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: 13.11.2024)
NAV: CHF 142.06 (12.11.2024)
Rolling performance (13.11.2024)
B-CHF | Benchmark | |
12.11.2023 - 12.11.2024 | 7.25% | 14.70% |
12.11.2022 - 12.11.2023 | -11.08% | -9.64% |
12.11.2021 - 12.11.2022 | -14.28% | -2.42% |
12.11.2020 - 12.11.2021 | 15.22% | 20.04% |
Annualized performance (13.11.2024)
B-CHF | Benchmark | |
1 year | 7.25% | 14.70% |
3 years | -6.50% | 1.56% |
5 years | 1.95% | 6.56% |
Since Inception p.a. | 2.03% | 7.58% |
Cumulative performance (13.11.2024)
B-CHF | Benchmark | |
1M | -1.28% | -2.38% |
YTD | 8.45% | 13.40% |
1 year | 7.25% | 14.70% |
3 years | -18.25% | 4.76% |
5 years | 10.12% | 37.39% |
Since Inception | 13.65% | 59.35% |
Annual performance
B-CHF | Benchmark | |
2023 | -10.95% | -5.55% |
2022 | -13.37% | -4.32% |
2021 | 9.52% | 23.35% |
2020 | 17.14% | 3.98% |
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, 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 | 1.60% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU1819585883 |
Valor number | 41670704 |
Bloomberg | BBSHCBC LX |
WKN | A2JMRJ |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Redemption period | Daily |
Key data (31.10.2024, base currency USD)
Beta | 0.85 |
Volatility | 14.74 |
Tracking error | 10.13 |
Active share | 70.10 |
Correlation | 0.74 |
Sharpe ratio | -0.54 |
Information ratio | -0.79 |
Jensen's alpha | -8.28 |
No. of positions | 47 |
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
Along with disappointing price action, we note that the forward P/E relative for MSCI World Healthcare vs MSCI World moved deeper into discounted territory in October. We see two drivers for this de-rating, healthcare was pulled into the US election volatility (mainly in healthcare services), and the mega-cap obesity names faced emerging (albeit early) competition risk.
Within the MSCI World Healthcare Index, healthcare tech (+0.5%) was the best performing subsector in the month. This was followed by Biotech (-1.0%), medtech (-2.9%), and pharmaceuticals (-5.0%). Life science tools was the clear laggard with a performance of -9.9%.
From a geographical point of view, Asian healthcare (all country, -3.6%) performed best, supported by a less weak performance for Japanese equities relative to global healthcare. This was followed by US healthcare (-4.6%), and European healthcare (-6.4%). The laggard region in October was Emerging Market Healthcare (all country, -7.1%), as the Chinese equity market retracted following a strong prior month.
Within the fund, strong absolute performances were reported during the month from Penumbra (+11.3%; strong Q3 results), Otsuka holdings (+10.4%; complete nephrology Phase III study for sibeprenlimab, and strong Q3 results), and UCB (+6.1%; continued strong prescription data for launch products). On the other hand, negative absolute performances were seen for Innovent Biologics (-28.3%; shareholders question international business plan), Elevance (-22.0%; weak Q3 results and guidance downgrade), and Hypera (-18.8%; proposed merger deal volatility).
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.
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