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
Please find a more detailed description of share classes here.
Investment Focus
ISIN-No. LU0415391514
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: EUR 673.35 (19.05.2022)
Rolling performance (19.05.2022)
I-EUR | Benchmark | |
19.05.2021 - 19.05.2022 | 3.09% | -1.61% |
19.05.2020 - 19.05.2021 | 14.77% | 17.94% |
17.05.2019 - 19.05.2020 | 12.77% | 17.12% |
18.05.2018 - 17.05.2019 | 15.28% | 16.32% |
Annualized performance (19.05.2022)
I-EUR | Benchmark | |
1 year | 3.09% | -1.61% |
3 years | 10.06% | 10.74% |
5 years | 12.72% | 13.38% |
10 years | 15.23% | 17.11% |
Since Inception p.a. | 14.27% | 16.09% |
Cumulative performance (19.05.2022)
I-EUR | Benchmark | |
1M | -13.42% | -11.88% |
YTD | -14.47% | -17.58% |
1 year | 3.09% | -1.61% |
3 years | 33.43% | 35.92% |
5 years | 82.07% | 87.44% |
Since Inception | 440.11% | 559.64% |
Annual performance
I-EUR | Benchmark | |
2021 | 25.69% | 23.65% |
2020 | 6.98% | 13.62% |
2019 | 29.35% | 34.08% |
2018 | 18.25% | 16.34% |
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 | RBC Investor Services, Luxembourg |
Fund Administrator | RBC Investor Services, 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 | 0.90% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU0415391514 |
Valor number | 3882709 |
Bloomberg | BFLBBIE LX |
WKN | A0RP25 |
Total expense ratio (TER) | 2.18% (29.04.2022) |
Legal Information
Legal form | SICAV Luxembourg jurisdiction |
SFDR category | Article 8 |
Key data (29.04.2022, base currency EUR)
Beta | 1.04 |
Volatility | 23.30 |
Tracking error | 7.89 |
Active share | 38.93 |
Correlation | 0.94 |
Sharpe ratio | 0.63 |
Information ratio | -0.10 |
Jensen's alpha | -1.58 |
No. of positions | 50 |
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 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.
Review / Outlook
April was a very weak month for equities worldwide (MSCI World Net -3.7%). After trading sideways during the first three weeks of the month, stocks came under pressure after Fed Chairman Powell said that the US central bank was prepared to raise the federal funds rate more quickly and decisively to battle inflation. The Euro Stoxx 50 (-2.0%) and Germany’s blue-chip Dax index (-2.2%) closed lower as well. The medtech sector (MSCI World Healthcare Equipment & Supplies -6.3%) held its ground till mid-month, when it turned sharply lower, mirroring its higher structural growth trend. Thanks to its dual focus on healthcare services providers and medtech companies, the Bellevue Medtech & Services Fund (-5.6%) beat its benchmark, despite the higher weighting of growth stocks in its portfolio.
US health insurance stocks continued to march higher in April. Cigna (+8.2%), Humana (+7.3%), Anthem (+7.3%), UnitedHealth (+4.8%) and Centene (+0.5%) all made positive contributions to the fund's performance. Their impressive performance in today's choppy market was driven by various factors. UnitedHealth, Humana and Anthem beat investor expectations for the first quarter thanks to lower medical cost trends and they all raised their earnings guidance for 2022. Second, yields at both the short and 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 (-10.1%) – detracted from the fund's performance after publishing lower-than-expected revenues and profits for the first quarter and lowering its full-year earnings outlook. Revenues were lower than forecast because COVID-19 patients generally had more mild forms of the disease, which led to a drop in treatment costs. Meanwhile, higher-than-expected costs for temporary or traveling 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.
As for the medtech investments, Procept BioRobotics (+6.8%), Terumo (+2.3%), Abbott (+1.1%), and Becton Dickinson (+0.1%) were the only medtech stocks that made a positive contribution to portfolio performance. Dexcom (-20.1%), Omnicell (-15.7%) and Abiomed (-13.5%) published good quarterly results, but their stock prices were still weighed down by macro factors. As were the stock prices of Shockwave Medical (-27.1%), Inspire Medical (-23.4%), Axonics (-13.0%), Tandem Diabetes (-12.8%) and Insulet (-5.8%), companies which have not yet published their latest quarterly results.
Quarterly results from Align (-33.5%) confirmed that consumers (even in China) are reining in their spending on Invisalign teeth straightening solutions, on top of problems in the company’s supply chain. Early indicators that the capital investment cycle might lose some momentum led Intuitive Surgical (-20.7%) shares lower. At the same time, Intuitive reported that the upturn in treatments/procedures observed in March continued in April. This prompted Intuitive to raise its forecast for full-year procedure growth in 2022 to 12-16% yoy. All performance data is in EUR / B shares.
The outlook for the 2022 investment year in the medtech & services sector is attractive. New cases and hospitalizations in key medtech & services markets (North America, Europe and Japan) have plunged as Omicron became the dominant strain of COVID-19. We believe that high immunity levels will enable a significant rebound in elective medical procedures in 2022. The sector’s risk-return profile is enticing for many investors.
Sector valuations are moderate and that offers opportunities, not just for investors; we also expect takeover activity to pick up because the valuation multiples of many small, fast-growing companies declined so much in 2021. Regardless of when the situation surrounding the pandemic and the geopolitical situation returns to normal, 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.
The Bellevue 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. Show moreShow less