BB Adamant Medtech & Services (Lux)
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.
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: 24.09.2021)
NAV: EUR 171.33 (23.09.2021)
Rolling performance (23.09.2021)
|23.09.2020 - 23.09.2021||34.76%||36.35%|
Annualized performance (23.09.2021)
|Since Inception p.a.||29.14%||32.68%|
Cumulative performance (23.09.2021)
Facts & Key figures
The Fund invests worldwide in companies active in the medical technology and healthcare services sector. Aim is to provide investors an attractive Healthcare Fund solution by investing in the entire healthcare universe with the exclusion of drug makers. Experienced sector specialists focus on profitable, liquid mid- and large-cap companies with an established product portfolio as well as fast growing small-cap companies with leading-edge technology offering. 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. A global network of experts spanning scientific and industrial fields supports the Management Team in forming opinions and making investment decisions. The selection of the portfolio companies is entirely bottom-up, independent of benchmark weightings.Show moreShow less
Investment suitability & Risk
|Investment Manager||Bellevue Asset Management AG|
|Custodian||RBC Investor Services, Luxembourg|
|Fund Administrator||RBC Investor Services, Luxembourg|
|Year end closing||30. Jun|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00 CET|
|Subscription Fee (max.)||5.00%|
|Total expense ratio (TER)||2.23% (31.08.2021)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (31.08.2021, base currency EUR)
|No. of positions||57|
Top 10 positions
Breakdown by sector
Opportunities & Risks
- 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 cuttingedge 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.
- Equities are subject to strong 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.
- Increased opportunities through possible derivative transactions go hand in hand with increased risk of losses.
Review / Outlook
Global stocks advanced in August (MSCI World Net +2.9%), as did the Euro Stoxx 50 (+2.6%) and Germany’s DAX index (+1.9%). The medtech sector MSCI World Healthcare Equipment & Supplies (+3.5%) and the BB Adamant Medtech & Services Fund (+1.6%) also ended the month in positive territory.
A key, general driver behind the medtech sector's positive performance was Medtronic's quarterly earnings report, which came out at the end of July – a month later than most of its competitors. Medtronic operates in many different segments of the medical technology market and it reported solid sales figures despite the rising number of hospitalized COVID-19 patients. It gave a guardedly positive business outlook too, which clearly buoyed sentiment for the medtech sector and lifted the share prices of other large medical technology companies such as Alcon (+13.8%), Abiomed (+11.7%), Intuitive Surgical (+6.7%), Abbott (+4.9%) and Edwards Lifesciences (+4.8%).
Mid- and small-cap companies in the portfolio showed a mixed performance. The “Digital Health” company Inspire Medical (+22.6%), which specializes in the treatment of obstructive sleep apnea, reported excellent sales again, beating the top-line consensus forecast for the second quarter by more than 25%, and increased its sales guidance for 2021. Shockwave (+18.2%), Guardant Health (+16.4%), TransMedics (+15.1%) and Axonics (+10.8%) also made strong gains, while Sight Sciences (-22.9%), Nevro (-20.9%), Ambu (-14.2%) and GN Store Nord (-13.8%) were performance detractors.
US health insurers had a negative impact on the fund's performance in August: Centene (-7.8%), Cigna (-7.4%) Humana (-4.4%) and Anthem (-1.9%) ended the month in the red. While the upturn in hospitalized COVID-19 patients didn't put a dent in treatments offered by medical technology companies, the health insurance companies faced a double whammy of COVID-19-driven higher costs and the resumption of postponed medical treatments. Healthcare services also weighed on performance. Amedisys (-29.3%), Privia Health (-27.9%) and Bright Health (-16.1%) are not growing their newer businesses as fast as initially expected. All performance data is in EUR / B shares.
Even without a normalization of the coronavirus situation, the sector-specific structural growth factors such as rising life expectancy and high rates of innovation will sustain the Medtech & Services sector's above average growth versus the overall economy and power its high rates of profit growth.
Vaccination rates in key Medtech & Services markets (North America, Europe and Japan) were still trending higher at the end of August. Between 65% and 78% of the population in major Western European countries have already received at least one dose of a coronavirus vaccine. In the US, 61% of the total population is vaccinated and in Japan 57%.
This is an important prerequisite for achieving herd immunity in these countries without experiencing high rates of hospitalizations. A conclusive evaluation of new virus variants (e.g. the Delta variant) is not yet possible, but developments in the UK, Spain and Portugal recently revealed that new COVID-19 cases increase only briefly before falling back quickly and that the rate of hospitalization was much lower compared to previous waves of infection. If this trend holds and is also observed in other countries, the current backlog of postponed surgical procedures will continue to normalize over the course of 2021 and 2022.
The Medtech & Services Fund invests in the entire healthcare market except for the drug developers. As a fully adequate healthcare investment vehicle, the fund aims to generate a significantly higher return than a traditional healthcare fund but with a comparable risk profile. The Medtech & Services sector is one of the stock market's most defensive sectors with sustainable outperformance potential and that is one reason for the unqualified success of our investment strategy. This and the additional growth from non-emergency treatments that had to be postponed during the pandemic create attractive entry points for investors.
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. 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. Individual costs are not taken into account and would have a negative impact on the performance. With an investment amount of EUR 1,000 over an investment period of five years, the investment result in the first year would be reduced by the front-end load of up to EUR 50 (5%) as well as by additional individual custody charges. In subsequent years, the investment result would also be reduced by the individual custody account costs incurred. The reference benchmark of this class is used for performance comparison purposes only (dividend reinvested). No benchmark is directly identical to a sub-fund, thus the performance of a benchmark is not a reliable indicator of future performance of the sub-fund 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. All figures in base currency in %, calculated by the total return / BVI method.Show moreShow less