Sustainability and Corporate Governance Report 202
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HANDELSBANKEN FONDER – HOW TO EQUIP OURSELVES FOR
A CHANGING WORLD Health care for a healthier future As we continue to live longer, rates of illness are rising. But even the lifestyle we choose, or end up in, has a major impact on our health. Non-communicable diseases (NCDs) are by far the leading cause of death in the world, accounting for more than 70 per cent of all deaths. One of the goals of the 2030 Agenda is to ensure healthy lives and promote well-being for all. Within Handelsbanken’s actively managed fund Hälsovård Tema, investments are directed to the companies that develop and offer solutions to the major health challenges of our time. Astrid Samuelsson, a fund manager since 2007, notes that a key to our strategy is to follow trends in the health care sector and focus on medical needs. “The strategy is based on identifying long-term structural changes that contribute to the growth of the companies the fund invests in,” Samuelsson says. “We want to find companies that are capable of helping wherever the problems are greatest in our most pressing global health challenges. For example, we invest in companies that offer methods and treatments for the millions of people living with diabetes, cancer diagnoses and various cardiovascular diseases.” She notes that health care challenges are already great around the world, and with the pandemic they have grown even more. “The substantial health care debt built up during the pandemic will lead to significant challenges for health care going forward,” she says. “Not only because much of the planned care has had to be postponed or cancelled, but also because fewer people have applied for care, which has resulted in fewer cancer diagnoses and cases being recorded.” “At the same time, the enormous challenge that has threatened progress on health in the world for many years remains, with non-communicable diseases being by far the most common cause of death in the world. Today, for example, more than 650 million adults live with overweight and obesity, significantly increasing their risk of contracting serious secondary diseases. As we get older, illnesses and the need for care around the world will also become greater.” Advances in technology and biology In order to identify companies with solutions to these problems, the management team closely monitors advances in research. Samuelsson notes that great progress has been made in the health care sector in recent years. One driving force is better knowledge in the industry, of biology as well as technology. “The tools and methods of treatment and diagnostics are becoming more and more advanced. Recently, we’ve seen great progress in areas like gene therapy and antibody technology. Another area where many exciting things are happening is precision medicine, which involves targeting a specific drug to a specific patient. Developments are taking place rapidly and opening new doors by allowing cancer treatments to be tailored to a patient’s specific tumours and mutations.” Engagement for sustainable development Samuelsson notes that the basic criterion for an investment is that the companies should offer a sustainable business model that makes a positive contribution to health, not only today but in the long run. Yet the different companies always have sustainability risks. “We try to promote solid management of sustainability risks in the business, through direct contact with companies and by participating in investor networks and collaborating with other asset management firms. We also have a strong commitment to our nomination committee activities. The fund invests globally in both small and large companies, which means that the sustainability challenges look quite different. In the Nordic region, where we own many smaller companies, the dialogue largely revolves around managing corporate governance issues, while in the slightly bigger companies it can be about completely different issues.” Information about risk Past performance does not predict future returns. The value of the money invested in the fund can increase or decrease and there is no guarantee that all of your invested capital can be redeemed. The fund’s prospectus (“Informations broschyr”), fund rules and KIID are available at handelsbanken.se/funds. 52