Resilient by nature. Priced for opportunity

Today, ageing populations and rising chronic-care needs, coupled with a rapid cycle of technological innovation, are expanding the sector’s opportunity set - even as valuations sit near multi-decade relative lows. That combination of durable demand and mispriced growth creates a rare entry point for long-term investors.

Why invest in healthcare now?

From mispricing to momentum

Ken Van Weyenberg, Head of Head of Client Portfolio Management Fundamental Equity, explains why healthcare remains a long-term growth opportunity.

Under-owned, under-valued, underappreciated

After a multi-year reset, the healthcare sector is now trading near 35-year lows in relative valuations, while its weight in the S&P 500 has fallen to a 24-year low.[1] This creates meaningful room for sustained momentum in a sector that remains heavily under-owned.

Four drivers behind the shift

• Valuation reset — After a multi-year derating, healthcare trades at a rare P/E discount and lower index weight, leaving room for mean reversion.
• Policy clarity — A more workable pricing framework and steady regulatory throughput reduce headline risk and should refocus investor attention on fundamentals.
• M&A strength — Active strategic corporate buyers are consolidating pipelines and platforms, creating share price catalysts alongside organic growth.
• Easing rates — A lower cost of capital supports the valuation of established companies with long-term cash flow visibility, aids refinancing for young product-based companies, and encourages continued industry investment in innovation.

[1] As of 1 November, 2025

Where we focus: Two strategies, one theme 

Biotechnology, where innovation meets maturity

We focus on the new wave of scalable biotech platforms. With many mid-sized companies now growing into larger-sized firms, they are at the point where robust science meets disciplined balance sheets and growing market access. This provides multiple paths to value through de-risked pipelines, partnerships, and selective M&A.

Oncology, investing in the ecosystem of life-saving science

Our oncology approach spans a full ecosystem — established pharma, high-conviction biotech, and life-science tools and services. These are the “picks & shovels” behind discovery, positioned to benefit from steady regulatory momentum and sustained research spend across therapies and technologies.