Renaissance creates a fund for investments in the pharmaceutical industry
Renaissance Investment Management Management Company plans to open the first mutual fund in the Russian market, which will invest shareholders' funds in the medical services market and pharmaceuticals.
According to experts, medical services and pharmaceuticals are among the most attractive areas for investment. Unlike the stock market, there is no cyclicity in this industry, people monitor their health constantly. There are more than a hundred funds investing in medicine and pharmaceuticals in the world. The largest are Vanguard Health Care ($22.9 billion), Pictet Funds Lux-Biotech ($2.3 billion), Fidelity Select Health Care ($1.9 billion). The return on such investments is 18-20% per annum, which significantly exceeds the growth of the stock market. The Russian RTS and MICEX indices grew by 19% and 11.5% respectively in 2007. The Russian pharmaceutical market is estimated today at $11.4 billion, the market of commercial medical services – at $6.4 billion. In the future, these markets will only grow.
Chairman of the Management Board of the company Andrey Movchan confirmed that the concept of the fund is being worked out and the team is being selected. The minimum amount of investments in the fund will be set at $100 thousand. At the initial stage of the Renaissance Foundation's work, it is planned to attract at least $100 million to it.
"So far there is practically no medical care in Russia that would meet the needs of the middle class, while the demand for quality medicine is constantly increasing," explains Mr. Movchan. The funds of the new fund, he says, will be invested in medical care, the production of generics, pharmaceutical distribution, supplies and production of medical equipment. The Fund will be able to bring its clients up to 35% per annum. Mr. Movchan did not talk about the timing of the launch of the fund.
Portal "Eternal youth" www.vechnayamolodost.ru based on the materials of the newspaper "Kommersant"
30.05.2008