ESG

Health Care Monthly Monitor

Insights, Innovation and Impact
By Michael Li, Ph.D., Henry He, CFA, Kevin Lewis, CFA, CAIA
APR 30 | 2022
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This timely update provides insights into health care sector stock performance and social impact themes related to U.N. Sustainable Development Goal 3 (Good Health and Well-Being).

Market Insights 

U.S. stocks fell sharply in April amid rising inflation and interest rates, even as economic growth slowed. Geopolitical and energy market uncertainty further contributed to market volatility. Both the S&P 500 Index® and Nasdaq Composite Index finished the month at their lowest levels of the year to date.

Our Health Care Impact Themes

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New or Innovative Treatments for Diseases Including Cancer

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Access to Medicines and Health Care Services

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New Solutions for Lowering Health Care Costs

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Enhancing the Productivity of Medical Equipment, Services and Software

COVID Update

After more than 500 million cases globally, we’re encouraged that the latest COVID wave continues to recede.{sup}1{/sup} This has emboldened many countries to ease or end containment policies. The U.S. and U.K., which enjoy high rates of vaccination, have rolled back virtually all restrictions. But China is maintaining strict zero-tolerance policies. Meanwhile, Japan will enjoy its first “golden week” of holidays in two years without COVID restrictions, but foreign entry into the nation is limited. 

{sup}1{/sup}World Health Organization, “WHO Coronavirus (COVID-19) Dashboard,” accessed May 5, 2022.

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Streamlining the Drug Approval Process

One clear finding from the pandemic experience is that the health care sector has the capability to solve public health challenges. Regulators have also shown their ability to work with companies to expedite the drug approval process. 

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Company in Focus

Veeva Systems is a cloud software company whose technology helps researchers better navigate the complicated process of clinical testing and regulatory approvals for new drugs.

Authors
Michael Li, Ph.D.
Michael Li, Ph.D.

Vice President

Senior Portfolio Manager

Henry He, CFA
Henry He, CFA

Vice President

Portfolio Manager

Kevin Lewis, CFA, CAIA

Kevin Lewis, CFA, CAIA

Senior Client Portfolio Manager

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When portfolio managers incorporate Environmental, Social and Governance (ESG) factors into an investment strategy, they consider those issues in conjunction with traditional financial analysis. When selecting investments, portfolio managers incorporate ESG factors into the portfolio's existing asset class, time horizon, and objectives. Therefore, ESG factors may limit the investment opportunities available, and the portfolio may perform differently than those that do not incorporate ESG factors. Portfolio managers have ultimate discretion in how ESG issues may impact a portfolio's holdings, and depending on their analysis, investment decisions may not be affected by ESG factors.

Investment return and principal value of security investments will fluctuate. The value at the time of redemption may be more or less than the original cost. Past performance is no guarantee of future results.

The opinions expressed are those of American Century Investments (or the portfolio manager) and are no guarantee of the future performance of any American Century Investments' portfolio. This material has been prepared for educational purposes only. It is not intended to provide, and should not be relied upon for, investment, accounting, legal or tax advice.

References to specific securities are for illustrative purposes only, and are not intended as recommendations to purchase or sell securities. Opinions and estimates offered constitute our judgment and, along with other portfolio data, are subject to change without notice.