Frankfurt am Main, January 18 2016
OECD expects the volume of the healthcare market to increase four fold by 2060
nova Steady Healthcare generates above-average returns at low volatility
Portfolio's focus lies on shares beyond the usual pharmaceutical and biotech arena
The Organisation for Economic Cooperation and Development (OECD) expects the volume of the healthcare market in the OECD countries to double in the period 2010 to 2035 and to increase four fold by the year 2060. According to the OECD study, the share of healthcare expenditure in gross domestic product will rise from around 6.2 percent in 2010 to approximately 9.5 percent in 2060. "But it's not the drugs alone that are boosting developments in the healthcare sector. Other examples are hearing aids, spectacle lenses and food tests", claims Dr. Andreas Bischof, Managing Director of nova fund management GmbH (nova) and fund partner of the nova Steady HealthCare fund launched with Universal-Investment in 2015 (ISIN DE000A1145J0). The variety of healthcare products and services is enabling the healthcare sector to achieve prolonged and above-average growth.
"The healthcare sector doesn't just consist of drug developers from the pharmaceutical and biotechnology segments but also of eight other sub-industries which are equally profiting from the previously mentioned factors", Bischof continues. These sub-industries include, for example, operators of hospitals and nursing homes, medical technology companies, pharmaceutical wholesalers or makers of medical aid supplies. All these sub-industries are profiting from the sector's long-term steady growth.
Healthcare sector outperforms the overall market last year
Backed by this growth momentum, the healthcare sector again outperformed the overall market on the stock exchange in 2015 - while the broad market index MSCI World gained around eight percent in 2015, the healthcare index MSCI World Health Care chalked up a far stronger gain of some 17 percent. A closer looks reveals that, within the healthcare sector in 2015, it was not so much the biotech and pharmaceutical companies that achieved a disproportionately good development as the healthcare service providers and operators of healthcare facilities as well as the suppliers of biomedical research.
The risk-averse equity fund nova Steady HealthCare focuses on precisely these segments of the healthcare sector which tend to be disregarded by typical healthcare funds but which are still profiting intensively from the growth trend in the healthcare sector. The healthcare fund therefore consists of a concentrated portfolio of between 20 and 30 quality stocks selected by the fund management following a rigorous examination.
This investment strategy has proved its worth since the fund's launch in April 2015 - the nova Steady HealthCare outperformed its benchmark index, the MSCI World Health Care, at reduced volatility. The fund's return exceeded that of the benchmark by around one percent at an encouragingly good four percent lower volatility. Around one fourth of the fund volume was invested in the sub-industry Health Care Equipment (medical technology) and another one fourth in the sub-industry Life Science Tools & Services (suppliers of biomedical research), yet the portfolio did not contain a single biotech stock.
nova Managing Director and founder, Dr. Bischof, is excited about the results of the first financial year that ended on 31 December 2015. "I'm pleased that for the first time I've been able to offer a broad circle of investors an investment strategy to which they had previously had no access. The results of the first nine months speak for themselves, with healthcare outperforming the overall market." As nova-Managing Director Oliver Kämmerer adds: “Our goal is to generate above-average returns at below-average volatility. We achieved this in full in 2015. And we're very pleased about this". Bischof and Kämmerer, two reputable experts each with more than 17 years' investment experience in the field of healthcare stocks, are the people behind the investment strategy of nova Steady HealthCare.
With its main offices in Munich, nova fund management GmbH is a bank-independent fund initiator and consultant focused exclusively on the global healthcare sector. nova fund management designs, initiates and advises new, original and value-added financial products. The acronym "nova" (new original value-added) reflects this ambition. Dr. Andreas Bischof and Oliver Kämmerer, two specialists each with more than 17 years' complementary experience in healthcare stocks on the buy and sell side, manage the company. The molecular biologist Dr. Bischof, who was last employed at Allianz Global Investors as investment manager for one of the world's biggest equity portfolios in the healthcare sector, generated highly-attractive excess returns there for many years with a risk-averse investment strategy. He achieved this alpha not only relative to the European sector index MSCI Europe Health Care but also relative to the European aggregate market index MSCI Europe. The economist Kämmerer was last head of European equity analysis and healthcare sector analysis at West LB. In these functions he was responsible, among other things, for alpha generation from the equity recommendations.
For more information, see www.novafunds.biz