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.
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: 21.02.2024)
NAV: USD 139.35 (23.02.2024)
Cumulative performance (23.02.2024)
Facts & Key figures
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.Show moreShow less
Investment suitability & Risk
|Bellevue Asset Management AG
|CACEIS Investor Services Bank, Luxembourg
|CACEIS Investor Services Bank, Luxembourg
|Year end closing
|Daily "Forward Pricing"
|Cut of time
|Subscription Fee (max.)
|Total expense ratio (TER)
|Luxembourg UCITS V SICAV
Top 10 positions
Benefits & Risks
- 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.
- The fund 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 rose in January and the S&P 500 (+1.7%), MSCI World (+1.2%) and the Nasdaq 100 (+1.9%) outperformed small-cap indexes such as the Russel 2000 (-3.9%), mainly due to the Fed's statement that it needs more evidence that inflation is sustainable and heading towards 2% before the first rate cut can take place.
The broad healthcare market MSCI World Healthcare (+2.4%) showed a slightly better return than the major indexes. The Bellevue AI Health Fund (+3.1%) delivered another good performance, slightly outperforming its benchmark, the MSCI World Healthcare Index.
Biopharma (56.8% weighting at month's end) contributed 2.5% to the fund’s absolute and 0.4% to its relative performance. Eli Lilly (+10.8%), Merck & Co (+10.8%), Amgen (+9.1%) and Regeneron (+7.3%) made positive contributions, while Pfizer (-4.5%) was a drag on performance. At the J.P. Morgan Healthcare Conference, Eli Lilly's management was upbeat about the development of its obesity and diabetes franchise and the company’s stock also benefited from positive investor sentiment after Novo Nordisk published its latest quarterly results. Regeneron released preliminary sales for Eylea HD, a treatment for patients with wet age-related macular degeneration, which were better than expected. Pfizer disappointed investors when it reported lower-than-expected sales of Prevnar (pneumococcal vaccine) and Ibrance (breast cancer). On top of that, its management's earnings guidance was only reached thanks to a decline in research and development spending.
Medical technology companies (23.5%) performed well again, lifted by the strong growth in surgical procedures, and contributed 0.5% to fund performance. Performance drivers were large-cap companies such as Intuitive Surgical (+12.1%), Stryker (+12.0%) and Boston Scientific (+9.4%). Intuitive Surgical surprised investors when it announced high surgical procedure growth and a big increase in the number of robotic surgical systems placed and also announced the da Vinci 5, a next-gen surgical robot that will be equipped with many technologically advanced features ranging from AI and machine learning to machine vision.
Healthcare services (11.8%) had a slightly negative impact with an absolute performance of -0.1%. Elevance (+4.6%), a US health insurer focused on employer-sponsored plans, reported better-than-expected profits thanks to a drop in medical costs and it raised its earnings guidance for 2024. Although UnitedHealth (-2.8%) exceeded investors' profit expectations for the fourth quarter thanks to lower tax expenses, it reported higher medical costs due to higher claims from seniors who received hospital care for COVID-19 infections and other respiratory tract infections. Management gave a very optimistic outlook for 2024, however.
The technology segment (5.6%), which includes tech companies from both the healthcare and information technology industries, contributed 0.5% to absolute and 0.4% to relative performance for the month. Performance drivers were Nvidia (+24.2%), Veeva Systems (+7.7%) and Oracle (+6.4%). In talks with investors, Nvidia management said it expected very positive sales growth in 2024 due to strong demand for its data center solutions. Veeva, a provider of cloud-based software solutions, expressed great confidence regarding the roll-out of Veeva Vault CRM, a next-generation CRM system, in its talks with investors.
All performance data in USD / B shares.
GenAI is creating tremendous opportunities for businesses and investors, especially in the health sector. According to a number of studies, the health sector will be one of the industries that will benefit the most from the deployment of GenAI. This forecast is mainly based on the considerable potential for efficiency gains in healthcare systems, on the large, readily available amounts of data in healthcare systems, and on the considerable financial resources available for healthcare needs.
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.
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