Explained in 90 seconds
Healthcare systems will benefit from the huge pools of data that have been built up over decades
GenAI will be a relevant driver of shareholder value
Sweet spot: Well-capitalized companies with strong AI capabilities
Indexed performance (as at: 08.10.2024)
NAV: USD 147.65 (07.10.2024)
Cumulative performance (08.10.2024)
I2-USD | Benchmark | |
1M | -2.64% | -2.53% |
YTD | 14.02% | 11.96% |
1 year | n.a. | n.a. |
Since Inception | 18.12% | 16.92% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term. The Bellevue AI Health Fund is a global equity fund with an actively managed portfolio of 50 to 70 stocks, mostly from the healthcare sector, rounded out with a small number of tech companies that have considerable exposure to the healthcare industry. Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | CACEIS BANK, LUXEMBOURG BRANCH |
Fund Administrator | CACEIS BANK, LUXEMBOURG BRANCH |
Auditor | PriceWaterhouseCoopers |
Launch date | 30.11.2023 |
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 | LU2721086507 |
Valor number | 130852207 |
Bloomberg | BAIHI2U LX |
WKN | A3E1ZX |
Total expense ratio (TER) | 1.46% (30.09.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Portfolio
Top 10 positions
Geographic breakdown
Benefits & Risks
Benefits
- GenAI is speeding up the process of digitization and automation across the healthcare system.
- GenAI can enhance patient care, simplify processes and procedures, and lead to better decisions.
- Companies that use or provide GenAI tools for healthcare-relevant purposes will gain a sustainable competitive advantage.
- Shareholder value creation will largely be determined by a company’s AI strategy and its execution.
- Bellevue – a pioneer in healthcare investing since 1993 and now one of the largest independent investors in the healthcare space in Europe.
Risks
- The fund actively invests in equities. Stocks are subject to price fluctuations, so there is a risk of falling prices.
- The investments the fund makes may be denominated in foreign currency, which can entail a foreign-exchange risk relative to the fund's base currency.
- The fund may invest some of its assets in financial instruments that may have relatively low levels of liquidity under certain circumstances, which may then affect the liquidity of the fund’s own shares.
- There are additional risks in the form of political and social unrest when investing in emerging markets.
- The fund may use derivatives. Derivatives offer greater upside potential yet also carry greater downside risk.
Review / Outlook
This fueled a wave of buying on stock markets worldwide, leading to gains on major large-cap indexes such as the MSCI World (+1.8%) and the S&P 500 (+2.1%). The Nasdaq 100 (+2.6%) also advanced, closing the month slightly ahead of the total market.
Against this backdrop, the broad MSCI World Healthcare Index (-3.0%) underperformed the total market, as could be expected in such a setting. The Bellevue AI Health Fund (-3.2%) also closed lower, more or less in line with its benchmark.
The fund's exposure to BioPharma stocks (57.1% weighting at the end of month) was mainly responsible for the weak performance given the defensive nature of this segment, which had a negative impact of -3.4% and -0.4%, respectively, on the fund's absolute and relative performance. Novo Nordisk (-15.3%), Regeneron (-11.3%), AstraZeneca (-10.8%) and Eli Lilly (-7.7%) alone contributed a negative 2.3% to absolute performance. Novo Nordisk’s shares came under additional selling pressure after the company presented data from its Phase IIa trial of monlunabant in patients with obesity. After 16 weeks of treatment with the oral weight loss drug, patients had lost 6.4% of their baseline weight, which is less than the average 9.3% weight loss achieved by Eli Lilly's orforglipron. Investors were also worried that demand for weight-loss medication could weaken, which we think is unfounded.
Medtech stocks (25.8%) contributed 0.5% to the fund’s absolute performance and 0.2% to its relative performance. QuantumPharm (+45.4%), Insulet (+14.8%), GE Healthcare (+10.6%), Danaher (+3.3%) and Boston Scientific (+2.5%) made positive contributions to absolute and relative performance. Shares of fast-growing companies such as QuantumPharm, Insulet and Boston Scientific gained on the news of the Fed's rate cut. QuantumPharm, a company specializing in drug R&D solutions leveraging AI and robotic automation, GE Healthcare, which specializes in AI-powered imaging diagnostics, and Danaher received an additional boost when the Chinese government announced a fiscal stimulus package.
Healthcare services (11.9%) showed a slightly negative contribution of -0.2% to absolute performance and a neutral contribution to relative performance. While McKesson (-11.9%), Elevance (-6.3%) and UnitedHealth (-0.6%) weighed on performance, HCA Healthcare (+2.9%) made a positive contribution. It appears that surgical procedure volumes at hospitals and ambulatory surgery centers increased considerably in the third quarter, which is likely to have a negative impact on the US health insurers UnitedHealth and Elevance and a positive impact on the HCA Healthcare, the largest hospital chain in the US.
The fund's tech exposure (4.6%), which includes tech companies from both the healthcare and information technology industries, contributed 0.2% to both absolute and relative performance. Oracle (+20.6%), Microsoft (+3.2%) and Waystar (+2.5%) made positive contributions to absolute and relative performance, while Veeva Systems (-3.0%) was a performance detractor. Oracle reported an impressive jump in sales growth and a big order backlog that pleased investors.
All performance data in USD / B shares.
Already today medications are being developed more quickly and with better rates of success, for example, new diagnostic and treatment methods are producing better clinical outcomes, and GenAI is helping medical professionals make better and more informed decisions. We focus on healthcare companies that have made GenAI a core element of their business strategy and that are investing substantial resources in this technology to gain a lasting competitive advantage and achieve superior value growth. The technology risk here is more calculable than in other industries because healthcare is such a heavily regulated industry.
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