Monthly comment (October 2025): Earnings season off to a strong start
Summary Strong start to the earnings season for the healthcare sector, supported by further Most Favored Nation deals, and continued positive momentum in biotechnology. The fund delivered strong results with positive contributions from all subsectors, led by biotechnology and medical technology. Exposure to biotechnology was increased, financed by reduced exposure to pharmaceuticals. We believe the […]
Monthly comment (Sep 2025): Signs of increased optimism
Summary September was dominated by US politics and rising investor appetite in the healthcare sector. The US government shut down after Democrats demanded an extension of health insurance marketplace subsidies in the budget negotiations. At the same time, an initial MFN agreement brought greater clarity on drug pricing and tariffs. The fund’s biotechnology segment performed […]
Monthly comment (August 2025): A possible rebound?
Following a period of significant underperformance as compared to the broader market, the healthcare sector delivered a positive performance in August, ending the month as the second-best sector in the S&P 500 index. The fund had a strong month, with all sub-sectors, apart from medtech, contributing to the performance. Services was the strongest sub-sector. Despite […]
Summer Series summary: Healthcare – why now?
Past performance is no guarantee of future returns. During the first half of 2025 healthcare sector sentiment has been negatively affected by uncertainty around tariffs and trade policy, fiscal negotiations, and recent healthcare reforms in the US. Behind this though lies a thriving sector marked by tremendous levels of innovation and a steady stream […]
Monthly comment (July 2025): A paradoxical situation
Equity markets had a positive reaction to the announcement regarding tariffs. The White House’s news regarding international drug pricing (MFN) at the end of the month however weighed on the healthcare sector. Despite improved clarity around trade, the fund had a weak month, primarily due to the announcement regarding MFN. The details of this […]
Monthly comment (June 25): A month of contrasts
Summary Positive clinical data and M&A activity picked up in the sector. We saw more signs that the deal window may be reopening. The Senate version of the reconciliation bill included deeper cuts to Medicaid than the House version. The fund had strong results in dollar terms and relative to the broader healthcare sector but […]
Monthly comment (May 25): Another month overshadowed by worries over tariffs and trade barriers
Summary Like last month, May was overshadowed by worries over tariffs and trade barriers. The simultaneous debates surrounding the budget, drug prices as well as tariffs resulted in too much uncertainty for many healthcare investors, despite the low valuations. As a result, the healthcare sector underperformed the world index by 9 percent (in US dollar). […]
Monthly comment (Apr 25): Healthcare sector impacted by political uncertainty
Monthly comment April was dominated by renewed US-China trade tensions. On April 2nd, the US announced a 10 percent global tariff on all imports into the US, alongside steep ”reciprocal tariffs” of up to 145 percent specifically targeting imports from China. The average tariff rate on imports to the US thus reached its highest level […]
Monthly summary – March 2025: a volatile month, again impacted by the macro-economic and political backdrop
March was a volatile month for the healthcare sector, again impacted by the macro-economic and political backdrop. While the sector ended March in negative territory, it held up somewhat better than many other sectors, protected both by its overall low valuation and by its defensive characteristics. The downward trend in the sector was led primarily […]