Bellevue AI Health
Healthcare systems will benefit from the huge pools of data that have been built up over decades
GenAI will be a relevant driver of shareholder value
Sweet spot: Well-capitalized companies with strong AI capabilities
Explained in 90 seconds
Please find a more detailed description of share classes here.
Investment Focus
ISIN-No. LU2721086507
The fund’s aim is to achieve capital growth in the long term. The Bellevue AI Health Fund is a global equity fund with an actively managed portfolio of 50 to 70 stocks, mostly from the healthcare sector, rounded out with a small number of tech companies that have considerable exposure to the healthcare industry. Its focus is on liquid mega and large caps, with modest allocation to mid cap stocks. In addition to fundamental aspects ranging from valuation and growth profiles to profitability, a proprietary «AI Affinity Score» is used to determine how attractive a company is from an AI perspective. The selection of the portfolio companies is entirely bottom up, independent of benchmark weightings. The fund takes ESG factors into consideration while implementing the aforementioned investment objectives.
Indexed performance (as at: 16.08.2024)
NAV: USD 149.48 (15.08.2024)
Cumulative performance (16.08.2024)
I2-USD | Benchmark | |
1M | 1.96% | 3.64% |
YTD | 15.43% | 13.91% |
1 year | n.a. | n.a. |
Since Inception | 19.58% | 18.95% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term. The Bellevue AI Health Fund is a global equity fund with an actively managed portfolio of 50 to 70 stocks, mostly from the healthcare sector, rounded out with a small number of tech companies that have considerable exposure to the healthcare industry. 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 | 30.11.2023 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 0.80% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU2721086507 |
Valor number | 130852207 |
Bloomberg | BAIHI2U LX |
WKN | A3E1ZX |
Total expense ratio (TER) | 1.46% (31.07.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Portfolio
Top 10 positions
Geographic breakdown
Benefits & Risks
Benefits
- GenAI is speeding up the process of digitization and automation across the healthcare system.
- GenAI can enhance patient care, simplify processes and procedures, and lead to better decisions.
- Companies that use or provide GenAI tools for healthcare-relevant purposes will gain a sustainable competitive advantage.
- Shareholder value creation will largely be determined by a company’s AI strategy and its execution.
- Bellevue – a pioneer in healthcare investing since 1993 and now one of the largest independent investors in the healthcare space in Europe.
Risks
- The fund actively invests in equities. Stocks are subject to price fluctuations, so there is a risk of falling prices.
- The investments the fund makes may be denominated in foreign currency, which can entail a foreign-exchange risk relative to the fund's base currency.
- The fund may invest some of its assets in financial instruments that may have relatively low levels of liquidity under certain circumstances, which may then affect the liquidity of the fund’s own shares.
- There are additional risks in the form of political and social unrest when investing in emerging markets.
- The fund may use derivatives. Derivatives offer greater upside potential yet also carry greater downside risk.
Review / Outlook
These developments led stock markets around the world to higher ground, as reflected in the monthly returns of major large-cap indexes such as the MSCI World (+1.8%) and the S&P 500 (+1.2%). The Nasdaq 100 (-1.6%), conversely, was pressured by profit-taking and the greater exposure to household consumption among some of the companies in this index.
As could be expected, the broad MSCI World Healthcare index (+3.3%) outperformed the total market amid this general environment marked by economic uncertainty. The Bellevue AI Health Fund (+2.3%) also ended the month with a clearly positive return but was unable to beat its benchmark.
Biopharma (59.2% weighting at the end of the month) contributed 1.0% to the fund's absolute performance and had a neutral impact on its relative performance. Otsuka (+22.5%), Daiichi Sankyo (+18.9%), Roche (+16.9%) and Amgen (+6.4%) made positive performance contributions, while Eli Lilly (-11.2%), Novo Nordisk (-8.6%) and Merck (-8.6%) were performance detractors. Roche and Amgen have become the closest competitors to Eli Lilly and Novo Nordisk in the market for weight loss medications. Promising data (high weight loss), monthly instead of weekly injections and the possibility of oral administration have caught investors’ attention. Roche presented better-than-expected second-quarter results too and raised its guidance for 2024 as a whole.
Medtech stocks (23.8%) contributed 0.7% to the fund’s absolute performance and -0.3% to its relative performance. While Thermo Fisher (+10.9%), Danaher (+10.9%) and GE Healthcare (+8.7%) made positive contributions, Dexcom (-40.2%) and Boston Scientific (-4.1%) hurt performance in July. Life sciences tools companies Thermo Fisher (+10.0%) and Danaher (9.9%) reported very good results. The long phase of bioprocessing inventory destocking that held back their sales growth seems to have come to an end. Tempus AI (+23.7%) performed very well after its modest debut in June when the company went public. GE Healthcare has agreed to buy Intelligent Ultrasound's clinical AI software business. Intelligent Ultrasound is a leading provider of integrated AI-based image analysis tools that make ultrasound machines smarter and more efficient. Dexcom management appears to have made some mistakes in realigning and reorganizing its sales organization, but these should be remedied by the end of the year.
Healthcare services (11.9%) delivered a positive absolute performance contribution of 1.0% and a relative contribution of -0.3%. United Health (+13.1%) and IQVIA (+16.5%) had a positive impact on fund performance. Prices of their stocks moved higher thanks to the second-quarter earnings announcements and the changing dynamics of the US presidential election campaign after Kamala Harris became the Democratic Party’s presidential candidate. Her popularity had a positive impact on US health insurers focused on Medicaid and on hospital operators, both areas that are underweighted in the fund.
The fund's tech exposure (4.4%), which includes tech companies from both the healthcare and information technology industries, contributed -0.2% to the fund's absolute and relative performance. Veeva (+5.8%) and Waystar (+7.0% - IPO from previous month) made positive contributions to fund performance, while Qualcomm (-9.2%), Microsoft (-6.4%), Nvidia (-5.3%) and Oracle (-1.0%) weighed on performance. Microsoft released a solid set of second-quarter results. AI-related revenue already accounted for 8 percentage points of its growth with Azure cloud infrastructure. Capacity bottlenecks prevented Microsoft from growing even faster in this area. The scale of investments in AI and the corresponding return profiles have become a topic of growing discussion among investors. All performance data in USD / B shares.
Already today medications are being developed more quickly and with better rates of success, for example, new diagnostic and treatment methods are producing better clinical outcomes, and GenAI is helping medical professionals make better and more informed decisions. We focus on healthcare companies that have made GenAI a core element of their business strategy and that are investing substantial resources in this technology to gain a lasting competitive advantage and achieve superior value growth. The technology risk here is more calculable than in other industries because healthcare is such a heavily regulated industry.
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