Sustainability and health combined in a portfolio: First healthcare fund managed under consideration of ESG criteria
Investments in the 40 most attractive healthcare companies worldwide, regionally diversified and across sub sectors
The sustainability filter includes a "best-in-class" approach and the application of a strict exclusion process
Indexed performance (as at: 07.01.2025)
NAV: EUR 128.24 (07.01.2025)
Rolling performance (07.01.2025)
U2-EUR | Benchmark | |
07.01.2024 - 07.01.2025 | 6.78% | 6.27% |
07.01.2023 - 07.01.2024 | -6.00% | 2.54% |
Annualized performance (07.01.2025)
U2-EUR | Benchmark | |
1 year | 6.78% | 6.27% |
Since Inception p.a. | 0.99% | 4.62% |
Cumulative performance (07.01.2025)
U2-EUR | Benchmark | |
1M | -1.70% | -1.88% |
YTD | 0.80% | 1.23% |
1 year | 6.78% | 6.27% |
Since Inception | 2.59% | 12.49% |
Annual performance
U2-EUR | Benchmark | |
2024 | 5.82% | 8.12% |
2023 | -4.34% | 0.45% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term, is actively managed and invests in healthcare firms with strong sustainability credentials and innovative business models. Examples of sustainability in the healthcare industry are environmentally sound procurement policies for drug makers, high safety standards for medical products and services, and a commitment to ethics when conducting clinical trials. From the perspective of the patient, the early diagnosis of life-threatening diseases, personalized medicine enabling highly selective treatments and efficient treatment procedures are key sustainability indicators. A variety of high-growth themes, smart stock selection using our established investment process and the application of sustainability criteria are the fund’s tools for achieving attractive returns. The fund takes ESG factors into consideration while implementing the aforementioned investment objectives.Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | CACEIS BANK, LUXEMBOURG BRANCH |
Fund Administrator | CACEIS BANK, LUXEMBOURG BRANCH |
Auditor | PriceWaterhouseCoopers |
Launch date | 29.06.2018 |
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 | LU2483535543 |
Bloomberg | BBSHU2E LX |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (31.12.2024, base currency USD)
Beta | 0.86 |
Volatility | 14.66 |
Tracking error | 9.92 |
Active share | 67.88 |
Correlation | 0.75 |
Sharpe ratio | -0.63 |
Information ratio | -0.58 |
Jensen's alpha | -6.34 |
No. of positions | 45 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Breakdown by sector
Benefits & Risks
Benefits
- Investments in the 45 most attractive healthcare stocks worldwide with due account taken of current sustainability criteria.
- Many years of recognized bottom up expertise coupled with comprehensive sustainability research from Sustainalytics.
- The sustainability filter combines a best-in-class approach with the application of a strict exclusion procedure.
- Proprietary investement process: Half-yearly company evaluation and rebalancing.
- Underweighting of pharma and US stocks against the relevant healthcare indices, and a strong focus on mid caps.
Risks
- The fund actively 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
The cyclical MSCI sectors performed best (consumer discretionary; +9.4%, financials; +8.0%) in November, although healthcare underperformed other defensive sectors (for example consumer staples; +2.4% or utilities; +1.9%). This was largely driven by US politics, with President-elect Trump nominating some controversial figures to lead the healthcare-related government agencies.
Within the MSCI World Healthcare Index, there was a considerable dispersion of monthly performance between the subsectors. Healthcare tech (+10.6%) was the best performing subsector in the month, followed by healthcare services (+6.7%), medtech (+3.2%), life science tools (-1.1%), pharmaceuticals (-5.0%), and biotech (-6.3%).
Within the fund, strong absolute performances were reported during the month from Pro Medicus (+28.6%; large contract win), Insulet (+15.2%; strong results), and Cardinal Health (+12.6%; strong F1Q results and positive M&A). On the other hand, negative absolute performances were seen for Bumrungrad (-25.0%; weak Q3 results), Olympus (-11.8%; weak results in china), and Regeneron (-10.5%; Eylea biosimilar launch).
During November, we conducted our latest six monthly rebalance of the portfolio. Following our rules-based process (described below), we introduced 13 new stocks (and sold 13, to maintain our predetermined 45 total). At the time of rebalance, the weighted average PEG-ratio for the portfolio was 1.5, the price-to-sales ratio was 5.2 times, EBITDA margin was 25%, and 3-year sales CAGR was 10%.
In order to get into the fund portfolio, the companies must meet the following criteria: Appropriate ESG risk profile (best-in-class approach), not involved in severe ESG-relevant controversies and comply with the ten principles of the UN Global Compact. In the case of controversial business areas and practices, revenue thresholds are defined for inclusion. The results of the ESG filter application demonstrate that around 40-50% of the titles meet our strict sustainability requirements. The proven factor analysis is then carried out according to four quantitative and four qualitative parameters. The objective here is to select companies that are inexpensive, have strong growth and have an exceptional competitive position so that they can maintain their leading position also in the future.
The analysis results in a portfolio structure consisting of the 40 most sustainable stocks in the healthcare industry, ten of them per region (Western Europe, North America, Japan / Oceania, emerging markets). The application of the eight factors in the past has typically led to a focus on mid cap stocks and an underweight position in pharma and the North America region relative to the MSCI World Healthcare Index. The rebalancing takes place every six months.
Documents
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Portfolio examples with ESG relevance
Österreichisches Umweltzeichen
Portfolio Manager
Christian Lach
After working as a member of the Management Team BB Biotech/BB Medtech at Bellevue Asset Management AG until 2008, Christian Lach was portfolio manager Biotechnology at Adamant Biomedical Investments AG. Since 2015, he has been working again at Bellevue Asset Management as portfolio manager of the funds Bellevue Healthcare Strategy/Sustainable and Bellevue Obesity Solutions. He holds a degree in natural sciences (Dipl. Natw. ETH) and a doctorate in economics from the University of St. Gallen (Dr. oec HSG).Portfolio Manager
Oliver Kubli
Oliver Kubli joined Bellevue Asset Managment in 2015 and is lead portfolio manager of the Bellevue Asia Pacific Healthcare fund and portfolio manager of the Bellevue Emerging Markets Healthcare and Bellevue Healthcare Strategy/Sustainable funds. 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.Lead Portfolio Manager
Terence McManus
Dr Terence McManus joined Bellevue Asset Management in 2022 and is lead portfolio manager of the funds Bellevue Diversified Healthcare, Bellevue Healthcare Strategy/Sustainable and portfolio manager of the Bellevue Obesity Solutions fund. Prior to this, he has 12 years of experience within healthcare-specific investing and analysis at Jefferies Investment Bank, Credit Suisse, Julius Baer and most recently at J. Safra Sarasin where he managed a sustainable health fund. Terence started his career as a scientist focused on drug discovery. He holds a PhD in Neuroscience from the University of Southampton, UK.Portfolio Manager
Christian Lach
After working as a member of the Management Team BB Biotech/BB Medtech at Bellevue Asset Management AG until 2008, Christian Lach was portfolio manager Biotechnology at Adamant Biomedical Investments AG. Since 2015, he has been working again at Bellevue Asset Management as portfolio manager of the funds Bellevue Healthcare Strategy/Sustainable and Bellevue Obesity Solutions. He holds a degree in natural sciences (Dipl. Natw. ETH) and a doctorate in economics from the University of St. Gallen (Dr. oec HSG).Portfolio Manager
Oliver Kubli
Oliver Kubli joined Bellevue Asset Managment in 2015 and is lead portfolio manager of the Bellevue Asia Pacific Healthcare fund and portfolio manager of the Bellevue Emerging Markets Healthcare and Bellevue Healthcare Strategy/Sustainable funds. 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.Lead Portfolio Manager
Terence McManus
Dr Terence McManus joined Bellevue Asset Management in 2022 and is lead portfolio manager of the funds Bellevue Diversified Healthcare, Bellevue Healthcare Strategy/Sustainable and portfolio manager of the Bellevue Obesity Solutions fund. Prior to this, he has 12 years of experience within healthcare-specific investing and analysis at Jefferies Investment Bank, Credit Suisse, Julius Baer and most recently at J. Safra Sarasin where he managed a sustainable health fund. Terence started his career as a scientist focused on drug discovery. He holds a PhD in Neuroscience from the University of Southampton, UK.Portfolio Manager
Christian Lach
After working as a member of the Management Team BB Biotech/BB Medtech at Bellevue Asset Management AG until 2008, Christian Lach was portfolio manager Biotechnology at Adamant Biomedical Investments AG. Since 2015, he has been working again at Bellevue Asset Management as portfolio manager of the funds Bellevue Healthcare Strategy/Sustainable and Bellevue Obesity Solutions. He holds a degree in natural sciences (Dipl. Natw. ETH) and a doctorate in economics from the University of St. Gallen (Dr. oec HSG).