Bellevue Asia Pacific Healthcare (Lux)
Access to defensive growth driven by increased demand for healthcare products and services 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
Explained in 90 seconds
Please find a more detailed description of share classes here.
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: 23.09.2022)
NAV: USD 158.21 (22.09.2022)
Rolling performance (22.09.2022)
|21.09.2021 - 22.09.2022||-40.69%||-35.27%|
|18.09.2020 - 21.09.2021||4.26%||6.95%|
|20.09.2019 - 18.09.2020||57.19%||38.74%|
|21.09.2018 - 20.09.2019||-6.29%||-5.26%|
Annualized performance (22.09.2022)
|Since Inception p.a.||4.46%||3.94%|
Cumulative performance (22.09.2022)
Facts & Key figures
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
|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||09:00 CET|
|Subscription Fee (max.)||5.00%|
|Performance Fee||10.00% (with High Water Mark)|
|Total expense ratio (TER)||1.47% (31.08.2022)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (31.08.2022, base currency USD)
|No. of positions||32|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- 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.
- 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.
Review / Outlook
Stock markets stayed in a cheery mood and tacked on some more gains until the middle of August. Positive earnings announcements, a consumer price inflation reading that came in below market expectations and, last but not least, hopes that central banks would put an early end to their monetary tightening were factors that pushed stocks higher. However, Jerome Powell's speech at the annual gathering of central bankers in Jackson Hole poured a big bucket of cold water on the positive sentiment. Powell stated quite clearly that the Fed would maintain a more restrictive monetary policy course for some time to come to bring inflation down to 2%. He also pointed out that the past experience served as a strong warning not to revert to a loose policy stance too early. His speech caused bond yields around the world to spike and put stock markets under pressure. The MSCI World Index returned a negative 4% in USD terms for the month and has fallen 17.5% since the beginning of the year. Asia-Pacific equities ended the month about 1% lower and healthcare stocks in the region closed 2.3% lower.
Thai hospital chain Bangkok Dusit Medical Services reported excellent quarterly results. Particularly pleasing was the news that company grew its core business (excluding COVID-19-related sales) by 28% year-on-year, bringing it close to pre-pandemic levels. Dusit management expects the recovery in business to continue during the second half of the year, driven by medical tourism in the wake of the economic reopening.
Chinese digital healthcare services provider JD Health reported a convincing set of half-year results. Sales increased nearly 50% year-on-year, beating market expectations. Management confirmed its forecast for the second half of the year, which was somewhat disappointing for investors. The high sales base in the previous year and uncertainties regarding consumer sentiment were the reasons given for not raising full-year guidance. We believe the rather cautious outlook leaves some room for positive surprises and have therefore slightly increased our position in JD Health.
Japanese biopharmaceutical company Daiichi Sankyo issued several positive news announcements in August. In the US, Enhertu, a groundbreaking treatment for breast cancer patients, was approved for patients whose tumors do not overexpress the HER2 protein (HER2-low) only two weeks after the application was submitted. In addition, Daiichi Sankyo won its patent dispute with Seagen, which helped its shares tack on more gains.
Eisai was added to the fund’s portfolio as a new position last month and existing positions in M3, Celltrion, Takeda, JD Health and Olympus were increased. JCR Pharma, Pharmaron and Fosun Pharma were removed from the portfolio and shareholdings of Astellas, Ono Pharma and Otsuka 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 greater swath of the population access to better healthcare. Meanwhile rapid population aging is also stoking 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