Bellevue Medtech & Services (CH)
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
Focusing on profitable, liquid mid and large cap companies with an established product portfolio
Please find a more detailed description of share classes here.
Investment Focus
ISIN-No. CH0034334737
The Fund invests worldwide in companies active in the medical technology and healthcare services sector. Stock selection is based on fundamental company analysis, focusing in particular on the medical benefits and the potential savings for the healthcare system as well as the expected market potential of a company’s products and services.
Indexed performance (as at: 23.04.2024)
NAV: CHF 3'493.98 (22.04.2024)
Rolling performance (22.04.2024)
AA-CHF | Benchmark | |
21.04.2023 - 22.04.2024 | 0.99% | 5.89% |
22.04.2022 - 21.04.2023 | -10.08% | -9.36% |
22.04.2021 - 22.04.2022 | 2.06% | 5.80% |
22.04.2020 - 22.04.2021 | 31.89% | 32.02% |
Annualized performance (22.04.2024)
AA-CHF | Benchmark | |
1 year | 0.99% | 5.89% |
3 years | -2.50% | 0.51% |
5 years | 6.75% | 8.47% |
10 years | 11.59% | 12.40% |
Since Inception p.a. | 8.06% | 8.10% |
Cumulative performance (22.04.2024)
AA-CHF | Benchmark | |
1M | -2.36% | -2.30% |
YTD | 9.59% | 9.18% |
1 year | 0.99% | 5.89% |
3 years | -7.32% | 1.54% |
5 years | 38.75% | 50.37% |
10 years | 199.72% | 222.04% |
Since Inception | 249.42% | 251.77% |
Annual performance
AA-CHF | Benchmark | |
2023 | -10.60% | -4.35% |
2022 | -12.56% | -11.48% |
2021 | 25.45% | 24.57% |
2020 | 6.56% | 9.32% |
Facts & Key figures
Investment Focus
The fund actively invests worldwide in companies active in the medical technology and healthcare services sector. Aim is to provide investors an attractive solution by investing in the entire healthcare universe with the exclusion of drug makers. Experienced sector specialists focus on profitable, Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | Zürcher Kantonalbank |
Fund Administrator | Swisscanto Fondsleitung AG |
Auditor | Ernst & Young AG |
Launch date | 03.03.2008 |
Year end closing | 30. Sep |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 1.80% |
Subscription Fee (max.) | 2.50% |
Performance Fee | 10.00% (with High Water Mark) |
ISIN number | CH0034334737 |
Valor number | 3433473 |
Bloomberg | ADAGMED SW |
WKN | A0RAUP |
Legal Information
Legal form | Investment funds under Swiss law |
SFDR category | Article 8 |
Redemption period | Daily |
Key data (31.03.2024, base currency CHF)
Beta | 1.19 |
Volatility | 19.10 |
Tracking error | 5.36 |
Active share | 28.77 |
Correlation | 0.97 |
Sharpe ratio | 0.13 |
Information ratio | -0.14 |
Jensen's alpha | -1.38 |
No. of positions | 32 |
Portfolio
Market capitalization
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 in financial instruments that might 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
US hospital giant HCA Healthcare (+9.3%), drug distributor McKesson (+5.0%) and cloud-based software company Veeva Systems (+4.8%) made positive contributions to relative and absolute performance. At an investor conference, HCA management made very positive comments about the course of business while Veeva’s quarterly results were better than expected.
US health insurance stocks ended March in the green: Cigna (+10.6%), Molina (+6.3%), Elevance (+5.8%), UnitedHealth (+2.6%), Centene (+2.0%) and Humana (+1.2%).
At its annual investor conference, Cigna raised its guidance for long-term earnings per share growth to 10-14% and confirmed its earnings guidance for 2024, which was positively received by investors in light of the currently very high surgery volumes.
At a conference for investors, Elevance made positive remarks about its business in the first quarter and confirmed its earnings guidance for 2024. Elevance also announced the acquisition of Kroger Specialty Pharmacy, which is expected to be margin accretive over a medium- and long-term horizon.
UnitedHealth's stock performance was tarnished a bit by a cyberattack on Change Healthcare. Change Healthcare, a unit of UnitedHealth, provides a billing platform that healthcare providers use to submit claims to health insurers.
Medtech shares delivered another good performance, driven by positive management commentary at investor conferences and by new product approvals. Large-cap stocks such as Edwards Lifesciences (+14.8%), Intuitive Surgical (+5.5%), Boston Scientific (+5.5%) and Stryker (+4.8%) made positive contributions to performance. Edwards Lifesciences benefited from growing investor confidence that the market for transcatheter tricuspid valve replacement systems is bigger than initially estimated.
Shockwave (+27.3%) and Dexcom (+22.9%) were also performance drivers. The FDA approved Dexcom's Stelo, an innovative wearable glucose biosensor designed for people living with type 2 diabetes not on insulin, a market that numbers 25 million people in the US alone. It is the first over-the-counter glucose sensor to reach the market and can be worn for up to 15 days before requiring a replacement. Shockwave's shares jumped after the Wall Street Journal wrote that Johnson & Johnson was interested in buying the company.
Idexx (-4.3%) and Abbott (-2.3%) were performance detractors. Abbott corrected after a court ordered Reckitt Benckiser to pay USD 60 mn to the mother of a premature baby who died after being fed the company's baby formula.
Life sciences tools specialists Thermo Fisher (+4.0%) and Danaher (+0.7%) delivered positive returns.
All performance data is in CHF; AA shares.
In their talks with investors in March, the executives of many medical technology companies expressed positive views about the course of business during the first quarter and said that they expected fast growth in surgical procedure volumes in 2024. The approval and subsequent launch of relevant new products will continue to bolster sales growth, too. Examples here are Abbott’s TriClip, AVEIR and Libre products, Boston Scientific’s Farapulse PFA system and the new da Vinci 5 surgical robot from Intuitive Surgical. We believe company pricing power in the low single-digit percentage range is still intact. Margins are expected to widen due to the faster-than-average sales growth and further improvements in supply chains.
Economic growth could slow during the course of 2024. Medical technology and healthcare services companies tend to outperform in a weaker environment.
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