Potential of healthcare fund
- Aging population
- Newer generation suffers illnesses at younger age
- Medical costs getting higher
- Medical advancement
- Continuing medication for patients
- Health awareness makes younger generation more willing to take precautionary / more advanced medication
- Healthcare is considered essential service during lock-down period
- People's income getting higher
- Medical tourism
Healthcare funds in Malaysia
- Affin Hwang World Series Global Healthscience MYR
- Wholesale fund only available to high net worth individuals
- United Global Healthcare A MYR and United Global Healthcare A MYR Hedged.
- Retail fund opens to all investors
- Affin Hwang World Series Global Healthscience MYR
- A feeder fund (BlackRock Global Funds (BGF) World Healthscience Fund) that seeks to achieve capital appreciation over the long term period through investments in shares of companies whose predominant economic activity is in healthcare, pharmaceuticals, medical technology and supplies and the development of biotechnology.
- Launching date: 18 February, 2019 / MYR0.50
- According to Fund Factsheet 31 March 2020, it invested 66.7% in United States, largest sectors are Pharmaceutical 34.4%, Health Care Equipment and Supply 26.1%, and Health Care Providers and Services 15.5%.
- Top holdings are Unitedhealth Group Inc 5.6%, Roche Holding Par AG 4.7%, Sanofi SA 4.1%, Abbott Laboratories 4.0%, and Merck & Co Inc 3.0%.
- United Global Healthcare Fund
- The investment objective of the Fund is to achieve long term capital growth by investing in securities issued by companies principally involved in the development, production or distribution of products, equipment and/or services related to healthcare, in any part of the world. Such investments would include investing in sub-sectors of the healthcare industry such as medical products, health services, major pharmaceuticals, specialty major pharmaceuticals, and specialty pharmaceuticals.
- Launching date: Aug 19
- According to Fund Fachsheet April 2020, it invested 67.52% in USA, largest sectors are Biotechnology 27.40%, Health Care Equipment 23.73%, and Pharmaceuticals 23.15%.
- Top holdings are UNITEDHEALTH GROUP INC 2.83%, MEDTRONIC PLC 2.81%, BRISTOL-MYERS SQUIBB CO 2.57%, ASTRAZENECA PLC 2.56% and EDWARDS LIFESCIENCES CORP 2.56%.
Who are those top holdings
- Abbott Laboratories: Abbott Laboratories is an American multinational medical devices and health care company with headquarters in Abbott Park, Illinois, United States. The company was founded by Chicago physician Wallace Calvin Abbott in 1888 to formulate known drugs; today, it sells medical devices, diagnostics, branded generic medicines and nutritional products. It split off the research-based pharmaceuticals into AbbVie in 2013. Among its well-known products across the medical devices, diagnostics, and nutrition product divisions are Pedialyte, Similac, Ensure, Glucerna, ZonePerfect, FreeStyle Libre, i-STAT and MitraClip. (Source: Wikipedia)
- AstraZeneca Plc: AstraZeneca plc[3] is a multinational pharmaceutical and biopharmaceutical company headquartered in Cambridge, England. The company was founded in 1999 through the merger of the Swedish Astra AB and the British Zeneca Group[7][8] (itself formed by the demerger of the pharmaceutical operations of Imperial Chemical Industries in 1993). Since the merger it has been among the world's largest pharmaceutical companies. (Source: Wikipedia)
- Bristol-Myers Squibb: Bristol Myers Squibb manufactures prescription pharmaceuticals and biologics in several therapeutic areas, including cancer, HIV/AIDS, cardiovascular disease, diabetes, hepatitis, rheumatoid arthritis and psychiatric disorders. (Source: Wikipedia)
- Edwards Lifescience Corp: Edwards Lifesciences is an American medical technology company headquartered in Irvine, CA, specializing in artificial heart valves and hemodynamic monitoring. (Source: Wikipedia)
- Medtronic Plc: Medtronic plc is a medical device company that generates the majority of its sales and profits from the U.S. healthcare system but is headquartered in the Republic of Ireland for tax purposes. (Source: Wikipedia)
- Merck & Co Inc: Merck & Co., Inc., d.b.a. Merck Sharp & Dohme (MSD) outside the United States and Canada, is an American multinational pharmaceutical company and one of the largest pharmaceutical companies in the world. Merck is incorporated in New Jersey. (Source: Wikipedia)
- Roche Holding Par AG: F. Hoffmann-La Roche AG is a Swiss multinational healthcare company that operates worldwide under two divisions: Pharmaceuticals and Diagnostics. Its holding company, Roche Holding AG, has bearer shares listed on the SIX Swiss Exchange. The company headquarters are located in Basel. Roche is the second-largest pharmaceutical company worldwide. (Source: Wikipedia)
- Sanofi SA: Sanofi S.A. is a French multinational pharmaceutical company headquartered in Paris, France, as of 2013 the world's fifth-largest by prescription sales. (Source: Wikipedia)
- Unitedhealth Group Inc: UnitedHealth Group Incorporated is an American for-profit managed health care company based in Minnetonka, Minnesota. It offers health care products and insurance services. It is the largest healthcare company in the world by revenue, with 2019 revenue of $242.2 billion. (Source: Wikipedia)
The performance of the funds
Affin Hwang World Series Global Healthscience MYR
United Global Healthcare A MYR and United Global Healthcare A MYR Hedged.
These two funds are less than 1 year, but their based fund United Global Healthcare SGD Acc has more than 10 years of history.
If we see the short-term performance of United Global Healthcare A MYR Acc, United Global Healthcare A MYR Acc and United Global Healthcare SGD Acc, the former two are almost comparable to the latter.
So, can we draw a conclusion that over the long term, performance of those MYR class funds maybe will be similar to SGD class? If so, long term performance of 12.79% p.a. is very attractive.
How to invest?
- Affin Hwang World Series Global Healthscience MYR
- Need to fill up forms and declare as high net worth individuals.
- United Global Healthcare A MYR and United Global Healthcare A MYR Hedged.
- Retail fund opens to all investors
- For account with servicing agent, choose either Non-Wrap Account Here or Wrap Account Here. (For the difference of accounts, can refer to https://journeywp.blogspot.com/2020/05/148-opening-online-unit-trust-account.html)
- eUnitTrust platform (without agent's assistance, do your own homeworks) - Open eUnitTrust Account Here
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