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. CH0113817040
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: 14.05.2024)
NAV: CHF 3'700.76 (13.05.2024)
Rolling performance (13.05.2024)
DT-CHF | Benchmark | |
12.05.2023 - 13.05.2024 | 1.76% | 5.94% |
13.05.2022 - 12.05.2023 | -3.10% | -5.82% |
12.05.2021 - 13.05.2022 | 4.10% | 6.90% |
13.05.2020 - 12.05.2021 | 22.52% | 25.97% |
Annualized performance (13.05.2024)
DT-CHF | Benchmark | |
1 year | 1.76% | 5.94% |
3 years | 0.88% | 2.17% |
5 years | 7.11% | 8.05% |
10 years | 12.02% | 12.07% |
Since Inception p.a. | 9.92% | 9.42% |
Cumulative performance (13.05.2024)
DT-CHF | Benchmark | |
1M | 2.15% | 2.23% |
YTD | 11.02% | 10.25% |
1 year | 1.76% | 5.94% |
3 years | 2.65% | 6.66% |
5 years | 41.05% | 47.34% |
10 years | 211.47% | 212.73% |
Since Inception | 270.08% | 247.61% |
Annual performance
DT-CHF | Benchmark | |
2023 | -10.07% | -4.35% |
2022 | -12.04% | -11.48% |
2021 | 26.20% | 24.57% |
2020 | 7.20% | 9.32% |
Facts & Key figures
Investment Focus
The fund actively invests worldwide in companies active in the medical technology and healthcare services sector. Aim is to provide investors an attractive 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 | 1.20% |
Subscription Fee (max.) | 2.50% |
Performance Fee | 10.00% (with High Water Mark) |
ISIN number | CH0113817040 |
Valor number | 11381704 |
Bloomberg | ADAGMEI SW |
WKN | A1C20J |
Legal Information
Legal form | Investment funds under Swiss law |
SFDR category | Article 8 |
Key data (30.04.2024, base currency CHF)
Beta | 1.19 |
Volatility | 19.10 |
Tracking error | 5.35 |
Active share | 28.92 |
Correlation | 0.97 |
Sharpe ratio | -0.03 |
Information ratio | -0.52 |
Jensen's alpha | -3.28 |
No. of positions | 32 |
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 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.
- The fund may engage in derivatives transactions. The increased opportunities gained come with an increased risk of losses.
Review / Outlook
McKesson (+1.9%), a drug wholesale distributor in the US, made a positive contribution to fund performance. Veeva Systems (-12.7%) and HCA Healthcare (-5.4%) detracted from the fund's absolute and relative performance. Veeva announced the surprise departure of its CFO after a 4-year stint with the company but confirmed its previous guidance for the current financial year. Although HCA reported good sales and earnings, the company was unable to beat investors’ very high expectations.
The performance of US health insurers was mixed. Elevance (+3.8%) and Cigna (+0.1%) made positive contributions to performance, whereas Molina (-15.2%), Humana (-11.3%), Centene (-5.2%) and UnitedHealth (-0.4%) detracted from performance. Elevance, a US health insurer focused on employer-sponsored plans, exceeded expectations for Q1 profit and increased its full-year profit guidance for 2024. In early April a positive payment adjustment of 3.7% on average was announced for Medicare Advantage plans for 2025, which is unchanged from the proposed increase in the advance notice published by CMS in January. Investors, however, had been expecting that the growth rate proposed in January would be raised by 0.5 to 1%, but it wasn’t, which led to some uncertainty regarding insurer profit margins during the next few years. This situation would clearly have an impact on Humana and, to a lesser extent, on UnitedHealth, Centene and Molina as well. We believe there are plenty of opportunities for insurers to expand their margins from a mid- to long-term perspective. Molina’s higher-than-expected medical cost ratios for the first quarter and its earnings forecast for 2024 disappointed investors.
Medtech companies Boston Scientific (+6.8%), Shockwave (+3.2%) and Insulet (+2.1%) made positive contributions to relative and absolute performance. Boston Scientific pleased investors by reporting surprisingly strong organic sales growth for the first quarter and revising its sales guidance for 2024 sharply higher. Faster sales growth was attributed in part to market share gains by the company’s new Farapulse PFA catheter for atrial fibrillation. Johnson & Johnson announced the takeover of Shockwave (YTD +89.5%).
Large-cap medtech companies such as Edwards Lifesciences (-9.8%), Dexcom (-6.5%), Intuitive Surgical (-5.4%), Abbott (-4.6%) and Stryker (-4.3%) weighed on the fund’s performance. These faster-growing, more expensively valued stocks were obviously pressured by profit-taking and the increase in market interest rates. In addition, Edwards Lifesciences and Dexcom beat consensus sales expectations but not by a wide margin, while Abbott did not increase its earnings forecast for 2024 enough to impress investors.
Life sciences tools companies Danaher (+0.6%) and Thermo Fisher (-0.4%) showed a similar performance. The first-quarter results of both companies revealed that the relevant end markets have stabilized, but a significant improvement is still not in sight.
All performance data is in CHF; AA shares.
In view of the so far very good first-quarter earnings announcements and the positive commentary from the management teams of numerous medical technology companies, we expect strong growth in surgical procedures in 2024. The approval and subsequent launch of relevant new products will continue to bolster sales growth, too. Examples here are Abbott’s TriClip, AVEIR and Libre products, Boston Scientific’s Farapulse PFA system and the new Da Vinci 5 surgical robot from Intuitive Surgical. We believe company pricing power in the low single-digit percentage range is still intact. Margins are expected to widen due to the faster-than-average sales growth and further improvements in supply chains.
We think a slump in economic activity is unlikely during the next 12 months, but it cannot be ruled out either. Medical technology and healthcare services companies tend to outperform when the economy is weak.
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