The science of investing
Despite attracting negative sentiment in the past, Australia’s biotechnology sector will grow significantly over the next decade, offering appealing opportunities to astute investors, according to eG Capital director Brad Ross-Sampson.
The nation is ranked sixth in the world in terms of the number of biotech companies it has, including three organisations that have positioned themselves as dominant global players.
“I think the biotech revolution is here to stay and Australia is very much a part of the revolution, underpinned by its medical research and innovation,” Ross-Sampson said.
He said the sector had experienced underperformance in recent years due to a combination of factors, such as the resource boom and negative media coverage, but predicts this will change as the sector matures.
“Where Australia has failed in recent times is in attracting the right managers to market these companies globally,” Ross-Sampson said.
“But the sector has matured and progressed and now is the ideal time to invest in these stories.
“As time goes on the media will take more interest in biotech and it will become more mainstream.”
He made these comments while launching the eG Capital BioEquities Fund, which is now open to retail and wholesale investors.
The fund is a sector-specific fund investing in Australian listed biotech and life science companies, with an objective to achieve returns that exceed the S&P/ASX 300 Accumulation Index over the medium to long-term.
“The fund is just a natural progression of the sector becoming more efficient,” Ross-Sampson said.
“We recognise the investment opportunities to be found in the biotech and life science sector and strongly believe in the long-term viability of the sector.”
Recommended for you
The central bank has released its decision on the official cash rate following its November monetary policy meeting.
ASIC has cancelled the AFSL of a Melbourne-based managed investment scheme operator over a failure to pay industry levies and meet its statutory audit and financial reporting lodgement obligations.
Melbourne advice firm Hewison Private Wealth has marked four decades of service after making its start in 1985 as a “truly independent advice business” in a largely product-led market.
HLB Mann Judd Perth has announced its acquisition of a WA business advisory firm, growing its presence in the region, along with 10 appointments across the firm’s national network.
