Portfolio Manager Camilla Oxhamre Monthly comment The healthcare sector delivered a positive rebound in August and for part of the month, it was the best performing sector in the S&P 500 index.

July was characterized by rotation and reversal with energy stocks being the clear winners. Healthcare as a sector appreciated slightly, driven by larger companies as small cap names detracted. The fund had a negative month, mainly driven by small cap holdings.

Summary The healthcare sector posted strong returns in June, driven by M&A activity, improved regulatory prospects, and market rotation. Sentiment for biotech stocks was further strengthened by new leadership at the US drug regulator, the FDA. We assess the outlook for all sub-sectors as favorable.

The AI boom lifted global equity markets to new highs in May, despite continued geopolitical unrest. The fund posted a positive month, gaining between 4.5 to 5.5 percent depending on currency and share class. The acquisition of the biotechnology company Esperion was welcomed by the fund.

In a volatile month, the healthcare sector lagged behind the broader market once again and finished as the second-worst sector in the S&P500. News of increased reimbursements for Medicare Advantage were welcomed by the sector, and healthcare services became the best-performing subsector in April.

The war in the Middle East dominated the month of March, both in terms of the news flows and the movements on the equity markets. Interest rates rose during the month, reflecting a market that increasingly questioned the likelihood of near-term rate cuts.

Large-cap pharmaceutical companies performed strongly during the month, driven by solid earnings and the continued momentum for value stocks. Growth stocks underperformed, particularly medical technology and companies perceived as AI losers.

As investors rotated to other sectors, healthcare had a relatively weak month. The continued US dollar sell-off further impacted the healthcare sector.

The healthcare sector retreated in December following three months of strong performance. The fund delivered a negative return for the month. While pharmaceuticals contributed positively, other subsectors weighed on overall performance.

The healthcare sector had continued momentum in November, with focus shifting from political uncertainty to underlying fundamentals. Another strong month for the fund which saw positive contributions from all sub-sectors, with biotechnology making the strongest contribution.

Summary Strong start to the earnings season for the healthcare sector, supported by further Most Favored Nation deals, and continued positive momentum in biotechnology. The fund delivered strong results with positive contributions from all subsectors, led by biotechnology and medical technology.

Summary September was dominated by US politics and rising investor appetite in the healthcare sector. The US government shut down after Democrats demanded an extension of health insurance marketplace subsidies in the budget negotiations.

Following a period of significant underperformance as compared to the broader market, the healthcare sector delivered a positive performance in August, ending the month as the second-best sector in the S&P 500 index.

Equity markets had a positive reaction to the announcement regarding tariffs. The White House’s news regarding international drug pricing (MFN) at the end of the month however weighed on the healthcare sector.

Summary Positive clinical data and M&A activity picked up in the sector. We saw more signs that the deal window may be reopening. The Senate version of the reconciliation bill included deeper cuts to Medicaid than the House version.

Summary Like last month, May was overshadowed by worries over tariffs and trade barriers. The simultaneous debates surrounding the budget, drug prices as well as tariffs resulted in too much uncertainty for many healthcare investors, despite the low valuations.

Monthly comment April was dominated by renewed US-China trade tensions. On April 2nd, the US announced a 10 percent global tariff on all imports into the US, alongside steep ”reciprocal tariffs” of up to 145 percent specifically targeting imports from China.