BB Adamant Asia Pacific Healthcare (Lux)

Access to defensive growth driven by increased demand for healthcare products/ DL due to rising share of the middle class                                                                                                                                                      

 Asian Healthcare market  is growing twice as fast as corresponding GDP  

Above-average performance - complementary building block for an Asia investor

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Investment Focus

ISIN-No. LU1587984763

This fund invests in healthcare stocks throughout the Asia-Pacific region. Its investment universe consists of generics producers, pharma and biotech companies, medical technology and services firms. Experienced sector specialists focus on profitable companies that have a well-established product portfolio. Investments are made based on fundamental research analysis.

Indexed performance (as at: 24.09.2021)

NAV: USD 275.94 (21.09.2021)


Fonds (Brutto)
01 Jan 2010 - 01 Jan 2010
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Rolling performance (21.09.2021)

I2-USDBenchmark
21.09.2020 - 21.09.20213.66%7.92%
21.09.2019 - 21.09.202062.95%40.12%
21.09.2018 - 21.09.2019-5.55%-4.88%
21.09.2017 - 21.09.201826.35%27.13%

Annualized performance (21.09.2021)

I2-USDBenchmark
1 year3.66%7.92%
3 years16.04%12.01%
5 yearsn.a.n.a.
Since Inception p.a.19.70%15.74%

Cumulative performance (21.09.2021)

I2-USDBenchmark
1M6.32%6.95%
YTD1.56%-2.84%
1 year3.66%7.92%
3 years56.30%40.57%
5 yearsn.a.n.a.
Since Inception120.75%90.35%

Annual performance

I2-USDBenchmark
202047.55%33.01%
201923.64%30.06%
2018-9.28%-4.44%

Investment Focus

This fund invests in healthcare stocks throughout the Asia-Pacific region. Its investment universe consists of generics producers, pharma and biotech companies, medical technology and services firms. Experienced sector specialists focus on profitable companies that have a well-established product portfolio. Investments are made based on fundamental research analysis. Stock selection is exclusively bottom-up, independent of benchmark weightings.Show moreShow less

Investment suitability & Risk

Low risk

High risk

The Fund’s objective is to generate an attractive return over a long-term horizon. It is therefore particularly suited to investors with an investment horizon of at least 5 years who want to diversify their portfolio with selective exposure to the healthcare sector in Asia and who are willing to accept the risks typically associated with stocks in this sector.

General Information

Investment ManagerBellevue Asset Management AG
CustodianRBC Investor Services, Luxembourg
Fund AdministratorRBC Investor Services, Luxembourg
AuditorPriceWaterhouseCoopers
Launch date28.04.2017
Year end closing30. Jun
NAV CalculationDaily "Forward Pricing"
Cut of time09:00 CET
Management Fee0.90%
Subscription Fee (max.)5.00%
ISIN numberLU1587984763
Valor number36225516
BloombergBEAPI2U LX
WKNA2DPA2
Total expense ratio (TER)2.26% (31.08.2021)

Legal Information

Legal formSICAV Luxembourg jurisdiction
SFDR categoryArticle 8
Redemption periodDaily

Key data (31.08.2021, base currency USD)

Beta0.73
Volatility16.30
Tracking error10.92
Active share49.28
Correlation0.80
Share ratio0.86
Information ratio0.15
Jensen's alpha5.17
No. of positions44

Top 10 positions

CSL
Eisai
Takeda
Olympus
Daiichi Sankyo
Sun Pharmaceutical
Cipla
Samsung Biologics
Celltrion
Innovent Biologics
5.0%
4.9%
4.6%
4.1%
4.0%
3.7%
3.6%
3.5%
3.2%
3.1%

Market capitalization

2 - 5 bn
5 - 15 bn
15 - 20 bn
> 20 bn
Others
4.5%
19.0%
7.5%
63.2%
5.8%

Geographic breakdown

Japan
China
India
South Korea
Australia
Others
Cash
34.8%
30.3%
12.9%
7.9%
5.0%
1.1%
8.0%

Breakdown by sector

Pharma
Services
Biotechnology
Generics
Medtech
Others
Cash
21.1%
20.0%
19.7%
15.1%
14.3%
1.8%
8.0%

Currency

JPY
USD
INR
HKD
CNY
KRW
AUD
34.8%
15.0%
12.9%
11.9%
11.4%
9.0%
5.0%

Opportunities

  • Access to defensive growth – Asia’s emerging countries are facing aging populations and changing lifestyles.
  • An interesting combination of investments in Asian emerging markets and Japanese cutting-edge technology.
  • Broad spread across different sectors and company sizes in the Asia-Pacific healthcare industry.
  • Attractive valuations compared with the projected medium to long-term growth.
  • BB Adamant Team – top-performing pioneer in the management of healthcare portfolios in emerging markets.

Risks

  • The fund invests in equities. Equities are subject to price fluctuations and so are also exposed to the risk of price losses.
  • Investing in emerging markets entails the additional risk of political and social instability.
  • The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
  • There is a higher counterparty risk due to regulatory changes, volume caps or operational restrictions when investing in Chinese A equities.
  • The fund may invest in financial instruments that might have a rather low level of liquidity, which can in turn affect the fund’s liquidity.

TINA (there is no alternative to equities) is still the driving force on stock markets. Global equity markets as tracked by the MSCI World Index advanced another 2.5% in USD. In addition to the expansionary central bank policies, markets were buoyed by the very pleasing quarterly results. Uncertainty triggered by further regulatory action from the central Chinese government clouded the overall positive sentiment only briefly. Emerging markets therefore also ended the month in positive territory, with a gain of 2.6%. Fears that future intervention by China's Communist Party could target the healthcare sector led to some selling pressure. However, this pressure was offset by the strength of the Japanese and Indian stocks. Consequently, the healthcare sector in Asia ended August 3.6% higher.

Investor worries related to political uncertainty in China have injected considerable volatility into the country's healthcare stocks. It is important to note that the healthcare sector is already highly regulated. Over the past decade, Chinese healthcare companies have become accustomed to complying with strict regulations in all areas of their operations (R&D, regulatory approval processes, marketing, commercialization, pricing, etc.). Access to high-quality healthcare products and services that ordinary citizens can afford is one of the Chinese government's top priorities, especially against the backdrop of a rapidly aging population.

Most of the Chinese stocks in the portfolio published excellent half-year results. Wuxi Biologics reported first-half sales growth of 127% y-o-y. It added 79 new molecules to its R&D pipeline and is now working on more than 400 integrated projects. Wuxi was able to win 12 new molecules from competing suppliers. Shangdong Weigao reported first-half sales growth of more than 19%. Biotech company Innovent published strong growth numbers for its leading PD-1 inhibitor Tyvyt despite increasing competition in the wake of last year's NRDL negotiations. Innovent now has 2 000 sales representatives covering more than 4 700 hospitals in China.

Apollo Hospitals, an Indian healthcare services provider, reported an impressive 18% increase in revenues and EBITDA for the second quarter, clearly topping market expectations. COVID-19-related services such as vaccines and diagnostic tests made a particularly surprising contribution to this growth. Its shares were marked sharply higher on the day of the earnings announcement and we realized profits on this strength.  
 
Positions in Pharmaron, Joinn Labs and Mindray were opened during the past month and existing positions in Daiichi Sankyo, Chongqing Zhifei and Kyowa Kirin were increased. Lupin, Apollo Hospitals and Akeso are no longer in the portfolio and positions in ZaiLab, Glenmark and Wuxi AppTec were reduced.

Asia is the most dynamic growth region in the world and it accounts for more than half of the world's population. Asian emerging markets are forecast to account for more than 50% of global GDP by 2050. As household incomes rise, the economic growth model of Asian countries will shift from manufacturing to the services sector. A growing middle class fuels demand for modern medicine. Healthcare ranks increasingly high on their wish list. Billions are being invested in infrastructure, technology and research to modernize the healthcare systems in emerging market countries. This is giving a broader access to better healthcare. Meanwhile rapid population aging is also increasing demand for healthcare. In 30 years’ time there will be 400 to 500 million people over 60 in China alone, and they will have a growing need for modern health services and medicines.

Japan, which has been referred to as “the world's demographic laboratory”, has championed cutting-edge innovation for decades. The Land of the Rising Sun boasts technology leadership in numerous fields, ranging from therapeutic antibody technology, immunotherapy and robotics to digitalization, diagnostics and medical imaging systems.

The fund offers defensive access to Asian emerging markets as well as exciting investment opportunities in technology leaders throughout the entire region. It invests in the entire healthcare system value chain, from generic drug producers and biotechnology companies to medical device manufacturers and digital health specialists.

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. All performance figures reflect the reinvestment of dividends and do not take into account the commissions and costs incurred on the issue and redemption of shares, if any. Individual costs are not taken into account and would have a negative impact on the performance. With an investment amount of EUR 1,000 over an investment period of five years, the investment result in the first year would be reduced by the front-end load of up to EUR 50 (5%) as well as by additional individual custody charges. In subsequent years, the investment result would also be reduced by the individual custody account costs incurred. The reference benchmark of this class is used for performance comparison purposes only (dividend reinvested). No benchmark is directly identical to a sub-fund, thus the performance of a benchmark is not a reliable indicator of future performance of the sub-fund it is compared to. There can be no assurance that a return will be achieved or that a substantial loss of capital will not be incurred. All figures in base currency in %, calculated by the total return / BVI method.Show moreShow less

  • Lead Portfolio Manager

    Oliver Kubli

    Oliver Kubli has been Managing Director, Head Portfolio Management Healthcare Funds & Mandates since 2015. Previously, he worked as Senior Portfolio Manager at Zürcher Kantonalbank and was a member of the Executive Board and Head Portfolio Management at Adamant Biomedical Investment AG. He completed his studies in business administration at the Zurich University of Applied Sciences in Winterthur and is a CFA charterholder.
  • Portfolio Manager

    Cyrill Zimmermann

    Dr. Cyrill Zimmerman is Head of Healthcare Funds & Mandates and a member of the Executive Board of Bellevue Asset Management. He founded Adamant Biomedical Investments in 2001 and managed the investment boutique until its acquisition by Bellevue in 2014. Cyrill Zimmerman holds a PhD from the University of Zurich.
  • Portfolio Manager

    Remo Krauer

    Remo Krauer has been a Senior Portfolio Manager Healthcare Funds & Mandates at Bellevue Asset Management since 2018. Previously, he worked at Zürcher Kantonalbank, first as Senior Portfolio Manager, then as Head Portfolio Construction for Private Asset Management. He holds a Bachelors degree in Business Administration from the Zurich University of Applied Sciences.
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