Tareno Health­care Funds Quarterly Update, October 2026

Artifi­cial Intel­li­gence in Health­care: From Research to Practice

In the health­care sector, artifi­cial intel­li­gence has long been more than just a future prospect. Compa­nies are incre­a­singly using AI in targeted ways to stream­line processes, reduce costs, and improve the quality of medical care.

This is parti­cu­larly evident in drug develo­p­ment. Roche, for example, combines AI models with labora­tory experi­ments and clinical data to identify and optimize promi­sing drug candi­dates more quickly. AI appli­ca­tions can also signi­fi­cantly shorten develo­p­ment times in clinical research.

Other areas of appli­ca­tion include medical techno­logy and diagno­stics. AI supports the early detec­tion of cancer, improves the planning of surgical proce­dures, and enables perso­na­lized treat­ment methods. At the same time, hospi­tals and health insurance compa­nies benefit from automated admini­stra­tive processes.

For health­care compa­nies, this results in both effici­ency gains and new growth oppor­tu­ni­ties. It is becoming incre­a­singly crucial which compa­nies are already successfully integra­ting AI into their products and business models.

Health­care as a Stabi­li­zing Factor in Volatile Markets

Equity markets have experi­enced signi­fi­cant volati­lity in 2026 marked by signi­fi­cant price fluctua­tions and strong perfor­mance in indivi­dual sectors such as energy and infor­ma­tion techno­logy. The health­care sector demon­strated its defen­sive quali­ties, parti­cu­larly on days when the stock market was weak.

An analysis of the weakest 10% of trading days for the MSCI World so far this year shows that on 19 of those 21 days, the health­care sector outper­formed the broader market. While the MSCI World lost an average of 1.28%, the decline in the health­care sector was only 0.23%.

At the same time, the sector’s funda­mental outlook remains intact. Medical innova­tions, new thera­peutic approa­ches, and ongoing digita­lization are creating long-term growth prospects. Despite continued high volati­lity, this presents intere­sting oppor­tu­ni­ties for long-term investors.

Tareno Health­care Funds: Perfor­mance and Portfolio Positio­ning

Tareno’s two health­care funds pursue diffe­rent invest­ment approa­ches and, accor­dingly, have their own areas of focus.

Tareno Sustainable Health­care Fund

The Tareno Sustainable Health­care Fund focuses on high-quality compa­nies with strong balance sheets, sustainable business models, and a compel­ling compe­ti­tive position.

Perfor­mance so far this year was weighed down in parti­cular by the weaker perfor­mance of pharmaceu­tical, biotech, and medtech holdings in the first quarter. In the third quarter, the fund’s perfor­mance was largely in line with the MSCI World Health­care Index. Positive contri­bu­tors to perfor­mance included Veeva, Thermo Fisher Scien­tific, and Dexcom, among others. The portfolio was expanded to include a new holding: the diagno­stics company Caris.

Tareno Impact Health­care Fund

The Tareno Impact Health­care Fund speci­fi­cally invests in compa­nies that improve access to health­care, promote preven­tion and early detec­tion, or develop innova­tive treat­ment options.

In the third quarter of 2026, the fund’s AS USD share class posted a return of appro­xi­m­ately 6%, while the MSCI World Health­care Index rose by about 3% over the same period. The main positive perfor­mance contri­bu­tors were Natera, Revvity, and Dexcom. Veracyte, another company in the field of cancer diagno­stics, was also added to the portfolio.

These diffe­ring trends illustrate just how much indivi­dual health­care subsec­tors and invest­ment approa­ches can vary in the current market environ­ment. Both funds continue to follow their estab­lished, long-term stock-selec­tion processes.