealth managers, with $1.3 trillion in assets under management. It encompasses BNY Mellon's affiliated investment management firms, wealth management services and global distribution companies. More information can be found at www.bnymellon.com.
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