Analysis of newly launched United Global Healthcare Fund by UOB Malaysia

United Global Healthcare Fund

UOB Asset Management (Malaysia) Bhd has recently launched the United Global Healthcare Fund to provide Malaysian investors with opportunities for long-term capital growth through investments in global medical healthcare stocks. 

Fund Focus Area

Based on the Product Highlight Sheet, the fund aims to achieve the following:

United Global Healthcare Fund Investment Strategy

Fund Background

Despite being newly made available in Malaysia, the United Global Healthcare Fund is in fact an fund that was launched in 2000 and managed by UOB Asset Management Limited, Singapore. 

To understand the potential that this fund new fund is able to offer Malaysian investors, let's take a look at the historical performance of the same fund via data from Singapore.

Fund Performance

1) Total Return of Fund since Inception (August 2000)

Initial Investment Amount: RM 10,000.00 

Period of Investment: 19 years

Current Investment Value: RM 68,762.28 (15th August 2019)

Annualized (%) Return: ~10.6% per annum

United Global Healthcare Fund Performance Sg since August 2000

2) Total Return of Fund (10 Yr)

Initial Investment Amount: RM 10,000.00 (21 August 2009)

Period of Investment: 10 years

Current Investment Value: RM 37,842.10 (15 August 2019)

Annualized (%) Return: ~14.2% per annum

United Global Healthcare Fund Sg Performance (10 Years)

3) Total Return of Fund (5 Yr)

Initial Investment Amount: RM 10,000.00 (15 August 2014)

Period of Investment: 5 years

Current Investment Value: RM 18,707.01 (15 August 2019)

Annualized (%) Return: ~13.3% per annum

United Global Healthcare Fund Sg Performance (5 Years)

4) Total Return of Fund (3 Yr)

Initial Investment Amount: RM 10,000.00 (19 August 2016)

Period of Investment: 3 years

Current Investment Value: RM 12,171.77 (15 August 2019)

Annualized (%) Return: ~6.77% per annum

United Global Healthcare Fund Sg Performance (3 Years)

All in all, the double digit Annualized (%) Return for 19 years, 10 years and 5 years for this fund are pretty impressive. Next up is for us to get a holistic comparison in terms of investing into this fund versus investing into our own Malaysia Mid/Small Cap Equity funds.

Fund Comparison 

(United Global Healthcare Fund Sg vs Equity-Malaysia Mid/Small Cap funds)

The reasons Malaysia Equity Mid/Small cap category was chosen for comparison are due to the following:

• Funds in this category have been the best performing as compared to other categories
• Funds in this category are popular among Malaysians investors 

1) 10 Year Annualized (%) Return Comparison

Ranked by Annualized Return:

1. Eastspring Inv Small Cap Fund: 14.22% 
2. United Global Healthcare Fund (Sg): 14.2% 
3. Kenanga Growth Fund: 13.90%
4. Areca EquityTRUST: 13.37%
5. Manulife Investment Progress: 10.53%
6. Public Small Cap: 10.05%
7. Funds ranked 7 and below have only single digit annualized return (Total Funds: 23)

2) 5 Year Annualized (%) Return Comparison

Ranked by Annualized Return:

1. United Global Healthcare Fund (Sg): 13.3% 
2. Areca EquityTRUST: 8.87%
3. Hong Leong Penny Stock: 8.20%
4. Hong Leong Growth: 5.48%
5. Funds ranked 4 and below average less than 5% in annualized return (Total Funds: 23)

3) 3 Year Annualized (%) Return Comparison

Ranked by Annualized Return:

1. Areca EquityTRUST: 14.51%
2. Hong Leong Penny Stock: 7.97%
3. Hong Leong Growth: 7.96%
4. United Global Healthcare Fund (Sg): 6.77% 
5. Singular Value: 5.93%
6. Kenanga Malaysian Inc: 5.78%
7. KAF Tactical Fund: 5.64%
8. Funds ranked 4 and below average less than 5% in annualized return (Total Funds: 23)

Summary

As shown in the Fund Performance and Fund Comparison section of this post, the United Global Healthcare Fund (Sg) as well as the upcoming Malaysia version  will certainly be a great addition to any portfolio of investors in terms bringing in better than average returns. Exposure into the healthcare sector via this fund also provides a good diversification element to an investor's portfolio.

For further in-depth analysis/discussion of this fund in terms of resiliency towards market crashes, check out our discussion topic at The Guided Investor Forum under UT Funds Discussion Category

Cheers and Happy Investing!