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 

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Investment Focus

ISIN-No. LU1585228452

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: 20.01.2022)

NAV: USD 159.64 (19.01.2022)


Fonds (Brutto)
01 Jan 2010 - 01 Jan 2010
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Rolling performance (19.01.2022)

B-USDBenchmark
19.01.2021 - 19.01.2022-31.03%-26.65%
19.01.2020 - 19.01.202148.90%51.02%
19.01.2019 - 19.01.202015.32%7.11%
19.01.2018 - 19.01.2019-13.29%-25.53%

Annualized performance (19.01.2022)

B-USDBenchmark
1 year-31.03%-26.65%
3 years5.11%5.27%
Since Inception p.a.5.41%3.44%

Cumulative performance (19.01.2022)

B-USDBenchmark
1M-6.89%-5.36%
YTD-6.70%-6.23%
1 year-31.03%-26.65%
3 years16.16%16.68%
Since Inception27.71%16.97%

Annual performance

B-USDBenchmark
2021-22.96%-19.82%
202049.43%52.82%
201915.32%3.67%
2018-13.97%-20.89%

Investment Focus

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

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 emerging markets 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 date31.05.2017
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 numberLU1585228452
Valor number36153232
BloombergBBAEMBU LX
WKNA2DPAU
Total expense ratio (TER)2.24% (31.12.2021)

Legal Information

Legal formSICAV Luxembourg jurisdiction
SFDR categoryArticle 8
Redemption periodDaily

Key data (31.12.2021, base currency USD)

Beta0.80
Volatility19.70
Tracking error9.44
Active share64.20
Correlation0.91
Share ratio0.55
Information ratio0.05
Jensen's alpha2.64
No. of positions47

Opportunities

  • 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.

Risks

  • 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.

Global equity markets quickly bounced back from their minor correction at the end of November. Data indicating that Omicron causes much less severe illness than the Delta variant breathed a sigh of relief into the stock market and led prices higher. Rising US bond yields were unable to cast a shadow over the positive sentiment either. The MSCI World index ended the month with a pleasing return of 4.3%, which lifted its full-year performance to more than 22% in USD. This marked the index's third consecutive positive annual return, after 2019 and 2020. Emerging market stocks were not quite as strong in December (+1.9%). Health stocks were sold off because of – ultimately false – rumors that some Chinese biotech companies would be blacklisted by the US and they lost about 6% of their value mom.

Several of China's largest healthcare companies experienced heavy selling on speculation that they would be included on President Biden’s blacklist. After a corresponding report in the Financial Times, investors and traders feared that Chinese biotechs would be targeted by new US sanctions. That turned out to be mere speculation. The updated list of companies sanctioned by the US did not include any Chinese healthcare stocks. We therefore believe the sell-off was an overreaction and that the fundamentals of the companies affected are the same as before.

Legend Biotech published impressive, updated data for its cell therapy for multiple myeloma at the annual gathering of the American Society of Hematology (ASH). The clinical trial data showed a stunning 98% overall response rate. The first patients enrolled in the trial were treated about 22 months ago. More than 60% of those patients were still progression-free and 74% were still alive, which is without precedent in this indication. The data is even more exciting considering that all the trial participants were diagnosed with late-stage cancer prior to treatment, and they had not responded to various other kinds of treatment. FDA approval is expected in late February.

The merger between Hapvida and Notre Dame, two Brazilian managed-care companies, was given the green light by authorities. This regulatory decision had been awaited for a long-time, which explains the relatively weak performance of these two stocks during recent months. They should now get some support from the positive news.

New positions were opened in Gland Pharma, JD Health and SK Biopharmaceuticals last month and existing positions in Notre Dame and Legend Biotech were increased. Rede D’Or, Top Glove, Akeso and Remegen are no longer in the portfolio and existing positions in Osstem, Wuxi Apptec, Jiangsu Hengrui and Jinxin Fertility were trimmed.

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

Ratings

  • 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.
  • 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.
  • 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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