Bellevue Investment Strategies - Review 2020 - Markus Peter, Jean-Pierre Gerber, Loreno Ferrari - Senior Product Specialists - Fund ...
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Bellevue Investment Strategies – Review 2020 Markus Peter, Jean-Pierre Gerber, Loreno Ferrari – Senior Product Specialists Zurich, January 14th 2021
Agenda
Economic & market environment
1
BB Global Macro
Overview
2
Absolute & relative performance, peer-comparison
Healthcare
3
Investment companies, Luxembourg Funds
Spezialized growth strategies
4
BB Entrepreneur Funds, BB African Opportunities
2
1
Economic & market environment
BB Global Macro
3Economic & market environment
COVID-19 led to a very sharp short-term downturn in economic activity
comparable to the 2008 financial crisis…
Sharp decline in the
ISM Manufacturing
Index in Q2 2020
Subsequent rapid
recovery
Source: Bellevue Asset Management, Bloomberg 4Economic & market environment
…the US Federal Reserve responds with an extremely expansive monetary policy
and increases the Fed balance by USD 3,400 billion
USD 3,000 billion
expansion to counter
COVID-19 recession,
USD 3,400 billion
+USD 3,400b since end of QT
Tapering
Stimulus programs
provide additional
QE3
support to the
Operation twist QT economy
QE2
QE1 +USD 3,400b
TARP
Source: Bellevue Asset Management, Bloomberg 5Economic & market environment
Healthcare in the perception of many investors as a winner alongside tech
…but this was no longer the case after the sector rotation in the second half of the year
Total return of the GICS-sectors in USD – Year 2020 Tech leading the way – Energy lagging behind
Information Technology
In H1, cyclical sectors (Energy, Financials, Industrials)
significantly underperformed the overall market, while
Consumer Discretionary defensive sectors significantly outperformed the
overall market
Communication Svcs
The IT sector showed the strongest performance in
Materials
H1, mainly driven by the "stay at home" and "home
MSCI World office" requirements imposed by the lockdowns
Healthcare The 2nd half of the year was characterized by
extremely expansive monetary policies of the major
Industrials central banks, economic stimulus programs of
important industrialized nations and positive trial
Consumer Staples
results of vaccine developers (Pfizer/Biontech,
Utilities Moderna)
Financials Cyclical sectors (Consumer Discretionary, Materials
and Industrials) show strong performance in H2
Real Estate
Energy
-40% -30% -20% -10% 0% 10% 20% 30% 40% 50%
2020 H2 2020 H1 2020
Source: Bellevue Asset Management, data in USD as of December 31, 2020 6Economic & market environment
BB Global Macro ends the year with a positive annual return in a
volatile market environment
The drawdown in March was followed by a strong recovery in performance
The magnitude of the drawdown was primarily due to short-term portfolio management decisions rather than our long-term view
that a portfolio consisting of 75% government bonds and 25% equities is a very solid, neutral portfolio
At year-end, the portfolio held 30% equity exposure, 25% in non-government bonds, and 17% in long-term government bonds
In % Jan Feb Mar Apr May Jun Jul Aug Sep Okt Nov Dez YTD
2010 +0.2 +0.2 +0.4 -0.7 +1.2 +0.3 +0.3 +0.5 +1.6 +4.1
2011 0.1 +0.8 -1.0 +1.5 +0.3 -0.9 +0.8 -6.0 -0.6 +2.3 -1.0 +1.4 -2.5
2012 +0.8 +0.6 -0.7 0.0 -4.1 +2.4 -0.6 +1.1 +0.6 +1.0 +0.8 +1.4 +3.2
2013 +0.5 -0.3 -0.8 +3.4 -0.8 -2.8 +2.8 +0.7 +2.7 +2.3 +0.4 -1.4 +6.9
2014 +2.6 +1.2 -0.2 +0.1 +1.6 +0.3 0.0 +0.9 -0.3 +0.7 +1.5 -0.6 +8.0
2015 +4.2 +0.8 +2.9 -0.5 +0.4 -2.2 +1.7 -1.1 +0.2 +1.4 -0.3 -1.2 +6.2
2016 -0.2 0.0 +2.2 +0.5 +0.3 +0.2 +1.7 +0.5 0.0 0.0 -2.3 +1.4 +4.2
2017 -0.4 +1.3 +0.5 +0.9 +0.2 -0.2 +0.3 +0.3 +0.5 +1.1 -0.4 -0.6 +3.5
2018 -0.8 -0.6 +0.1 +0.1 -0.4 -0.1 +0.8 -0.9 +0.5 -1.2 +0.4 0.0 -2.2
2019 +2.6 +0.7 +1.1 +1.1 -1.2 +1.1 +0.3 -1.1 +1.1 +0.1 +1.4 +0.1 +7.4
2020 -0.7 -2.4 -9.3 +5.9 +2.8 +1.6 -1.3 +1.8 -1.2 -1.2 +6.2 +1.2 +2.7
Note: Performance of the I-EUR share class
The subfund 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. All performance figures reflect the reinvestment of dividends and do not take
into account the commissions and costs incurred on the issue and redemption of shares, if any. The reference benchmark of this class is used for performance comparison purposes
only (dividend reinvested). No benchmark is directly identical to a subfund, thus the performance of a benchmark is not a reliable indicator of future performance of the subfund it is
compared to. There can be no assurance that a return will be achieved or that a substantial loss of capital will not be incurred.
. Note II: Pro forma performance of the unregulated fund from September 2008 to March 2010; after administration, management and performance fees 72
Overview
Absolute & relative performance, peer-comparison
8Overview
Solid investment performance
Excellent competitiveness, client benefit, stability
72% of AuM in 1st or 2nd quartile YTD 2020
Very competitive
82% of AuM in 1st and 2nd quartile over 3 years
performance of invest-
93% of AuM in 1st and 2nd quartile since inception
ment strategies
80% of AuM in 1st quartile since inception
79% of AuM beat benchmark YTD 2020
Value generation for
investors (“alpha”) * α 75% of AuM beat benchmark over 3 years
84% of AuM beat benchmark since inception
16 of 19 lead portfolio managers in charge since date of launch
High continuity and
No portfolio manager changes in 2020
stability in portfolio
Very low fluctuation rates for >10 years
management
Steady recruitment of new investment professionals and young talents
* Outperformance after expenses, based on institutional share classes
Source: Bellevue Group, as at December 31, 2020 93.1
Healthcare
Investment companies
10Healthcare
BB Biotech AG
Investing in leading science
Currency Share NAV NBI
Strong NAV Outperformance CHF +19.3% +24.3% +15.1%
USD +30.4% +35.9% +25.7%
With Prof. Dr. Mads Krogsgaard Thomsen, CSO of Novo Nordisk and Dr. Susan
Two new, renowned members,
Galbraith, Head of Oncology of AstraZeneca, BB Biotech was able to attract two
joined the Board of Directors renowned new Board Members
Due to the COVID-19 pandemic, M&A activity was severely impacted in H1 2020
Further acquisitions in the portfolio
In the second half of 2020, with Myokardia (Bristol-Myers Skibb) and Alexion
of BB Biotech AG (AstraZeneca) two important portfolio positions have been taken over
USD 47 bn market cap (an investment since Q1 2018)
Pioneering mRNA based medicines – a broad clinical pipeline
COVID-19 prophylactic vaccine candidate within only 42 days from sequence
Moderna receives FDA emergency selection
use authorisation for COVID-19
Initial dosing of healthy volunteers started in mid March 2020
vaccine
Phase III with 30’000 patients – primary efficacy analysis shows vaccine was 94.1%
effective!
FDA - Emergency use authorisation as of December 18, 2020
Source: Bellevue Asset Management, as of December 31, 2020 11Healthcare
BB Biotech AG
Portfolio breakdown
Main focus on US small & mid-cap companies that address unmet medical needs, especially in oncology and
infectious diseases
1 Strong focus remains on high 2 Strong focus on new 3 Mid-cap companies offer ideal
unmet needs technologies risk/reward profiles
0.2%
2.9%
4.9% 7.2% 5.9% 6.5%
7.7%
8.2%
38.2%
8.2%
46.6%
16.2% 30.6%
14.0%
53.9%
21.6%
26.6%
Small Molecule RNA
Orphan Diseases Oncology
> 30 bn 5 bn - 30 bn
Neurological Diseases Others Antibody Gene- and cell therapy 1 bn - 5 bn 500 mn - 1 bn
Cardiovascular Diseases Metabolic Diseases < 500 mn
Infectious Diseases Protein
Note: Portfolio breakdown as of September 30, 2020, in % of securities 12Healthcare
BB Healthcare Trust
Investing in the rapidly evolving healthcare paradigm
MSCI World
Currency Share NAV
Healthcare
Strong outperformance of Share
GBP +29.1% +25.7% +10.3%
and NAV
USD +32.9% +29.3% +13.5%
Re-invention of the entire healthcare system is necessary to meet the requirements
of the 21st century population in a cost-effective manner. (e.g. strong increase in
Investing in the rapidly evolving chronic diseases)
healthcare paradigm Portfolio is highly operationally geared to areas that would benefit from an inevitably
changing healthcare paradigm (e.g. digitalization)
Inclusion in the FTSE 250 The management team currently overweight's the sub-sectors biotech, life science
tools and diagnostic, the strongest underweight is in pharma
BB Healthcare Trust was included in the FTSE 250 Index as of June 19, 2020
CareDx, provides products, drugs, testing services for transplant patients. Surprised
with very strong Q3 2020 revenue numbers
CareDx, Teladoc, Pacific Biosciences Teladoc: telemedicine provider offering the perfect business model during the
und Genmark with strong pandemic. Acquisition of Livongo creates the potential to evolve into a fully
integrated “virtual-care-provider”
performance contributions
Genmark: specialises in “point-of-care” diagnostics for the diagnosis of pathogens
in respiratory, gastrointestinal and blood infections (sepsis). Develops and
distributes COVID-19 tests
Source: Bellevue Asset Management, as of December 31, 2020 13Healthcare
BB Healthcare Trust
Diversified but at the same time concentrated Healthcare Portfolio which offers a high active share
MSCI World Healthcare
Holding Subsektor % Holding Subsektor %
Bristol Myers Squibb Pharma 7.1% Johnson & Johnson Pharma 6.2%
Hill-Rom Holding Medtech 6.0% UnitedHealth Dienstleistungen 5.0%
Vertex Biotech 6.0% Roche Pharma 3.7%
Anthem Dienstleistungen 5.9% Novartis Pharma 3.2%
Jazz Speicialty Pharma 5.4% Pfizer Pharma 3.1%
Insmed Biotech 5.1% Merck & Co Pharma 3.0%
GW Pharmaceuticals Speicialty Pharma 5.0% Abbott Lab. Medtech 2.9%
Alnylam Biotech 4.7% Thermo Fisher Scient. Life Sciences Tools 2.8%
Humana Dienstleistungen 4.1% AbbVie Pharma 2.8%
Amgen Biotech 3.7% Medtronic Medtech 2.4%
Source: Bellevue Asset Management, as of December 31, 2020 143.2
Healthcare
Luxembourg Funds
15Healthcare
Bellevue Healthcare Strategies with strong performance in a challenging
environment
Peformance BB Healthcare strategies in % (USD)
December 31, 2019 – December 31, 2020
MSCI World Healthcare TR (USD):+13.5% +68.4%
+50.7%
+45.0%
+29.2%
+27.9%
+23.9%
+16.6%
Source: Bloomberg, Bellevue Asset Management, data as of December 31, 2020
Note: Performance of the I-USD share classes. Past performance is not a reliable indicator of future results and can be misleading 16Healthcare
US elective procedures have been negatively impacted by the Corona
pandemic but have recovered from April lows
Weekly YoY-growth of elective procedures in the US
Jan Feb Mar Apr Mai Jun Jul Aug Sep Oct Nov
40%
19%
13%
20%
0% 0% 0% 0%
0%
-1% -1% -1%
-3%
-6% -7% -7% -5% -5% -7% -6%
Year over year %
-6% -6%
-8%
-10%-9%-11%-10%-9%
-12%
-14%-14% -15% -20%
-16% -17%
-18%
-23% -24%
-27% -28%
-34% -40%
-43%
-46%
-60%
-60%
-77% -80%
-81%
-84%
-86%
-88%-87%
-100%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46
week
Past performance is not a reliable indicator of future results and can be misleading
Source: IQVIA, Bellevue Asset Management, as of November 30, 2020 17Healthcare
BB Adamant Medtech & Services
Performance – Stability – Diversification
MSCI World HC MSCI World
Fund outperforms broader Fund
Equip. & Supplies Healthcare
healthcare markets despite a
+16.6% +23.9% +13.5%
challenging environment
Demand is basically non-cyclical: health problems must be solved (e.g. heart
COVID-19 affects the fundamental issues, broken bones, glucose measurement and insulin injections)
factors of Medtech & Services only
Certain elective procedures are deferred (e.g. hip and knee implants) as hospital
in the short-term capacity has been used for COVID-19 patients, and will result in pent-up demand
We expect a complete normalization of elective medical procedures
Normalization of investor focus: Fundamental data such as acceleration of
Positive outlook for 2021 organic sales growth, new products & services and clinical data are back in the
spotlight
Further innovations about to be Further innovations will be introduced in 2021 and we expect many new products
introduced and services to fuel sales growth, such as Dexcom G7, the Hugo robotic surgery
system and MitraClip
Managed Care will benefit from the elimination of the Health Insurance Fee (HIF)
Source: Bellevue Asset Management, data as of December 31, 2020
Note: Performance of the I-USD share class 18Healthcare
BB Adamant Digital Health
Making the healthcare system more efficient with digital health
Fund Nasdaq 100
Stellar performance, even strongly
outperforming Nasdaq 100 +68.4% +48.9%
Digitization in healthcare is urgently needed and inevitable
The coronavirus crisis has neutralized the natural reflex among the relevant
COVID-19 crisis has accelerated stakeholders – patients, doctors, hospital administrators and payers – to reject such
the Digital Health Investment Case change…
…and even prompted some of them to actively support and invest in digital tools
and solutions
Telemedicine specialists and many other companies have made as much progress
in 2020 as they would have normally made in three or four years
Digital Health Investment Case
The growing acceptance of digital solutions in the wake of the pandemic has pushed
becomes more predictable and even up the potential growth trajectory of the Digital Health Investment Case
more attractive
The strong growth momentum and non-cyclical demand suggest 2021 will be
another pleasing year for Digital Health stocks
Source: Bellevue Asset Management, data as of December 31, 2020
Note: Performance of the I-USD share class 19Healthcare
BB Adamant Digital Health
The fund has participated in 11 Initial Public Offerings (IPOs) in the course of 2020
Portfolio entries through IPOs M&A and transactions
Placed Current Per- Date Ann- Per-
Company Date Issue price (mn) price formance Company ouncement Transaction formance
01/30/2020 $14.00 $282 $43.65 212% Sale of
*89%
07/17/2020 Passport to
**77%
06/12/2020 $16.50 $256 $23.10 40% Molina
06/19/2020 $16.00 $256 $14.00 -13%
$18.5bn
*9%
07/14/2020 $21.00 $914 $13.66 -35% 08/05/2020 takeover by
**458%
Teladoc
07/01/2020 $22.00 $254 $43.50 98%
07/16/2020 $22.00 $205 $89.41 306% $3.3bn
*9%
12/21/2020 takeover by
**24%
Gainwell
09/14/2020 $27.00 $278 $56.84 111%
09/17/2020 $18.00 $853 $25.33 41% *Since announcement to year-end or date of transaction respectively
**Performance full-year 2020
10/15/2020 $18.00 $163 $44.82 149%
12/03/2020 $19.00 $201 $56.14 195%
12/08/2020 HK$70.58 HK$30,997 HK$150.00 113%
Source: Bellevue Asset Management, as per December 31, 2020
Past performance is not a reliable indicator of future results and can be misleading. The performance of a benchmark shall not be indicative of past or future
performance of any Sub- Fund. Holdings and allocations are subject to change. Any reference to a specific company or security does not constitute a
recommendation to buy, sell, hold or directly invest in the company or securities. 20Healthcare
Our global healthcare strategies both outperformed in 2020
BB Adamant Healthcare Strategy & BB Adamant Sustainable Healthcare
Correction Rebound Full year
31.12.2019 – 23.03.2020 23.03.2020 – 31.12.2020 31.12.2019 – 31.12.2020
Funds outperforming its benchmark and Global equity market outperforms healthcare, Strong absolute and relative return of the funds
global equities (MSCI World Index) funds with an outperformance against benchmark compared to benchmark and MSCI World Index
110% 180% 130%
120%
100% 160%
110%
90% 140%
100%
90%
80% 120%
80%
70% 100%
70%
60% 80% 60%
Dec-19 Jan-20 Feb-20 Mar-20 Jun-20 Sep-20 Dec-20 Dec-19 Mar-20 Jun-20 Sep-20 Dec-20
BB Adamant Healthcare Strategy (Lux) I-USD BB Adamant Healthcare Strategy (Lux) I-USD BB Adamant Healthcare Strategy (Lux) I-USD
BB Adamant Sustainable Healthcare (Lux) I-USD BB Adamant Sustainable Healthcare (Lux) I-USD BB Adamant Sustainable Healthcare (Lux) I-USD
MSCI World Healthcare Net MSCI World Healthcare Net MSCI World Healthcare Net
MSCI World Net MSCI World Net MSCI World Net
Source: Bellevue Asset Management, data as of December 31, 2020
Note: Performance of the I-USD share class 21Healthcare
Our global healthcare strategies outperform
40 holdings, four regions, off-benchmark, ESG integration vs. holistic ESG-approach
Fund Benchmark
Both funds clearly outperform the +27.9%
MSCI World Healthcare Index +13.5%
+29.2%
1 Underweight Pharma Diversification pays off again – clearly positive performance contributions from
different sub-sectors, e.g. biotech and life science tools & services
Healthcare in emerging markets, led by China, with compelling performance in
2 Underweight US 2020
Negative performance contributions from underweight in large & mega caps more
3 Mid cap focus than offset thanks to exposure to innovative mid caps
EBITDA-Margin Sales Growth Active Share
Characteristics support ____________ ____________ ____________
attractiveness of both portfolios
and underline our active approach
~28% ~14-17% ~80%
Source: Bellevue Asset Management, data as of December 31, 2020
Note: Performance of the I-USD share class 22Healthcare
Healthcare in Asia and Emerging Markets
Innovation and digitization generate sustainable growth
Local Equity
Fund Benchmark
Market
Very competitive performance +45.0% +32.8% +19.7%*
of both investment strategies
+50.7% +52.8% +18.3%**
*MSCI AC Daily TR Net Asia Pacific USD Index **MSCI Emerging Markets Net TR USD Index
With JD Health and Ali Health, all digital health subsidiaries of major Chinese tech
companies are now listed at the stock exchange (incl. Ping An)
"Facebook for Doctors" M3 in Japan with first-ever drug co-development, focus on
Digitization in Asia is progressing clinical development (IP and revenue share) and use of proprietary digital marketing
after launch
Indian hospital chain Apollo Hospitals successfully established its own
telemedicine app
Private healthcare sector enjoys increasing demand (lack of quality in public sector
resources)
Ongoing consolidation in Brazil Hapvida and Notre Dame have gained policyholders despite recession
Both companies have also taken advantage of the "opportunity" of the poor
economic situation and acquired numerous private providers
Source: Bellevue Asset Management, data as of December 31, 2020
Note: Performance of the I-USD share class 23Healthcare
Healthcare in Asia and Emerging Markets
Innovation in China – similar situation to the late 80s/early 90s in the US
Over 50 IPOs in 2020 in the Chinese healthcare sector alone
Progress in biotech company pipelines across the board
First successful steps by Chinese biotechs abroad (e.g. Beigene)
Innovation in China
Wuxi Biologics has established itself as a leading global R&D platform in the wake
of COVID-19
Commercial success of biotech companies in China (e.g., Innovent, Zai Lab)
Source: Bellevue Asset Management, Zai Lab
Any reference to a particular company or security does not constitute a recommendation to buy, sell, hold or invest directly in the company or security 24Healthcare
BB Adamant Biotech
Focused (40–50 holdings), global and mid cap-oriented approach
Fund NBI
Strong absolute performance,
slightly behind benchmark +23.9% +26.4%
mRNA-vaccine with Pfizer
Antiviral medication
Antibody therapy Remdesivir
At peak up to about 35% portfolio (Casirivimab & Imdevimab)
exposure to COVID-19
mRNA-1273-vaccine Competitor of Diagnostics & sequencing
Moderna/BioNtec
New, promising therapeutic indications in immuno-oncology, liver diseases as well
as rare diseases
Favorable outlook for the biotech Political perception changes, added value of medicines becomes visible
sector over the next 12 - 18 months
Biotech sector with sustained, strong sales and earnings growth
Valuations, especially compared to pharma, are attractive
Source: Bellevue Asset Management, data as of December 31, 2020
Note: Performance of the I-USD share class, list of company examples is not exhaustive 254
Spezialized growth strategies
BB Entrepreneur Funds, BB African Opportunities
26Specialized growth strategies
BB Entrepreneur Funds - performance overview
Strong performance in 2020
BB Entrepreneur Funds – Switzerland BB Entrepreneur Funds – Europe
(Performance FY 2020 indexed, in CHF) (Performance FY 2020 indexed, in EUR)
130% 130%
120% 120%
110% 110%
100% 100%
90% 90%
80% 80%
70% 70%
60% 60%
BB Entrepreneur Switzerland I-CHF BB Entrepreneur Europe I-EUR
BB Entrepreneur Swiss Small & Mid I-CHF BB Entrepreneur Europe Small I-EUR
SPI Stoxx Europe 600
SPI Extra MSCI Europe Small ex UK Small
Source: Bellevue Asset Management, data as of December 31, 2020
Note: Performance of the I-CHF and I-EUR share classes 27Specialized growth strategies
BB Entrepreneur Funds (I) – „Shockwave“
Solid balance sheets – the best medicine
Performance in EUR resp. CHF Fund Benchmark
16.3% 11.7%
Strong absolute returns
1.9% -2.0%
Highly competitive vis-a-vis
benchmarks and peer groups 20.4% 8.1%
18.3% 3.8%
(available for distribution in Switzerland only)
Markets collapse by one fifth (SPI) to one third (Europe Stoxx 600 and MSCI Europe
Small ex UK) until mid of March
Advantageous Entrepreneur stocks due to their lower debt quota and less pressure
for dividend cuts
Technology and Healthcare proved supportive throughout all portfolios, particularly
both small and small&mid cap funds outperformed their benchmarks due to IT OW
Phase I – COVID-19 shockwave
31.12.19 – 18.3.2020
+21.5% -6.8% +4.2%
Stock specific events with positive contributions, e.g. Isra Vision (M&A), +23.0%
Increased focus on IT and Healthcare, reduction of cyclicals (e.g. automotive
suppliers) – purchase of CEWE, Huber+Suhner and increasing weight LEM, Logitech
Source: Bellevue Asset Management, data as of December 31, 2020
Note: Performance of I-EUR and I-CHF share classes 28Specialized growth strategies
BB Entrepreneur Funds (II) – „Rebound“
Solid balance sheets - the best medicine
Recovery thanks to global support measures – e.g. EU Recovery Fund and
stimulus package of EUR 750 bn
Partly positive surprises regarding profitability of industrials for Q2/2020, 70% of
companies reported better than expected results for Q3
Phase II – Rebound in Q2 with BB Entrepreneur Funds strongly recovered and returned between 30% to 40%
stagnation during Summer / Selective increase of «fallen angels» in cyclicals (e.g. Moeller Maersk, Swatch,
Breakout of second wave of Arbonia), further addition of IT stocks (e.g. Software-One, VAT, Atea) and other
infections positions (e.g. Husqvarna); partial profit taking in healthcare
On a special note: participation in the IPO Knaus Tabbert (camping cars), Mediaset
Espana (consolidation), Pierer Mobility (e-bikes, e-motorcycles); takeover of Sunrise by
Liberty; reduction of Partners Group following its inclusion in the SMI Index
Positive COVID-19 vaccine studies triggered market rally in Nov/Dec
US Presidential elections and BREXIT agreement supported geopolitical
stability/visibility
Rotation from quality/growth into value/cyclicals
Phase III – Announcement of
Year-end rally of BB Entrepreneur Funds between 16% and 21%
COVID-19 vaccines
Outlook 2021
Outlook 2021 Innovation, new consumer trends, technology and recovery of value stocks
Rebound in GDP growth, the unwinding of pent-up demand in consumer spending and
corporate investments and proactive fiscal policies being the pillar of recovery
Digitalisation and ESG as structural growth themes
Source: Bellevue Asset Management, data as of December 31, 2020
Note: Performance of I-EUR and I-CHF share classes 29Specialized growth strategies
BB African Opportunities
Structural growth opportunities in emerging African frontier markets
Performance in EUR Fund DJ African Titans
Underperformance due to focus on
resilience and liquidity -14.3% -6.5%
Investments only in countries with no currency risks and with functional FX
markets => Nigeria does not form part
Tactical increase in gold mining stocks (very liquid and positive momentum)
High resistance of portfolio stocks
Egypt and Morocco possess sufficient economic buffers and external funding
sources (e.g. IMF, intl. Bond markets) to address balance of payment risks
Focus on companies with high resilience to crises, strong competitive positions, well
managed balance sheets and clear strategic plans – core positions with DivY of 10%
Egypt – exhibiting by far the most attractive valuations amongst EM/FM (P/E <
8x) – notwithstanding a normalisation of economic activities
Return to economic growth and interest rate cuts may lead to a substantial re-
rating of local equity markets
Positioned for a recovery in our Economic recovery of the EU later in 2021 may prove a strong driver for Morocco,
core markets the EU being Morocco’s most important trading partner incl. tourism)
Morocco and Egypt are sufficiently industrialized so as to become key trading /
manufacturing hubs to link Africa with the rest of the World
Increase of tactical exposure in South Africa (access to global risk liquidity)
Yet no engagement in Nigeria (unorthodox monetary policy bears high risks)
Source: Bellevue Asset Management, data as of December 31, 2020
Note: Performance of I-EUR share class 30Bellevue Asset Management – Outlook for 2021
Long-term superior growth prospects – independent from COVID-19 –
Healthcare owing to structural trends, additional diversification potential in case of
dampened global GDP growth
High resilience thanks to solid balance sheets and innovations; global
Entrepreneurs
market leaders in their niches, increased focus on sustainability
«Wildcard» on emerging markets recovery, Africa with highly
Africa
attractive valuations, liquidity and resistance to crisis in the spotlight
«Weatherproof» strategy under all market conditions, attractive return
Global Macro
perspectives at limited volatility risk
Thank you for your confidence –
successful investments in 2021!
31Contact
Bellevue Asset Management AG
Seestrasse 16
CH-8700 Küsnacht
Tel. +41 44 267 67 00
Fax +41 44 267 67 01
E-mail info@bellevue.ch
www.bellevue.ch
32Disclaimer
This marketing communication relates to Bellevue Funds (Lux) (hereinafter the “Fund”), an investment company with variable capital “société à capital variable” (SICAV) under the
current version of the Law of the Grand Duchy of Luxembourg of 10 August 1915 on commercial companies (“Law of 1915”) and is authorized under Part I of the Law of 17
December 2010 relating to undertakings for collective investment (“Law of 2010”) as an undertaking for collective investment (UCITS). The Funds are a subfund of Bellevue Funds
(Lux). This marketing communication is issued by Bellevue Asset Management AG, which is an authorized asset manager subject to the supervision of the Swiss Financial Market
Supervisory Authority (FINMA) and acts as an Investment Manager of the Fund. The Prospectus, statutes, the annual and half-yearly report, the share prices and further information
about the Fund can be obtained free of charge in English and German from the management company of the Fund, Bellevue Asset Management AG, Seestrasse 16, CH-8700
Küsnacht, from the representative, paying, facilities and information agents mentioned below or online at www.bellevue.ch. The Key Investor Information documents are available
free of charge in the languages of the countries of distribution at www.fundinfo.com. 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. It is particularly
not intended for US persons, as defined under Regulation S of the U.S. Securities Act of 1933, as amended. The information and data presented in this document are not to be
considered as an offer to buy, sell or subscribe to 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. This information pays no regard to the specific or future investment objectives, financial or tax situation or
particular needs of any specific recipient and in particular tax treatment depends on individual circumstances and may be subject to change. This document is not to be relied upon
in substitution for the exercise of independent judgment. Before making any investment decision, investors are recommended to ascertain if this investment is suitable for them in the
light of their financial knowledge and experience, investment goals and financial situation, or to obtain specific advice from an industry professional. The details and opinions
contained in this document are not to be considered as recommendation or investment advice. Every investment involves risk, especially with regard to fluctuations in value and
return, and investors‘ capital may be at risk. If the currency of a financial product is different from your reference currency, the return can increase or decrease as a result of currency
fluctuations. Past performance is no indicator for the current or future performance. The performance data are calculated without taking account of commissions and costs that result
from subscriptions and redemptions. Commissions and costs have a negative impact on performance. For more information about the associated costs, please refer to the related
costs and fees section of the prospectus. Any benchmarks/indices cited herein are provided for information purposes only. No benchmark/index is directly comparable to the
investment objectives, strategy or universe of the subfund. The performance of a benchmark shall not be indicative of past or future performance of the subfund. Financial
transactions should only be undertaken after having carefully studied the current valid prospectus and are only valid on the basis of the latest version of the prospectus and available
annual and half-yearly reports. Please take note of the risk factors.
Countries of distribution and local representatives
The Bellevue Funds (Lux) is registered and admitted for public distribution in AT, DE, LU, ES, UK and CH. Austria: Paying and information agent: ERSTE BANK der
oesterreichischen Sparkassen AG, Am Belvedere 1, A-1100 Vienna. Germany: Information agent: ACOLIN Europe GmbH, Reichenaustrasse 11a-c, D-78467 Konstanz. Spain:
Representative: atl Capital, Calle de Montalbán 9, ES-28014 Madrid - CNMV under the number 938. UK: The Bellevue Funds (Lux) SICAV is recognised for public offering and
distribution in the United Kingdom. Facilities agent: Financial Express Limited, 3rd Floor, Hollywood House, Church Street East, Woking, Surrey GU21 6HJ. Switzerland: The
Bellevue Funds (Lux) SICAV is registered for public offering and distribution in Switzerland with the Swiss Financial Market Supervisory Authority. Representative agent in
Switzerland: ACOLIN Fund Services AG, Leutschenbachstrasse 50, CH-8050 Zurich. Paying agent in Switzerland: DZ PRIVATBANK (Schweiz) AG, Münsterhof 12, P.O. Box, CH-
8022 Zurich. You can obtain the sales prospectus, Key Investor Information Document (“KIID”), statutes and the current annual and half-yearly reports, the current share prices and
further information about the fund free of charge in German from the management company Bellevue Asset Management AG, Seestrasse 16, CH-8700 Küsnacht, the representative
agent in Switzerland or online at www.bellevue.ch. In respect of the units distributed in or from Switzerland, the place of performance and jurisdiction is at the registered office of the
representative agent.
Prospectus, Key Investor Information Document („KIID“), fund contract as well as the annual and semi-annual reports of the BB securities fund under Swiss law are available free of
charge from: Switzerland: PMG Fonds Management AG, Sihlstrasse 95, CH-8001 Zurich or Bellevue Asset Management AG, Seestrasse 16, CH-8700 Küsnacht.
This material is not intended as an offer or solicitation for the purchase or sale of shares of BB Biotech AG. This material may not be distributed within the United States or any other
country where it may violate applicable law.
Copyright©2021 Bellevue Asset Management, Inc. All rights reserved.
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The most important terms are explained in the glossary at www.bellevue.ch/en/glossaryYou can also read
