Will Trump’s Policies Provide a Boost or Brake on Healthcare Funds?

The pharma and biotech sectors looked set to benefit from Trump’s pro-business agenda. But talk of price caps is causing concern among fund managers 

Sam Shaw 7 February, 2017 | 11:04AM

All eyes were on the global healthcare sector throughout 2016, as its prospects seemed inextricably linked to the outcome of the US presidential campaign.

Hillary Clinton – the frontrunner for much of the race – had threatened to cap the price of some drugs, and markets responded accordingly. The Morningstar Sector Equity Healthcare funds saw significant outflows compared with previous years, with more than £51 million leaving UK-domiciled funds, versus net inflows of almost £64 million in 2015.

So as the news broke that Clinton has lost the race to Donald Trump, the global healthcare sector was immediately one of the main winners; the US biotechnology sector alone was up almost 9% the day after the election result.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
JPM Global Healthcare A (dist) GBP259.64 GBP-1.99
Polar Capital Healthcare Opports Inc29.37 USD0.94

About Author

Sam Shaw  is a financial journalist and broadcaster writing for Morningstar.

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