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.
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: 20.01.2022)
NAV: USD 559.97 (19.01.2022)
Rolling performance (19.01.2022)
|19.01.2021 - 19.01.2022||3.65%||2.43%|
|19.01.2020 - 19.01.2021||16.39%||21.83%|
|19.01.2019 - 19.01.2020||26.05%||31.62%|
|19.01.2018 - 19.01.2019||10.86%||9.32%|
Annualized performance (19.01.2022)
|Since Inception p.a.||12.93%||15.07%|
Cumulative performance (19.01.2022)
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|
|Custodian||RBC Investor Services, Luxembourg|
|Fund Administrator||RBC Investor Services, Luxembourg|
|Year end closing||30. Jun|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00 CET|
|Subscription Fee (max.)||5.00%|
|Total expense ratio (TER)||1.49% (31.12.2021)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
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 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.
- 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
Stocks showed a strong performance in December. The global stock market (MSCI World Net +3.6%) made good gains, while Germany's blue chip Dax (+5.2%) and the Euro Stoxx 50 index (+5.8%) climbed even higher month-on-month. The Bellevue Medtech & Services Fund (+7.1%) delivered a pleasing performance, as did the medical technology sector (MSCI World Healthcare Equipment & Supplies (+5.4%).
Looking at annual returns, the Bellevue Medtech & Services Fund performed well (+24.8%) in 2021, a challenging investment year. It came out ahead of its benchmark (+23.7%) and, despite some pandemic-related turbulence, the Euro Stoxx 50 (+24.1%) and the Dax (+15.8%).
Our investment strategy is focused on innovative, fast-growing and large cap medtech & services companies and, to a lesser extent, on mid cap stocks with exceptionally high growth potential. This combination of weakly correlated medtech & services stocks and the integration of life sciences tools companies enable us to build a portfolio with a strong diversification profile that generates stable returns even in an environment of quickly shifting sentiment. In 2021, for example, our investments in life sciences tool companies and US health insurers were crucial in offsetting the downside pressure that weighed on small and mid-sized growth stocks.
The outlook for the 2022 investment year is positive. Sector valuations are moderate and that offers opportunities not only for investors; we expect M&A activity to pick up too in the wake of the substantial valuation contraction many promising high-growth companies experienced in 2021. An example here was already seen early in 2022 when Stryker issued a takeover bid for Vocera, a leading provider of communication software and hardware for hospitals.
The long-term growth drivers in our investment universe are more relevant than ever: new products for diabetes therapy, minimally invasive heart valve replacement and repair procedures, and surgical robots are powerful examples of medtech innovation. In healthcare services, we believe the US health insurance industry offers the greatest upside potential. Key value drivers here are progressive privatization (Medicare Advantage, Medicaid) and the vertical integration of services providers (primary care doctors and outpatient care centers). Life science tools companies stand to benefit from the growing levels of R&D intensity in the biotech sector and from the strong demand from vaccine manufacturers. Revenues from COVID-19 testing products have also led to acquisitions and reinvestments on a massive scale. Hospitals as well as medtech companies should benefit from the expected normalization of elective procedures.
We expect the first positive earnings announcements for fourth quarter of 2021 to be published during JP Morgan’s annual Healthcare Investor Conference in January, the world's largest healthcare investment symposium. We managed to speak with the representatives of some 35 Medtech & Services companies during a research trip to the US in December and two virtual investor conferences that we participated in. A majority of them were positive in their statements regarding the fourth quarter and the 2022 fiscal year, which makes us very confident, also from a short-term perspective. 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.
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. 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