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NEW DELHI: Aditya Birla Sun Life AMC has filed for a futuristic healthcare fund of fund (FoF) with the Securities and Exchange Board of India (Sebi) that aims to provide long-term capital appreciation by investing in units of Goldman Sachs Global Future Health Care Equity Portfolio.
An FoF is an investment strategy of holding a portfolio of another investment fund rather than investing directly in stocks, bonds, or other securities. An FoF primarily invests in the units of another mutual fund scheme.
The Indian fund is proposed to be managed by Vinod Bhat, who 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, as per 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 24 January 2022.
The fund is benchmarked against MSCI ACWI Health Care Index, which includes large and mid-cap securities across developed and emerging markets.
As per the product document of the underlying fund, Goldman Sachs Global Future Health Care Equity Portfolio is designed to generate long-term returns by investing in companies that are driving the future of health care.
According to Goldman Sachs, tech-enabled innovation is revolutionising the health care industry, creating groundbreaking solutions and driving cost curves down.
“We are at the very early stages of a long runway of secular growth. We believe health care innovation – spanning genomics, precision medicine, tech-enabled procedures, and digital health – offers significant wealth creation opportunities to investors who are forward-looking and have a long-term time horizon," it said in the product note.
The global fund by Goldman Sachs was launched on 30 September 2020, and hence, doesn’t have an established track record. However, on a year-to-date basis, the scheme has delivered a negative return of 18.20%, showing the high-risk nature of thematic funds.
In terms of region-wise investment spread, 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 4.2% in Japan.
US-based pharma major Eli Lilly & Co has the highest weightage in the scheme at 5.4%, followed by PerkinElmer Inc (4.4%), West Pharmaceutical Services Inc (4.1%) and Intuitive Surgical Inc (3.9%).
Fund houses in the country have been looking to launch investment schemes based on new-age technologies. For example, DSP Investment Managers has applied for a future of transportation FoF, Navi Mutual filed for an electric-vehicle and driving technology FoF and Invesco India MF applied for a blockchain fund.
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