GENERAL INDUSTRY UPDATE - Evolve ETFs
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MAY 2022
MONTHLY UPDATE
Evolve Global Healthcare Enhanced Yield Fund
LIFE invests in top global healthcare companies, with the added value of a covered call
strategy applied on up to 33% of the portfolio. Covered call options have the potential to
provide extra income and help hedge long stock positions.
ETF TICKERS: LIFE (HEDGED); LIFE.B (UNHEDGED); LIFE.U (USD)
MUTUAL FUND FUNDSERV CODE: EVF170 (CLASS F); EVF171 (CLASS A)
GENERAL INDUSTRY UPDATE
Source: Getty Images
The global healthcare industry has been, rightfully, consumed international outbreak of monkeypox. In May 2022, the
with news regarding COVID-19. The first known case of disease was first detected in the United Kingdom. Since then,
COVID-19 first emerged between October and November 2019 more than 1,180 cases have been detected across the globe,
in China. By January 2020 it had spread globally. including Argentina, Australia, Canada, Germany, and the
United States.3
Since then, more than 6.3 million people have died of
COVID-19.1 The number would have been significantly higher Most cases have been detected in the U.K. (322) and Portugal
had it not been for the speed in which healthcare companies (166). In North America, 101 cases have been detected in
responded to the pandemic. Using artificial intelligence and Canada and 35 in the U.S. Many cases have been reported by
other technologies, major healthcare providers like Pfizer, those who have no history of travel to endemic countries.4
Moderna, and Johnson & Johnson were able to develop
vaccines in less than a year. While monkeypox is a rare disease, it is closely related to
smallpox. The U.S. Centers for Disease Control and Prevention
As the world continues to grapple with the pandemic, said that existing smallpox vaccine is “at least 85% effective
it is faced with yet another virus: monkeypox. It is not a in preventing monkeypox.” Recently, the U.S. Food and Drug
new disease; the first human case was recorded in 1970 in Administration approved a new vaccine, Jynneos, for both
the Democratic Republic of the Congo in Central Africa.2 smallpox and monkeypox in 2019.5
Historically, monkeypox has been contained to Central and
West Africa. Not only is the healthcare industry making strides to protect
people against monkeypox, but there has also been promising
For the first time ever, the world is grappling with an research in other medical fields.
Evolve Global Healthcare Enhanced Yield Fund
COMPANY SPECIFIC UPDATES
GSK plc
GSK plc, which is held by the fund, was part of
a small experimental study in which its cancer
drug, Jemperli, was 100% effective against rectal
cancer. The study results, which were carried out
by Memorial Sloan Kettering Cancer Center, are
unprecedented. As a result, the participants did
not have to undergo radiation, chemotherapy, or
any type of surgery.
The data was published in The New England
Journal of Medicine.6 Dr. Luis A. Diaz, Jr. M.D.,
author of the paper, said “I believe this is the first
time this has happened in the history of cancer.”7
Source: Juan Gaertner/Science Photo Library/Getty Images
Pfizer Inc.
Pfizer Inc., which is also held by the fund,
announced that it is acquiring Biohaven
Pharmaceutical Holdings Co for around $11.6
billion. It is expected that the company will fund
part of the deal with the cash it made from sales
of its COVID-19 vaccine, Paxlovid.8
Through the acquisition, Pfizer will gain Biohaven’s
migraine drug Nurtec, a drug that analysts say
could generate billions of dollars in annual sales.
Pfizer has said it is looking at possible mergers and
acquisition to add $25 billion in additional revenue
by 2030 to offset sales lost due to lost patents.9
Source: Biohaven and Pfizer logos
Thermo Fisher Scientific Inc.
Thermo Fisher Scientific Inc, which is held by
the fund, offers life sciences solutions, analytical
instruments, specialty diagnostics, and laboratory
products and service worldwide. The company’s
segments include Life Sciences Solutions,
Analytical Instruments, Specialty Diagnostics, and
Laboratory Products and Biopharma Services.10
With annual revenue of approximately $40 billion,
its biggest end market is Pharma & Biotech (45%),
followed by Diagnostics & Healthcare (28%),
Academic & Government (14%), and Industrial &
Supplied (13%).
Its industry-leading brands include Thermo
Scientific, Applied Biosystems, Invitrogen, Fisher
Scientific, Unity Lab Services, Patheon, and PPD.
Source: Manufacturingchemist.com
Evolve ETFs
Scotia Plaza, 40 King Street West, Suite 3404, Toronto ON M5H3Y2
The world is evolving. 416.214.4884 | 1.844.370.4884 | www.evolveetfs.com
Your investments should too.
Evolve Global Healthcare Enhanced Yield Fund
PERFORMANCE (%)
TOTAL RETURNS* 1 MTH 6 MTH YTD 1 YR 2 YR 3 YR 4YR SI**
LIFE (HEDGED) 0.99 3.71 -1.78 10.40 10.31 14.37 12.40 9.32
LIFE.B (UNHEDGED) -0.16 1.01 -3.72 11.58 6.00 12.09 11.52 10.19
LIFE.U (USD) 1.40 2.00 -3.71 6.47 10.59 - - 11.29
Source: Bloomberg, as at May 31, 2022.
** Performance since inception of LIFE and LIFE.B on October 23, 2017.
Performance since inception of LIFE.U on November 26, 2019.
Sources:
1. “COVID-19 Coronavirus/Death Toll,” worldometer.com, last accessed June 8, 2022; https://www.worldometers.info/coronavirus/coronavirus-death-toll/.
2. “About Monkeypox,” Centers for Disease Control and Prevention, last accessed June 8, 2022; https://www.cdc.gov/poxvirus/monkeypox/about.html#.
3. “Monkeypox,” Our World in Data, last accessed June 8, 2022; https://ourworldindata.org/monkeypox.
4. “Epidemiological update: Monkeypox outbreak,” European Centre for Disease Prevention and Control, May 20, 2022; https://www.ecdc.europa.eu/en/
news-events/epidemiological-update-monkeypox-outbreak.
5. “BLA Approval,” U.S. Food & Drug Administration, September 24, 2019; https://www.fda.gov/media/131079/download.
6. “PD-1 Blockade in Mismatch Repair–Deficient, Locally Advanced Rectal Cancer,” The New England Journal of Medicine, June 5, 2022; https://www.nejm.
org/doi/full/10.1056/NEJMoa2201445.
7. Kolata, G. “A Cancer Trial’s Unexpected Result: Remission in Every Patient,” The New York Times, June 5, 2022; https://www.nytimes.com/2022/06/05/
health/rectal-cancer-checkpoint-inhibitor.html?smtyp=cur&smid=tw-nythealth.
8. “Pfizer to Acquire Biohaven Pharmaceuticals,” Pfizer Inc., May 10, 2022; https://www.pfizer.com/news/press-release/press-release-detail/pfizer-acquire-
biohaven-pharmaceuticals.
9. Hopkins, J. “Pfizer to Buy Rest of Biohaven for $11.6 Billion,” The Wall Street Journal,” may 10, 2022; https://www.wsj.com/articles/pfizer-to-buy-rest-of-
biohaven-for-11-6-billion-11652181121.
10. “Thermo Fisher Scientific Reports Fourth Quarter and Full Year 2021 Results,” Thermo Fisher Scientific Inc., February 2, 2022; https://corporate.
thermofisher.com/content/tfcorpsite/us/en/index/newsroom/press-releases/2022/Feb/02-Thermo-Fisher-Scientific-Reports-Fourth-Quarter-and-Full-Year-
2021-Results.html.
Commissions, trailing commissions, management fees and expenses all may be associated with exchange traded mutual funds (ETFs) and mutual funds. Please read
the prospectus before investing. ETFs and mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. There are
risks involved with investing in ETFs and mutual funds. Please read the prospectus for a complete description of risks relevant to the ETF and mutual fund. Investors
may incur customary brokerage commissions in buying or selling ETF and mutual fund units. This communication is intended for informational purposes only and is
not, and should not be construed as, investment and/or tax advice to any individual.
*The indicated rates of return are the historical annual compound total returns net of fees (except for figures of one year or less, which are simple total returns)
including changes in per unit value and reinvestment of all dividends or distributions and do not take into account sales, redemption, distribution or optional charges
or income taxes payable by any securityholder that would have reduced returns. The rates of return shown in the table are not intended to reflect future values of the
ETF or returns on investment in the ETF. ETFs are not guaranteed, their values change frequently, and past performance may not be repeated.
Certain statements contained in this documentation constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking
information may relate to a future outlook and anticipated distributions, events or results and may include statements regarding future financial performance. In
some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “anticipate”, “believe”, “intend” or other similar expressions
concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Evolve undertakes no obligation to update publicly
or otherwise revise any forward-looking statement whether as a result of new information, future events or other such factors which affect this information, except as
required by law.
Evolve ETFs
Scotia Plaza, 40 King Street West, Suite 3404, Toronto ON M5H3Y2
The world is evolving. 416.214.4884 | 1.844.370.4884 | www.evolveetfs.com
Your investments should too.
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