Bellevue launches innovative AI Health Fund
|
Bellevue Asset Management AG
/ Key word(s): Product Launch/Funds
Media release of January 15, 2024 Investing in the future of the healthcare industry: Bellevue launches innovative AI Health Fund Generative Artificial Intelligence (GenAI) is bringing about an unprecedented technological transformation. The tremendous opportunities this is creating, both for businesses and investors, are particularly compelling in the healthcare industry. One way of profiting from the GenAI trend is to invest directly in technology companies such as Microsoft (OpenAI), Google or Amazon. This approach often entails significant volatility, though, because tech investors tend to price a company’s maximum future potential into its market valuation early on and the risk associated with future technology developments can turn out to be greater than expected. “The investment approach we are taking with the Bellevue AI Health (Lux) Fund that was launched on November 30, 2023 is different. Our fund is clearly focused on GenAI and the resulting investment opportunities in the healthcare sector. Healthcare will benefit greatly from GenAI,” says Co-Portfolio Manager Stefan Blum, which explains the rationale behind the launch of Bellevue Asset Management's latest healthcare fund. Tremendous advantages for the healthcare system Companies that put GenAI at the center of their business strategy and allocate significant resources towards the development and deployment of this technology stand to gain a decisive competitive advantage. According to a PwC study, healthcare is one of the top 3 sectors that will benefit the most from GenAI. “We firmly believe that GenAI will be a major driver of shareholder value in the healthcare sector. The IT-related risks of implementing AI in healthcare are more calculable than in other industries because healthcare is such a highly regulated market. People's lives are at stake and the clinical benefit is what counts,” says Marcel Fritsch, Co-Portfolio Manager. “Successful deployment of GenAI also requires large amounts of data, and such data is exclusively owned by healthcare sector companies. This is why partnerships between large healthcare businesses and large tech companies should be particularly fruitful – they establish the bridge between vital health-related data and GenAI technology,” he adds. AI Health: Broad range of application areas The greatest potential improvements that could be achieved through the usage of GenAI in healthcare are shorter drug development times, reduced drug development risks, new and better treatment methods, and significantly lower administrative spending. Developing a new drug takes 10 to 15 years on average and costs USD 1 to 4 bn. This process can clearly be optimized with generative AI. Companies such as Amgen are relying on "generative biology" approaches and have halved the average time required for target identification and verification while doubling the success rate. GenAI is also being used in medical imaging and diagnostics, as well as in ultrasound scanning systems equipped with AI-enabled image guidance, in systems that enable early diagnosis of heart failure, and in electronic health record systems, where it increases efficiency and minimizes the administrative burden. UnitedHealth, the largest health insurer in the US, is an impressive example of GenAI adoption. It is using GenAI to identify and avoid unnecessary medical care and treatments. Investment strategy for tech and healthcare investors The Bellevue AI Health Fund (ISIN B-USD LU2721086093) 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 do much of their business with the healthcare industry. The fund's focus is on liquid mega and large caps, supplemented with selected mid-cap investments. In addition to fundamental metrics ranging from valuation multiples and growth profiles to profit margins, a proprietary “Bellevue AI Affinity Score” has been developed to determine how attractive a company is from an AI perspective. The Bellevue AI Affinity Score measures company efforts to develop and deploy GenAI and the resources it is investing towards this end. From an investment perspective, this enhances the fund's ability to pick out the winners and avoid the losers, as stock performance will clearly diverge over time. The estimated average annual sales growth of the fund's well-diversified portfolio over the next 3 to 4 years is about 8% and its average earnings per share growth is 15%. The fund is suitable for tech investors interested in an attractive diversification of their existing portfolio as well as for generalist investors seeking to invest in promising companies active in the healthcare sector. Portfolio Managers Stefan Blum and Marcel Fritsch have many years of experience in healthcare and digital health investments. Dr. Annie Zeng, Catharina Claes and Dr. Teresa Vilanova provide them with investment research and analysis support. The two Portfolio Managers also have access to the expertise of Bellevue’s 20-person healthcare investment team.
Contact
Bellevue – Excellence in Specialty Investments Disclaimer: This document is neither directed to, nor intended for distribution or use by, any person or entity who is a citizen or resident of any locality, state, country or jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation. The information and data presented in this document are not to be considered as an offer to buy or sell or an invitation to subscribe any securities or financial instruments. The information, opinions and estimates contained in this document reflect a judgment at the original date of release and are subject to change without notice. Liability for the accuracy or completeness of all information in this document is expressly disclaimed. This information does not take into account the specific or future investment objectives, the financial or tax situation or the particular needs of any specific recipient This document does not constitute independent investment research. Interested investors should always seek professional advice before making an investment decision. The information in this document is provided without any guarantees or warranties, for information purposes only, and is intended only for the personal use of the recipient. Every investment involves some risk, especially with regard to of fluctuations in value and return. Investments in foreign currency involve the additional risk that a foreign currency might lose value against an investor's reference currency. This document does not reflect all possible risk factors associated with an investment in the aforementioned securities or financial instruments. Historical performance data and financial market scenarios are no guarantee or indicator of current and future performance. The performance data are calculated without taking account of commissions and costs that result from subscriptions and redemptions. Commissions and costs adversely affect performance. Financial transactions should only be carried out after thorough study of the current prospectus and only on the basis of the most recently published prospectus and annual or semi-annual report. Bellevue Funds (Lux) SICAV is admitted for public distribution in Switzerland. Representative in Switzerland: Waystone Fund Services (Switzerland) SA, Avenue Villamont 17, CH-1005 Lausanne. Paying agent in Switzerland: DZ PRIVATBANK (Schweiz) AG, Münsterhof 12, P.O. Box, CH-8022 Zurich. Bellevue Funds (Lux) SICAV is admitted for public distribution in Austria. Paying and information agent: Zeidler Legal Process Outsourcing Limited., 19-22 Lower Baggot Street, Dublin 2, D02 X658, Ireland. The Bellevue Funds (Lux) SICAV is admitted for public distribution in Germany. Information agent: Zeidler Legal Process Outsourcing Ltd., SouthPoint, Herbert House, Harmony Row, Grand Canal Dock, Dublin 2, Ireland. Bellevue Funds (Lux) SICAV is registered in the CNMV registry of foreign collective investment schemes distributed in Spain, under registration number 938. Representative: atl Capital, Calle de Montalbán 9, ES-28014 Madrid. Prospectus, Key Investor Information Document (PRIIP-KIID), the articles of association as well as the annual and semi-annual reports of the Bellevue Funds under Luxembourg law are available free of charge from the above mentioned representative, paying, facilities and information agents as well as from Bellevue Asset Management AG, Seestrasse 16, CH-8700 Küsnacht. With respect to fund units distributed in or from Switzerland, the place of performance and jurisdiction is established at the registered office of the representative.
End of Media Release |
1814255 15.01.2024 CET/CEST
