BB Adamant Sustainable Healthcare (Lux)
Sustainability and health combined in a portfolio: First healthcare fund managed under consideration of ESG criteria
Investments in the 40 most attractive healthcare companies worldwide, regionally diversified and across sub sectors
The sustainability filter includes a "best-in-class" approach and the application of a strict exclusion process
Please find a more detailed description of share classes here.
The fund is based on the Adamant Healthcare Index and invests in healthcare companies worldwide. Alongside the established bottom-up process, companies are selected on the basis of the currently applicable sustainability criteria. We are assisted in this process by the sustainability specialist Sustainalytics.
Indexed performance (as at: 24.09.2021)
NAV: USD 200.24 (23.09.2021)
Rolling performance (23.09.2021)
|23.09.2020 - 23.09.2021||28.56%||26.00%|
|23.09.2019 - 23.09.2020||25.24%||16.75%|
|23.09.2018 - 23.09.2019||-6.00%||0.15%|
Annualized performance (23.09.2021)
|Since Inception p.a.||15.66%||16.30%|
Cumulative performance (23.09.2021)
Facts & Key figures
The BB Adamant Sustainable Healthcare (Lux) fund is based on the same concept as the Adamant Healthcare Index. Along with fundamental valuation criteria, sustainability criteria are applied as an additional process step. Thus reference is made to the generally accepted environmental, social and governance (ESG) criteria when assessing companies. Stock-picking thus takes account both of the exclusion criteria and the best-in-class approach to the selection of especially sustainable companies.Show moreShow less
Investment suitability & Risk
|Investment Manager||Bellevue Asset Management AG|
|Custodian||RBC Investor Services, Luxembourg|
|Fund Administrator||RBC Investor Services, Luxembourg|
|Year end closing||30. Jun|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00 CET|
|Subscription Fee (max.)||5.00%|
|Total expense ratio (TER)||2.24% (31.08.2021)|
|SFDR category||Article 8|
Key data (31.08.2021, base currency USD)
|No. of positions||40|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- Investments in the 40 most attractive healthcare stocks worldwide.
- Proprietary investment process: Half-yearly company evaluation and rebalancing.
- Underweighting of pharma and US stocks against the relevant healthcare indices.
- Strong focus on quality mid-caps.
- Healthcare pioneer since 1993 and today one of the biggest independent investors in the sector in Europe.
- Equities are subject to strong price fluctuations and so are also exposed to the risk of price losses.
- 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.
- Investments in foreign currencies are subject to currency risks.
- Investing in emerging markets entails the additional risk of political and social instability.
- Increased opportunities through possible derivative transactions go hand in hand with increased risk of loss
Review / Outlook
August was another friendly month for stock markets around the world and showed a positive return. Market advances in August were largely fueled by reports of robust quarterly results. The rapid global spread of the delta variant triggered a temporary risk-off move by investors, though, and surprising signs of a cooling US economy, which can be largely blamed on supply chain constraints, blew some froth off international stock markets. Federal Reserve officials didn't make any comments at the virtual central bank gathering in Jackson Hole that swayed the markets this year. The US central bank did push its plans for scaling back its expansionary monetary policy by tapering its asset purchases further into the future though. At the same time, it kept its key lending rate unchanged. The Fed based its decision on forecasting uncertainty related to the course of the pandemic and to the ensuing social and economic effects. Against this background the broad MSCI World index rose 2.5% in USD. The MSCI World Healthcare Index performed slightly better, gaining 2.8% over the month. The BB Adamant Sustainable Healthcare Fund was unable to keep up with the stock market bulls and closed the month with a flat performance (USD / I shares).
The following positions made positive contributions to the portfolio's monthly performance: Regeneron, the US biotech company, made strong gains after reporting very solid quarterly results. Another trigger for the sharp upward move in Regeneron shares was the strong demand for its antibody cocktail which helps prevent and treat COVID-19, developed in collaboration with Roche. Shares of vaccine specialist Bavarian Nordic were also marked up sharply in August. Its re-rating was triggered by the announcement that the Danish Ministry of Health was providing DKK 800 mn to help fund a Phase III trial of ABNCoV2, Bavarian Nordic's COVID-19 booster vaccine candidate. Healthcare companies listed in Hong Kong, which are overweighted in the fund, led the list of declining stocks and this also explains the fund's underperformance during the past month versus its direct benchmark. Chinese government intervention in several domestic industries hit tech stocks the hardest and, after a difficult July, investors continued to show little interest in Chinese stocks in August. Healthcare firms were not directly hit by this turbulence, but they are now trading with an increased “China risk” premium. Meanwhile investors turned to large-cap names in defensive industries and in the healthcare sector, these are the big pharma players, which are underweighted in the fund.
BB Adamant's rule-based investment approach, which has been successfully implemented since 2007 and is also mapped by the Adamant Global Healthcare Index, serves as the basis for the fund. A universe with around 600 stocks? ?is compiled from a global pool with over 4000 listed healthcare stocks based on a preselection. As an additional step compared to the conventional methodology, ESG risks of these 600 investable stocks are identified, which could affect the economic value of a company. Here we rely on the longstanding expertise of our research partner Sustainalytics.
In order to get into the fund portfolio, the companies must meet the following criteria: Appropriate ESG risk profile (best-in-class approach), not involved in severe ESG-relevant controversies and comply with the ten principles of the UN Global Compact. In the case of controversial business areas and practices, revenue thresholds are defined for inclusion. The results of the ESG filter application demonstrate that around 40-50% of the titles meet our strict sustainability requirements. The proven factor analysis is then carried out according to four quantitative and four qualitative parameters. The objective here is to select companies that are inexpensive, have strong growth and have an exceptional competitive position so that they can maintain their leading position also in the future.
The analysis results in a portfolio structure consisting of the 40 most sustainable stocks in the healthcare industry, ten of them per region (Western Europe, North America, Japan / Oceania, emerging markets). The application of the eight factors in the past has typically led to a focus on mid cap stocks and an underweight position in pharma and the North America region relative to the MSCI World Healthcare Index. The rebalancing takes place every six months.
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