‘Hanwha Global Healthcare Fund’ Focuses Investment on Healthcare and Bio Sectors with Continued Interest Post-COVID-19

[Asia Economy Reporter Eunmo Koo] Hanwha Asset Management's 'Hanwha Global Healthcare Fund' is a fund that primarily invests in overseas stocks related to healthcare or the biotechnology industry. Recently, as the novel coronavirus infection (COVID-19) has spread globally as a pandemic, interest in bio and healthcare stocks has increased in the financial investment market. This is because the development of vaccines and treatments is essential to overcome the COVID-19 crisis, and interest in healthcare is expected to continue expanding even in the post-COVID era.

The Hanwha Global Healthcare Fund is a long-standing fund that has been managed for nearly 14 years since its inception in July 2006. The current assets under management amount to approximately 160 billion KRW, making it the largest global healthcare fund set up in Korea. Hanwha Asset Management cites the global aging trend and optimistic healthcare outlook due to rising incomes in emerging countries as reasons for the fund's longevity.

With the recent global spread of COVID-19, governments, companies, and even individuals worldwide have begun to recognize infectious diseases as a major risk factor. Accordingly, efforts to improve the universality of diagnosis and treatment and enhance the quality of medical services, especially in developed countries with high medical costs, have intensified. This has led to expanded investments in healthcare overall, including regulatory improvements and the development of treatments and vaccines.

A representative from Hanwha Asset Management explained, "From the perspective of global healthcare fund investors, in addition to the existing investment themes of global aging and rising incomes in emerging markets, the theme of revolutionary improvements in the global healthcare system has been added. In the rapidly changing environment after the pandemic, the healthcare industry, as a defensive sector, can be an attractive investment destination with relative stability and growth potential."

It is also noted as a strength that the fund is entrusted to a specialized healthcare asset manager. Currently, the Hanwha Global Healthcare Fund is managed by Sectoral Asset Management in Canada. This company is a global healthcare specialist asset manager with a research team composed of experts in economics, medicine, and pharmacy.

The investment strategy of the Hanwha Global Healthcare Fund is based on Innovation, Digitalization, and Emerging Markets. It invests in high-growth stocks expected to benefit in the post-COVID era across various sub-sectors, including not only traditional pharmaceuticals but also biotechnology, medical devices, healthcare technology, and healthcare services. Examples include non-face-to-face telemedicine, digitalized medical devices, and pharmaceutical e-commerce platforms.

Looking at the recent fund portfolio, Roche Holding (3.75%) has the largest weighting, followed by Bristol-Myers (2.65%), UnitedHealth Group (2.46%), Sanofi (2.09%), and Pfizer (1.94%). The performance is also stable. The recent 1-month return of Hanwha Global Healthcare Fund Class A was 3.12% as of the 3rd, and the recent 1-year and 3-year annualized returns are approximately 14.24% and 18.47%, respectively.

This content was produced with the assistance of AI translation services.