UBS (Lux) Digital Health Equity Fund (EUR hedged) (DH20)

Overview

The UBS (Lux) Digital Health Equity Fund (EUR hedged) is an actively managed investment vehicle, established on December 14, 2017, by Credit Suisse Fund Management S.A. and currently managed by UBS Asset Management. This Luxembourg-domiciled SICAV fund primarily targets investments in 'pure-play' digital health companies, which are generally small- to mid-sized firms that leverage technology to drive significant innovation within the healthcare sector. The fund seeks long-term capital appreciation by focusing on three main sub-themes: Research & Development (approximately 24%), Treatments (around 46%), and Efficiency (roughly 30%). Notably, it has a significant focus on markets such as the United States (70%), with additional exposures to regions like China and Japan.

The fund’s EUR-hedged share class (P-acc) effectively accumulates returns without making distributions, and it employs derivatives to manage currency fluctuations against the euro. It benchmarks its performance against the MSCI ACWI NR EUR or MSCI World ESG Leaders (NR). The fund has been under the management of Thomas Amrein and Fang Liu since its inception, emphasizing Environmental, Social, and Governance (ESG) considerations through exclusion policies, norms-based screening, and active ownership strategies. It highlights its commitment to sustainability in accordance with Article 8 of EU Regulation 2019/2088. Given its focus on the volatile and innovative sector of health technology, it is classified within the 'Actions Sect. Autres' category and possesses a high risk profile (6/7 synthetic risk indicator), providing diversified access to one of the fastest-growing segments in healthcare amidst increasing societal health expenditures.

Products and Services

• Actively Managed Equity Fund

  The fund is designed to invest in a select group of companies that are leaders in digital health technologies, aiming for capital growth over a long-term horizon. The active management approach allows for strategic repositioning based on market conditions and emerging trends in the healthcare landscape.

• Investment Focus on Digital Health

  Targeting 'pure-play' digital health companies, the fund seeks to capitalize on the innovation within healthcare driven by technological advancements. This focus includes investment in research & development, unique treatment options, and efficiencies in healthcare delivery, reflecting contemporary trends and anticipated market growth.

• Portfolio Diversification

  The fund diversifies its investments geographically with strong exposure to the United States while also participating in markets like China and Japan. This geographic diversification mitigates risks associated with localized economic downturns while tapping into diverse growth opportunities.

• Currency Hedging

  Utilizing derivatives, the fund’s EUR-hedged share class effectively protects investors from currency fluctuations, ensuring that returns are safeguarded against changes in the euro’s value. This strategy is crucial for investors looking for stability in their returns amid currency volatility.

• ESG Integration

  With a strong commitment to sustainability, the fund incorporates ESG factors in its investment processes through various methodologies such as exclusions and norms-based screening. This integration aligns with investors' growing preference for responsible investing, enhancing the fund's appeal to socially-conscious investors.

• High-Risk, High-Reward Profile

  Positioned within the high-risk category, the fund embraces volatility associated with cutting-edge health technologies, which often present higher returns. This risk profile is suitable for investors willing to accept fluctuations in pursuit of capital growth in a rapidly expanding industry.