A Mini Tour of Market-Beating Healthcare Companies In Singapore

A good place to start learning about the companies in Singapore’s stock market that belong to the healthcare sector might be the SGX All Healthcare Index.

The index consists of 27 of the largest and most tradeable healthcare stocks in Singapore. To learn more, I looked up a recent report which covered the stocks in the index.

Here’s what I noted from the report (figures correct as of 15 August 2016) in addition to information I have picked out from elsewhere:

  1. The SGX All Healthcare Index had generated a total return of 4.2% in 2016 thus far. This compares with the negative total returns of 2.9% and 4.9% seen at the MSCI World Health Care Index and MSCI AC Asia ex-Japan Health Care Index, respectively. From this perspective, Singapore’s healthcare stocks can be said to be market-beating.
  2. IHH Healthcare Bhd  (SGX: Q0F) is the largest company by market capitalisation in the index, weighing in at nearly S$18 billion. The healthcare firm owns premium hospitals in many parts of Asia. Within Singapore, some of the hospitals in its portfolio include Mount Elizabeth and Gleneagles Singapore.
  3. Meanwhile, First Real Estate Investment Trust (SGX: AW9U) has the highest weightage in the index at 12.2%. The real estate investment trust owns hospitals and healthcare facilities in Indonesia, Singapore, and South Korea.
  4. Health Management International Ltd (SGX: 588) stands out as the top performer over the last three years, clocking a total return exceeding 200%. The company operates hospitals in Malaysia and healthcare education institutes in Singapore.
  5. RHT Health Trust (SGX: RF1U), which recently changed its name from Religare Health Trust, sports the highest distribution yield at 7.5%. The business trust currently owns India-based healthcare assets and has a mandate to invest in medical and healthcare assets in Asia, Australasia, and emerging markets.

The SGX All Healthcare Index can give us a mini-tour of the companies in the healthcare space in Singapore. This may be a good starting point to hunt for healthcare companies to invest in for the long run.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Chin Hui Leong doesn’t own shares in any companies mentioned.