GAM Multistock - Health Innovation Equity

ISIN: LU0329426950:USD

Instrument Profile

Reasons to Invest

  • Long-time drivers
  • Inovation drivers return
  • Expansion phase
  • Sector consolidation

The manager has over 23 years’ investment experience and a successful track record in the active management of healthcare equity.

Flexible allocation across all sub-sectors of healthcare worldwide means the manager can leverage changing growth dynamics and diversify portfolio risk.

The manager takes advantage of both depressed valuations and growth opportunities, as an effective way of generating alpha.

The manager has proven its ability to invest early in areas of high medical need through new or improving treatments, therefore capturing as much value creation as possible.

What is the investment philosophy?

The manager believes innovation is key to successful stock picking, as a potential driver of superior returns. Innovation adds value to drug development as once a medicine is commercialised it has the potential to generate substantial cash flow. This cash flow is highly predictable due to a defined patient pool, price and targeted penetration rate, and long lasting due to patent protections. The manager believes value can be achieved by investing in companies with strong fundamentals that provide growth opportunities fuelled by innovation, as well as capturing potential related to emerging markets and an ageing global population.

What is the investment process?

The process focuses on adding value through bottom-up stock selection, based primarily on fundamental research. The manager seeks to identify innovation opportunities through the identification of top-down trends, with a focus on new growth opportunities and areas of future returns. A set of defined opportunities is established on which they assess companies, meeting up to 140 companies annually and looking at competitiveness and valuation to determine innovative companies with attractive valuations. The portfolio of approximately 50-60 stocks is diversified across sub-sectors and therapeutic indications to reduce risk. The manager uses a disciplined buy and sell process as part of its ongoing risk management function.

What is the investment objective?

The fund seeks to achieve long-term capital growth by investing globally in innovation-driven companies active in all health-care sub-sectors (pharmaceuticals, biotechnology, health-care services & supplies, medical technology, specialty pharmaceuticals and generics). The actively managed fund is suitable for equity investors with a long-term horizon and appropriate risk awareness who wish to complement their portfolio with a concentrated investment in the health-care sector.

What are the risk factors?

Currency Risk – Non Base Currency Share Class: Non-base currency share classes may or may not be hedged to the base currency of the Fund. Changes in exchange rates will have an impact on the value of shares in the Fund which are not denominated in the base currency. Where hedging strategies are employed, they may not be fully effective.

Equity: Investments in equities (directly or indirectly via derivatives) may be subject to significant fluctuations in value.

Capital at Risk: All financial investments involve an element of risk. Therefore, the value of the investment and the income from it will vary and the initial investment amount cannot be guaranteed. 

Concentration Risk: Concentration in a limited number of securities and industry sectors may result in more volatility than investing in broadly diversified Funds.

Single Country Risk: Investment in companies of a single country may be subject to greater political, social, economic and tax risks and may be more volatile than investments in more broadly diversified funds. Local tax law may change retrospectively and without notice. 

Liquidity Risk: a given security cannot be traded quickly enough in the market to prevent a loss, or make a profit. 

Market Risk / Emerging Markets: Emerging markets will generally be subject to greater political, market, counterparty and operational risks.

Type: Equity SICAV

Geography: Broad Global

Sector: Technology and Healthcare

Benchmark: MSCI World Health Care ND

Ongoing Charges: 1.81%

Exit Charge: 0.0%

Investment Style: Sector Equity Technology

Fund Size (AUM): USD 141.28M

MSCI Sustainability
Score

n/a

Source: MSCI Inc. Last update: Dec 6th, 2020

Morningstar Sustainability Score

2/5

Source: Morningstar, Inc.
Last update: Dec 6th, 2020

Data by the open sources of the instrument provider. Last update: 7.12.2020

Rolling performance at 03/12/2020

1 Year: 4.03%

3 Years: 18.36%

Performance data by the open sources of the instrument provider. Last update: 7.12.2020

Top 10 Holdings

Company

Bristol-Myers Squibb Company

Roche Holding AG Dividend Right

Gilead Sciences Inc

UnitedHealth Group Inc

Pfizer Inc

Novartis AG

Neurocrine Biosciences Inc

Medtronic PLC

Reata Pharmaceuticals Inc

Biomarin Pharmaceutical Inc

Weighting

5.15%

5.04%

5.01%

4.98%

4.59%

4.56%

4.32%

4.25%

3.22%

2.98%

Top portfolio holdings as of 7.12.2020 | Source: instrument provider.

Country Allocation

Sector Allocation

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