AHAM Asset Management Berhad (AHAM Capital) announced today the launch of the AHAM World Series – Biotechnology Fund. This wholesale feeder growth fund provides investors access to 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.
Anton Tan, Chief Officer of Product Solutions & Customer Experience at AHAM Capital, said, “Biotechnology companies are at the forefront of scientific innovation, rapidly enhancing our genetic understanding to develop new treatments for major diseases. 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.
“Healthcare spending is poised to increase driven by a demographic shift in the US, coupled with aging populations and globalization. These long-term secular forces create an attractive fundamental backdrop for biotechnology investments. 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,” Anton adds.
Regarding the sector’s outlook, Andy Acker, Portfolio Manager of Janus Henderson, says, “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. 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 is very pronounced. To mitigate this, the biotechnology team at Janus Henderson combines 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 USD, available in three currency classes: USD Class, MYR Class, and MYR Hedged-Class. The minimum investment amount is $10,000 for the USD Class and $30,000 for the MYR Class and MYR Hedged-Class.
Investors are advised to read and understand the contents of the Fund’s Product Highlights Sheet and Information Memorandum dated 30 May 2024 before investing. To learn more about the Fund, visit here.
