Bellevue AI Health (Lux)
Healthcare systems will benefit from the huge pools of data that have been built up over decades
GenAI will be a relevant driver of shareholder value
Sweet spot: Well-capitalized companies with strong AI capabilities
Explained in 90 seconds
Please find a more detailed description of share classes here.
Investment Focus
ISIN-No. LU2721086259
The fund’s aim is to achieve capital growth in the long term. The Bellevue AI Health Fund is a global equity fund with an actively managed portfolio of 50 to 70 stocks, mostly from the healthcare sector, rounded out with a small number of tech companies that have considerable exposure to the healthcare industry. Its focus is on liquid mega and large caps, with modest allocation to mid cap stocks. In addition to fundamental aspects ranging from valuation and growth profiles to profitability, a proprietary «AI Affinity Score» is used to determine how attractive a company is from an AI perspective. The selection of the portfolio companies is entirely bottom up, independent of benchmark weightings. The fund takes ESG factors into consideration while implementing the aforementioned investment objectives.
Indexed performance (as at: 10.05.2024)
NAV: CHF 143.17 (08.05.2024)
Cumulative performance (08.05.2024)
B-CHF | Benchmark | |
1M | 1.52% | 0.53% |
YTD | 14.31% | 13.12% |
1 year | n.a. | n.a. |
Since Inception | 14.54% | 13.30% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term. The Bellevue AI Health Fund is a global equity fund with an actively managed portfolio of 50 to 70 stocks, mostly from the healthcare sector, rounded out with a small number of tech companies that have considerable exposure to the healthcare industry. Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | CACEIS Investor Services Bank, Luxembourg |
Fund Administrator | CACEIS Investor Services Bank, Luxembourg |
Auditor | PriceWaterhouseCoopers |
Launch date | 30.11.2023 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 1.60% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU2721086259 |
Valor number | 130851892 |
Bloomberg | BAIHXBC LX |
WKN | A3E1ZS |
Total expense ratio (TER) | 2.14% (30.04.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Portfolio
Top 10 positions
Geographic breakdown
Benefits & Risks
Benefits
- GenAI is speeding up the process of digitization and automation across the healthcare system.
- GenAI can enhance patient care, simplify processes and procedures, and lead to better decisions.
- Companies that use or provide GenAI tools for healthcare-relevant purposes will gain a sustainable competitive advantage.
- Shareholder value creation will largely be determined by a company’s AI strategy and its execution.
- Bellevue – a pioneer in healthcare investing since 1993 and now one of the largest independent investors in the healthcare space in Europe.
Risks
- The fund actively invests in equities. Stocks are subject to price fluctuations, so there is a risk of falling prices.
- The investments the fund makes may be denominated in foreign currency, which can entail a foreign-exchange risk relative to the fund's base currency.
- The fund may invest some of its assets in financial instruments that may have relatively low levels of liquidity under certain circumstances, which may then affect the liquidity of the fund’s own shares.
- There are additional risks in the form of political and social unrest when investing in emerging markets.
- The fund may use derivatives. Derivatives offer greater upside potential yet also carry greater downside risk.
Review / Outlook
Major large-cap stock indexes advanced in March, with the S&P 500 (+3.2%), MSCI World (+3.2%) and NASDAQ 100 (+1.2%) showing roughly similar returns as the small-cap Russell 2000 Index (+3.6%).
The broad healthcare sector as measured by the MSCI World Healthcare Index (+2.4%) also delivered a positive return in March, slightly below that of the total market and slightly better than the tech sector. The Bellevue AI Health Fund (+2.2%) showed another good performance in March. It returned 8.0% in the first quarter of 2024, which was better than its benchmark’s quarterly performance (+7.5%).
Biopharma (58.1% weighting at the end of the month) contributed 1.3% to the fund’s absolute performance. Novo Nordisk (+8.4%), Astra Zeneca (+7.0%), Merck & Co. (+4.4%) and Eli Lilly (+3.2%) made positive contributions to performance, while Recursion Pharmaceuticals (-25.9%) and Zoetis (-14.7%) were performance detractors. Phase I data for amycretin, an oral weight loss drug from Novo Nordisk, showed a very competitive efficacy profile, having led to a 13% reduction in body weight after just 12 weeks of treatment with a similar side effect profile as the products already in the market. AstraZeneca announced the acquisition of Fusion Pharmaceuticals for USD 2 bn. Fusion is a developer of radioconjugates to treat cancer and AstraZeneca believes that Fusion's approach has many advantages compared to traditional radiotherapy, such as less damage to healthy cells. Recursion Pharmaceuticals, which specializes in proprietary AI-enabled tools to accelerate drug discovery processes, fell short of consensus sales expectations because of a delayed milestone payment.
Investments in medtech stocks (24.0%) delivered another good performance and contributed 0.7% to absolute performance, driven by positive management commentary at investor conferences and by new product approvals. Large-cap names such as Dexcom (+20.5%), Intuitive Surgical (+3.5%), Boston Scientific (+3.4%) and Stryker (+2.7%) made positive contributions. The FDA approved Dexcom's Stelo, an innovative wearable glucose biosensor designed for people living with type 2 diabetes not on insulin, a market that numbers 25 million people in the US alone. It is the first over-the-counter glucose sensor to reach the market and can be worn for up to 15 days before requiring a replacement. Abbott (-4.2%) detracted from performance on news that a court ordered Reckitt Benckiser to pay USD 60 mn to the mother of a premature baby who died after being fed the company's baby formula.
Healthcare services (11.1%) contributed 0.2% to absolute performance but had a negative impact of 0.3% on relative performance. Health insurer Elevance (+3.8%), an overweight stock in the portfolio, made positive comments about business during the first quarter at an investor conference and confirmed its profit guidance for 2024. The fund's relative performance was hurt by Cigna (+8.5%) and HCA Healthcare (+7.0%), which are not in its portfolio.
Tech exposure (5.8%), which includes tech companies from both the healthcare and IT industries, contributed 0.4% to absolute and relative performance. Nvidia (+14.2%), Oracle (+12.5%) and Qualcomm (+7.3%) were the best performers. At Nvidia's 2024 GTC (GPU Technology Conference) for AI developers, Nvidia unveiled its latest Blackwell chip architecture, which is four times faster, uses four times less power and is less than twice as expensive as its predecessor, the “Grace Hopper” superchip. This new chip will enable biopharma companies, for example, to train their AI models even faster and more efficiently. All performance data in USD / B shares.
Already today medications are being developed more quickly and with better rates of success, for example, new diagnostic and treatment methods are producing better clinical outcomes, and GenAI is helping medical professionals make better and more informed decisions. We focus on healthcare companies that have made GenAI a core element of their business strategy and that are investing substantial resources in this technology to gain a lasting competitive advantage and achieve superior value growth. The technology risk here is more calculable than in other industries because healthcare is such a heavily regulated industry.
Documents
Past performance is not a reliable indicator of future results and can be misleading. As the sub-fund is denominated in a currency that may differ than an investor’s base currency, changes in the rate of exchange may have an adverse effect on prices and incomes. Performance is shown net of fees and expenses for the relevant share class over the reference period. Show moreShow less