KUALA LUMPUR: Innovation, an ageing population and the globalisation of demand for cutting-edge Western-style medicine are expected to be the driving factors to the global healthcare sector.
According to UOB Asset Management (M) Bhd CEO Lim Suet Ling, the global healthcare sector is benefitting from advances in biopharmaceutical and medical technology.
“The ageing population in many countries will also continue to drive the demand for more and better healthcare products and services.
“Coupled with a regulatory environment that remains accommodating to new treatments and advances in healthcare, we expect continued innovation to drive growth in the sector, ” she said.
UOB Asset Management launched the first retail healthcare fund in Malaysia, known as the United Global Healthcare Fund yesterday.
Available under the Asean Collective Investment Scheme (CIS) framework, the fund allows retail investors to invest in global medical healthcare stocks.Previously, the fund was only available to wholesale or sophisticated investors.
The United Global Healthcare Fund was first launched in Singapore in 2000.
It aimed to achieve capital appreciation by investing in securities issued by companies in the development, manufacturing or distribution of healthcare products, equipment and/or services.It is diversified across various healthcare industry sub-sectors such as medical products, health services, pharmaceuticals and biotechnology.
Since inception, the United Global Healthcare Fund has delivered an annualised return of 9.04% and has consistently outperformed its benchmark, the MSCI All Countries World Healthcare Index.
The United Global Healthcare Fund is managed by UOB Asset Management Ltd and sub-managed by Wellington Management Singapore Pte Ltd.
It is interesting to note that the management team behind this fund comprises of healthcare professionals who are well-versed with the approval and certification procedures in the pharmaceutical, biotechnology and medical technology sectors.
Some of the constituents of the fund include UnitedHealth Group Inc, Bristol-Myers Squibb Co and Medtronic Plc.
The United Global Healthcare Fund is suitable for retail investors who seek long term capital growth and have a moderately aggressive risk profile.
The fund is available in Malaysian ringgit, Singapore dollar and US dollar denominations with a minimum investment of RM1, 000, S$1, 000 and US$1, 000, respectively.