Bellevue Healthcare Strategy (Lux)
Investments in the 40 most attractive healthcare stocks worldwide, regionally diversified and across sub sectors
Profiting from pent-up demand in Emerging Markets as well as from innovation in industrialized countries
Strong focus on quality mid caps and underweight in pharma stocks
Explained in 90 seconds
Please find a more detailed description of share classes here.
The Bellevue Healthcare Strategy Fund invests in global healthcare companies with innovative business models. Its investment universe consists of biotechnology and pharma companies, medical technology and services companies as well as generics producers that are involved in the development, manufacturing or sale of products and services.
Indexed performance (as at: 22.03.2023)
NAV: USD 223.12 (13.03.2023)
Rolling performance (13.03.2023)
|11.03.2022 - 13.03.2023||-8.62%||-1.59%|
|12.03.2021 - 11.03.2022||-2.68%||9.32%|
|13.03.2020 - 12.03.2021||42.14%||29.56%|
|13.03.2019 - 13.03.2020||-2.90%||-0.83%|
Annualized performance (13.03.2023)
|Since Inception p.a.||9.53%||10.27%|
Cumulative performance (13.03.2023)
Facts & Key figures
The fund’s aim is to achieve capital growth in the long term. The Bellevue Healthcare Strategy Fund invests in global healthcare companies with innovative business models. Its investment universe consists of biotechnology and pharma companies, medical technology and services companies as well as generics producers that are involved in the development, manufacturing or sale of products and services. Experienced sector specialists focus on profitable companies that have a well-established product portfolio. The fund invests top down in the four regions North America, Western Europe, Emerging Markets and Japan/Oceania. For each of these regions, the most attractive companies are determined based on quantitative and qualitative criteria. The fund seeks to outperform the MSCI World Healthcare Index. 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)||2.17% (28.02.2023)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (28.02.2023, base currency USD)
|No. of positions||40|
Opportunities & Risks
- Investments in the 40 most attractive healthcare stocks worldwide.
- Proprietary investment process: Half-yearly company evaluation and rebalancing.
- Underweighting of pharma and US stocks against the relevant healthcare indices.
- Strong focus on quality mid-caps.
- 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 strong price fluctuations and so are also exposed to the risk of price losses.
- 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.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- Investing in Emerging Markets entails the additional risk of political and social instability.
- The fund may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.
Review / Outlook
Global stock markets came under selling pressure again during the final month of a challenging (investment) year. The broad MSCI World stock index tumbled 7.2% (in CHF) over the month. The healthcare sector was not as weak, which also applies to its full-year relative performance, but the MSCI World Health Care Index still shed considerable ground in December (-4.3%). The Bellevue Healthcare Strategy Fund (Lux) beat its benchmark but gave up ground too (-3.1%, I shares).
Several central banks raised their interest rates to try to bring inflation under control, moves which had been broadly anticipated, but the monetary tightening in Japan stood out as the big exception – and the general commentary regarding further central bank action in 2023 likewise cast a cloud over sentiment in the stock market. That was mainly to blame for the widespread selling pressure both in the benchmark and in the fund's portfolio. Relative performance was helped by a slight recovery in the portfolio's China holdings after the country began to ease its zero-COVID policies. Already in November the portfolio holding Horizon Therapeutics (+10%) reported that it was in negotiations with several potential buyers. The outcome of those negotiations is now known: Amgen announced on December 12 that it had reached an agreement to acquire Horizon for USD 27 bn. We closed the position in Horizon later in the month and then opened a new position in Intuitive Surgical. December was a month of shadows and light for Gedeon Richter (+1.6%), a Hungarian company in the fund’s portfolio: together with its distribution partner Abbvie, Gedeon Richter announced on December 17 that Vraylar had been approved by the US FDA as an adjunctive treatment for major depressive disorder. Unfortunately, there was also some negative news on December 24: The Hungarian government, in an effort to plug some holes in the state budget, is imposing a windfall tax on drug producers based on net revenues in 2022 and 2023 – which Gedeon Richter will also have to pay.
The investment process for the Bellevue Healthcare Strategy Fund resembles the rules-based investment process that Bellevue has successfully applied since 2007. In this approach, the 40 most attractive stocks in the healthcare sector worldwide are selected every six months. The Bellevue Healthcare team screens about 600 of the 4000 listed companies in the healthcare sector worldwide based on four quantitative criteria (PEG valuation, price/sales, sales growth and EBITDA/sales) and four qualitative criteria (assessing the company's management, product pipeline, operating risks and country-related risks). The ten most promising stocks from four different regions – Western Europe, North America, Japan/Australia and emerging markets – are selected. The maximum weighting of the region with the highest overall score, which is usually North America, is capped at 35% during the periodic rebalancing, which increases the emphasis given to emerging markets. Companies with rich valuations and low growth rates will rarely be selected for the portfolio. Mid cap stocks have typically represented 60-80% and the Asia region approximately one-third of the portfolio. Pharmaceutical stocks are clearly underweighted compared to the MSCI World Healthcare Index. Bellevue has applied this investment approach since April of 2007 and it is used to compile the Adamant Global Healthcare Index.
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