Tareno Impact Health­care Fund: Impact in the Health­care Sector

Health care remains a global chall­enge

Despite major medical advances, signi­fi­cant inequa­li­ties in access to health care persist. At the same time, new lifestyle-related diseases are emerging, posing additional challenges for health care systems world­wide. Many of these problems do not receive suffi­cient atten­tion or funding. Large pharmaceu­tical compa­nies and investors often focus on estab­lished markets, lower-risk approa­ches, and rapid time-to-market. This creates funding gaps, but also presents oppor­tu­ni­ties for compa­nies that develop concrete solutions for health needs that have not yet been adequa­tely addressed.

As an SFDR Article 9 fund, the Tareno Impact Health­care Fund makes a targeted contri­bu­tion to the UN’s health-related sustaina­bi­lity goals. It invests in compa­nies that address global health challenges and draw atten­tion to existing finan­cing gaps.

The fund is designed for investors who seek to combine long-term growth oppor­tu­ni­ties with economic stabi­lity and who also wish to make a positive social impact.

Three invest­ment themes form the basis of the impact logic

The selec­tion of compa­nies is based on three key invest­ment themes: “Access & Afforda­bility,” “Preven­tion,” and “Innova­tion.”

Acces­si­bi­lity & Afforda­bility:

The focus is on compa­nies whose products or services help make medical care more acces­sible and affordable for under­served popula­tions. This includes, for example, compa­nies in the generic pharmaceu­ti­cals sector.

Preven­tion:

Preven­tion and early detec­tion can improve treat­ment outcomes, reduce the burden of disease, and lower morta­lity rates. Invest­ments in this area there­fore focus on compa­nies whose solutions support the shift toward a stronger emphasis on preven­tive medicine. These include, for example, compa­nies in the diagno­stics sector.

Innova­tion:

New and innova­tive solutions can improve patient care and enhance well-being. The focus is on compa­nies that offer SDG-aligned solutions or serve as pioneers in the areas of “access & afforda­bility” or “preven­tion.” For example, approa­ches that address unmet medical needs, improve treat­ment outcomes, or help reduce health­care costs will be considered.

How is social impact measured?

Standar­dized impact metrics were defined when the fund was launched. These are updated once a year for each portfolio company. The data is sourced from, among other things, the compa­nies’ annual reports as well as direct discus­sions with the firms. Based on this infor­ma­tion, impact reports are prepared for each company. The results are then incor­po­rated into the fund’s impact report. This ensures that the intended impact is regularly reviewed and documented using defined metrics.

Global Investing with a Focused Portfolio Selec­tion

The Tareno Impact Health­care Fund invests globally and across all health­care subsec­tors. For a company to be included in the thematic invest­ment universe, it must be classi­fied under at least one of the three invest­ment themes and contri­bute to SDG 3.

The fund manage­ment team follows a high-convic­tion approach with a focused selec­tion of 30 to 50 compa­nies. Each company is evaluated using the compre­hen­sive Impact Manage­ment Project 5‑Dimensional Frame­work. This involves analy­zing what impact is achieved, who benefits from it, how signi­fi­cant and sustainable that impact is, what additional contri­bu­tion the company makes, and what risks exist that the expected impact may not materia­lize or may only materia­lize parti­ally.

This analysis is supple­mented by a proprie­tary process that syste­ma­ti­cally integrates sustaina­bi­lity factors into company analysis and links ESG criteria to long-term finan­cial value creation.

What sets the Impact approach apart?

The Tareno Impact Health­care Fund speci­fi­cally focuses on social impact. The portfolio compa­nies contri­bute to achie­ving UN SDG 3, which relates to health:

This approach also distin­gu­ishes it from the Tareno Sustainable Health­care Fund. The latter places greater emphasis on the quality, innova­tion, and effici­ency of health­care, whereas the Impact Fund focuses speci­fi­cally on access, afforda­bility, and preven­tion.