Bellevue Emerging Markets Healthcare (Lux)
Increased demand for healthcare products/ DL due to rising share of the middle class
Above-average increase in healthcare spending in the Emerging Markets
Complementary building block for a diversified Emerging Markets portfolio
Please find a more detailed description of share classes here.
This fund invests in the entire emerging-market healthcare universe. 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 136.59 (22.06.2022)
Rolling performance (22.06.2022)
|22.06.2021 - 22.06.2022||-42.55%||-43.38%|
|22.06.2020 - 22.06.2021||24.51%||31.88%|
|21.06.2019 - 22.06.2020||44.60%||32.52%|
|22.06.2018 - 21.06.2019||-15.88%||-26.02%|
Annualized performance (22.06.2022)
|Since Inception p.a.||1.77%||-1.24%|
Cumulative performance (22.06.2022)
Facts & Key figures
This fund invests in the entire emerging-market healthcare universe. 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)||2.26% (31.05.2022)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (31.05.2022, base currency USD)
|No. of positions||37|
Opportunities & Risks
- Access to defensive growth – emerging countries are facing aging populations and changing lifestyles.
- Development of healthcare infrastructure combined with a growing middle class is an additional growth driver.
- High growth potential of emerging markets.
- 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.
- 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.
- Investments in foreign currencies are subject to currency risks.
- 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 but 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. Emerging market stocks also gained some ground in May, but the regional healthcare sector shed about 3.4% of its value in USD.
After an almost two-month lockdown, Shanghai is finally reopening. 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.
The Brazilian pharmaceutical company Hypera announced it had reached an agreement to pay BRL 110.9 mn to settle an investigation into illegal payments made by former executives. The fine will be paid by Hypera's majority shareholder, Joăo Alves de Queiroz Filho. As part of the settlement, Hypera will also be closely monitored by public auditors for 18 months. We assume that the agreement, which was almost six years in the making, is better than generally expected.
Ovctek, Bangkok Dusit and JD Health were added to the fund’s portfolio last month and existing positions in Aier Eye, Hygeia and Beigene were increased. Apollo Hospitals, Metropolis and Gland Pharma are no longer in the portfolio, while positions in Sun Pharma and Innovent were reduced.
The fastest growing countries in the world can be found in emerging markets and they contain more than half of the world's population. Asian emerging markets are also forecast to account for more than 50% of global GDP by 2050. It is known that the economic growth model of countries shifts from manufacturing to the services sector as household incomes rise. 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.
Outside Asia, Brazil’s rapidly expanding private-sector healthcare market offers a range of interesting investment opportunities. The quality and long waiting times of the country’s public health system are no longer acceptable to many higher-income Brazilian households and they are increasingly embracing these new services offered by private-sector healthcare providers. Hospital chains embedded in a fully-integrated ecosystem are but one example of the beneficiaries of this structural change. The fund serves as a defensive vehicle for capturing the above-average growth potential emerging markets offer. It invests in the entire healthcare system value chain, from hospital chains, drug developers and device manufacturers to medical research specialists and digital health companies.
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