As the pandemic pushes healthcare to the top of the agenda, Goldman Sachs’ asset management division has announced it is set to launch a new “supercharged” healthcare equity fund.
Goldman Sachs Asset Management (GSAM) will launch the fund and provide investors exposure to companies at the “forefront of rapid innovation in healthcare”.
The Goldman Sachs Global Future Health Care Equity Portfolio will be managed by AGSM’s 80-person fundamental equity team.
GSAM said its strategy will focus on genomics, precision medicine and minimally invasive procedures, from robotic surgery to more complex procedures.
The portfolio will also focus on digitisation, notably on companies that help healthcare providers remotely monitor patients’ key observations.
“Each of our four core investment focus areas is underpinned by a major transition in the delivery of healthcare around the world, whether through targeted and more personalised treatments, improved patient experience or rapid digitisation”, said Luke Barrs, head of GSAM’s EMEA fundamental equity client portfolio management.
“We believe that momentum will continue to build behind these shifts, creating a series of long-term, dynamic investment opportunities for investors.”
The outbreak of coronavirus has “supercharged” the existing interest in healthcare innovation, Barrs said. He pointed to specific advancements, notably increasing digitisation, as disrupting the way medicine has been practised.
By June, healthcare was one of only three sectors to post positive year-to-date returns. Hopes for a return to normal are pinned on finding a vaccine or reliable treatment option, with many healthcare companies developing a vaccine.
And as society grapples with the pandemic, many healthcare companies are benefiting from higher orders and investment.
Kathleen Hughes, managing director of GSAM client business, said: “Our clients are increasingly seeking access to investment vehicles which are built to support the development of leading-edge healthcare technologies and solutions.”