Endowus has selected the Fund as it offers:
Fund Objective: Invests in companies addressing unmet medical needs or improving health care efficiencies by understanding the science and business of healthcare.
Suitability: Investors who seek long-term growth, are comfortable with the greater volatility and risks of a global life sciences equity fund, and have experience with, or understand, products where the capital is at risk.
Fund Inception: 4 June 2019
Share Class Inception: 31 March 2000
Benchmark: MSCI World/Health Care
Fund AUM: SGD 6.20bn
Source: MorningStar as of 23 July 2021. Please refer to the FMC page for the most updated AUM.
Source: MorningStar as of 30 June 2021. Allocation data indicate actual exposure as a percentage of the Fund's total Net Asset Value. Please refer to the Fund Manager Page for the most updated information on Fund Holdings and Breakdown.
Endowus has selected the Janus Henderson Global Life Sciences for its balanced and well-diversified portfolio of Core, Emerging, and Opportunistic companies engaged in various healthcare sectors. The investment process begins with a bottom-up assessment of companies in the investable universe, classifying them into the three buckets — Core Growth companies will be characterised by established, high-quality franchises with superior products and strong management, Emerging Growth companies are those with new product cycles and fast-growing financials, while Opportunistic companies are underappreciated by the market but possess upside potentials, such as through business model transitions or M&A.
Investment decisions are made based on the fundamentals of each company, which includes healthcare-sector specific ESG considerations such as drug pricing, waste management, carbon emission from manufacturing, and more. On average, the resulting portfolio allocates ⅓ of its weight each to pharmaceuticals, biotechnology, and healthcare services, medical technology, and others. The resulting portfolio is well-diversified and sizable at around 80 to 120 names, allocating to not only the US, but also Europe, UK, and even China. The strategy also allows for private company investments, giving investors the exposure to innovative, high-growth names in the space that potentially will progress towards a public listing.
The strategy is led by Lead PM Andy Acker, whose 25 years of investment experience is complemented by a background in biochemical sciences. He is supported by a team of 7 dedicated healthcare analysts, 3 of whom hold PhDs in related fields such as chemistry and medical engineering. The team has a risk budgeting framework using VaR (value at risk) to determine position sizing and assess worst case impact for each position, effectively managing potential downside risks from investing in relatively volatile companies such as biotechnology or small-cap companies.
The Fund has proven to be one of the most successful healthcare funds, delivering a healthy track record since its inception in 2000 and superior long-term total returns. However, investors may wish to note that the Fund may experience periods of short-term volatility. This is due to the Fund’s underweight to pharmaceuticals, especially the mega-cap pharma companies, and an overweight to innovative, smaller-sized biotechnology companies, which has nevertheless, historically contributed to superior long-term returns . Given this, as well as the strategy’s specialised focus on the healthcare sector, this Fund should be used as a satellite allocation to complement a diversified core portfolio.
Updated by Endowus: July 2021
** Disclaimer: Past performance should not be taken as an indication or guarantee of future performance and no representation or warranty, express or implied, is made regarding future performance. Any opinions expressed reflect a judgment at the original date of publication by us and are subject to change without notice.
The prospectus, profile statement, product highlight sheet, fund factsheet or other offer or product documents may contain references about the expected risk tolerance of their target investors. These are in no way indicative of how we at Endowus have assessed your risk tolerance based on your stated objectives and financial situation. Endowus accepts no responsibility for investment decisions made in response to the expected risk tolerance levels mentioned in the product or offer documents.