OREANDA-NEWS. September 16, 2015. The MSCI World Healthcare Index consists of global companies classified in the Health Care sector as per the Global Industry Classification Standard (GICS®). As of 10 September 2015, the index generated a 4.9% 2015 year-to-date total return and averages a dividend yield of 1.8%. In comparison, the SGX Healthcare Index generated a 10.1% total return and averages a 3.1% dividend yield over the same period.

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\\$29.3 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 Healthcare Index is computed by SGX, and weightings of component stocks are capped at a maximum of 10% at each semi-annual rebalance so that it is better diversified across a range of companies. Due to the relative market capitalisations of the 29 stocks, the five largest constituents currently account for 51% of the index weight.

Of the 29 stocks, 15 do not declare dividends. The five largest stocks by index weight are Raffles Medical Group, Parkway Life REIT, IHH Healthcare Berhad, Haw Par Corporation and First REIT. As of last week’s close, the five best performers of the Index in the year thus far were Q & M Dental Group (Singapore) (+72.8%), Riverstone Holdings (+72.2%), Cordlife Group (+63.5%), Tianjin Zhongxin Pharmaceutical Group Corporation (+18.3%) and Raffles Medical Group (+18.0%).

The chart below illustrates the performance of the Index on a total-return basis with a base price of 1,000 on 30 June 2011. The Index closed on 10 Sept 2015 at 2,023.84, taking the total return to 102% since the end of June 2011.

SGX Healthcare Index (Total Return), 30 June 2011 – 10 Sept 2015

The table below is sorted based on index weightings. Note that clicking on a stock name will take you to its relevant page on SGX StockFacts.