Aditya Birla Sun Life MF applied for Futuristic Healthcare Fund of Fund

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

The Indian fund is proposed to be managed by Vinod Bhat, who also manages schemes like 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. 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 securities in developed and emerging markets.

According to the underlying fund’s product document, the 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 healthcare.

According to Goldman Sachs, tech-enabled innovation is revolutionizing the healthcare industry, creating unprecedented solutions and driving costs down.

“We are at a very early stage of a long runway of secular growth. We believe that health care innovation – genomics, precision medicine, tech-enabled processes and digital health – provides significant wealth creation opportunities to those investors. are forward-looking and have a long-term time horizon,” it said in the product note.

The global fund was launched by Goldman Sachs on 30 September 2020, and hence, does not have an established track record. However, on a year-on-year basis, the scheme has given negative returns of 18.20%, indicating the high-risk nature of Thematic Funds.

In terms of sector-wise investment spread, its 80.1% stake in the Goldman Sachs Global Future Health Care equity portfolio is invested in North America, followed by Europe with 12.3% and Japan at 4.2%.

US-based pharma major Eli Lilly & Company has the highest weightage 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 want to launch investment schemes based on new age technologies. For example, DSP Investment Managers has applied for a future of transportation FoF, Navi Mutual has filed for an electric-vehicle and driving technology FoF and Invesco India MF has applied for a blockchain fund.