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Our briefing for Wednesday, November 10, 2021:
Nov 10, 2021 4:02:49 PM
- According to White House estimates, approximately 900,000 American children aged 5-11 will receive their first dose of the Pfizer-BioNTech vaccine by the end of the day. Daily hospitalizations of patients with Covid-19 remained flat this week averaging around 5000, while weekly diagnosed cases are sitting around 73,000. The U.S. Centers for Disease Control and Prevention Director, Dr. Rochelle Walensky said in a briefing on Wednesday that over the past year 66 American children have died from Covid-19 related illnesses. The virus is the largest vaccine-preventable cause of death in children ages 5-11 in the United States. In New York City alone, over 1000 clinics have been set up to allow for children in every borough to have access to the vaccine. Meanwhile, President Joe Biden will be visiting schools with vaccination sites in an effort to get more children vaccinated.
- Today, Statistics Canada released figures stating that due to Covid-19, the country saw 19,000 more deaths than they would have had the pandemic not occurred. Between March 2020 and July 2021 approximately 19,488 more Canadians died when placed against the national average for the years previous. The figures represent a 5.2 per cent increase than if the pandemic had never happened. While the total number of deaths that are being attributed to the virus during that time was 25,465, that number includes deaths from substance abuse, and lack of life saving medical procedures due to an overwhelmed health care system. That number still does not reflect all the deaths may have been attributed to virus, as thousands more are still being investigated.
- In the last week, Covid-19 cases are down roughly 16 per cent in the United Kingdom compared to the week previous. However, 57 people have died within 28 days of contracting the virus, up 8.2 per cent in the last 7 days. Between November 2nd and November 8th, the U.K. recorded 32,322 new cases of Covid-19. However, with the adoption of the new Merck coronavirus pill that has been created in collaboration with Ridgeback Pharmaceuticals, the U.K. hopes to avoid serious hospitalizations and keep more patients out of intensive care units. The United Kingdom last week became the first country to approve molnupiravir, which is touted to cut the risk of hospitalization by 50 per cent. The company is expecting to have 10 million doses ready for circulation by the end of the year.
- Australia has trialed a new Covid-19 screening system that will allow quicker response times for health care personnel to tell if a patient has been infected with the deadly virus. The COVID-19 Smart Internet of Things (IoT) Screening System was developed by the University of Sydney and Sydney Children's Hospitals Network and was put into action for the first time at the children’s hospital in Westmead. The so-called Covid e-Gate “utilises near real-time data analytics to provide the latest available screening information," said Dr Audrey P. Wang, biomedical informatics and digital health researcher at the University of Sydney. The system can detect a person’s body temperature and if that is above a pre-determined threshold, will automatically alert concierge staff members to administer further clinical checks, including Covid-19 tests.
- Japan intends to increase the capacity in its hospitals by almost 30 per cent in November. The plans, which will be finalized by Friday, will increase bed space by up to 36,000 amid a surge in cases that started over the summer months. Starting in December, hospitals will be required to submit a bed occupancy ratio in order to continue to receive funding. Under the emergency plan, the country will also enact regulation that will allow children under the age of 12 to be vaccinated, along with providing free testing for people that are asymptomatic. During the height of the third wave in Japan, which occurred over the summer, nearly 28,000 people were in hospital. In the event that a more deadly variant should emerge, emergency personnel will be deployed to regions that are hit hard from regions less affected by the virus.
Covid-19 – Due Diligence And Asset Management
DB schemes at their healthiest since Covid-19, but pandemic may cast long shadow
Brief: The UK’s Defined Benefit (DB) pension schemes are at their healthiest since before the onset of Covid-19, as of Q3 2021, according to Legal & General Investment Management (LGIM). LGIM's DB Health Tracker, a monitor of the current health of UK DB pension schemes, found that the average1 DB scheme can expect to fund 98.3 per cent of accrued pension benefits as of 30 September 2021. This is a rise of 0.1 percentage points from the figure of 98.2 per cent recorded three months before on 30 June 2021. The health of the UK’s DB pension schemes had been gradually improving since March 2020, when it had dropped as low as 91.4 per cent as a result of the immediate impact of the pandemic on financial markets. However, while these figures suggest that the health of UK DB schemes has been improving since the initial spread of Covid-19, it is important to note that these figures may yet still understate the negative impact of the pandemic, due to weakening covenants from pension scheme sponsors, which many schemes have endured.
Private Equity Funds Fuel Growth in Private Credit
Brief: Private equity funds are a major contributor in the rapid growth of the private credit market, according to global law firm Dechert. In its 2021 private equity outlook, the law firm reported that 45 percent of surveyed private equity firms have increased their use of private credit financing in buyouts over the last three years. This represents a 10 percentage point increase from last year’s survey, in which 35 percent of respondents said they had increased their use of private credit. Dechert surveyed 100 senior-level executives at private equity firms across the globe with $500 million or more in assets under management. According to the report, private credit is currently the third-largest private capital asset class after private equity and real estate. The law firm said that assets under management in private credit are projected to grow to $1.46 trillion by 2025. “People love [private credit],” Markus Bolsinger, Dechert’s private equity practice co-head, told Institutional Investor. He said that private credit also poses a strong opportunity for institutional investors chasing yields without equity risk.
DWS achieves final close on maiden mid-life secondaries Private Equity Solutions fund
Brief: DWS has held the final close of its inaugural Private Equity Solutions (PES) fund achieving USD550 million, including discretionary co-investment vehicles, which is in excess of its target and hard-cap of USD500 million and USD525 million respectively. Demonstrating significant demand for its mid-life secondaries strategy, the inaugural fund closed with a global investor base consisting of state pension plans, insurance companies, corporate institutional investors and family offices in North America, Europe and the Middle East. The fund has made a total of 12 investments, which have exhibited positive performance to date. The private equity business at DWS has focused on developing a differentiated mid-life secondaries strategy that offers a compelling risk-return profile to investors whilst allowing existing private equity sponsors to continue to back their better performing portfolio companies. Mark McDonald, Global Head of Private Equity at DWS, adds: “It is a testament to the strength of our team globally for the inaugural PES fund to be oversubscribed, and with the majority of the fundraise taking place during the current Covid-19 pandemic. We seek to deliver consistent risk-adjusted returns to our investors as we continue to build out our team and extend our reach going forward.”
The US$110-trillion investment industry gets tougher on climate
Brief: As COVID-19 ripped through the world in 2020, a cluster of senior figures at Aviva Investors, the £262 billion U.K. asset manager, held a series of virtual meetings over the course of six months to discuss the other big issue looming over their portfolios: climate change. It was a bold move that dramatized a growing dispute within the US$110 trillion investment industry. Many big asset managers still routinely dismiss divestment, arguing it is better to stay invested and try to alter corporate behaviour through background conversations with companies. However, there are a growing number of large, traditional investors who are taking a tougher approach with companies over global warming, a change in attitude that could have huge ramifications for businesses around the world. Big investors including the Netherlands Stichting Pensioenfonds ABP one of the world’s largest pension funds, and Norway’s oil fund, the world’s largest sovereign wealth fund, have announced divestment plans. At the same time, some of the investors who remain as shareholders are willing to adopt more confrontational tactics — most notably, the successful campaign by an activist investor to join the board of ExxonMobil Corp.
Businesses left in limbo on COVID-19 mandate
Brief: Businesses are in limbo after a federal court halted the Biden administration’s vaccine-or-test mandate for private employers. Employers are preparing to enforce the Occupational Safety and Health Administration’s (OSHA) rule, which would require businesses with 100 or more employees to mandate COVID-19 vaccinations or weekly testing by Jan. 4. But it’s now unclear whether the requirement will survive legal challenges after the 5th U.S. Circuit Court of Appeals temporarily blocked the rule over the weekend, creating confusion among companies on how to move forward. Labor lawyers are urging businesses to continue preparing for key OSHA deadlines, given that the court’s stay, for now, is only temporary. “I think it’s prudent for employers to proceed with planning assuming that the OSHA rule, at least in some form or fashion, will be implemented pending final resolution of the various court cases,” said Michelle Strowhiro, a lawyer at McDermott Will & Emery who advises businesses on COVID-19 employment issues. While the OSHA rule requires businesses to mandate weekly testing for unvaccinated employees by January, the most important deadline is coming up soon. By Dec. 5, employers must collect employees’ proof of vaccination and provide paid leave for those getting the shot, while unvaccinated employees must begin wearing a mask.
