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.
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: 23.09.2022)
NAV: CHF 3'476.74 (22.09.2022)
Rolling performance (22.09.2022)
|22.09.2021 - 22.09.2022||-12.64%||-10.99%|
|22.09.2020 - 22.09.2021||35.48%||34.39%|
|20.09.2019 - 22.09.2020||6.58%||6.72%|
|21.09.2018 - 20.09.2019||-0.65%||5.71%|
Annualized performance (22.09.2022)
|Since Inception p.a.||8.93%||8.56%|
Cumulative performance (22.09.2022)
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|
|Fund Administrator||Swisscanto Fondsleitung AG|
|Auditor||Ernst & Young AG|
|Year end closing||30. Sep|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00 CET|
|Subscription Fee (max.)||2.50%|
|Performance Fee||10.00% (with High Water Mark)|
Key data (31.08.2022, base currency CHF)
|No. of positions||42|
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 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.
- 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.
- Increased opportunities through possible derivative transactions go hand in hand with increased risk of loss
Review / Outlook
The Bellevue Medtech & Services (CH) Fund gave up some ground in August (-2.1%) but still performed better than the broader healthcare industry (-3.8%) and roughly matched the performance of its benchmark (-1.7%) and the global stock market (-1.9%). Healthcare services contributed 0.1% to the fund's monthly performance while medtech’s contribution was a negative 2.2%.
Most of the US health insurance stocks in the portfolio traded higher. Cigna (+5.4%), Molina (+5.4%), Elevance (+4.1%) and Humana (+2.4%) made positive contributions to the fund's performance and only two stocks had a slightly negative effect, UnitedHealth (-1.9%) and Centene (-1.1%). Cigna easily beat consensus expectations with its reported second-quarter profits thanks to a sharp drop in COVID-19 treatment costs and management consequently raised its full-year profit guidance. Molina won a managed Medicaid tender to deliver services to more than one million insured Californians in Los Angeles County, beating Centene. “Managed Medicaid” is a public health insurance plan for lower-income residents.
Digital health companies Veeva Systems (-8.7%) and Inspire Medical (-6.2%) were performance detractors, which reflects profit-taking in the wake of their strong performance during the previous month, although Inspire Medical reported better-than-expected 2Q results and raised its top-line guidance for 2022.
Fast-growing medical technology companies such as Shockwave Medical (+44.1%), Penumbra (+20.6%), Axonics (+14.1%), Insulet (+5.6%) and Dexcom (+2.6%) made positive contributions to the fund's absolute and relative performance. Shockwave's second-quarter sales beat expectations by more than 12% and the company revised its full-year targets sharply higher. In addition, FDA approval of Shockwave's L6 intravascular lithotripsy catheter came sooner than expected. Penumbra easily beat investors’ low expectations for 2Q results. Axonics beat analyst expectations for second-quarter sales by 15% and raised its top-line growth forecast for 2022 from 32% to 40%.
Large-cap medtechs Sonova (-24.1%), Intuitive Surgical (-8.5%), Edwards Lifesciences (-8.2%), Alcon (-13.9%) and Abbott (-3.5%) had a negative impact on the fund's performance during the month under review. Sonova issued a profit warning and lowered its sales growth forecast for the current fiscal year by 2%. The market for hearing aids was said to be recovering more slowly in some countries than the company had expected. Alcon disappointed investors when it reported lower-than-expected sales in Vision Care, a key business segment that includes contact lenses. Shares of Edwards Lifesciences and Abbott were dragged down after Medtronic (-2.7%) reported disappointing quarterly results, which, however, we believe reflects company-specific factors.
Life sciences tools specialist Thermo Fisher (-6.7%) and Danaher (-5.2%) were weak due to profit taking.
All data in CHF unless otherwise stated.
In the healthcare services segment, we believe US health insurers offer the most upside potential. Key value drivers here are the rapidly growing number of members and the fast premium growth in Medicare Advantage plans among the 65 and older population, a high level of resistance to inflation thanks to contracts that shield health insurers from an increase in healthcare costs, and earnings accretion thanks to rising short- and medium-term bond yields.
In the medical technology space, we expect to see a strong rebound in surgical procedures thanks to a sharp decline in COVID-related hospitalizations and high levels of population immunity. This should more than offset the impact of higher materials and logistics costs. We additionally expect numerous approvals and market launches of relevant products for diabetes and structural heart disease.
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