SCB Asset Management Co (SCBAM), an affiliate of Siam commercial Bank, has launched a health care fund, with a total value of at 10 billion baht ($278.8 million), the units of this would be be on offer from 25-31 August 2015, said the company president, Smith Banomyong.
SCB Global Health Care (SCBGHC) fund will be investing in the global health care companies, and could be modeled on other similar funds in the same sector. “The ageing group will spend the money for take care of their health. They will spend an average of three times more when compared to other groups. Also new innovation and technology in the industry will help companies increase sale revenue growth,” he said.
According to the company website, SCBAM was established on March 18, 1992 and is an affiliate of Siam Commercial Bank, which is Thailand’s third-largest lender and is licensed by the Finance Ministry to manage mutual funds, provident funds, and private funds.
The company’s net asset value under its management has gradually increased and reached 1,041,349 Million Baht as of July 31, 2015.
“The health care stocks have been defensive stocks. During the past five years the health care index yield has been higher than the stock share index. In 2011 the MSCI Health Care Index had yield at 9.5 per cent while the MSCI World Index had yield at -5.5 per cent” he said.
“The Healthcare stock had growth of earning per share stock (EPS), compared with P/E Ratio (in July 2015) at 18.78 times but it‘s not high if compared with an average in a past 20 years at 18.25 times,” he added.