Even in the midst of the current pandemic, there are reasons to be positive. We are communicating to our clients the positive impact that their investments are having in the fight against COVID-19.
A number of our healthcare holdings have been critical to the response to this crisis. These have played a central role in sequencing the virus, testing, delivering personal protective equipment and tests, critical care, telehealth and working on potential solutions or vaccines.
Example: CSL – Developing a Vaccine
CSL’s Seqirus division is one of a handful of key makers of vaccines globally. Biotest, BPL, LFB, and Octapharma have joined an alliance formed by CSL and Takeda Pharmaceutical Company Limited to develop a potential plasma-derived therapy for treating COVID-19. The alliance will begin immediately, with the investigational development of one, unbranded anti-SARS-CoV-2 polyclonal hyperimmune immunoglobulin medicine with the potential to treat individuals with serious complications.
Developing a vaccine will require plasma donation from many individuals who have fully recovered from COVID-19, and whose blood contains antibodies that can fight the novel coronavirus. Once collected, the “convalescent” plasma would then be transported to manufacturing facilities where it undergoes proprietary processing, including effective virus inactivation and removal processes, and then is purified into the product.
Impact Bonds
In addition, impact bonds have an important role to play. In March, the impact bond market saw the first examples of labelled COVID-19 bonds, from supranational entities such as African Development Bank’s (AfDB), Inter-American Development Bank (IDB) and Nordic Investment Bank (NIB). COVID-19 bonds can be a powerful tool to help mitigate some of the devastating effects globally, and we hope to see increased issuance of these social bonds.
The African Development Bank “Fight COVID-19” Social Bond was issued to raise US $3 billion for aligned investment in essential services, such as healthcare, clean drinking water and sanitation, as well as employment generation, targeting vulnerable groups such as those living below the poverty line, migrants, and displaced persons. The African Development Bank is a leading supranational which supports Africa’s economies and livelihoods, and has issued green bonds and social bonds since 2013.
Note: This is general information only, and not a recommendation or advice. We would need to issue an advice document to make a recommendation. Past performance does not indicate future returns. Please contact us for further information.
