Kris Jenner

Despite favourable demographics, health care companies still face challenges, TD manager says.

Diana Cawfield 3 June, 2011 | 6:00PM

Despite an aging population and the need for new medicines, Kris Jenner says the health-care sector faces a challenging environment.

"The reality is that we are now in a very budget-constrained world," says Jenner, who has managed the award-winning TD Health Sciences since June 2000. "If product development takes a long time and innovation takes a while, and you start whacking reimbursement rates, it leads directly to a pinch on profitability. Conceptually, the demographic argument is powerful, but it has to be balanced with the reality of today's budget constraints."

Jenner, a portfolio manager and vice-president at Baltimore-based T. Rowe Price Associates Inc., is responsible for managing approximately US$3.4 billion in assets. The Morningstar 4-star rated fund won Best Healthcare Equity Fund of the year at the Canadian Investment Awards gala in December.

Under Jenner's tenure, TD Health Sciences Investor Series has an annualized 10-year return of 0.8%, far outperforming the median loss of 0.9%, as of April 30. Over the five-year period, the fund returned 4.2%, again well ahead of the median return of 1%.

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About Author

Diana Cawfield

Diana Cawfield  Diana Cawfield is an award-winning writer who has been a regular Morningstar contributor since 2000. Her numerous publication credits include the Toronto StarAdvisor's Edge and Chatelaine, as well as the Canadian Securities Institute's online educational services.