The objective is to grow net assets by investing in companies operating in the healthcare sector, over the recommended investment period.
There was a positive start to the year for the healthcare sector. US companies are currently upgrading their earnings outlook for 2018. The tax-rate cuts resulting from US tax reform mainly benefits health mutuals, which continued to gain ground at the start of the year. Several US pharmaceutical and biotechnology companies have announced the repatriation of their funds held abroad. This trend should encourage acceleration in M&A transactions. Sanofi wants to catch up its backlog on acquisitions, and made two announcements in January. It is strengthening on rare blood-related diseases with its $11.6 billion bid for Bioverativ, the US specialist in the treatment of haemophilia. Sanofi will also acquire Ablynx for 3.9 billion. Meanwhile, we are reducing our exposure to US health mutuals after their very strong run in recent months (UnitedHealth, Anthem). Instead, we have introduced CVS, a company whose valuation seems largely to be pricing in concerns at possible competition from a player like Amazon entering US drug distribution. CVS has been pursuing a vertical integration strategy with the acquisition of the insurer Aetna. This transaction should generate cost savings and, above all, offer potential for synergies with its MinuteClinic rapid-care centres in the pharmacy network. Prospects for 2018 are positive for the sector with a political environment that should stop weighing in on investor sentiment. With the exception of certain specific sub-segments, valuations are running at a significant discount against the market. Visibility on earnings growth remains strong and the pace of innovation will be sustained.
Share class (N-EUR)
(1) The rating grades the funds on a scale from 1 to 7. This rating system is based on the average fluctuations of the net asset value over the past five years. It corresponds to the variation range of the portfolio upwards and downwards. If the net asset value is less than 5 years old, the rating is determined by other regulatory calculation methods. Historical data such as those used to calculate the rating may not be a reliable indication of the future risk profile. The current category is neither a guarantee nor an objective. Category 1 does not signify a risk-free investment.