The 2023 calendar year is upon us.
As we set our resolutions for the new year, looking after our health, in all aspects, remains an important focus and high priority for many of us. This includes our financial health, which we can strengthen by making the right decisions with our wealth.
So what is wealth and why should you give it some attention for the 2023 calendar year?
Why We Should Make Better Decisions with Our Wealth
Wealth measures the value of all the assets of worth owned by a person, community, company, or country. It is determined by taking the total market value of all physical and intangible assets owned after subtracting all debts. For example, when we refer to “our wealth”, it is the accumulation of all forms of “valuable possessions or money” we have that we do not owe to anyone else.
But, regardless of where we get it from, wealth is a crucial and influential asset of our society. We can hear stories of numerous people who have made a lot of money through investing in avenues like digital currency Crypto, sharemarket, or property plays. However, we can also witness stories of investments gone wrong. In media, reports of regulators constantly pulling up individuals or companies who offer financial products without the right investment licensing structures are not uncommon.
Hence, we learn how to make responsible decisions with our wealth, especially when it comes to investing. Investing requires a strategy, an approach and an understanding of your risk appetite.
Through Moneysmart, the Australian government provides professional financial advice to help consumers “be in control [of their] financial life”. They aim to “help Australians take control of their money with free tools, tips and guidance”. This includes helping investors build a diversified investment plan, guiding you towards an area or sector that sees your assets grow in a healthy and wealthy way and contributes to the health and wellbeing of communities and the environment.
Growing Your Assets With a Diversified Investment Portfolio
Healthbridge Capital is a retail-managed fund that invests in the healthcare sector. We provide opportunities for our consumers to include Healthbridge Capital as part of a diversified investment portfolio to help their wealth and investment grow in the asset class which can help the community.
To have a diversified investment portfolio means to spread your risks across various sectors, which could include such sectors as healthcare, property, information technology, materials and many more. This ‘Diversification’ is a risk management strategy that mixes a wide variety of distinct asset types and investment vehicles as a strong attempt to limit your exposure to any single asset or risk.
At Healthbridge Capital, we present an opportunity for you to diversify your portfolio by investing in the healthcare sector. This sector includes Pharmaceutical, Medical and other types of businesses, some of which were defined as “essential services” during the global pandemic.
The Importance in Ethical Investing Practices
What is becoming more important for average investors is not just the need to have an appetite for a particular sector but also to ensure that they are engaging in;
- ethical corporate practices and or their wealth is being used towards
- Environmental Social and Governance factors (ESG)
Whilst HealthBridge Capital, a registered managed fund, does not market itself as an ethical or ESG play, its investment philosophy connects at the heart of these concepts.
In our investment philosophy, we avoid the following in the underlying businesses that we invest in:
- Dealing with items of known poor health outcomes such as alcohol and cigarettes;
- Disregarding environmental responsibility such as using non-renewables, coal, oil, and energy which pollute the climate;
- Vice or immoral matters such as gambling and pornography;
- Banks and other conventional lenders where there is potential in paying or charging interest – the recent royal enquiry into banking practices and financial services highlighted some untoward unethical practices;
- Speculative businesses entering into contracts where the ownership of goods/assets depends on an uncertain event in the future; and
- Uncertainty and risk from contracts with excessive risk exposure.
Future markets predict the growth of more ESG-focused investment models
A recent survey conducted by PWC revealed that ESG is poised to become a key market driver as economic headwinds threaten the traditional growth engines of investing. The PWC report says that;
- ESG-focused funds will grow much faster than the market as a whole; projected compound annual growth rate CAGR of 12.9%. Although as stated above HealthBridge does not market itself as an ESG fund, so a comparison should not be made to estimated growth rates.
- ESG assets are on pace to constitute 21.5% of total global AuM in less than 5 years. It represents a dramatic and continuing shift in the asset and wealth management (AWM) industry according to PwC’s Asset and Wealth Management Revolution 2022 report. The report also captures the views of 250 institutional investors and asset managers worldwide, representing nearly half of global AuM.
While the Healthcare sector is not without its risks, HealthBridge Capital has a Product Disclosure Statement (PDS) and Target Market Determination (TMD) to assist all investors to determine whether the product is right for their personal financial circumstances.
As with any investment, you will still need financial advisers to help you determine your risk appetite and should remember that investors face a risk of loss of capital and income. However, with a good investment plan, diversification and a risk appetite assessment, you may find HealthBridge Capital to be the bridge between health and wealth to fulfill this 2023 new years resolution.
Happy investing in 2023!
Disclaimer – Any information or advice contained on this website is general in nature and has been prepared without taking into account your objectives, financial situation or needs. Before acting on any information or advice on this website, you should consider the appropriateness of it (and any relevant product) having regard to your circumstances and, if a current offer document is available, read the offer document before acquiring products named on this website. You should also seek independent financial advice prior to acquiring a financial product.
All financial products involve risks. Past performance of any product described on this site is not a reliable indication of future performance. For a copy of our Financial Services Guide please click here.
Healthbridge Investment Management Pty Ltd is the Investment Manager of the Healthbridge Capital fund. It holds a Corporate Authorised Representative authorisation CAR No. 001277945 from Cache (RE Services) Ltd (AFSL No.494886). Healthbridge Investment Management Pty Ltd also holds a Corporate Authorised Representative authorisation from Quay allowing it to provide General Product Advice.
Call us on 1300 933 034 or email us at info@healthbridgeinvest.com.au and ask for a Product Disclosure Statement (dated 30 September 2022) for more information.
