BB Adamant Emerging Markets Healthcare (Lux)

 Increased demand for healthcare products/ DL due to rising share of the middle class      

Above-average increase in healthcare spending in the Emerging Markets

 Complementary building block for a diversified Emerging Markets portfolio 

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Investment Focus

ISIN-No. LU1585228619

This fund invests in the entire emerging-market healthcare universe. 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: 22.10.2021)

NAV: CHF 201.14 (21.10.2021)


Fonds (Brutto)
01 Jan 2010 - 01 Jan 2010
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Rolling performance (21.10.2021)

I2-CHFBenchmark
21.10.2020 - 21.10.2021-1.42%4.99%
21.10.2019 - 21.10.202038.32%32.32%
21.10.2018 - 21.10.20191.94%-13.70%
21.10.2017 - 21.10.20183.22%-3.24%

Annualized performance (21.10.2021)

I2-CHFBenchmark
1 year-1.42%4.99%
3 years11.57%6.21%
5 yearsn.a.n.a.
Since Inception p.a.11.43%6.66%

Cumulative performance (21.10.2021)

I2-CHFBenchmark
1M-7.59%-6.87%
YTD-5.60%-6.68%
1 year-1.42%4.99%
3 years39.00%19.88%
5 yearsn.a.n.a.
Since Inception60.91%32.76%

Annual performance

I2-CHFBenchmark
202037.96%39.98%
201915.41%1.94%
2018-11.92%-20.14%

Investment Focus

This fund invests in the entire emerging-market healthcare universe. 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 emerging markets 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 date31.05.2017
Year end closing30. Jun
NAV CalculationDaily "Forward Pricing"
Cut of time09:00 CET
Management Fee0.90%
Subscription Fee (max.)5.00%
ISIN numberLU1585228619
Valor number36153234
BloombergBBAEI2C LX
WKNA2DPAW
Total expense ratio (TER)2.25% (30.09.2021)

Legal Information

Legal formSICAV Luxembourg jurisdiction
SFDR categoryArticle 8
Redemption periodDaily

Key data (30.09.2021, base currency USD)

Beta0.78
Volatility19.60
Tracking error9.77
Active share55.64
Correlation0.90
Share ratio0.63
Information ratio0.21
Jensen's alpha4.52
No. of positions41

Top 10 positions

Richter Gedeon
Innovent Biologics
Wuxi Biologics
Hygeia Healthcare
Rede D'Or
Sun Pharmaceutical
CSPC Pharmaceutical
Hikma Pharmaceuticals
Alibaba Health
Beigene
4.9%
4.6%
4.3%
4.2%
4.1%
3.9%
3.8%
3.8%
3.6%
3.6%

Market capitalization

2 - 5 bn
5 - 15 bn
15 - 20 bn
> 20 bn
Others
9.2%
44.6%
3.4%
37.1%
5.7%

Geographic breakdown

China
India
South Korea
Hungary
Brazil
Jordan
South Africa
Thailand
Cash
58.6%
14.1%
5.1%
4.9%
4.1%
3.8%
2.2%
1.6%
5.8%

Breakdown by sector

Services
Generics
Biotechnology
Specialty Pharma
Medtech
Others
Cash
30.6%
21.8%
21.3%
10.3%
8.9%
1.4%
5.8%

Currency

HKD
INR
USD
KRW
HUF
GBP
BRL
THB
ZAR
35.6%
14.1%
12.6%
5.1%
4.9%
4.5%
4.1%
1.6%
1.5%

Opportunities

  • Access to defensive growth – emerging countries are facing aging populations and changing lifestyles.
  • Development of healthcare infrastructure combined with a growing middle class is an additional growth driver.
  • High growth potential of emerging markets.
  • 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

  • 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.
  • Investments in foreign currencies are subject to currency risks.
  • 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.

After making very strong gains, global stock markets took a breather in September and gave up about 4% of their value as measured by the MSCI World index (in USD). Besides profit-taking, selling was fueled by reports of high inflation, international supply chain bottlenecks, the imminent tapering of the US central bank's asset purchases as well as also the property market scare in China triggered by Evergrande. High inflation combined with robust economic data suggest that the US Federal Reserve could already start tapering later this year. This scenario caused government bond yields to jump during the month under review. Despite the latest selling, the MSCI World Index is still up an impressive 13% year-to-date. Emerging market stocks were unable to escape the overall negative trend and closed about 4% lower, with Chinese names leading the decline. Emerging-market healthcare stocks performed better and closed the month with a loss of 2.7%.

At this year's investor day, Innovent’s management gave an impressive presentation of the company’s large pipeline, which contains 26 products, five of which have been approved so far this year. At least another five approvals are anticipated over the next two years. The company will continue its journey towards a fully integrated, internationally active biopharmaceutical company, supported by collaboration agreements with global pharmaceutical companies and its strong internal research and development operations.

South African specialty chemicals manufacturer Aspen Pharmaceuticals performed very well during the month under review, having advanced 40% mom. Its strong performance was driven by solid second-quarter business results and management's confident outlook for 2022. It also expanded its cooperation with Johnson & Johnson in producing J&J’s COVID 19 vaccine for its domestic South African market. The announcement that Aspen had received several bids for its API business, which it is hoping to sell, also led its shares higher. We used this strength to realize some profits.

The two Brazilian managed care companies Hapvida and Notre Dame Intermédica hit a small pothole with their merger plans. CADE, Brazil’s antitrust regulatory authority, has requested additional data so it can examine the terms and ramifications of the proposed merger in further detail. The companies will have to provide additional information on the anticipated efficiency gains resulting from the proposed merger.

Positions in Hengrui, Bumrungrad Hospital and Biocon were added to the portfolio during the past month. Existing positions in I-MAB, Dr. Reddy's, Mindray and Aier Eye were increased. Glenmark, Top Glove and Supermax are no longer in the portfolio and positions in Samsung, Wuxi Apptec, Aspen Pharmaceuticals and Divi's Laboratories were reduced.

The fastest growing countries in the world can be found in emerging markets and they contain more than half of the world's population. Asian emerging markets are also forecast to account for more than 50% of global GDP by 2050. It is known that the economic growth model of countries shifts from manufacturing to the services sector as household incomes rise. 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.

Outside Asia, Brazil’s rapidly expanding private-sector healthcare market offers a range of interesting investment opportunities. The quality and long waiting times of the country’s public health system are no longer acceptable to many higher-income Brazilian households and they are increasingly embracing these new services offered by private-sector healthcare providers. Hospital chains embedded in a fully-integrated ecosystem are but one example of the beneficiaries of this structural change. The fund serves as a defensive vehicle for capturing the above-average growth potential emerging markets offer. It invests in the entire healthcare system value chain, from hospital chains, drug developers and device manufacturers to medical research specialists and digital health companies.

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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