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: 20.05.2022)
NAV: CHF 3'473.65 (19.05.2022)
Rolling performance (19.05.2022)
AA-CHF | Benchmark | |
19.05.2021 - 19.05.2022 | -0.81% | 2.41% |
19.05.2020 - 19.05.2021 | 19.18% | 23.18% |
17.05.2019 - 19.05.2020 | 11.68% | 11.03% |
18.05.2018 - 17.05.2019 | 4.96% | 6.54% |
Annualized performance (19.05.2022)
AA-CHF | Benchmark | |
1 year | -0.81% | 2.41% |
3 years | 9.67% | 11.85% |
5 years | 12.80% | 12.93% |
10 years | 13.53% | 12.66% |
Since Inception p.a. | 9.15% | 9.04% |
Cumulative performance (19.05.2022)
AA-CHF | Benchmark | |
1M | -14.08% | -9.34% |
YTD | -14.83% | -10.02% |
1 year | -0.81% | 2.41% |
3 years | 32.02% | 40.06% |
5 years | 82.66% | 83.70% |
Since Inception | 247.44% | 242.40% |
Annual performance
AA-CHF | Benchmark | |
2021 | 25.45% | 24.57% |
2020 | 6.56% | 9.32% |
2019 | 22.00% | 24.44% |
2018 | 15.95% | 7.00% |
Facts & Key figures
Investment Focus
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, 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
Redemption period | Daily |
Key data (29.04.2022, base currency CHF)
Beta | 1.18 |
Volatility | 27.60 |
Tracking error | 8.76 |
Active share | 32.63 |
Correlation | 0.96 |
Sharpe ratio | 0.64 |
Information ratio | 0.05 |
Jensen's alpha | -2.59 |
No. of positions | 43 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Breakdown by sector
Opportunities & Risks
Opportunities
- 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
- 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 Fund CH retreated 3.8% in April and was thus weaker than its benchmark (-1.9%), the healthcare sector as a whole (+0.5%), and the broader stock market (-3.3%). Healthcare services contributed 1.0% to the fund's monthly performance and medtech names made a negative contribution of 4.8%.
Investors bought up US health insurers, which led to positive contributions to the fund's absolute and relative performance from Cigna (+8.6%), Anthem (+7.7%), UnitedHealth (+5.1%), Humana (+2.2%) and Centene (+0.9%). Their excellent performance in April amid the current market environment was driven by various factors. To begin with, UnitedHealth, Humana and Anthem all beat investor expectations for the first quarter thanks to lower medical cost trends and they raised their earnings guidance for 2022. Second, yields at both the short and long end of the curve climbed higher, as already seen in March. Two-year US Treasury yields, for example, rose 40 bps to 2.7% in April and this should have a positive impact on the interest income from health insurers’ investment portfolios. Third, given the tense geopolitical situation, investors continue to favor companies that generate all of their revenues and earnings in the United States, which is the case for the US health insurance industry.
The largest hospital chain operator in the US – HCA Healthcare (-9.8%) – diminished the fund's performance after publishing lower-than-expected revenues and profits for the first quarter and lowering its outlook for full-year earnings. Revenues were down due to less complex and thus less expensive treatments of coronavirus patients in the wake of the Omicron variant. Higher-than-expected costs for temporary nurses squeezed the company’s profit margins. The contracts US hospital operators have with health insurers give them little leeway to pass through higher expenses. But HCA's good management has proven before that it can quickly and efficiently lower the company’s costs.
Turning to the fund's medtech exposure, only Abbott (+1.5%), Becton Dickinson (+0.5%) and Boston Scientific (+0.2%) made positive contributions to portfolio performance. Abbott and Boston Scientific beat investor expectations for first-quarter organic revenue growth and earnings per share.
Align Technology (-29.9%), Idexx (-17.0%), Intuitive Surgical (-16.4%), Dexcom (-15.8%), Inspire Medical (-15.5%) and Edwards Lifesciences (-5.3%) were performance detractors. Align flagged customer reticence in both patients (Invisalign teeth aligners) and dental practitioners (intraoral scanners). Intuitive Surgical sold fewer surgical systems in the first quarter because many customers had placed their orders in the final quarter of 2021 instead.
In January and February, the number of elective surgical procedures was lower than expected due to the COVID-19 resurgence triggered by the Omicron variant. While we have observed a strong rebound in these procedures in March and April, the recovery is likely to be a bit slower than expected. At the same time medtech companies reported higher material and logistics costs. The weaker investor sentiment toward medtech names can be traced to these two factors. In addition, companies with relatively higher valuations have experienced sharp markdowns.
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. Show moreShow less