Bellevue Diversified Healthcare (Lux)
Please find a more detailed description of share classes here.
Investment Focus
ISIN-No. LU2441707903
The Bellevue Diversified Healthcare Fund aim’s to achieve long-term capital growth. It invests worldwide in companies with innovative business models that are active in all subsectors of the healthcare sector, such as biotechnology, medical technology, generics, pharma and healthcare services, and engaged in the research, development, production and sale of products and services.
Facts & Key figures
Investment Focus
The Bellevue Diversified Healthcare fund aims to achieve long-term capital growth. It actively invests worldwide in companies with innovative business models that are active in all subsectors of the healthcare sector, such as biotechnology, medical technology, generics, pharma and healthcare services, Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | CACEIS Investor Services Bank, Luxembourg |
Fund Administrator | CACEIS Investor Services Bank, Luxembourg |
Auditor | PriceWaterhouseCoopers |
Launch date | 31.03.2022 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 0.80% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU2441707903 |
Valor number | 116534173 |
Bloomberg | BDHCUUS LX |
WKN | A3DEAX |
Total expense ratio (TER) | 2.25% (29.02.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (29.02.2024, base currency USD)
Beta | 0.97 |
Volatility | 10.10 |
Tracking error | 2.76 |
Active share | 36.62 |
Correlation | 0.96 |
Sharpe ratio | 0.85 |
Information ratio | -0.35 |
Jensen's alpha | -0.84 |
No. of positions | 54 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Breakdown by sector
Benefits & Risks
Benefits
- Profit from the worldwide growth of the healthcare sector, which has clearly outpaced the growth of global GDP during the past ten years.
- Take advantage of the positive characteristics of the healthcare sector and generate alpha through a bottom-up selection process and factor allocation strategies.
- Strategic overweighting of the “structural growth” factor and underweighting of blue-chip pharmaceutical stocks.
- Low earnings risk – above-average earnings growth, even in crisis years, leading to stable portfolio components.
- Bellevue – healthcare pioneer since 1993 and today one of the biggest independent investors in the sector in Europe.
Risks
- The fund actively invests in equities. Equities are subject to strong price fluctuations and so are also exposed to the risk of price losses.
- The fund may invest a proportion of its assets in financial instruments that might under certain circumstances have a relatively low level of liquidity, which can in turn affect the fund’s liquidity.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- Investing in emerging markets entails the additional risk of political and social instability.
- The fund may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.
Review / Outlook
From a macro perspective, US indicators through the month pointed towards a “soft-landing scenario” (weakening consumer confidence, declining durable goods orders, inflation-adjusted consumer spending declined, real-disposable income little changed, declining US home-buying demand, core PCE in line with estimates). Ultimately, this is a “Goldilocks” scenario for stocks, with investors/ traders seeing the slowly weakening economic data as supportive of Fed rate cuts as soon as June 2024.
Turning to individual subsectors within the MSCI World healthcare, life science tools (+5.5%) was the best performer in the month driven by a rebound in Biotech funding and M&A activity, followed by Pharma (+3.7%) which saw continued support from momentum in obesity theme stocks (Eli Lilly and Novo Nordisk). These two sub-sectors were followed by medtech (+3.1%; positive Q4 results), healthcare services (-0.6%; regulatory scrutiny on PBMs), and finally Biotech (-2.7% within the MSCI World Healthcare Index, although the broader SMID-cap focused XBI performed strongly).
Through the month, evidence built that the strong hospital and outpatient utilization environment was continuing through Q4 and into January/ February 2024. Within healthcare services this dynamic had contrasting impacts, with the hospitals and distributors performing well in the month, but the heavy-weight MCOs underperformed. Later in the month, news flow around a potential DOJ anti-trust investigation concerning PBMs weighed on the MCOs.
From a geographical point of view, the Asia (+3.9%) region within the MSCI World healthcare index performed best, driven by Japan. This was followed by another strong performance in the US (+3.1%), with Europe lagging (-0.2%). From a market-capitalization perspective, mega-caps ($200bn plus) performed best in the month with a return of 5%, driven by Eli Lilly.
Within the fund, strong absolute performances were reported during the month from Zealand Pharma (40.1%; obesity & M&A spec), UCB (21.5%; Bimzelx launch trajectory), and Eli Lilly (+16.9%; obesity & strong FY2023 results). On the other hand, negative absolute performances were seen for Sage (-16.2%; mixed Q4), Alnylam pharma (-12.6%; HELIOS-B trial design change), and Amgen (-12.2%; mixed obesity drug data).
The Diversified Healthcare fund is positioned overweight on structural growth and have an slightly higher exposure to mega-cap stocks than the MSCI Healthcare Index. We are relatively balanced with the index on geography and sub-sector.
Documents
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. Show moreShow less