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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Investment Focus
ISIN-No. LU2275403207
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: 17.05.2024)
NAV: USD 81.52 (16.05.2024)
Rolling performance (16.05.2024)
U2-USD | Benchmark | |
16.05.2023 - 16.05.2024 | -7.50% | n.a. |
16.05.2022 - 16.05.2023 | 30.04% | n.a. |
14.05.2021 - 16.05.2022 | -41.83% | n.a. |
Annualized performance (16.05.2024)
U2-USD | Benchmark | |
1 year | -7.50% | n.a. |
3 years | -11.19% | n.a. |
Since Inception p.a. | -11.90% | n.a. |
Cumulative performance (16.05.2024)
U2-USD | Benchmark | |
1M | 6.88% | n.a. |
YTD | 3.31% | n.a. |
1 year | -7.50% | n.a. |
3 years | -30.03% | n.a. |
Since Inception | -34.78% | n.a. |
Annual performance
U2-USD | Benchmark | |
2023 | -3.72% | n.a. |
2022 | -27.36% | n.a. |
2021 | -9.74% | 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 | 0.70% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU2275403207 |
Valor number | 58918496 |
Bloomberg | BBDHU2U LX |
WKN | A2QK35 |
Total expense ratio (TER) | 1.05% (30.04.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (30.04.2024, base currency USD)
Volatility | 32.10 |
Sharpe ratio | -0.56 |
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
Nine of the 33 stocks in the portfolio made a positive contribution to performance in April. The core positions TransMedics (+27.3%) and Procept BioRobotics (+7.2%) made the best contributions to portfolio performance. Investors are very optimistic that these two companies will publish excellent first-quarter results in the coming month of May, which explains their strong gains. Inspire Medical (+12.5%) got a boost after Eli Lilly published data from its SURMOUNT-OSA trial. While that data did show a significant improvement in sleep apnea severity, investors do not expect the drug to have a significantly negative impact on the market potential of Inspire Medical’s product or on the company’s financial results. Positive performance contributions were also made by Insulet (+0.3%), Shockwave (+1.4%), Natera (+1.6%), GN Store Nord (+3.0%) and Outset Medical (+14.0%).
Rumors that Shockwave was a takeover target were confirmed in the month under review when Johnson & Johnson launched a public takeover bid for Shockwave. After Boston Scientific’s acquisition of Axonics in January, this latest deal already marks the second acquisition of a company in the Digital Health portfolio this year and confirms our stance that acquisition activity is likely to gain momentum in 2024.
The fund's performance in April was negatively impacted by the core portfolio positions Intuitive Surgical (-7.1%), Dexcom (-8.2%), Penumbra (-12.0%), Align Technology (-13.9%), Exact Sciences (-14.1%) and Veeva (-14.3%) as well as by several smaller positions such as 10X Genomics (-22.0%) and Accolade (-27.2%). Investors showed very strong reactions to company news. Some stocks experienced profit-taking after publishing very good first-quarter earnings (e.g. Intuitive Surgical); others were marked down on even the slightest indication of uncertainty about consumer sentiment in the US (e.g. Align) or after announcing an unexpected change in management (e.g. Veeva) or giving a guarded full-year outlook (e.g. Accolade) or publishing quarterly results that did not beat expectations by a big enough margin (e.g. Dexcom). There were also disappointing first-quarter results (e.g. 10X Genomics). Pacific Biosciences (-56.0%) belonged to this category, which announced disappointing sales of its flagship gene sequencer Revio. This can be partly attributed to industry factors such as more cautious investment spending at biopharma companies and budget cuts at the National Institutes of Health (NIH, a US medical research agency). Due to the unpredictable market situation and the company’s high burn rate, we completely exited our position in Pacific Biosciences. All performance data is in USD / B shares.
In their discussions with investors, the executives of many companies made positive remarks about business in the first quarter and for 2024 as a whole. The approval and subsequent launch of relevant new products will continue to bolster sales growth, too. Examples here are Inspire Medical's new Inspire 5 device for obstructive sleep apnea, Dexcom's Stelo and G7 blood glucose sensors, Intuitive Surgical's new da Vinci 5 surgical robot, and Insulet's Omnipod 5 patch pump.
As witnessed during the last two years, even outstanding sector-specific fundamentals can be overridden by macroeconomic developments and shifting investor preferences. In 2024, we expect our investment solution to benefit from several factors: Cuts in US interest rates (which usually benefits growth stocks the most), attractive valuation levels (price/sales multiples close to historical lows), an expected increase in M&A and IPO activity, a general repositioning as investors drop last year's outperforming stocks and buy high-quality stocks, and the uncertain outlook for the world economy (which in the past has been a relatively good setting for non-cyclical subsectors such as the digital health) underpin our optimism and make a good case for investing in the Bellevue Digital Health (Lux) Fund.
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