Assets Under Management AUM

Aditya Birla Sun Life MF applies for futuristic healthcare fund of funds

NEW DELHI: Aditya Birla Sun Life AMC has filed with the Securities and Exchange Board of India (Sebi) a futuristic healthcare fund of funds that aims to provide long-term capital appreciation by investing in shares of Goldman Sachs Global Future Health Healthcare equity portfolio.

A FoF is an investment strategy of holding a portfolio of another investment fund rather than investing directly in stocks, bonds or other securities. A FoF invests primarily in shares of another mutual fund.

The Indian fund is proposed to be managed by Vinod Bhat, which also manages schemes such as Aditya Birla Sun Life Global Emerging Opportunities Fund, Aditya Birla Sun Life Global Excellence Equity Fund of Fund and Aditya Birla Sun Life International Equity Fund, according to the asset management company.

The underlying fund – Goldman Sachs Global Future Health Care Equity Portfolio – which is domiciled in Luxembourg had assets under management (AUM) of $275.15 million as of January 24, 2022.

The fund is benchmarked against the MSCI ACWI Health Care Index, which includes large and mid-cap stocks across developed and emerging markets.

According to the underlying fund’s product document, Goldman Sachs’ Future Health Care Global Equity Portfolio is designed to generate long-term returns by investing in companies that are shaping the future of healthcare.

According to Goldman Sachs, technological innovation is revolutionizing the healthcare industry, creating breakthrough solutions and driving down cost curves.

“We are at the very beginning of a long track of secular growth. We believe healthcare innovation – spanning genomics, precision medicine, technology-enabled procedures and digital health – offers significant wealth-creation opportunities for investors who are focused on the future. ‘future and have a long-term time horizon,” he said in the product note.

The Goldman Sachs global fund was launched on September 30, 2020 and therefore has no established track record. However, on an annual basis, the scheme generated a negative return of 18.20%, which shows the high risk nature of thematic funds.

In terms of investment allocation by region, the Goldman Sachs Global Future Health Care Equity Portfolio has 80.1% of its holdings invested in North America, followed by Europe at 12.3% and Japan at 4.2%. .

US pharmaceutical major Eli Lilly & Co has the highest weighting in the program with 5.4%, followed by PerkinElmer Inc (4.4%), West Pharmaceutical Services Inc (4.1%) and Intuitive Surgical Inc (3 .9%).

The country’s fund houses have sought to launch investment programs based on new era technologies. For example, DSP Investment Managers filed for a FoF transportation future, Navi Mutual filed for FoF electric vehicle and driving technology, and Invesco India MF filed for a blockchain fund.

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