Swiss & Global launches healthcare fund

Swiss & Global Asset Management has launched the Julian Baer Health Opportunities fund to capitalise on growth potential in the global healthcare sector.

The UCITS III structure will invest globally in listed healthcare companies, including emerging market equities from all sub-sectors. This will cover producers, distributors and providers of pharmaceuticals, biotechnology, healthcare services, medical technology and companies active in specialty pharmaceuticals and generic drugs.

The fund portfolio includes between 35 and 45 stocks and can have up to 30% exposure to emerging markets. The fund will also invest in traditional pharmaceutical stocks the group says are now trading at depressed multiples, offer high dividend yields and generate strong cashflows.

"The sector should become one of the major growth markets in the decades to come, creating a compelling proposition for investors. The chief driver is emerging markets, which exhibit strong population growth and increasing wealth, which means more people can afford healthcare," says Nathalie Flury, co-portfolio manager.

"A second driver is the fact the global population is growing older, leading to increased healthcare spending. Innovation, meanwhile, is driven by the need for companies to provide ever more targeted therapies for patients while reducing overall costs. Last but not least, healthcare reform in the US will lead to more universal health-insurance coverage and an expansion of healthcare infrastructure."