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

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Investment Focus

ISIN-No. LU0415391787

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: 26.11.2021)

NAV: CHF 531.20 (24.11.2021)


Fonds (Brutto)
01 Jan 2010 - 01 Jan 2010
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Rolling performance (24.11.2021)

I-CHFBenchmark
24.11.2020 - 24.11.202121.00%21.84%
24.11.2019 - 24.11.20205.40%10.91%
24.11.2018 - 24.11.201919.75%25.36%
24.11.2017 - 24.11.201816.12%12.41%

Annualized performance (24.11.2021)

I-CHFBenchmark
1 year21.00%21.84%
3 years14.94%19.07%
5 years17.85%19.42%
10 years16.92%19.44%
Since Inception p.a.12.63%14.99%

Cumulative performance (24.11.2021)

I-CHFBenchmark
1M-0.87%-1.44%
YTD18.55%18.35%
1 year21.00%21.84%
3 years51.95%68.96%
5 years127.50%143.00%
10 years378.26%491.96%
Since Inception324.72%446.24%

Annual performance

I-CHFBenchmark
20206.45%13.06%
201924.76%29.33%
201813.88%12.04%
201725.21%24.89%

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, 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

SRRI

Low risk

High risk

The Fund’s investment objective is to generate attractive and competitive capital growth in the long term. It is therefore particularly suited to investors with an investment horizon of at least 5 years who want to selectively diversify their portfolio with investments in the medical technology sector and who are willing to accept the equity risks typical of this sector.

General Information

Investment ManagerBellevue Asset Management AG
CustodianRBC Investor Services, Luxembourg
Fund AdministratorRBC Investor Services, Luxembourg
AuditorPWC, Luxembourg
Launch date28.09.2009
Year end closing30. Jun
NAV CalculationDaily "Forward Pricing"
Cut of time15:00 CET
Management Fee0.90%
Subscription Fee (max.)5.00%
ISIN numberLU0415391787
Valor number3882714
BloombergBFLBBIC LX
WKNA0RP26
Total expense ratio (TER)2.21% (29.10.2021)

Legal Information

Legal formSICAV Luxembourg jurisdiction
SFDR categoryArticle 8

Key data (29.10.2021, base currency EUR)

Beta1.03
Volatility23.10
Tracking error8.66
Active share37.21
Correlation0.93
Share ratio0.86
Information ratio-0.50
Jensen's alpha-6.24
No. of positions56

Top 10 positions

Abbott Laboratories
Danaher
Intuitive Surgical
Boston Scientific
Becton Dickinson
Stryker
Edwards Lifesciences
Dexcom
IDEXX
United Health Group
9.7%
6.2%
6.1%
5.3%
5.1%
4.7%
4.2%
3.3%
3.2%
3.2%

Market capitalization

0 - 1 bn
1 - 2 bn
2 - 5 bn
5 - 15 bn
15 - 20 bn
> 20 bn
Others
0.1%
1.1%
2.3%
9.7%
6.9%
78.6%
1.4%

Geographic breakdown

United States
Switzerland
Denmark
Australia
Japan
Cash
91.3%
5.0%
1.1%
1.0%
0.9%
0.7%

Breakdown by sector

Cardiology
Managed Care
Life Science Supply
Surgery
Orthopedics
Diabetes
Dental
Ophthalmology
Neuromodulation
Others
Cash
22.2%
15.4%
11.8%
9.0%
6.6%
6.2%
4.3%
3.9%
2.4%
17.4%
0.7%

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 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.

Risks

  • 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.

October was a very strong month for global stocks (MSCI World Net +6.0%), the Euro Stoxx 50 (+5.2%) and Germany’s Dax index (+2.8%). The Bellevue Medtech & Services Fund (+5.3%) also showed signs of strength, as did the medical technology sector (MSCI World Healthcare Equipment & Supplies (+2.5%). Performance last month was primarily driven by the ongoing third-quarter reporting season.

US health insurers Humana (+19.3%), UnitedHealth (+18.2%), Anthem (+17.0%), Centene (+14.6%) and Molina (+9.3%) delivered excellent returns. Somewhat better-than-expected third-quarter results, confident initial guidance for 2022 and subsiding political risks eased long-standing investor skepticism toward the healthcare insurance industry in the US. As a result, the hefty discount of US health insurers versus the broad stock market of more than 30% subsided, but it is still around 25%. Strong performance moves within a short period of time are not uncharacteristic for US health insurers. For example, this sector jumped 28% in October and November of 2019.

The medtech sector has also been affected by supply chain constraints and labor shortages. Moreover, the surge of delta infections in July and August put a temporary hold on the upward trend in elective healthcare procedures. Third-quarter earnings reports were therefore keenly awaited and announcements so far have revealed that these factors were much more mild compared to other industries and have been more manageable. Dexcom (+14.3%), Abbott (+9.8%), Surgical Abbott (+9.3%) and Edwards Lifesciences (+6.1%) for example had no problem beating investors’ expectations. Medical procedures showed some sequential weakness but were still at higher levels compared to the third quarter of 2019. All medical technology companies also reported a steady recovery in the number of interventions in September and October and this positive news confirms our investment case. A shortage of staff at hospitals and supply chain constraints (e.g. a shortage of electronic components) have not proven to be material factors. 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) at the end of October showed another slight sequential increase. Between 69% and 81% of the population in major Western European countries have already received at least one dose of a coronavirus vaccine. In the US, 66% of the total population is vaccinated and in Japan 78%.

This is an important prerequisite for achieving herd immunity in these countries without a significant increase in hospitalizations. Vaccine booster shots and oral antiviral therapies, a recent development, will also be available to prevent and treat COVID-19 infections. The number of elective procedures should therefore continue to normalize during 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

Ratings & Awards

  • Lead Portfolio Manager

    Stefan Blum

    Stefan Blum joined Bellevue Asset Management in 2008 and is portfolio manager of the funds BB Adamant Medtech & Services and BB Adamant Digital Health. Prior to joining Bellevue Asset Management, he spent 4 years as head of investor relations at Sonova. As a financial analyst at Bank Sarasin, he covered medical technology and high tech stocks. After that he served as CFO of Obtree Technologies Inc. Stefan Blum obtained a degree in business administration from the University of St. Gallen and is CEFA charterholder.
  • Portfolio Manager

    Marcel Fritsch

    Marcel Fritsch joined Bellevue Asset Management in 2008 as portfolio manager of the BB Adamant Medtech & Services and BB Adamant Digital Health Fund. Prior to that, he spent more than 3 years as a consultant with Deloitte & Touche. Formulating company strategy, evaluating organizational structures and valuing companies prior to corporate transactions were among his duties in this function. Marcel Fritsch holds a degree in business economics from the University of St. Gallen (HSG).
  • Equity Analyst

    Mateusz Niedzwiecki

    Mateusz Niedzwiecki has been a Healthcare Analyst at Bellevue Asset Management since 2021. Before joining Bellevue Asset Management, he worked in general and trauma surgery at the Horgen Hospital and most recently at the department of Urology at the University Hospital Zurich. He holds a degree in medicine from the University of Zurich.
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