Bellevue Asia Pacific Healthcare (Lux)

Access to defensive growth driven by increased demand for healthcare products/ DL 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

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Investment Focus

ISIN-No. LU1587984847

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: 03.12.2021)

NAV: USD 229.34 (02.12.2021)


Fonds (Brutto)
01 Jan 2010 - 01 Jan 2010
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Rolling performance (02.12.2021)

B-USDBenchmark
02.12.2020 - 02.12.2021-6.62%-10.06%
02.12.2019 - 02.12.202041.07%29.30%
02.12.2018 - 02.12.20197.61%16.68%
02.12.2017 - 02.12.20184.56%7.68%

Annualized performance (02.12.2021)

B-USDBenchmark
1 year-6.62%-10.06%
3 years12.30%10.68%
Since Inception p.a.14.10%11.92%

Cumulative performance (02.12.2021)

B-USDBenchmark
1M-3.92%-4.23%
YTD-10.85%-14.30%
1 year-6.62%-10.06%
3 years41.75%35.69%
Since Inception83.47%67.90%

Annual performance

B-USDBenchmark
202044.02%33.01%
201922.73%30.06%
2018-9.93%-4.44%

Investment Focus

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

SRRI

Low risk

High risk

The Fund’s objective is to generate an attractive return over a long-term horizon. It is therefore particularly suited to investors with an investment horizon of at least 5 years who want to diversify their portfolio with selective exposure to the healthcare sector in Asia and who are willing to accept the risks typically associated with stocks in this sector.

General Information

Investment ManagerBellevue Asset Management AG
CustodianRBC Investor Services, Luxembourg
Fund AdministratorRBC Investor Services, Luxembourg
AuditorPriceWaterhouseCoopers
Launch date28.04.2017
Year end closing30. Jun
NAV CalculationDaily "Forward Pricing"
Cut of time09:00 CET
Management Fee1.60%
Subscription Fee (max.)5.00%
Performance Fee10.00% (with High Water Mark)
ISIN numberLU1587984847
Valor number36225520
BloombergBEAAPBU LX
WKNA2DPA3
Total expense ratio (TER)2.25% (30.11.2021)

Legal Information

Legal formSICAV Luxembourg jurisdiction
SFDR categoryArticle 8
Redemption periodDaily

Key data (30.11.2021, base currency USD)

Beta0.73
Volatility16.10
Tracking error10.75
Active share57.26
Correlation0.80
Share ratio0.86
Information ratio0.14
Jensen's alpha5.00
No. of positions46

Top 10 positions

CSL
Olympus
Hoya
Shionogi
Daiichi Sankyo
Wuxi Apptec
SK Bioscience
Samsung Biologics
Jiangsu Hengrui
Dr. Reddy's Laboratories
4.9%
4.7%
4.5%
3.9%
3.8%
3.5%
3.4%
3.3%
3.2%
3.1%

Market capitalization

1 - 2 bn
2 - 5 bn
5 - 15 bn
15 - 20 bn
> 20 bn
Others
0.5%
14.7%
19.9%
10.2%
45.5%
9.3%

Geographic breakdown

China
Japan
South Korea
India
Australia
Thailand
Malaysia
Cash
36.3%
25.6%
10.3%
9.1%
8.1%
1.3%
1.1%
8.1%

Breakdown by sector

Healthcare
Others
Cash
89.0%
2.9%
8.1%

Currency

JPY
USD
HKD
INR
KRW
AUD
THB
MYR
25.6%
14.3%
12.8%
10.7%
10.3%
8.1%
1.3%
1.1%

Opportunities

  • 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.

Risks

  • 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.

Stocks as measured by the MSCI World staged a strong comeback in October after giving up some ground in September and advanced almost 6% in USD mom. Despite the continued upward pressure on prices and consequently on nominal bond yields in the wake of supply chain constraints, at the end of the day robust quarterly results announcements led to the positive market sentiment. Year to date, the MSCI World Index is now showing a remarkable 20% return. Stocks in the Asia Pacific region closed the month of October unchanged. Regional healthcare stocks were hit by profit-taking as well as profit warnings from Ping An Healthcare and Ali Health, two Chinese digital health firms. In this context, the regional healthcare sector shed about 5% of its value in USD over the past month.

Takeda reported a major setback in one of its crucial R&D programs, TAK-994, an investigational therapy for patients with narcolepsy. It had to suspend two Phase II trials of TAK-994 due to a “safety signal”. Since the safety signal was so serious that it led to the suspension of the trial, it could even bring the entire narcolepsy program to a premature end. This is the second setback in Takeda's R&D pipeline within the space of a few months and it will have a significant impact on the company's mid-term growth prospects.

Ping An Healthcare and Ali Health slashed their medium-term growth targets with the release of their latest quarterly results. Recently introduced Chinese regulations concerning data privacy, patient-related data in particular, have forced these companies to adjust their business models. Their management also said that capital expenditure to fuel future growth would be higher than expected. The announcements put the share prices of both companies under pressure.

Kyowa Kirin presented detailed data from its successful Phase II trial of KHK4083 in patients with moderate to severe atopic dermatitis. Kyowa's therapeutic option may be superior to Dupixent (Sanofi/Regeneron), the current standard of care, which generates annual sales of close to USD 4 bn.

The US pharmaceutical giant Merck demonstrated that its antiviral COVID-19 pill molnupiravir reduces the risk of hospitalization in patients with mild to moderate cases of COVID-19 by 50%. This could represent a huge business opportunity for several Indian pharmaceutical companies. Divi's Laboratories is one of Merck's API (Active Pharmaceutical Ingredient) suppliers and licensing partners in India.

Jiangsu Hengrui, Bangkok Dusit and Pro Medicus were added to the portfolio last month and existing positions in Hygeia, Aier Eye Hospital, Dr. Reddy's and Kyowa Kirin were increased. Takeda, Ping An Healthcare, Glenmark and Cansino Biologics are no longer in the portfolio. Shareholdings of Eisai and Innovent were reduced.

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

Ratings

  • Co-Lead Portfolio Manager

    Oliver Kubli

    Oliver Kubli has been Managing Director, Head Portfolio Management Healthcare Funds & Mandates since 2015. Previously, he worked as Senior Portfolio Manager at Zürcher Kantonalbank and was a member of the Executive Board and Head Portfolio Management at Adamant Biomedical Investment AG. He completed his studies in business administration at the Zurich University of Applied Sciences in Winterthur and is a CFA charterholder.
  • Co-Lead Portfolio Manager

    Remo Krauer

    Remo Krauer has been a Senior Portfolio Manager Healthcare Funds & Mandates at Bellevue Asset Management since 2018. Previously, he worked at Zürcher Kantonalbank, first as Senior Portfolio Manager, then as Head Portfolio Construction for Private Asset Management. He holds a Bachelors degree in Business Administration from the Zurich University of Applied Sciences.
  • Portfolio Manager

    Cyrill Zimmermann

    Dr. Cyrill Zimmerman is Head of Healthcare Funds & Mandates and a member of the Executive Board of Bellevue Asset Management. He founded Adamant Biomedical Investments in 2001 and managed the investment boutique until its acquisition by Bellevue in 2014. Cyrill Zimmerman holds a PhD from the University of Zurich.
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