Canada-based Sectoral Asset Management, a global leader in healthcare investment, will operate directly in South Korea, one of the most rapidly aging societies in the world where demand for equities in the healthcare sector has been growing fast in recent years. The fund house has so far partnered with Korea’s Hanwha Asset Management Co. to sell healthcare funds to retail investors in the country.

According to financial authorities on Friday, Sectoral Asset Management completed its business registration with the Financial Services Commission in Korea last Friday. The Canadian company aims to raise funds from Korean institutional investors to manage its portfolios directly, reflecting a growing appetite for investment in the healthcare industry in the country.

In Korea, Sectoral Asset Management runs a total of 340 billion won ($298.9 million) raised from retail investors through its local partner. A healthcare fund launched through Hanwha Asset Management 10 years ago has delivered a return of 38.9 percent for the recent three years, 98.1 percent for five years and 152.2 percent for 10 years.

Interest in healthcare- and biotech-related funds is expected to further grow in Korea facing challenges from rapidly aging population. The population of 65 years old or older accounted for 13.1 percent of the country’s total population in 2015, up 4.5 times from 1960 when the corresponding share was 2.9 percent, according to a report by the Statistics Korea released in July last year. It is forecast to jump to 40.1 percent in Korea by 2060 while the corresponding share of a total global population is projected to grow from 8.2 percent in 2015 to 17.6 percent in 2060, it added.

Founded in October 2000 in Montreal, Canada, Sectoral Asset Management has one of the world’s longest track records in managing equities of in the biotech and healthcare sectors. Its investment targets are mainly healthcare stocks traded in America and Europe, and recently in emerging markets. As of end-2015, the company’s asset under management reached $2.9 billion, the largest healthcare fund in the world.

Sectoral has unique expertise in management of healthcare portfolios with dozens of fund managers in the field, said an official at a local asset management company.

By Choi Jae-won

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