Bellevue 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 BB 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: 20.05.2022)
NAV: EUR 163.94 (19.05.2022)
Rolling performance (19.05.2022)
|19.05.2021 - 19.05.2022||-4.39%||17.37%|
|19.05.2020 - 19.05.2021||18.07%||7.45%|
|17.05.2019 - 19.05.2020||19.21%||20.47%|
Annualized performance (19.05.2022)
|Since Inception p.a.||9.86%||11.93%|
Cumulative performance (19.05.2022)
Facts & Key figures
The Bellevue Sustainable Healthcare (Lux) fund is based on the same concept as the Bellevue 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)||2.18% (29.04.2022)|
|SFDR category||Article 8|
Key data (29.04.2022, 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
Most stock markets closed the month of March in the green despite the growing uncertainty regarding monetary policy developments and geopolitical tension. In the US, the central bank started to tighten its monetary policy as expected, lifting its key lending rate by a quarter-point. Increasing signs of inflationary trends and steadily rising prices in the energy sector and commodities are have forced the central bank to finally shift course and initiate a tightening cycle. As a result fixed income suffered massive outflows, in contrast, inflows into higher-yielding real assets such as equities have been observed. Against this backdrop, the most important benchmark indices measured in USD developed as follows: The global MSCI World index ended the month with a gain of 2.7% and the MSCI World Healthcare Index showed an even better return of about 4.8%. Robust investor demand for defensive Big Pharma stocks helped to lift the overall healthcare sector. The Bellevue Sustainable Healthcare Fund delivered a return of 2.2% (USD/I shares). One reason why the fund was unable to beat its relevant benchmark during the period under review is due to the underweight in the pharma sector.
Looking at individual positions, Vertex Pharmaceuticals (+13.5%, total return in USD) was the star performer as investors bid up its shares on positive R&D announcements. The stock's steep upward trajectory was driven by the news that the company had initiated a pivotal late-stage trial of VX-147, the first investigational therapy aimed at treating patients with APOL1-mediated kidney disease, a form of chronic kidney disease caused by mutations in the APOL1 gene. Vertex also attracted buyers after announcing pleasing results from studies of VX-548, a molecule with a new pain treatment. In two Phase II proof-of-concept studies, VX-548, a non-opioid treatment for acute pain following abdominoplasty surgery or bunionectomy surgery, met the primary endpoint and was well tolerated too. The transmission of pain signals in the central nervous system are inhibited through this treatment. If the approach Vertex is taking will be also effective in Phase III studies, the active ingredient could become an alternative pain treatment without the addictive potential associated with opioids, which cause major controversy, especially in the U.S. Performance detractors were overweighted healthcare stocks from Hong Kong, which also explains the fund's underperformance versus its benchmark MSCI World Healthcare Index. These stocks were weak due to concern that China and the US will drift farther apart even faster, due to tension over the war in Ukraine and SEC warnings that some Chinese ADRs could be at risk of being delisted. Shanghai Fosun (+22.1%), a generics/specialty pharma company, bucked the general trend and made strong gains. Its shares were buoyed by the news that it had signed an agreement with the UN-backed public health organization Medicines Patent Pool to produce a generic version of a COVID-19 pill developed by Pfizer (not in the portfolio).
Bellevue'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