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
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Investment Focus
ISIN-No. LU1811047593
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: 28.03.2024)
NAV: USD 174.17 (27.03.2024)
Rolling performance (27.03.2024)
B-USD | Benchmark | |
27.03.2023 - 27.03.2024 | -5.63% | n.a. |
25.03.2022 - 27.03.2023 | -8.73% | n.a. |
26.03.2021 - 25.03.2022 | -27.71% | n.a. |
27.03.2020 - 26.03.2021 | 89.38% | n.a. |
Annualized performance (27.03.2024)
B-USD | Benchmark | |
1 year | -5.63% | n.a. |
3 years | -14.58% | n.a. |
5 years | 1.18% | n.a. |
Since Inception p.a. | 5.77% | n.a. |
Cumulative performance (27.03.2024)
B-USD | Benchmark | |
1M | -0.42% | n.a. |
YTD | 0.93% | n.a. |
1 year | -5.63% | n.a. |
3 years | -37.73% | n.a. |
5 years | 6.03% | n.a. |
Since Inception | 39.34% | n.a. |
Annual performance
B-USD | Benchmark | |
2023 | -4.81% | n.a. |
2022 | -28.18% | n.a. |
2021 | -10.73% | n.a. |
2020 | 67.19% | n.a. |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term. The fund actively 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. Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | CACEIS Investor Services Bank, Luxembourg |
Fund Administrator | CACEIS Investor Services Bank, Luxembourg |
Auditor | PriceWaterhouseCoopers |
Launch date | 30.04.2018 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 1.60% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU1811047593 |
Valor number | 41450399 |
Bloomberg | BBDIGBU LX |
WKN | A2JJA7 |
Total expense ratio (TER) | 2.16% (29.02.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (29.02.2024, base currency USD)
Volatility | 32.70 |
Sharpe ratio | -0.49 |
No. of positions | 33 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Benefits & Risks
Benefits
- 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.
Risks
- The fund actively 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
February was distinguished by the positive fourth-quarter reporting season and the optimistic outlook companies gave for 2024. This underpins our forecast that many digital health companies will benefit in 2024 not only from the many new, market-expanding products with blockbuster potential, but also from all the procedures that had to be postponed during the pandemic and can be performed this year, which will clearly boost growth rates in 2024.
19 of the 33 companies in the fund's portfolio delivered a positive performance in February. The best performers in February came from top 10 portfolio positions – Natera (+31.2%), Shockwave (+15.3%), Align (+13.1%), and Veeva (+8.7%) – and from Recursion (+43.0%), a smaller position. Natera received extended reimbursement coverage from the Centers for Medicare & Medicaid Services (CMS) for its Signatera diagnostic test for ovarian cancer (in post-surgery and surveillance settings) and for breast cancer (now also in the presurgical therapy setting). The use of Natera’s test in breast cancer surveillance could reduce the number of unnecessary operations, and Signatera is gradually replacing existing prognostic approaches. What's more, its results for the fourth quarter of 2023 and management's outlook for 2024 came in well above investor expectations. Shockwave, Align and Veeva also traded higher after publishing good results. Veeva gave a more cautious sales outlook for 2024/25 but its forecast profitability was higher than expected. Recursion announced that it had developed a proprietary AI model for drug discovery on BioNeMo, a generative AI platform from Nvidia.
Insulet (-14.1%), Pacific Biosciences (-15.1%), Exact Sciences (-12.0%), Inspire (-15.1%) and Omnicell (-18.4%) led the list of decliners. Share prices of insulin pump manufacturer Insulet were marked sharply lower on investor fears that it would face increasing competition from Medtronic and Tandem Diabetes as well as from Ypsomed in Europe. The management of Pacific Biosciences mentioned a challenging capex environment that could slow the market launch of its Revio sequencer. Inspire Medical’s stock dropped on investor fears surrounding the publication of Eli Lilly's SURMOUNT-OSA trial data (key figures without details). Exact Sciences shareholders are assessing what impact a potentially competitive situation would have in the early detection of colorectal cancer in connection with Guardant Health’s blood screening test. Screening with Exact Sciences’ Cologuard has produced superior results in terms of the key metrics “life-years gained” and “number of unnecessary colonoscopies”, which is why we expect a restrictive recommendation from the U.S. Preventive Services Task Force (USPSTF). Although the recommendations of the USPSTF are not binding, they are referenced by many doctors and healthcare organizations in the US when making decisions about preventive health services. Omnicell released a good set of results but slashed its outlook for 2024. The company has initiated a strategic review of its business activities due to its persisting business difficulties. All performance data is in USD / B shares.
As the 2023 investment year has clearly shown, outstanding sector fundamentals can be overridden by macroeconomic developments and shifting investor tastes. Unlike in 2023, we are anticipating tailwinds for our investment solution in 2024: Lower interest rates in the US (which will benefit growth stocks the most), attractive valuation levels (sales multiples close to historical lows), a projected upturn in M&A and IPO activity, a general repositioning as investors drop last year's outperforming stocks and buy high-quality stocks, and the underwhelming growth outlook for the world economy (which in the past has been a relatively good setting for non-cyclical sectors such as the digital health sector). All of these factors argue for an investment in the Bellevue Digital Health (Lux) Fund.
Our investment strategy is focused on innovative market leaders and companies with solid finances. More than 95% of the companies in the portfolio have no immediate financing needs. Companies in the highly regulated and non-cyclical healthcare market also benefit from the industry’s high entry barriers. The portfolio is focused on fast-growing companies that are using digital technology to improve healthcare delivery and outcomes and make healthcare systems more cost-effective. Average sales growth for the digital health portfolio over the coming years is in the high double-digits and visibility is good.
Documents
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. Show moreShow less