Bellevue Asia Pacific Healthcare (Lux)
Access to defensive growth driven by increased demand for healthcare products and services due to rising share of the middle class
Asian Healthcare market is growing twice as fast as corresponding GDP
Above-average performance - complementary building block for an Asia investor
Please find a more detailed description of share classes here.
This fund invests in healthcare stocks throughout the Asia-Pacific region. Its investment universe consists of generics producers, pharma and biotech companies, medical technology and services firms. Experienced sector specialists focus on profitable companies that have a well-established product portfolio. Investments are made based on fundamental research analysis.
Indexed performance (as at: 24.06.2022)
NAV: USD 167.61 (22.06.2022)
Rolling performance (22.06.2022)
|22.06.2021 - 22.06.2022||-39.28%||-33.99%|
|22.06.2020 - 22.06.2021||20.89%||15.41%|
|21.06.2019 - 22.06.2020||47.81%||37.35%|
|22.06.2018 - 21.06.2019||-12.92%||-9.25%|
Annualized performance (22.06.2022)
|Since Inception p.a.||5.86%||4.83%|
Cumulative performance (22.06.2022)
Facts & Key figures
This fund invests in healthcare stocks throughout the Asia-Pacific region. Its investment universe consists of generics producers, pharma and biotech companies, medical technology and services firms. Experienced sector specialists focus on profitable companies that have a well-established product portfolio. Investments are made based on fundamental research analysis. Stock selection is exclusively bottom-up, independent of benchmark weightings.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||09:00 CET|
|Subscription Fee (max.)||5.00%|
|Performance Fee||10.00% (with High Water Mark)|
|Total expense ratio (TER)||2.22% (31.05.2022)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (31.05.2022, base currency USD)
|No. of positions||39|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- Access to defensive growth – Asia’s emerging countries are facing aging populations and changing lifestyles.
- An interesting combination of investments in Asian emerging markets and Japanese cutting-edge technology.
- Broad spread across different sectors and company sizes in the Asia-Pacific healthcare industry.
- Attractive valuations compared with the projected medium to long-term growth.
- BB Adamant Team – top-performing pioneer in the management of healthcare portfolios in emerging markets.
- The fund invests in equities. Equities are subject to price fluctuations and so are also exposed to the risk of price losses.
- Investing in emerging markets entails the additional risk of political and social instability.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- There is a higher counterparty risk due to regulatory changes, volume caps or operational restrictions when investing in Chinese A equities.
- 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.
Review / Outlook
Volatility remained high in May. Rising costs in the wake of supply chain constraints and deglobalization trends on the one hand and worries that the US economy is slipping into a recession on the other were mainly to blame for the heightened uncertainty. Central bankers face the daunting task of taming inflation by tightening their monetary policy without choking the economy. Company results for the first quarter were generally much better than consensus had expected, which was pleasing to see, but, not surprisingly, management boards were more cautious regarding their guidance for the full year than they were earlier in the year. Besides the higher input costs, companies are struggling with a tight labor market, especially in the US, and wage costs are rising as a result. The MSCI World Index closed the month 0.2% higher in USD. Asia-Pacific stocks performed better and returned about 1.3%. Regional healthcare stocks were likewise 0.2% higher mom.
After an almost two-month lockdown, Shanghai is opening up again. Authorities announced that the hard lockdown would end on June 1 and that the restrictions would be eased in stages. Bus and subway lines are operating again, and even supermarkets have reopened. The reopening will proceed in stages through the month of June, after which all restrictions should have been lifted.
Aier Eye Hospital, China's leading ophthalmology hospital group, reported very solid annual results. Revenues were up nearly 26% and net profit almost 35%, despite the difficult market environment. The company also reported good first-quarter profit growth of just over 26%, despite the resurgence of COVID-19 cases in China and the resulting lockdowns in several cities. The fastest top-line growth was in the optometric services and refractive surgery units, while the cataract surgery and eye disease businesses continued to show a steady recovery.
Olympus, the world's leading manufacturer of endoscopes, published excellent quarterly results and increased its guidance for the full year. Although Olympus mentioned some difficulties securing chips for its endoscope solutions, the company expects record sales and operating profits for the fiscal year ending March 2023. This indicates that its latest product launches have been successful and that its ongoing multi-year restructuring program is delivering the intended effects sooner than expected.
JD Health and Dr. Reddy's were added to the portfolio during the past month and shareholdings of Olympus, Terumo and Daiichi Sankyo were increased. Metropolis, Apollo Hospitals, Tigermed and Pharmaron are no longer in the portfolio and the fund's positions in Sun Pharma and M3 were trimmed.
Asia is the most dynamic growth region in the world and it accounts for more than half of the world's population. Asian emerging markets are forecast to account for more than 50% of global GDP by 2050. As household incomes rise, the economic growth model of Asian countries will shift from manufacturing to the services sector. A growing middle class fuels demand for modern medicine. Healthcare ranks increasingly high on their wish list. Billions are being invested in infrastructure, technology and research to modernize the healthcare systems in emerging market countries. This is giving a greater swath of the population access to better healthcare. Meanwhile rapid population aging is also stoking demand for healthcare. In 30 years’ time there will be 400 to 500 million people over 60 in China alone, and they will have a growing need for modern health services and medicines.
Japan, which has been referred to as “the world's demographic laboratory”, has championed cutting-edge innovation for decades. The Land of the Rising Sun boasts technology leadership in numerous fields, ranging from therapeutic antibody technology, immunotherapy and robotics to digitalization, diagnostics and medical imaging systems.
The fund offers defensive access to Asian emerging markets as well as exciting investment opportunities in technology leaders throughout the entire region. It invests in the entire healthcare system value chain, from generic drug producers and biotechnology companies to medical device manufacturers and digital health specialists.
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