ESG or impact fund managers often hold healthcare stocks because they align with the United Nations’ third Sustainable Development Goal: to ‘ensure healthy lives and promote well-being for all at all ages’.
However, many larger healthcare companies have controversies to their name, ranging from charges of bribery to poor care. There is also a question about their role in the privatisation of healthcare in countries such as the UK which have a public health service.
Chris Welsford, managing director of Ayres Punchard Investment Management, discusses a well-known example: Centene, a £67.2bn US health insurer. We discuss the company’s controversies, our engagement with sustainable funds holding Centene, and investing for positive impact.