SGX All Healthcare Index Generated 12% YTD Returns
OREANDA-NEWS. The MSCI Asia ex Japan Healthcare Index comprises companies in Asia ex Japan classified in the Health Care sector as per the Global Industry Classification Standard (GICS®). The Index has a total combined market capitalisation of US$160.2 billion. In the year thus far, the MSCI Asia ex Japan Healthcare Index generated a 4.9% dividend-exclusive total return. In comparison, the SGX All Healthcare Index has generated an 11.8% total return in the year thus far, which brought the three-year total return to 46.2%.
The SGX Healthcare Index is an indicative index comprising stocks that report at least half their revenues from healthcare in the last financial year and REITs with investments in healthcare facilities. The Index comprises 29 constituent securities with a combined market capitalisation of S$32.2 billion. The index does not just include companies – two Real Estate Investment Trusts (REITs) and a business trust that invests in healthcare-related assets are included.
The weightings of the Index components are capped at a maximum 10% at each periodical rebalance, so that it is better diversified across a range of stocks. Currently, the five largest stocks by index weight are Biosensors International Group, Tianjin Zhongxin Pharmaceutical Group Corporation, IHH Healthcare Berhad, Haw Par Corporation and Parkway Life REIT, and they make up more than 50% of the Index.
As of last Friday’s close, the five best performers in the Index were Riverstone Holdings, UG Healthcare Corporation, Q & M Dental Group (Singapore), Cordlife Group and Vicplas International. The five stocks averaged a year-to-date total return of 90.8%.
The chart below illustrates the performances of the SGX All Healthcare Index and the Straits Times Index (STI) on a total-return basis with a base price of 1,000 on 30 December 2010. The SGX All Healthcare Index closed on 20 Nov 2015 at 1495.90, taking the total return to 49.6% since the end of December 2010.