Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Overall, we are encouraged by the continued outperformance of the healthcare sector, which we believe is justified given the strong earnings rebound expected this year and the depressed valuations.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest attributors vs. the index were Eli Lilly (+24 bps / The stock lost 10.3% and we are underweight versus the benchmark), HCA (+21 bps / No company specific news. The stock returned 13% in March, but experienced large intra-month volatility driven by various policy-news (changes in Medicaid funding), a positive broker on hospitals, and negative press on the space (Economist)) and Novartis (+17 bps / Positive competitor data readout. Company outperformed European peers over the month).

The largest detractors vs the index were Dexcom (-41 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears), Novo Nordisk (-15 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025) and Elevance (-14 bps / Not invested).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: January was an eventful start to the year for healthcare. First, companies gave a 360° overview of key topics at the JP Morgan healthcare conference, with many pre-announcing full-year results or giving 2025 guidance. Second, the Trump inauguration and RFK confirmation hearings provided some reassurance regarding the future policy landscape,
though headline risk remains high. Third, the kick-off of Q4 reporting confirmed the trend seen at the conference, namely that the sector continues to benefit from rising utilization rates driven by the aging population. This demographic trend is expected to sustain robust sales growth. Medtech companies have specifically pointed out that this is not pent-up demand, but the “new normal”. Demand for therapeutics is strong, in particular in areas where age is a major risk factor, such as oncology and chronic autoimmune diseases.Overall, we see aligned fundamentals and sentiment providing a strong backdrop for 2025 in healthcare.

Portfolio changes: We initiated new positions in Beigene and RadNet and we did not exit any position.

Performance review: The largest attributors vs. the index were Ambu (+23 bps / Reported preliminary fiscal Q1 revenue above consensus and the full year guidance was raised. Ambu showed continued strong growth in both pulmonology and urology, ENT and GI within Endoscopy Solutions. Anaesthesia & Patient Monitoring was positive, too), Danaher (+19 bps / Not invested) and Abbott (+16 bps / Q4 results in-line with expectations, while the 2025 is considered to be conservative).
The largest detractors vs the index were Edwards (-17 bps / Fear of increased competition in the core TAVR franchise), CVS (-16 bps /: Not invested) and Biomarin (-14 bps / Announced legal action against Ascendis Pharma (patent covering long-acting variants of C-Type Natriuretic Peptide)).

ESG: Firms in the portfolio did not report any material ESG issues in January.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Overall, we are encouraged by the continued outperformance of the healthcare sector, which we believe is justified given the strong earnings rebound expected this year and the depressed valuations.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest attributors vs. the index were Eli Lilly (+24 bps / The stock lost 10.3% and we are underweight versus the benchmark), HCA (+21 bps / No company specific news. The stock returned 13% in March, but experienced large intra-month volatility driven by various policy-news (changes in Medicaid funding), a positive broker on hospitals, and negative press on the space (Economist)) and Novartis (+17 bps / Positive competitor data readout. Company outperformed European peers over the month).

The largest detractors vs the index were Dexcom (-41 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears), Novo Nordisk (-15 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025) and Elevance (-14 bps / Not invested).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: January was an eventful start to the year for healthcare. First, companies gave a 360° overview of key topics at the JP Morgan healthcare conference, with many pre-announcing full-year results or giving 2025 guidance. Second, the Trump inauguration and RFK confirmation hearings provided some reassurance regarding the future policy landscape, though headline risk remains high. Third, the kick-off of Q4 reporting confirmed the trend seen at the conference, namely that the sector continues to benefit from rising utilization rates driven by the aging population. This demographic trend is expected to sustain robust sales growth. Medtech companies have specifically pointed out that this is not pent-up demand, but the “new normal”. Demand for therapeutics is strong, in particular in areas where age is a major risk factor, such as oncology and chronic autoimmune diseases.Overall, we see aligned fundamentals and sentiment providing a strong backdrop for 2025 in healthcare.

Portfolio changes: We initiated new positions in Beigene and RadNet and we did not exit any position.

Performance review: The largest attributors vs. the index were Ambu (+23 bps / Reported preliminary fiscal Q1 revenue above consensus and the full year guidance was raised. Ambu showed continued strong growth in both pulmonology and urology, ENT and GI within Endoscopy Solutions. Anaesthesia & Patient Monitoring was positive, too), Danaher (+19 bps / Not invested) and Abbott (+16 bps / Q4 results in-line with expectations, while the 2025 is considered to be conservative).
The largest detractors vs the index were Edwards (-17 bps / Fear of increased competition in the core TAVR franchise), CVS (-16 bps /: Not invested) and Biomarin (-14 bps / Announced legal action against Ascendis Pharma (patent covering long-acting variants of C-Type Natriuretic Peptide)).

ESG: Firms in the portfolio did not report any material ESG issues in January.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Overall, we are encouraged by the continued outperformance of the healthcare sector, which we believe is justified given the strong earnings rebound expected this year and the depressed valuations.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest attributors vs. the index were Eli Lilly (+24 bps / The stock lost 10.3% and we are underweight versus the benchmark), HCA (+21 bps / No company specific news. The stock returned 13% in March, but experienced large intra-month volatility driven by various policy-news (changes in Medicaid funding), a positive broker on hospitals, and negative press on the space (Economist)) and Novartis (+17 bps / Positive competitor data readout. Company outperformed European peers over the month).

The largest detractors vs the index were Dexcom (-41 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears), Novo Nordisk (-15 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025) and Elevance (-14 bps / Not invested).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: January was an eventful start to the year for healthcare. First, companies gave a 360° overview of key topics at the JP Morgan healthcare conference, with many pre-announcing full-year results or giving 2025 guidance. Second, the Trump inauguration and RFK confirmation hearings provided some reassurance regarding the future policy landscape, though headline risk remains high. Third, the kick-off of Q4 reporting confirmed the trend seen at the conference, namely that the sector continues to benefit from rising utilization rates driven by the aging population. This demographic trend is expected to sustain robust sales growth. Medtech companies have specifically pointed out that this is not pent-up demand, but the “new normal”. Demand for therapeutics is strong, in particular in areas where age is a major risk factor, such as oncology and chronic autoimmune diseases.Overall, we see aligned fundamentals and sentiment providing a strong backdrop for 2025 in healthcare.

Portfolio changes: We initiated new positions in Beigene and RadNet and we did not exit any position.

Performance review: The largest attributors vs. the index were Ambu (+23 bps / Reported preliminary fiscal Q1 revenue above consensus and the full year guidance was raised. Ambu showed continued strong growth in both pulmonology and urology, ENT and GI within Endoscopy Solutions. Anaesthesia & Patient Monitoring was positive, too), Danaher (+19 bps / Not invested) and Abbott (+16 bps / Q4 results in-line with expectations, while the 2025 is considered to be conservative).
The largest detractors vs the index were Edwards (-17 bps / Fear of increased competition in the core TAVR franchise), CVS (-16 bps /: Not invested) and Biomarin (-14 bps / Announced legal action against Ascendis Pharma (patent covering long-acting variants of C-Type Natriuretic Peptide)).

ESG: Firms in the portfolio did not report any material ESG issues in January.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Overall, we are encouraged by the continued outperformance of the healthcare sector, which we believe is justified given the strong earnings rebound expected this year and the depressed valuations.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest attributors vs. the index were Eli Lilly (+24 bps / The stock lost 10.3% and we are underweight versus the benchmark), HCA (+21 bps / No company specific news. The stock returned 13% in March, but experienced large intra-month volatility driven by various policy-news (changes in Medicaid funding), a positive broker on hospitals, and negative press on the space (Economist)) and Novartis (+17 bps / Positive competitor data readout. Company outperformed European peers over the month).

The largest detractors vs the index were Dexcom (-41 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears), Novo Nordisk (-15 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025) and Elevance (-14 bps / Not invested).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: January was an eventful start to the year for healthcare. First, companies gave a 360° overview of key topics at the JP Morgan healthcare conference, with many pre-announcing full-year results or giving 2025 guidance. Second, the Trump inauguration and RFK confirmation hearings provided some reassurance regarding the future policy landscape, though headline risk remains high. Third, the kick-off of Q4 reporting confirmed the trend seen at the conference, namely that the sector continues to benefit from rising utilization rates driven by the aging population. This demographic trend is expected to sustain robust sales growth. Medtech companies have specifically pointed out that this is not pent-up demand, but the “new normal”. Demand for therapeutics is strong, in particular in areas where age is a major risk factor, such as oncology and chronic autoimmune diseases.Overall, we see aligned fundamentals and sentiment providing a strong backdrop for 2025 in healthcare.

Portfolio changes: We initiated new positions in Beigene and RadNet and we did not exit any position.

Performance review: The largest attributors vs. the index were Ambu (+23 bps / Reported preliminary fiscal Q1 revenue above consensus and the full year guidance was raised. Ambu showed continued strong growth in both pulmonology and urology, ENT and GI within Endoscopy Solutions. Anaesthesia & Patient Monitoring was positive, too), Danaher (+19 bps / Not invested) and Abbott (+16 bps / Q4 results in-line with expectations, while the 2025 is considered to be conservative).
The largest detractors vs the index were Edwards (-17 bps / Fear of increased competition in the core TAVR franchise), CVS (-16 bps /: Not invested) and Biomarin (-14 bps / Announced legal action against Ascendis Pharma (patent covering long-acting variants of C-Type Natriuretic Peptide)).

ESG: Firms in the portfolio did not report any material ESG issues in January.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Overall, we are encouraged by the continued outperformance of the healthcare sector, which we believe is justified given the strong earnings rebound expected this year and the depressed valuations.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest attributors vs. the index were Eli Lilly (+24 bps / The stock lost 10.3% and we are underweight versus the benchmark), HCA (+21 bps / No company specific news. The stock returned 13% in March, but experienced large intra-month volatility driven by various policy-news (changes in Medicaid funding), a positive broker on hospitals, and negative press on the space (Economist)) and Novartis (+17 bps / Positive competitor data readout. Company outperformed European peers over the month).

The largest detractors vs the index were Dexcom (-41 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears), Novo Nordisk (-15 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025) and Elevance (-14 bps / Not invested).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: January was an eventful start to the year for healthcare. First, companies gave a 360° overview of key topics at the JP Morgan healthcare conference, with many pre-announcing full-year results or giving 2025 guidance. Second, the Trump inauguration and RFK confirmation hearings provided some reassurance regarding the future policy landscape, though headline risk remains high. Third, the kick-off of Q4 reporting confirmed the trend seen at the conference, namely that the sector continues to benefit from rising utilization rates driven by the aging population. This demographic trend is expected to sustain robust sales growth. Medtech companies have specifically pointed out that this is not pent-up demand, but the “new normal”. Demand for therapeutics is strong, in particular in areas where age is a major risk factor, such as oncology and chronic autoimmune diseases.Overall, we see aligned fundamentals and sentiment providing a strong backdrop for 2025 in healthcare.

Portfolio changes: We initiated new positions in Beigene and RadNet and we did not exit any position.

Performance review: The largest attributors vs. the index were Ambu (+23 bps / Reported preliminary fiscal Q1 revenue above consensus and the full year guidance was raised. Ambu showed continued strong growth in both pulmonology and urology, ENT and GI within Endoscopy Solutions. Anaesthesia & Patient Monitoring was positive, too), Danaher (+19 bps / Not invested) and Abbott (+16 bps / Q4 results in-line with expectations, while the 2025 is considered to be conservative).
The largest detractors vs the index were Edwards (-17 bps / Fear of increased competition in the core TAVR franchise), CVS (-16 bps /: Not invested) and Biomarin (-14 bps / Announced legal action against Ascendis Pharma (patent covering long-acting variants of C-Type Natriuretic Peptide)).

ESG: Firms in the portfolio did not report any material ESG issues in January.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Overall, we are encouraged by the continued outperformance of the healthcare sector, which we believe is justified given the strong earnings rebound expected this year and the depressed valuations.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest attributors vs. the index were Eli Lilly (+24 bps / The stock lost 10.3% and we are underweight versus the benchmark), HCA (+21 bps / No company specific news. The stock returned 13% in March, but experienced large intra-month volatility driven by various policy-news (changes in Medicaid funding), a positive broker on hospitals, and negative press on the space (Economist)) and Novartis (+17 bps / Positive competitor data readout. Company outperformed European peers over the month).

The largest detractors vs the index were Dexcom (-41 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears), Novo Nordisk (-15 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025) and Elevance (-14 bps / Not invested).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: January was an eventful start to the year for healthcare. First, companies gave a 360° overview of key topics at the JP Morgan healthcare conference, with many pre-announcing full-year results or giving 2025 guidance. Second, the Trump inauguration and RFK confirmation hearings provided some reassurance regarding the future policy landscape, though headline risk remains high. Third, the kick-off of Q4 reporting confirmed the trend seen at the conference, namely that the sector continues to benefit from rising utilization rates driven by the aging population. This demographic trend is expected to sustain robust sales growth. Medtech companies have specifically pointed out that this is not pent-up demand, but the “new normal”. Demand for therapeutics is strong, in particular in areas where age is a major risk factor, such as oncology and chronic autoimmune diseases.Overall, we see aligned fundamentals and sentiment providing a strong backdrop for 2025 in healthcare.

Portfolio changes: We initiated new positions in Beigene and RadNet and we did not exit any position.

Performance review: The largest attributors vs. the index were Ambu (+23 bps / Reported preliminary fiscal Q1 revenue above consensus and the full year guidance was raised. Ambu showed continued strong growth in both pulmonology and urology, ENT and GI within Endoscopy Solutions. Anaesthesia & Patient Monitoring was positive, too), Danaher (+19 bps / Not invested) and Abbott (+16 bps / Q4 results in-line with expectations, while the 2025 is considered to be conservative).
The largest detractors vs the index were Edwards (-17 bps / Fear of increased competition in the core TAVR franchise), CVS (-16 bps /: Not invested) and Biomarin (-14 bps / Announced legal action against Ascendis Pharma (patent covering long-acting variants of C-Type Natriuretic Peptide)).

ESG: Firms in the portfolio did not report any material ESG issues in January.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Overall, we are encouraged by the continued outperformance of the healthcare sector, which we believe is justified given the strong earnings rebound expected this year and the depressed valuations.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest attributors vs. the index were Eli Lilly (+24 bps / The stock lost 10.3% and we are underweight versus the benchmark), HCA (+21 bps / No company specific news. The stock returned 13% in March, but experienced large intra-month volatility driven by various policy-news (changes in Medicaid funding), a positive broker on hospitals, and negative press on the space (Economist)) and Novartis (+17 bps / Positive competitor data readout. Company outperformed European peers over the month).

The largest detractors vs the index were Dexcom (-41 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears), Novo Nordisk (-15 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025) and Elevance (-14 bps / Not invested).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: January was an eventful start to the year for healthcare. First, companies gave a 360° overview of key topics at the JP Morgan healthcare conference, with many pre-announcing full-year results or giving 2025 guidance. Second, the Trump inauguration and RFK confirmation hearings provided some reassurance regarding the future policy landscape, though headline risk remains high. Third, the kick-off of Q4 reporting confirmed the trend seen at the conference, namely that the sector continues to benefit from rising utilization rates driven by the aging population. This demographic trend is expected to sustain robust sales growth. Medtech companies have specifically pointed out that this is not pent-up demand, but the “new normal”. Demand for therapeutics is strong, in particular in areas where age is a major risk factor, such as oncology and chronic autoimmune diseases.Overall, we see aligned fundamentals and sentiment providing a strong backdrop for 2025 in healthcare.

Portfolio changes: We initiated new positions in Beigene and RadNet and we did not exit any position.

Performance review: The largest attributors vs. the index were Ambu (+23 bps / Reported preliminary fiscal Q1 revenue above consensus and the full year guidance was raised. Ambu showed continued strong growth in both pulmonology and urology, ENT and GI within Endoscopy Solutions. Anaesthesia & Patient Monitoring was positive, too), Danaher (+19 bps / Not invested) and Abbott (+16 bps / Q4 results in-line with expectations, while the 2025 is considered to be conservative).
The largest detractors vs the index were Edwards (-17 bps / Fear of increased competition in the core TAVR franchise), CVS (-16 bps /: Not invested) and Biomarin (-14 bps / Announced legal action against Ascendis Pharma (patent covering long-acting variants of C-Type Natriuretic Peptide)).

ESG: Firms in the portfolio did not report any material ESG issues in January.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Overall, we are encouraged by the continued outperformance of the healthcare sector, which we believe is justified given the strong earnings rebound expected this year and the depressed valuations.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest attributors vs. the index were Eli Lilly (+24 bps / The stock lost 10.3% and we are underweight versus the benchmark), HCA (+21 bps / No company specific news. The stock returned 13% in March, but experienced large intra-month volatility driven by various policy-news (changes in Medicaid funding), a positive broker on hospitals, and negative press on the space (Economist)) and Novartis (+17 bps / Positive competitor data readout. Company outperformed European peers over the month).

The largest detractors vs the index were Dexcom (-41 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears), Novo Nordisk (-15 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025) and Elevance (-14 bps / Not invested).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Please change me...

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Overall, we are encouraged by the continued outperformance of the healthcare sector, which we believe is justified given the strong earnings rebound expected this year and the depressed valuations.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest attributors vs. the index were Eli Lilly (+24 bps / The stock lost 10.3% and we are underweight versus the benchmark), HCA (+21 bps / No company specific news. The stock returned 13% in March, but experienced large intra-month volatility driven by various policy-news (changes in Medicaid funding), a positive broker on hospitals, and negative press on the space (Economist)) and Novartis (+17 bps / Positive competitor data readout. Company outperformed European peers over the month).

The largest detractors vs the index were Dexcom (-41 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears), Novo Nordisk (-15 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025) and Elevance (-14 bps / Not invested).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: January was an eventful start to the year for healthcare. First, companies gave a 360° overview of key topics at the JP Morgan healthcare conference, with many pre-announcing full-year results or giving 2025 guidance. Second, the Trump inauguration and RFK confirmation hearings provided some reassurance regarding the future policy landscape, though headline risk remains high. Third, the kick-off of Q4 reporting confirmed the trend seen at the conference, namely that the sector continues to benefit from rising utilization rates driven by the aging population. This demographic trend is expected to sustain robust sales growth. Medtech companies have specifically pointed out that this is not pent-up demand, but the “new normal”. Demand for therapeutics is strong, in particular in areas where age is a major risk factor, such as oncology and chronic autoimmune diseases.Overall, we see aligned fundamentals and sentiment providing a strong backdrop for 2025 in healthcare.

Portfolio changes: We initiated new positions in Beigene and RadNet and we did not exit any position.

Performance review: The largest attributors vs. the index were Ambu (+23 bps / Reported preliminary fiscal Q1 revenue above consensus and the full year guidance was raised. Ambu showed continued strong growth in both pulmonology and urology, ENT and GI within Endoscopy Solutions. Anaesthesia & Patient Monitoring was positive, too), Danaher (+19 bps / Not invested) and Abbott (+16 bps / Q4 results in-line with expectations, while the 2025 is considered to be conservative).
The largest detractors vs the index were Edwards (-17 bps / Fear of increased competition in the core TAVR franchise), CVS (-16 bps /: Not invested) and Biomarin (-14 bps / Announced legal action against Ascendis Pharma (patent covering long-acting variants of C-Type Natriuretic Peptide)).

ESG: Firms in the portfolio did not report any material ESG issues in January.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Performance review: The largest contributors were Agilon (+49 bps / Normalization of performance after a very weak 2024. Upbeat presentation at the Cowen Healthcare Conference in March), Hypera (+17 bps / Q4 top-line results were in-line with estimates, while EPS was better than expected. Importantly, channel inventory adjustment is happening faster than anticipated) and Centene (+14 bps / The company confirmed its 2025 guidance. Otherwise, the stock was hit by various policy-news (House GOP eying reduction to Medicaid targeted at the "expansion population" of the program / CMS rule focused on program integrity on the healthcare exchanges))

The largest detractors were Novo Nordisk (-80 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025), Dexcom (-73 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears) and Amplifon (-69 bps / Q4 results came in below expectations (primarily due to continued softness in Europe) and 2025 guidance (back-end loaded and wider than usual) was also lower than estimated).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: The healthcare sector widened its year-to-date outperforming through a strong reporting season, with 4.8% lead vs the market as of 28th Feb. Both sales and earnings growth outpaced the market year-on-year, indicating both strong underlying factors as well as margin expansion.

However, the Trump administration has been the source of much headline volatility over the past few weeks. This has affected specific areas ranging from federal grant funding to Medicaid funding and vaccines. 

Overall, these announcements have added an uncertainty premium to select names and sector areas. However, we view fundamentals as broadly unaffected.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest contributors were Axsome (+63 bps / The firm has entered into a settlement agreement with Teva resolving all patent litigation related to Axsome's AUVELITY product. Later, the stock was initiated with a buy rating by a major broker. After lower-than-expected Q4 results, Axsome gave up some performance, only to start performing again later in the month after announcing that the EMERGE Phase 3 trial of SYMBRAVO reached its primary endpoint. Overall, the stock gained 20% in February), Gilead (+59 bps / Q4 results were better than expected and outlook on EPS-level was higher than estimated. Gilead showed good performance across HIV, Trodelvy and liver disease portfolios) and Abbott (+28 bps / No specific news. Positive momentum from January continued in February).

The largest detractors were Tandem (-141 bps / Q4 sales were higher, and EBITDA was lower than consensus. The 2025 outlook was lighter than estimated and includes an EU commercial transition to direct distribution and an US commercial organization expansion that could cause disruption), Exact Sciences (-53 bps / Q4 revenues were in-line with the pre-announcement, while EBITDA was higher than consensus. 2025 guidance for revenues was in-line (with Cologuard to grow 13% vs earlier expectations of 15%), while margins fell short) and RadNet (-46 bps / Q4 results were better than expected and 2025 EBITDA-outlook was lower than consensus. However, fundamentals remain intact and guidance was impacted by two one-offs (winter storms and California fires) with volumes back to normal now).

ESG: Firms in the portfolio did not report any material ESG issues in February.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Performance review: The largest contributors were Agilon (+49 bps / Normalization of performance after a very weak 2024. Upbeat presentation at the Cowen Healthcare Conference in March), Hypera (+17 bps / Q4 top-line results were in-line with estimates, while EPS was better than expected. Importantly, channel inventory adjustment is happening faster than anticipated) and Centene (+14 bps / The company confirmed its 2025 guidance. Otherwise, the stock was hit by various policy-news (House GOP eying reduction to Medicaid targeted at the "expansion population" of the program / CMS rule focused on program integrity on the healthcare exchanges))

The largest detractors were Novo Nordisk (-80 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025), Dexcom (-73 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears) and Amplifon (-69 bps / Q4 results came in below expectations (primarily due to continued softness in Europe) and 2025 guidance (back-end loaded and wider than usual) was also lower than estimated).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: The healthcare sector widened its year-to-date outperforming through a strong reporting season, with 4.8% lead vs the market as of 28th Feb. Both sales and earnings growth outpaced the market year-on-year, indicating both strong underlying factors as well as margin expansion.

However, the Trump administration has been the source of much headline volatility over the past few weeks. This has affected specific areas ranging from federal grant funding to Medicaid funding and vaccines. 

Overall, these announcements have added an uncertainty premium to select names and sector areas. However, we view fundamentals as broadly unaffected.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest contributors were Axsome (+63 bps / The firm has entered into a settlement agreement with Teva resolving all patent litigation related to Axsome's AUVELITY product. Later, the stock was initiated with a buy rating by a major broker. After lower-than-expected Q4 results, Axsome gave up some performance, only to start performing again later in the month after announcing that the EMERGE Phase 3 trial of SYMBRAVO reached its primary endpoint. Overall, the stock gained 20% in February), Gilead (+59 bps / Q4 results were better than expected and outlook on EPS-level was higher than estimated. Gilead showed good performance across HIV, Trodelvy and liver disease portfolios) and Abbott (+28 bps / No specific news. Positive momentum from January continued in February).

The largest detractors were Tandem (-141 bps / Q4 sales were higher, and EBITDA was lower than consensus. The 2025 outlook was lighter than estimated and includes an EU commercial transition to direct distribution and an US commercial organization expansion that could cause disruption), Exact Sciences (-53 bps / Q4 revenues were in-line with the pre-announcement, while EBITDA was higher than consensus. 2025 guidance for revenues was in-line (with Cologuard to grow 13% vs earlier expectations of 15%), while margins fell short) and RadNet (-46 bps / Q4 results were better than expected and 2025 EBITDA-outlook was lower than consensus. However, fundamentals remain intact and guidance was impacted by two one-offs (winter storms and California fires) with volumes back to normal now).

ESG: Firms in the portfolio did not report any material ESG issues in February.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Performance review: The largest contributors were Agilon (+49 bps / Normalization of performance after a very weak 2024. Upbeat presentation at the Cowen Healthcare Conference in March), Hypera (+17 bps / Q4 top-line results were in-line with estimates, while EPS was better than expected. Importantly, channel inventory adjustment is happening faster than anticipated) and Centene (+14 bps / The company confirmed its 2025 guidance. Otherwise, the stock was hit by various policy-news (House GOP eying reduction to Medicaid targeted at the "expansion population" of the program / CMS rule focused on program integrity on the healthcare exchanges))

The largest detractors were Novo Nordisk (-80 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025), Dexcom (-73 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears) and Amplifon (-69 bps / Q4 results came in below expectations (primarily due to continued softness in Europe) and 2025 guidance (back-end loaded and wider than usual) was also lower than estimated).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: The healthcare sector widened its year-to-date outperforming through a strong reporting season, with 4.8% lead vs the market as of 28th Feb. Both sales and earnings growth outpaced the market year-on-year, indicating both strong underlying factors as well as margin expansion.

However, the Trump administration has been the source of much headline volatility over the past few weeks. This has affected specific areas ranging from federal grant funding to Medicaid funding and vaccines. 

Overall, these announcements have added an uncertainty premium to select names and sector areas. However, we view fundamentals as broadly unaffected.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest contributors were Axsome (+63 bps / The firm has entered into a settlement agreement with Teva resolving all patent litigation related to Axsome's AUVELITY product. Later, the stock was initiated with a buy rating by a major broker. After lower-than-expected Q4 results, Axsome gave up some performance, only to start performing again later in the month after announcing that the EMERGE Phase 3 trial of SYMBRAVO reached its primary endpoint. Overall, the stock gained 20% in February), Gilead (+59 bps / Q4 results were better than expected and outlook on EPS-level was higher than estimated. Gilead showed good performance across HIV, Trodelvy and liver disease portfolios) and Abbott (+28 bps / No specific news. Positive momentum from January continued in February).

The largest detractors were Tandem (-141 bps / Q4 sales were higher, and EBITDA was lower than consensus. The 2025 outlook was lighter than estimated and includes an EU commercial transition to direct distribution and an US commercial organization expansion that could cause disruption), Exact Sciences (-53 bps / Q4 revenues were in-line with the pre-announcement, while EBITDA was higher than consensus. 2025 guidance for revenues was in-line (with Cologuard to grow 13% vs earlier expectations of 15%), while margins fell short) and RadNet (-46 bps / Q4 results were better than expected and 2025 EBITDA-outlook was lower than consensus. However, fundamentals remain intact and guidance was impacted by two one-offs (winter storms and California fires) with volumes back to normal now).

ESG: Firms in the portfolio did not report any material ESG issues in February.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Performance review: The largest contributors were Agilon (+49 bps / Normalization of performance after a very weak 2024. Upbeat presentation at the Cowen Healthcare Conference in March), Hypera (+17 bps / Q4 top-line results were in-line with estimates, while EPS was better than expected. Importantly, channel inventory adjustment is happening faster than anticipated) and Centene (+14 bps / The company confirmed its 2025 guidance. Otherwise, the stock was hit by various policy-news (House GOP eying reduction to Medicaid targeted at the "expansion population" of the program / CMS rule focused on program integrity on the healthcare exchanges))

The largest detractors were Novo Nordisk (-80 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025), Dexcom (-73 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears) and Amplifon (-69 bps / Q4 results came in below expectations (primarily due to continued softness in Europe) and 2025 guidance (back-end loaded and wider than usual) was also lower than estimated).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: The healthcare sector widened its year-to-date outperforming through a strong reporting season, with 4.8% lead vs the market as of 28th Feb. Both sales and earnings growth outpaced the market year-on-year, indicating both strong underlying factors as well as margin expansion.

However, the Trump administration has been the source of much headline volatility over the past few weeks. This has affected specific areas ranging from federal grant funding to Medicaid funding and vaccines. 

Overall, these announcements have added an uncertainty premium to select names and sector areas. However, we view fundamentals as broadly unaffected.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest contributors were Axsome (+63 bps / The firm has entered into a settlement agreement with Teva resolving all patent litigation related to Axsome's AUVELITY product. Later, the stock was initiated with a buy rating by a major broker. After lower-than-expected Q4 results, Axsome gave up some performance, only to start performing again later in the month after announcing that the EMERGE Phase 3 trial of SYMBRAVO reached its primary endpoint. Overall, the stock gained 20% in February), Gilead (+59 bps / Q4 results were better than expected and outlook on EPS-level was higher than estimated. Gilead showed good performance across HIV, Trodelvy and liver disease portfolios) and Abbott (+28 bps / No specific news. Positive momentum from January continued in February).

The largest detractors were Tandem (-141 bps / Q4 sales were higher, and EBITDA was lower than consensus. The 2025 outlook was lighter than estimated and includes an EU commercial transition to direct distribution and an US commercial organization expansion that could cause disruption), Exact Sciences (-53 bps / Q4 revenues were in-line with the pre-announcement, while EBITDA was higher than consensus. 2025 guidance for revenues was in-line (with Cologuard to grow 13% vs earlier expectations of 15%), while margins fell short) and RadNet (-46 bps / Q4 results were better than expected and 2025 EBITDA-outlook was lower than consensus. However, fundamentals remain intact and guidance was impacted by two one-offs (winter storms and California fires) with volumes back to normal now).

ESG: Firms in the portfolio did not report any material ESG issues in February.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Performance review: The largest contributors were Agilon (+49 bps / Normalization of performance after a very weak 2024. Upbeat presentation at the Cowen Healthcare Conference in March), Hypera (+17 bps / Q4 top-line results were in-line with estimates, while EPS was better than expected. Importantly, channel inventory adjustment is happening faster than anticipated) and Centene (+14 bps / The company confirmed its 2025 guidance. Otherwise, the stock was hit by various policy-news (House GOP eying reduction to Medicaid targeted at the "expansion population" of the program / CMS rule focused on program integrity on the healthcare exchanges))

The largest detractors were Novo Nordisk (-80 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025), Dexcom (-73 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears) and Amplifon (-69 bps / Q4 results came in below expectations (primarily due to continued softness in Europe) and 2025 guidance (back-end loaded and wider than usual) was also lower than estimated).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: The healthcare sector widened its year-to-date outperforming through a strong reporting season, with 4.8% lead vs the market as of 28th Feb. Both sales and earnings growth outpaced the market year-on-year, indicating both strong underlying factors as well as margin expansion.

However, the Trump administration has been the source of much headline volatility over the past few weeks. This has affected specific areas ranging from federal grant funding to Medicaid funding and vaccines. 

Overall, these announcements have added an uncertainty premium to select names and sector areas. However, we view fundamentals as broadly unaffected.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest contributors were Axsome (+63 bps / The firm has entered into a settlement agreement with Teva resolving all patent litigation related to Axsome's AUVELITY product. Later, the stock was initiated with a buy rating by a major broker. After lower-than-expected Q4 results, Axsome gave up some performance, only to start performing again later in the month after announcing that the EMERGE Phase 3 trial of SYMBRAVO reached its primary endpoint. Overall, the stock gained 20% in February), Gilead (+59 bps / Q4 results were better than expected and outlook on EPS-level was higher than estimated. Gilead showed good performance across HIV, Trodelvy and liver disease portfolios) and Abbott (+28 bps / No specific news. Positive momentum from January continued in February).

The largest detractors were Tandem (-141 bps / Q4 sales were higher, and EBITDA was lower than consensus. The 2025 outlook was lighter than estimated and includes an EU commercial transition to direct distribution and an US commercial organization expansion that could cause disruption), Exact Sciences (-53 bps / Q4 revenues were in-line with the pre-announcement, while EBITDA was higher than consensus. 2025 guidance for revenues was in-line (with Cologuard to grow 13% vs earlier expectations of 15%), while margins fell short) and RadNet (-46 bps / Q4 results were better than expected and 2025 EBITDA-outlook was lower than consensus. However, fundamentals remain intact and guidance was impacted by two one-offs (winter storms and California fires) with volumes back to normal now).

ESG: Firms in the portfolio did not report any material ESG issues in February.

Market review: Despite a tough market environment of the month and the quarter, Healthcare has continued outperforming the market, led by Healthcare Services. The outsized moves seen on stock specific news items, even if well-expected show the pent-up nervousness from market participants (Dexcom, Alnylam, Genmab).

This month, Novartis and Merck each committed close to $2bn to license phase 2 assets from Chinese companies. These recent, high-profile deals for cardiovascular and metabolic assets are the latest in an accelerating series of deals by Western companies to acquire assets developed in China. These deals, often for early development candidates, highlight the breadth and depth of competence and innovation in the laboratories of Chinese companies.

Further, Dr. Peter Marks, head of the Center for Biologics Evaluation and Research (CBER) resigned on the 28th of March. CBER regulates vaccines in the US. In his resignation letter, Dr. Marks singled out efforts by RFK to undermine the confidence in vaccines. This resignation comes after RFK announced the reduction of the healthcare department’s staff by roughly 20’000, or 25 %. On March 31, 4 other NIH directors were removed from their posts. While these developments are negative for sentiment and may slow down review and approval process for new drugs, we view the impact as limited and primarily affecting small-cap biotech stocks.

Performance review: The largest contributors were Agilon (+49 bps / Normalization of performance after a very weak 2024. Upbeat presentation at the Cowen Healthcare Conference in March), Hypera (+17 bps / Q4 top-line results were in-line with estimates, while EPS was better than expected. Importantly, channel inventory adjustment is happening faster than anticipated) and Centene (+14 bps / The company confirmed its 2025 guidance. Otherwise, the stock was hit by various policy-news (House GOP eying reduction to Medicaid targeted at the "expansion population" of the program / CMS rule focused on program integrity on the healthcare exchanges))

The largest detractors were Novo Nordisk (-80 bps / Announcement of top-line results from the Phase 3 REDEFINE 2 trial of CagriSema in individuals with obesity and type 2 diabetes. Over 68 weeks, patients receiving CagriSema experienced a 15.7% reduction in body weight, compared to 3.1% with placebo. The placebo-adjusted weight loss of 12.6% fell slightly below expectations but was comparable to the 12.3% seen with Eli Lilly’s Zepbound in the SURMOUNT-2 trial. Despite this, Novo Nordisk remains on track to seek regulatory approval in Q1 2026 and plans to present comprehensive data from the REDEFINE 1 and 2 trials at a scientific conference in 2025), Dexcom (-73 bps / Dexcom received an FDA-warning letter (non-conformities in manufacturing processes and quality management system) following inspections at two company facilities. The letter does not prevent Dexcom from manufacturing and selling its current products and the company confirmed 2025 guidance. The sell-off was further exacerbated due to overall Medtech weakness on tariff-fears) and Amplifon (-69 bps / Q4 results came in below expectations (primarily due to continued softness in Europe) and 2025 guidance (back-end loaded and wider than usual) was also lower than estimated).

ESG: Firms in the portfolio did not report any material ESG issues in March.

Market review: The healthcare sector widened its year-to-date outperforming through a strong reporting season, with 4.8% lead vs the market as of 28th Feb. Both sales and earnings growth outpaced the market year-on-year, indicating both strong underlying factors as well as margin expansion.

However, the Trump administration has been the source of much headline volatility over the past few weeks. This has affected specific areas ranging from federal grant funding to Medicaid funding and vaccines. 

Overall, these announcements have added an uncertainty premium to select names and sector areas. However, we view fundamentals as broadly unaffected.

Portfolio changes: We did not initiate a new position and no position was exited.

Performance review: The largest contributors were Axsome (+63 bps / The firm has entered into a settlement agreement with Teva resolving all patent litigation related to Axsome's AUVELITY product. Later, the stock was initiated with a buy rating by a major broker. After lower-than-expected Q4 results, Axsome gave up some performance, only to start performing again later in the month after announcing that the EMERGE Phase 3 trial of SYMBRAVO reached its primary endpoint. Overall, the stock gained 20% in February), Gilead (+59 bps / Q4 results were better than expected and outlook on EPS-level was higher than estimated. Gilead showed good performance across HIV, Trodelvy and liver disease portfolios) and Abbott (+28 bps / No specific news. Positive momentum from January continued in February).

The largest detractors were Tandem (-141 bps / Q4 sales were higher, and EBITDA was lower than consensus. The 2025 outlook was lighter than estimated and includes an EU commercial transition to direct distribution and an US commercial organization expansion that could cause disruption), Exact Sciences (-53 bps / Q4 revenues were in-line with the pre-announcement, while EBITDA was higher than consensus. 2025 guidance for revenues was in-line (with Cologuard to grow 13% vs earlier expectations of 15%), while margins fell short) and RadNet (-46 bps / Q4 results were better than expected and 2025 EBITDA-outlook was lower than consensus. However, fundamentals remain intact and guidance was impacted by two one-offs (winter storms and California fires) with volumes back to normal now).

ESG: Firms in the portfolio did not report any material ESG issues in February.