Looking ahead, Mr Bowler believes investment opportunities in healthcare should be abundant. “There are powerful drivers to keep investors interested. In aggregate the sector has done well. While large-cap pharmaceutical companies have been re-rated from their 2009 lows, valuations are back to more historic average levels; they are not stretched,” he says.
He points to the US president’s overhaul of the nation’s health system. “The government is becoming a bigger payer of healthcare. In the short term, hospital companies such as HCA will benefit, while insurers, including UnitedHealth Group, could see benefits over the long-term,” he says.
EXPERT VIEW
Darius McDermott, managing director, Chelsea Financial Services
Launched in 2000 and having had the same manager since 2004, this fund is now one of the more established funds in the open-ended healthcare sector. The fund’s investment objective is to achieve capital growth by investing in healthcare, medical services and related products and companies on a worldwide basis. Investment will be indirectly held in transferable securities. The fund may also invest in funds, warrants and money market instruments. The fund has outperformed its benchmark over one year, and keeps pace with it over three and five years.
