Kuala Lumpur – Manulife Investment Management (M) Berhad today announced the launch of the Manulife Global Healthcare Fund (the “Fund”), which offers investors in Malaysia the opportunity to contribute to the progress in the global healthcare industry while at the same time capture potential medium to long-term capital growth in healthcare-related companies globally.
The Covid-19 pandemic and unprecedented market volatility in 2020 have brought the global healthcare and pharmaceuticals sectors into the limelight, not only reminding investors of the importance of medical innovation but also the long-term investment opportunities the industry could bring. The healthcare sector has been one of the most recession resistant areas of the economy, proving to be a defensive stalwart during times of enhanced volatility and economic uncertainty. Historically, healthcare
has delivered strong performance, particularly during economic downturns. Over the past 25 years (1995–2020), global healthcare equities have on average outperformed global equities1. These excess returns have been more pronounced during periods of heightened market volatility or economic distress.
“We believe companies with products and services that were guided by unique principles should see unprecedented demand, such as innovative companies that offer ground-breaking medical advancements. The performance of healthcare is not limited to favourable cyclical drivers associated with the Covid-19 pandemic. In fact, we have seen three secular trends that could create long-term opportunities for the sector – increasing medical needs as the world population ages and living longer, solving ongoing health issues and challenges, and striving for medical breakthroughs,” said Jason Chong, CEO, Manulife Investment Management (M) Berhad.
“Despite the positive news of Covid-19 vaccines, which is expected to help bring the global economy to recovery in 2021, investors should consider adding diversity in their portfolio and pay closer attention to specific verticals in healthcare that can benefit from ongoing demographic and industry trends. Based on market conditions, we seek to build a diversified portfolio of healthcare companies while ensuring active positions that are aligned with strength of conviction, intrinsic valuation, and appropriate risk parameters. This can provide the potential long-term capital growth that investors
1 Source: MSCI World Health Care Index posted 11.32% annualised returns versus 8.24% for MSCI World from 12/31/1994 to 12/31/2020.
seek from their investments, as well as contribute to medical innovations that benefits humanity.” said Ng Chze How, Head of Retail Wealth Distribution, Manulife Investment Management (M) Berhad.
The Fund will invest at least 95% of the Fund’s NAV in Share class I3 of Manulife Global Fund – Healthcare Fund (the “Target Fund”), which capitalises on growth potential of the healthcare sector and invests in diversified sub-sector positioning to capture three global secular trends: ageing populations, medical advancements and unmet medical needs. The remaining NAV of the Fund will be in liquid assets.
The Target Fund is managed by Manulife Investment Management’s well-resourced investment team with deep sector expertise averaging 27 years of experience in investment management and healthcare. The Target Fund also has a key feature of medium- to long-term investment with a high conviction portfolio, guided by a differentiated investment approach.
The Fund is suitable for investors who seek capital appreciation, with a medium- to long-term investment horizon and wish to seek investment exposure in healthcare-related companies globally.
Distribution of income by the Fund, if any, is incidental. It is available in A (RM-Hedged) class, with minimum initial investment of RM1,000 and minimum additional investment of RM100. The Fund is now available for subscription through the unit trust advisers of Manulife Investment Management (M) Berhad.
For more information about the Manulife Global Healthcare Fund, please visit manulifeinvestment.com.my.