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.
Investment Focus
ISIN-No. LU1819585370
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: 24.06.2022)
NAV: USD 153.07 (22.06.2022)
Rolling performance (22.06.2022)
I-USD | Benchmark | |
22.06.2021 - 22.06.2022 | -22.26% | -4.57% |
22.06.2020 - 22.06.2021 | 29.18% | 21.68% |
21.06.2019 - 22.06.2020 | 22.64% | 14.01% |
Annualized performance (22.06.2022)
I-USD | Benchmark | |
1 year | -22.26% | -4.57% |
3 years | 7.18% | 9.78% |
Since Inception p.a. | 5.22% | 10.24% |
Cumulative performance (22.06.2022)
I-USD | Benchmark | |
1M | -4.28% | -4.21% |
YTD | -19.05% | -13.13% |
1 year | -22.26% | -4.57% |
3 years | 23.18% | 32.38% |
Since Inception | 22.46% | 47.44% |
Annual performance
I-USD | Benchmark | |
2021 | 6.70% | 20.15% |
2020 | 29.23% | 13.52% |
2019 | 24.51% | 23.24% |
Facts & Key figures
Investment Focus
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, Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | RBC Investor Services, Luxembourg |
Fund Administrator | RBC Investor Services, Luxembourg |
Auditor | PriceWaterhouseCoopers |
Launch date | 29.06.2018 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 0.90% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU1819585370 |
Valor number | 41666672 |
Bloomberg | BBSHCIU LX |
WKN | A2JMRD |
Total expense ratio (TER) | 2.18% (31.05.2022) |
Legal Information
SFDR category | Article 8 |
Redemption period | Daily |
Key data (31.05.2022, base currency USD)
Beta | 0.74 |
Volatility | 16.80 |
Tracking error | 11.60 |
Active share | 79.66 |
Correlation | 0.78 |
Sharpe ratio | 0.64 |
Information ratio | -0.42 |
Jensen's alpha | -1.33 |
No. of positions | 40 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Breakdown by sector
Opportunities & Risks
Opportunities
- 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.
Risks
- 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
Volatility in financial markets remained very high during the first half of May and led to heavy losses along a broad front. Global trading activity was driven by the prospect of a rapid increase in the Fed's overnight lending rate, heightening the risk of recession. Around the middle of the month onward, various developments helped to shore up investor sentiment. Stock prices rebounded on news of Chinese central bank intervention to support the country’s slowing economy. Chinese authorities began to relax some of the restrictions that had been imposed on millions of people in several large Chinese cities, which also gave stocks a boost. These market advances reflected investor hopes that the supply chain bottlenecks that have impacted companies around the world would start to ease.
Against this backdrop, the all-share MSCI World Index edged 0.1% higher (in USD). The healthcare sector as depicted by the MSCI World Healthcare Index closed the month with a positive return of 0.5%. The Bellevue Sustainable Healthcare Fund ended the month with a slightly negative return of 0.6% (USD, I shares). Looking at individual portfolio positions, Halozyme Therapeutics (total return +15.2% in USD), which specializes in the use of recombinant human hyaluronidase for subcutaneous drug delivery of biologics, made a positive contribution to the fund's performance during the period under review. The US biotech company published quarterly figures that were in line with market expectations and reiterated its outlook for the full year. Sales royalties, which account for the bulk of the company’s total sales, were driven by strong demand for Darzalex Faspro (subcutaneous formulation of a medicine created by Genmab, used to treat patients with multiple myeloma) and demand is expected to continue to grow in the foreseeable future. Performance detractors included Neurocrine Biosciences (-11.6%), whose spot in the portfolio was replaced by a more suitable company on the rebalancing date (May 6, 2022). The neuroscience biotech specialist presented a good set of Q1 results, but management left its guidance for 2022 unchanged, which disappointed the shareholders.
The Bellevue Sustainable Healthcare Fund's portfolio was rebalanced in May, for the eighth time since it was launched. Eleven of the 40 stocks in the portfolio were replaced, which is within the historical range of 6 to 14. The rebalanced portfolio is again characterized by a well-balanced country diversification and exposure to a broad range of subsectors, and it maintains a clearly distinct profile compared to its benchmark, the MSCI World Healthcare Index. The aggregate portfolio characteristics are attractive – especially when compared to the broader market. A PEG ratio of 1.1, average estimated sales growth of 12.9% and an EBITDA margin of about 28.5% represent a sturdy foundation for the fund’s future performance.
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. Show moreShow less
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