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. LU1811048138
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: 03.07.2024)
NAV: EUR 186.62 (01.07.2024)
Rolling performance (27.06.2024)
B-EUR | Benchmark | |
27.06.2023 - 27.06.2024 | -12.68% | n.a. |
27.06.2022 - 27.06.2023 | 17.57% | n.a. |
25.06.2021 - 27.06.2022 | -39.98% | n.a. |
26.06.2020 - 25.06.2021 | 53.85% | n.a. |
Annualized performance (27.06.2024)
B-EUR | Benchmark | |
1 year | -12.68% | n.a. |
3 years | -14.87% | n.a. |
5 years | 1.84% | n.a. |
Since Inception p.a. | 7.09% | n.a. |
Cumulative performance (27.06.2024)
B-EUR | Benchmark | |
1M | -2.13% | n.a. |
YTD | 1.03% | n.a. |
1 year | -12.68% | n.a. |
3 years | -38.39% | n.a. |
5 years | 9.53% | n.a. |
Since Inception | 52.55% | n.a. |
Annual performance
B-EUR | Benchmark | |
2023 | -8.03% | n.a. |
2022 | -23.47% | n.a. |
2021 | -3.95% | n.a. |
2020 | 53.38% | 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 BANK, LUXEMBOURG BRANCH |
Fund Administrator | CACEIS BANK, LUXEMBOURG BRANCH |
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 | LU1811048138 |
Valor number | 41450818 |
Bloomberg | BBDIGBE LX |
WKN | A2JJBD |
Total expense ratio (TER) | 2.19% (31.05.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
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
17 of the 35 stocks in the fund's portfolio made a positive contribution to performance in May. The core positions TransMedics (+44.9%) and Procept BioRobotics (+25.3%) made the best contributions to portfolio performance. They beat investors’ high expectations for the first quarter by a wide margin and raised their guidance for 2024. Both companies are making great strides in their corporate development and TransMedics has already entered the profit zone. Globus Medical (+34.8%) also published a strong set of results. Investors were particularly pleased to hear that the integration of the NuVasive acquisition is proceeding even better than planned. That eased investor worries of an exodus of sales force professionals and led to the stock’s rerating.
Positions in the large-cap stocks of Intuitive Surgical (+8.5%) and Natera (+14.7%) continued to perform well. It also appears that investor worries of greater competition for Insulet (+3.1%) are slowly subsiding. Small- and mid-cap positions in GN Store Nord (+15.7%), Ambu Medical (+18.6%) and Outset Medical (+47.4%) delivered very good returns. Outset Medical was granted FDA approval for TabloCart, which should guide the company back to its growth trajectory.
Performance detractors were mostly low-weighted stocks such as Inspire Medical (-34.3%), Evolent Health (-23.6%) and 10X Genomics (-23.4%), although the list of decliners also included Dexcom (-6.8%), Veeva (-12.2%) and Exact Sciences (-23.4%). Inspire’s quarterly results fell short of investors’ high expectations. A dip in utilization at its operating centers raised questions about the sustainability of the company’s growth trajectory. Evolent Health shares were marked down on news of unexpectedly high utilization of healthcare services among Medicaid enrollees. This could lead to a decline in the company’s revenues from performance-based incentives. US health insurers (the customers of Evolent Health) pay Evolent a bonus if the cost of healthcare services provided falls below a certain financial benchmark. The total absence of these incentive-based payments, or a sharp decline, would lead to a significant reduction in Evolent's earnings. Nanostring, the main competitor of 10X Genomics, was acquired by industry heavyweight Bruker (taking it out of Chapter 11). This could ramp up competition in the medium term.
Veeva's first-quarter results were in line with expectations, but management lowered its sales forecast for 2024 as a whole. It did not change its guidance for EPS though. Comments by Dexcom management on the reorganization of its field sales force (at an investor event at Dexcom headquarters that we also participated in) were interpreted by other participants as a sign that Dexcom would publish disappointing second-quarter results. Dexcom, however, clearly refuted that conclusion. 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