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
Explained in 90 seconds
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: 27.01.2023)
NAV: USD 167.72 (26.01.2023)
Rolling performance (26.01.2023)
|26.01.2022 - 26.01.2023||-0.24%||4.47%|
|26.01.2021 - 26.01.2022||-6.96%||3.98%|
|24.01.2020 - 26.01.2021||29.44%||16.87%|
|25.01.2019 - 24.01.2020||16.28%||20.49%|
Annualized performance (26.01.2023)
|Since Inception p.a.||6.63%||10.76%|
Cumulative performance (26.01.2023)
Facts & Key figures
The fund’s aim is to achieve capital growth in the long term. The Bellevue Sustainable Healthcare Fund invests in healthcare firms with strong sustainability credentials and innovative business models. Examples of sustainability in the healthcare industry are environmentally sound procurement policies for drug makers, high safety standards for medical products and services, and a commitment to ethics when conducting clinical trials. From the perspective of the patient, the early diagnosis of life-threatening diseases, personalized medicine enabling highly selective treatments and efficient treatment procedures are key sustainability indicators. A variety of high-growth themes, smart stock selection using our established investment process and the application of sustainability criteria are the fund’s tools for achieving attractive returns. The fund takes ESG factors into consideration while implementing the aforementioned investment objectives.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)||2.15% (30.12.2022)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (30.12.2022, base currency USD)
|No. of positions||40|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- Investments in the 40 most attractive healthcare stocks worldwide with due account taken of current sustainability criteria.
- Many years of recognized bottom up expertise coupled with comprehensive sustainability research from Sustainalytics.
- The sustainability filter combines a best-in-class approach with the application of a strict exclusion procedure.
- Proprietary investement process: Half-yearly company evaluation and rebalancing.
- Underweighting of pharma and US stocks against the relevant healthcare indices, and a strong focus on mid caps.
- The fund 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
Global stock markets suffered more losses during the final month of a challenging investment year. The all-share MSCI World Index retreated 4.3% in USD. Healthcare stocks as depicted by the MSCI World Healthcare Index also closed the month in the red with a negative return of 1.2% but – as seen over the entire 2022 investment year – they fared better than the overall market. The Bellevue Sustainable Healthcare (Lux) Fund also gave up some ground (-0.6%; USD / I shares) but it still beat its benchmark. Several central banks raised their interest rates to bring inflation under control. These decisions had been widely anticipated by investors with one big exception – the monetary tightening announced by the Bank of Japan. That and the general commentary regarding central bank policy action in 2023 cast a cloud over stock market sentiment and led to falling prices in both the benchmark and the fund's portfolio. The fund's relative performance was helped by the continued recovery in the fund's China holdings after the government there began to ease its zero-COVID policies. December was a month of shadows and light for Gedeon Richter (+4.8%, total return in USD), a Hungarian company in the fund’s portfolio. Together with its distribution partner Abbvie (not a portfolio holding), Gedeon Richter announced mid-month that Vraylar had been approved by the US FDA as an add-on therapy for adults with major depressive disorder, which represents a significant label extension for the drug. Unfortunately, there was also some negative news for Gedeon Richter on December 24: The Hungarian government, in an effort to plug some holes in the state budget, is imposing a windfall tax on drug producers based on net revenues in 2022 and 2023 – which Gedeon Richter will also have to pay.
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