Bellevue Digital Health (Lux)
Portfolio consisting of high-quality growth stocks showing double-digit revenue growth
Regulation and stringent quality requirements limit the technological risk
Demographic changes and an aging general population demand greater efficiency and cost-effectiveness
Explained in 90 seconds
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The fund invests globally at least two-thirds of the portfolio in companies whose business activities have a strong focus on the digitalization of the healthcare sector. A global network of experts spanning scientific and industrial fields support the Management Team in forming opinions. The selection of portfolio companies is bottom-up.
Indexed performance (as at: 31.05.2023)
NAV: USD 187.71 (26.05.2023)
Rolling performance (26.05.2023)
|25.05.2022 - 26.05.2023||23.14%||n.a.|
|26.05.2021 - 25.05.2022||-45.15%||n.a.|
|26.05.2020 - 26.05.2021||50.53%||n.a.|
|24.05.2019 - 26.05.2020||16.72%||n.a.|
Annualized performance (26.05.2023)
|Since Inception p.a.||8.34%||n.a.|
Cumulative performance (26.05.2023)
Facts & Key figures
The fund’s aim is to achieve capital growth in the long term. The fund invests globally at least two-thirds of the portfolio in companies whose business activities have a strong focus on the digitalization of the healthcare sector. A global network of experts spanning scientific and industrial fields support the Management Team in forming opinions. The selection of portfolio companies is bottom-up. 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)||2.16% (30.04.2023)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (30.04.2023, base currency USD)
|No. of positions||39|
Top 10 positions
Opportunities & Risks
- Demographic changes and an aging general population demand greater efficiency and cost-effectiveness.
- New technologies conquer the healthcare sector.
- Portfolio consisting of high-quality growth stocks showing double-digit revenue growth.
- Regulation and stringent quality requirements limit the technological risk.
- Bellevue – Healthcare pioneer since 1993 and today one of the biggest independent investors in the sector in Europe.
- The fund invests in equities. Equities are subject to price fluctuations and so are also exposed to the risk of price losses.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- 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.
- Equities linked to technology and/or digitization can be subject to higher-than-average fluctuations in value.
- The fund may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.
Review / Outlook
16 of the 38 companies in the fund's portfolio made a positive contribution to performance. The core portfolio positions Shockwave Medical (+33.8%), Intuitive Surgical (+17.9%) and Inspire Medical (+14.3%) made the best contributions to portfolio performance. Rumors that Boston Scientific would issue a public takeover bid for Shockwave Medical (+30.7%) propelled the latter’s stock to higher ground. Shockwave is a developer of intravascular lithotripsy technology (IVL) used to treat patients with calcified peripheral and coronary blood vessels. Intuitive Surgical's first-quarter sales and profits were much better than expected thanks to the strong recovery in procedure volume. Its management now expects procedure volume to grow by 18%-21% (previously 12%-16%) and has increased its full-year sales and profit guidance for 2023. Inspire Medical, Procept BioRobotics (+7.0%), Ambu (+5.8%), Axonics (+5.3%) and TransMedics (+4.5%) also benefited from a recovery in procedure volumes.
Performance detractors were Pacific Biosciences (-8.5%), 10X Genomics (-6.0%) and Veeva Systems (-2.6%), which saw some profit-taking after its strong performance in the preceding month. Decliners also included Illumina (-11.6%), Natera (-8.6%), Exact Sciences (-5.5%), Align (-2.6%) and Phreesia (-2.0%). In its first-quarter announcement, Illumina reported that its next-generation NovaSeq X gene sequencer had a good market uptake, beating investor expectations, but overall system utilization had declined, which is why management guidance for the full year was not raised. The pending divestment of Grail and pressure from activist investor Carl Icahn are additional factors of uncertainty but could also be triggers for a big jump in the stock price. All performance data is in USD / B shares.
The portfolio contains fast-growing, disruptive companies that are applying digital technology to improve healthcare delivery and outcomes while making healthcare more cost-effective. In addition, the companies in the Digital Health Fund's portfolio are expected to generate high double-digit sales growth rates over the coming years and visibility is good.
The growing acceptance of digital solutions in the wake of the pandemic has pushed up the potential growth trajectory of the digital health investment case. We also expect M&A activity to pick up significantly. Venture Capital (VC) investors in the US have invested about USD 103 bn in 4500 digital health VC transactions since 2011, so we expect a steady stream of attractive IPOs in the coming years – another reason, and an important one, for investing in this sector.
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 1000 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