We attended the 9th Annual SVB Leerink Global Healthcare Conference in New York from February 25 to 27, 2020, which hosted over 200 healthcare companies. As the spread of COVID-19 hit the markets this week, it was also the number one topic at the conference.
Implications for sales, supplies and products, as well as measures to control and contain the outbreak were widely debated. Everyone we talked to acknowledged that the virus outbreak has and will continue to have an impact but the important unanswered question is: how severe will it really be?
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.