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: 27.01.2022)
NAV: USD 168.13 (26.01.2022)
Rolling performance (26.01.2022)
|26.01.2021 - 26.01.2022||-6.96%||3.98%|
|26.01.2020 - 26.01.2021||29.44%||16.87%|
|26.01.2019 - 26.01.2020||17.00%||20.70%|
Annualized performance (26.01.2022)
|Since Inception p.a.||8.63%||12.59%|
Cumulative performance (26.01.2022)
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)||1.50% (31.12.2021)|
|SFDR category||Article 8|
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
Global stocks in December recovered from their setback in November. The market advance was fueled by the perception that Omicron infections caused much less serious illness than Delta infections. Persisting worries that interest rates would move higher and monetary policy would be tightened more quickly than expected had little impact on the upbeat market sentiment last month. Against this backdrop the broad MSCI World Index advanced 4.4% (in USD, total return). Thanks to steady demand for large cap pharma stocks, the MSCI World Healthcare Index showed an even strong gain of 7.7%. The Bellevue Sustainable Healthcare Fund returned 2.9% (USD / I shares). Big Pharma is underweighted in the fund's portfolio, which explains why the fund was unable to keep up with its benchmark last month.
Looking at individual positions in the fund's portfolio, the biggest positive performance contribution to the monthly performance was made by Edwards Lifesciences (+21.8% in USD, total return), which is committed to technologies for the treatment of structural heart diseases. The management of the US medtech company recently predicted on the annual investors day that the global market volume of the 4 product categories will double to almost 20 billion USD by 2028. In addition, statements on the 2022 outlook and the attractive product pipeline were cheered by investors. Halozyme Therapeutics (+22.6%) attracted buyers after announcing a share buyback program. Its shares were also buoyed by news that the FDA had approved efgartigimod, the first and only FcRN antagonist for adults with generalized myasthenia gravis (gMG) developed by Halozyme's business partner Argenx. Although Halozyme does not earn any direct revenues from the recently approved intravenously administered product, this regulatory approval increases the chances that the subcutaneous formulation of efgartigimod in Argenx’s pipeline will also be approved and then Halozyme could earn royalties on those sales. The US biotech company Vertex Pharmaceuticals (+19.0%) made headlines when it published surprisingly positive results from a Phase II study of VX-147 in APOL1-mediated focal segmental glomerulosclerosis (FSGS), the first investigational treatment targeting the underlying cause of this genetic disease. FSGS is a rare form of kidney disease adolescence and adults with increased protein excretion in the urine. China Traditional Chinese Medicine Holdings (+22.3%) attracted a lot of investor attention after Chinese authorities released new regulations with industry-friendly overtones. Developments in traditional Chinese medicine will be supported by the new regulatory framework and TCM products and services will be covered by the country’s national medical insurance system.
The biggest losers during the period under review were Wuxi Apptec (-25.6%), Shanghai Fosun (-18.6%) and Wuxi Biologics (-15.3%). Investors dumped these shares after the Financial Times published an article claiming that Chinese biotech companies could soon be sanctioned by the US government. That turned out to be nothing more than a rumor because the updated US sanctions list did not include any Chinese healthcare stocks. The sell-off was an overreaction in our opinion and the fundamental prospects of these companies have not changed.
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