Explained in 90 seconds
Medtech & Services is an investment in 10% of global gross domestic product: Healthcare sector excluding drugs
Bottom line: above-average and steady growth compared to the broad market
Digitalization and the use of GenAI is boosting sales and earnings growth
Indexed performance (as at: 08.10.2024)
NAV: EUR 784.54 (07.10.2024)
Rolling performance (08.10.2024)
I-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
07.10.2023 - 07.10.2024 | 16.87% | 19.13% | 13.81% |
07.10.2022 - 07.10.2023 | -3.19% | -3.66% | -0.21% |
07.10.2021 - 07.10.2022 | -5.55% | -16.95% | 8.34% |
07.10.2020 - 07.10.2021 | 21.21% | 23.85% | 20.07% |
Annualized performance (08.10.2024)
I-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1 year | 16.87% | 19.13% | 13.81% |
3 years | 2.24% | -1.05% | 7.67% |
5 years | 7.95% | 6.92% | 11.31% |
10 years | 12.48% | 13.31% | 10.52% |
Since Inception p.a. | 13.02% | 14.29% | 13.63% |
Cumulative performance (08.10.2024)
I-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1M | 0.68% | 1.29% | -1.70% |
YTD | 10.63% | 10.47% | 12.78% |
1 year | 16.87% | 19.13% | 13.81% |
3 years | 6.86% | -3.10% | 24.81% |
5 years | 46.58% | 39.70% | 70.84% |
10 years | 224.07% | 248.84% | 171.97% |
Since Inception | 529.29% | 644.79% | 582.05% |
Annual performance
I-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
2023 | 1.60% | 5.08% | 0.45% |
2022 | -11.34% | -19.83% | 0.55% |
2021 | 25.69% | 23.65% | 28.63% |
2020 | 6.98% | 13.62% | 4.27% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term, is actively managed and invests worldwide in companies active in the medical technology and healthcare services 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 | 28.09.2009 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 0.90% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU0415391514 |
Valor number | 3882709 |
Bloomberg | BFLBBIE LX |
WKN | A0RP25 |
Total expense ratio (TER) | 1.45% (30.09.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (30.09.2024, base currency EUR)
Beta | 0.98 |
Volatility | 18.33 |
Tracking error | 6.65 |
Active share | 25.12 |
Correlation | 0.93 |
Sharpe ratio | 0.09 |
Information ratio | 0.42 |
Jensen's alpha | 2.79 |
No. of positions | 44 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Breakdown by sector
Benefits & Risks
Benefits
- Digitalization of the healthcare sector is boosting medtech companies’ growth and earnings.
- Focusing on profitable, liquid mid and large cap companies with an established product portfolio as well as on rapidly growing small cap businesses delivering cutting-edge technology.
- Managed care profits from the privatization of the health insurance sector and lower treatment costs.
- Minimally invasive techniques gaining ground – shorter treatment times reduce healthcare costs.
- 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.
- 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
As could be expected, the stocks of innovative, fast-growing companies (which the Medtech & Services Fund is focused on) benefited the most from the US Federal Reserve’s rate cut. By the same token, these circumstances led to last month's weakness in pharmaceuticals and the broader healthcare sector. Shifts in the general investment landscape like this also encourage the investment community to hunt for new, attractive investment ideas. Looking at the big picture, the Medtech & Services Fund stands to reap an outsized benefit from the current market phase.
Medtech stocks in the portfolio that are generating high sales growth, such as Insulet (+13.8%), Straumann (+10.0%), Align Technology (+6.3%), Idexx Laboratories (+4.0%), Cooper (+3.4%) and Boston Scientific (+1.6%) for example, traded higher on the US central bank’s rate cut announcement and other news. Insulet’s management made some positive remarks about the expected number of new patient additions for the second half of 2024.
Shares of portfolio company GE Healthcare (+9.7%) gained on the Chinese government’s the announcement of a fiscal stimulus package.
Zimmer Biomet (-7.1%), Edwards Lifesciences (-6.5%), Dexcom (-4.2%) and Intuitive Surgical (-1.2%) detracted from portfolio performance. Zimmer Biomet disappointed investors when it trimmed its sales forecast for 2024 by about 1% because of problems stemming from a new ERP system. Edwards Lifesciences confirmed its earnings guidance for 2024 but said that earnings per share would likely be markedly lower in 2025 compared to 2024 due to the divestment of its Critical Care business. We assume the company will be able to offset some of the forecast drop in EPS by cutting costs and buying back shares.
The performance of life sciences tools companies Danaher (+2.4%) and Thermo Fisher (-0.3%) was mixed. Thermo Fisher confirmed its long-term sales guidance range of 7% to 9% but added that achieving this growth would be contingent on a full recovery of its end markets, and management made no reference as to the exact time frame here.
HCA Healthcare (+2.0%), the largest US hospital chain, made another positive contribution to the portfolio's relative and absolute performance. Its management team mentioned at various investor conferences that business was going well.
US health insurers traded lower and Elevance (-7.2%), Centene (-5.3%), Cigna (-4.7%), Molina (-2.4%) and UnitedHealth (-1.5%) detracted from portfolio performance. It appears that there was another big increase in surgical procedure volumes at hospitals and ambulatory surgery centers in the third quarter, while the Fed's rate cut portends somewhat returns from health insurers’ fixed-income investments in the medium term. All performance data is in EUR / B shares.
Hospitals stand to benefit from high patient volumes, higher prices, and only moderately higher labor costs. We expect health insurers to report rising premium income in the wake of solid membership growth and premium rate increases. Persisting high US government bond yields could have an accretive effect on earnings, too. Political risks are still low. We assume that the elections in November will not give either party a solid majority of seats in either chamber.
Unlike in 2023, we are anticipating tailwinds for our investment solution in 2024: Rate cuts by the Fed, attractive valuation levels (valued at a discount despite above-average earnings growth), a general repositioning as investors drop last year's outperformers and move into high-quality stocks, and a meager outlook for global economic growth (which in the past has been good for non-cyclical sectors). All of these factors argue for an investment in the Bellevue Medtech & Services (Lux) Fund.
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