Bellevue 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
Explained in 90 seconds
Please find a more detailed description of share classes here.
Investment Focus
ISIN-No. LU0415391605
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: 28.03.2024)
NAV: CHF 462.63 (27.03.2024)
Rolling performance (27.03.2024)
B-CHF | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
27.03.2023 - 27.03.2024 | 13.65% | 13.27% | 13.75% |
25.03.2022 - 27.03.2023 | -11.85% | -13.76% | -5.91% |
26.03.2021 - 25.03.2022 | 4.02% | -0.15% | 12.64% |
27.03.2020 - 26.03.2021 | 41.30% | 46.06% | 32.64% |
Annualized performance (27.03.2024)
B-CHF | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1 year | 13.65% | 13.27% | 13.75% |
3 years | 1.38% | -0.83% | 6.42% |
5 years | 5.80% | 5.94% | 8.50% |
10 years | 10.79% | 12.47% | 9.52% |
Since Inception p.a. | 9.44% | 11.43% | 10.57% |
Cumulative performance (27.03.2024)
B-CHF | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1M | 5.15% | 4.77% | 4.04% |
YTD | 17.79% | 16.14% | 15.96% |
1 year | 13.65% | 13.27% | 13.75% |
3 years | 4.21% | -2.46% | 20.55% |
5 years | 32.58% | 33.48% | 50.44% |
10 years | 178.84% | 224.22% | 148.40% |
Since Inception | 269.90% | 379.97% | 329.01% |
Annual performance
B-CHF | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
2023 | -5.00% | -1.06% | -5.55% |
2022 | -16.10% | -23.60% | -4.32% |
2021 | 19.58% | 18.46% | 23.35% |
2020 | 5.71% | 13.06% | 3.98% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term. The fund actively 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 Investor Services Bank, Luxembourg |
Fund Administrator | CACEIS Investor Services Bank, Luxembourg |
Auditor | PWC, Luxembourg |
Launch date | 28.09.2009 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 1.60% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU0415391605 |
Valor number | 3882711 |
Bloomberg | BFLBBBC LX |
WKN | A0RP24 |
Total expense ratio (TER) | 2.16% (29.02.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (29.02.2024, base currency EUR)
Beta | 0.98 |
Volatility | 18.40 |
Tracking error | 6.61 |
Active share | 28.49 |
Correlation | 0.93 |
Sharpe ratio | 0.37 |
Information ratio | 0.36 |
Jensen's alpha | 2.59 |
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
The relevant medtech markets have shown very pleasing growth. Besides the numerous new or recently launched market-expanding products with blockbuster potential, all the procedures that had to be postponed during the pandemic will give volume growth in 2024 an additional boost. Medtech companies are therefore expected to report a big acceleration in growth this year. Excellent fourth-quarter results and optimistic outlooks for 2024 underpin that assessment. Not only that, the large medtech players have rock-solid balance sheets and sector valuations are still modest, so we expect M&A activity to pick up. Given the typically substantial takeover synergies in this sector, the stock prices of acquiring companies should trade higher, too.
Large-cap medtech stocks were conspicuous performance drivers for the fund in February: GE Healthcare (+25.0%), Alcon (+12.3%), Idexx Laboratories (+12.2%), Edwards Lifesciences (+8.7%), Abbott (+5.3%), Boston Scientific (+5.1%) and Stryker (+4.5%). GE Healthcare beat consensus sales and profit estimates. The company is a leader in integrating artificial intelligence (AI) into medical technology systems and it has accumulated the most FDA approvals for AI-powered medtech products (58). Alcon’s fourth-quarter results were better than expected. Reported growth for both sales, fueled by new, innovative contact lenses, and profits surprised to the upside. Edwards Lifesciences received FDA approval for its Evoque heart valve replacement system much sooner than expected. Evoque is the first transcatheter therapy to receive approval for the treatment of tricuspid regurgitation. Insulet (-13.7%) and Penumbra (-6.4%) did not quite meet high investor expectations and had a negative impact on portfolio performance.
Most of the healthcare services providers traded higher in February. For instance HCA Healthcare (+2.7%), the largest US hospital chain, and Privia (+11.2%), which has developed a physician-focused platform that improves healthcare delivery for care providers and patients. The performance of US health insurers was mixed. Cigna (+12.2%), Molina (+11.0%), Centene (+4.6%) and Elevance (+2.1%) made positive contributions to performance, while Humana (-6.9%) and UnitedHealth (-3.1%) were performance detractors. Cigna, a US health insurer focused on employer-sponsored plans, beat consensus earnings estimates by a mile thanks to a drop in medical costs and raised its earnings guidance for 2024. Shares of the largest US health insurer UnitedHealth came under pressure in late February after the Wall Street Journal wrote that the Department of Justice (DOJ) had launched an antitrust investigation into the company. The DOJ has allegedly inquired about relationships between UnitedHealth Group’s subsidiaries UnitedHealthcare (health insurer) and Optum Health (services provider) and is probing past acquisitions of doctor groups and how they have affected competition. The Biden administration's aggressive stance towards market leaders in various industries does not come as a surprise to us during this presidential election year, and we assume this will be an only temporary phenomenon. All performance data is in EUR / B shares.
We expect hospitals operators to benefit from the ongoing recovery of surgical procedure volumes and from slower wage growth in the nursing field. In the health insurance space, we expect premium volumes to show very good growth, fueled by a steady increase in membership numbers and higher-than-average rate increases. We expect another significant increase in premium rates for 2025, which should have a positive impact on insurers’ sales and earnings growth. Political risks remain low. Either Biden or Trump will win the White House and we assume that no party will have a solid majority in either chamber of Congress after the elections.
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.
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