August 7, 2022

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Investing in health, a defense sector with defensive growth, with CaixaBank AM

Investing in health, a defense sector with defensive growth, with CaixaBank AM

The Health systems around the world share policies and goals In order to ensure the quality of care, as well as the security of patient data, reduce fraud and cyber threats. Technological solutions for digital healthcare, better diagnostic processing, and the availability of more personalized treatment tools are driving the sector to another challenge, which is data protection management.

Trends in data management and security include cognitive computing, interoperable and cloud-based electronic health records, and the Internet of Things (IoT). The Cyber ​​security and data risk management They are still in the spotlight, especially with patients who are more actively in control of their health and want to enjoy safe and reliable access to their data.

The health sector has been strengthened, having survived an epidemic that put its resources and methods to the test and forced it to search and find new solutions using available technological tools.

Although the representative of the global index for this sector MSCI World Health Care was not able to put itself in the positive territory due to profitability for the year (-10.06% according to data as of June 30), its behavior compares favorably with respect to the global stock index Global MSCI (-20.29%) in the same period.

[Las farmacéuticas se sitúan como el segundo sector que más invierte en I+D]

Among the world of investment funds registered for sale in Spain, with a minimum contribution requirement equal to or less than 6000 euros, the most profitable since the beginning of the year is CAIXABANK MULTISALUD Re-evaluated 9.27% ​​in its class portfolio and 8.58% in your standard class.

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Its management depends on the profitability of the MSCI World Health Care Index. Between 75% and 100% of the fund’s exposure corresponds to stocks of companies in the health sector. These investments are embodied in securities with low, medium and/or primarily high market capitalization and are directed primarily at the US and European markets, as well as some of the most important Japanese companies. The The maximum investment in the assets of emerging countries is 15%, His exposure to currency risk may exceed 30%.

It is managed following the bottom-up approach of fundamental analysis, according to which each company is analyzed individually, taking into account the expectations of each and its share price.

The fund manager is Jordi Maas, managing director of the equity team at CaixaBank Asset Management. He joined CaixaBank in 2012 as Equity Manager, and became General Manager Equities in 2017. Previously, he was Equity Manager at Bankpyme. He holds a BA in Economics from the University of Barcelona.

growth prospects

As part of their investment process, once they have chosen the companies in which they plan to invest, they calculate a target price based on their growth prospects and the risks they face, both in their product portfolio and those that could result from products under by their competitors, applying a discount rate that seems appropriate. .

Once they set a target price, they compare it to it Listing in the stock market and deciding whether to invest or not and weights assigned to each value. After the initial investment decision, they update the target price with new information of a clinical or financial nature, and compare it with the evolution of the stock price. Finally, they adjust their expectations and make decisions based on all this information.

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Among its largest positions, the portfolio includes shares of Eli Lilly (9.74%), Bayer (6.84%), Daiichi Sankyo (6.60%), Johnson & Johnson (4.97%) and Fresenius (4.30%). By sector, pharmacy (48%), medical products (26%), medical services (21%), and biotechnology (4%) represent the highest weights.

volatility

performance date CAIXABANK MULTISALUD IN ITS CATEGORY PORTFOLIO It places it among the best in the VDOS health sector category, in the first five, during 2021 and 2022. In terms of volatility, in three years, it posted a figure of 12.71% and 13.46% last year, placing it among the best in class for this concept in both The two periods, the five-fifth.

one year too Sharpe ratio 1.46 and its tracking error, For its class index 9.66%. Total assets under management are €192 million, and its participants are taxed at a fixed commission of 0.60% and a deposit of 0.02% in the portfolio category. The fixed and administrative fees for its standard category are 1.675% and 0.175%, respectively.

According to the management team, the health sector is showing defensive growth. Growth because the sector is engaged in increasing life expectancy, thanks to the fact that older people are consuming more health products and services. And my defense because regardless of the positive or negative economic cycle, people still need to stay healthy and fight disease. Thus, the health sector can perform well in the stock market in a variety of economic scenarios.

The fund’s evolution in the past three years, both in terms of profitability and volatility, makes CAIXABANK MULTI HEALTH in your wallet category and in your standard class It deserves a five star rating from VDOS.

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*** Paola Market It is the analysis manager in VDOS