We attended the 35th annual J.P. Morgan Healthcare Conference 2017 from January 9th to 12th in San Francisco.
With 467 companies participating (USD 4.3tn in market cap), over 10’000 attendees and over 12’000 organized 1 on 1 meetings, the conference normally sets the tone for the healthcare investment year. Company executives were confident regarding their fundamentals. While uncertainty around the ACA repeal and replacement remains high, the US corporate tax reform could lead to earnings accretion for the sector.
The MSCI World Healthcare NR Index gained 3.0% in June, while the MSCI World NR Index rose 1.5%. The decline in 10-year yields provided a booster shot to growth stocks, relative to their value peers. It is likely that the next months will continue to be dominated by debates on Fed and interest rates topics, and related growth/value factor pivots. More clarity on tapering can be expected after the summer break and the Jackson Hole summit.
Kieger AG is a main sponsor of the ”Swiss Sustainable Investment Market Study 2021”. This sponsored page by our Kieger Healthcare Portfolio Managers Urban Fritsche and Dr. Maria Specogna discusses: “Covid-19: a trigger for impact investors in global healthcare”.
In May, Healthcare gained 2.1%, while Global Equities rose 1.6%. The shift into value at the expense of growth and momentum continued over the past weeks, with Energy, Financials and Materials posting the top performances. IT returns, given the sector’s growth characteristics, were again subdued.