AHAM Asset Management Berhad has announced the launch of the AHAM World Series – Biotechnology Fund, a wholesale feeder growth fund that provides investors access to the burgeoning opportunities within the biotechnology investment universe.
The Fund will primarily invest in the Janus Henderson Horizon Biotechnology Fund, managed by Janus Henderson.
To achieve its investment objective, the Fund will allocate a minimum of 85% of its net asset value (NAV) to the Target Fund and a maximum of 15% to money market instruments, deposits, and/or cash.
“Biotechnology companies are at the forefront of scientific innovation, rapidly enhancing our genetic understanding to develop new treatment for major diseases,” said AHAM Capital chief officer of product solutions and customer experiences Anton Tan.
“Over the past decade, we have seen significant improvements in scientific productivity, with the number of drugs receiving FDA approval doubling from 121 to 243 in the past 20 years.”
Taan said healthcare spending is poised to increase driven by a demographic shift in the US, coupled with ageing populations and globalisation.
“These long-term secular forces create an attractive fundamental backdrop for biotechnology investments,” he remarked.
“Despite experiencing its worst drawdown on record, the biotech sector is currently trading at a substantial discount to the broader market, presenting a unique ‘innovation on sale’ opportunity.
“Furthermore, the biotechnology sector offers a broad spectrum of opportunities across small and large-cap companies, providing diversification for investors’ portfolios.
“By positioning themselves in this healthcare revolution, investors can benefit from the continued breakthroughs in biotechnology.”
On outlook for the sector Janus Handerson portfolio manager Andy Acker said biotechnology is currently undergoing unprecedented levels of innovation thanks to dramatic improvements in life science tools, genetic engineering and new modalities for treating human diseases such as cancer, autoimmune disease, and rare genetic conditions.
He said these advancements are unearthing opportunities for investors to identify the next blockbuster (billion dollar) therapies and generate alpha for clients.
“At the same time, success in biotech is highly binary in nature, and the disparity between winners and losers are very pronounced,” Acker elaborated.
“To mitigate this, the biotechnology team at Janus Henderson combine investment experience, scientific expertise, and proprietary statistical models to estimate the probability of success for drugs in clinical development.
“The team also focuses on the perspectives of physicians, patients, and payers to evaluate the commercial prospects for new therapies to pursue the best investment outcomes for our clients.”
The Fund is suitable for sophisticated investors seeking capital appreciation with a medium to long-term investment horizon.
The Base Currency of the Fund is in USD and is available in three currency classes namely, USD Class, MYR Class, and MYR Hedged-Class. The minimum investment amount is US$10,000 for the USD Class and US$30,000 for the MYR Class and MYR Hedged-Class.
To learn more about the Fund, visit aham.com.my. – June 4, 2024
