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Impact Report, Q1 2020

Diabetes is one of the world’s four major noncommunicable diseases – and the number of adults with the disease is rising rapidly. In our Q1 2020 report, we explore the diabetes epidemic and innovative solutions to tackle this unmet medical need.

Diabetes: a growing epidemic

In our latest Quarterly Impact Report, we explore the impact theme of health and well-being and demonstrate how two holdings – Novo Nordisk and Dexcom – are aligned to it.

Source: International Diabetes Federation, Financial Times, as at March 2020.

Current holding Novo Nordisk is the most innovative company in the pharmaceuticals segment, providing products for all types of diabetes treatment needs including its new generation of glucagon-like peptide (GLP-1) products. GLP-1 drugs have better efficacy in managing blood glucose levels and lead to lower cardiovascular and severe hypoglycaemia risks. As such, the treatment has the potential to improve health outcomes with lower comorbidities, while its weight loss benefits could help tackle obesity by helping reset the metabolism to a lower basal rate.

Meanwhile, Dexcom, a recent addition to our portfolio, is leading the way in changing the standard of care for glucose monitoring in diabetes through its continuous glucose monitoring (CGM) devices. These devices can help sufferers better manage the disease and reduce the costs associated with it. It is the only pure play company in this fast-growing sector and currently holds about 70% market share of the insulin intensive segment in the US.

Resilience in the face of crisis

Resilience and sustainability are important factors in building long-term investment portfolios. The current coronavirus pandemic has revealed fragility across health systems, economies and asset markets.

Despite the ongoing virus-related volatility, our Fund has demonstrated relative resilience in the first quarter of 2020: it outperformed the benchmark index by 2.4% net of fees in March and by 4.2% year-to-date1. That’s because the impact themes in which we invest are driven by long-term cyclical growth factors – and within these themes, we target companies that provide solutions to society’s underserved needs, and thereby have strong growth potential.

To find out more, read the full report.

Rolling performance (%)

  31/03/19 to 31/03/20 31/03/18 to 31/03/19 31/03/17 to 31/03/18 31/03/16 to 31/03/17 31/03/15 to 31/03/16
Fund -7.86 6.06  -  -  -

Past performance is not a reliable indicator of future results. Source: Federated Hermes, as at 31 March 2020. Performance shown is in US dollars net of fees. Benchmark is the MSCI All Country World IMI index. Inception date is 31 December 2017.

Risk profile
  • This information does not constitute a solicitation or offer to any person to buy or sell any related securities or financial instruments.
  1. 1Source: Federated Hermes, as at 31 March 2020. Figures are USD, net of fees. Relative returns are calculated arithmetically. Benchmark is the MSCI All Country World IMI index. Past performance is not a reliable indicator of future results.

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