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: 28.03.2024)
NAV: CHF 3'841.94 (27.03.2024)
Rolling performance (27.03.2024)
DT-CHF | Benchmark | |
27.03.2023 - 27.03.2024 | 9.27% | 13.97% |
25.03.2022 - 27.03.2023 | -11.50% | -11.26% |
26.03.2021 - 25.03.2022 | 7.96% | 9.29% |
27.03.2020 - 26.03.2021 | 49.37% | 46.77% |
Annualized performance (27.03.2024)
DT-CHF | Benchmark | |
1 year | 9.27% | 13.97% |
3 years | 1.44% | 3.39% |
5 years | 7.25% | 8.70% |
10 years | 12.43% | 12.65% |
Since Inception p.a. | 10.32% | 9.80% |
Cumulative performance (27.03.2024)
DT-CHF | Benchmark | |
1M | 4.28% | 4.19% |
YTD | 15.26% | 14.21% |
1 year | 9.27% | 13.97% |
3 years | 4.39% | 10.54% |
5 years | 41.97% | 51.86% |
10 years | 222.90% | 229.46% |
Since Inception | 284.19% | 260.09% |
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 (29.02.2024, base currency CHF)
Beta | 1.19 |
Volatility | 19.30 |
Tracking error | 5.44 |
Active share | 31.31 |
Correlation | 0.97 |
Sharpe ratio | 0.15 |
Information ratio | -0.47 |
Jensen's alpha | -3.78 |
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
The positive performance contribution from medical technology stocks in February was once again fueled by fast growth in surgical procedure volumes which was mentioned by various companies in their quarterly reports.
Cloud specialist Veeva Systems (+11.8%), the US wholesale drug distributor McKesson (+7.4%) and HCA Healthcare (+5.1%), the largest hospital operator in the US, made positive contributions to absolute and relative performance. McKesson's fourth-quarter earnings surprised on the upside and the company increased its earnings forecast for 2024.
Most US health insurance stocks traded higher. Cigna (+14.8%), Molina (+13.6%), Centene (+7.1%) and Elevance (+4.4%) made positive contributions to performance, while Humana (-4.7%) and UnitedHealth (-0.8%) 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 management 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 and health services provider Optum, and it 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 in this presidential election year, and we believe it will be an only temporary phenomenon.
Medtech stocks showed another very good monthly performance, driven by fast growth in procedure volumes and new product launches. Large-cap stocks such as Alcon (+14.9%), Idexx Laboratories (+14.8%), Edwards Lifesciences (+11.2%), Abbott (+7.8%), Boston Scientific (+7.6%) and Stryker (+7.0%) made positive contributions to performance. Alcon surprised investors when it reported better-than-expected results for the fourth quarter at both the top and bottom line. Sales growth was primarily driven by new and innovative contact lens products.
The US FDA approved Edwards Lifesciences’ Evoque system as a replacement for the native tricuspid valve. Evoque is the first transcatheter therapy to receive approval for the treatment of tricuspid regurgitation. Insulet (-11.7%) and Penumbra (-4.2%) did not meet investors' high expectations and weighed on portfolio performance.
Life sciences tools companies Thermo Fisher (+8.8%) and Danaher (+8.5%) made positive contributions to performance. Positive commentary from rival companies regarding relevant end markets led both stocks higher.
All performance data is in CHF; AA shares.
The 4Q 2023 reporting season is coming to a close and many medical technology companies have published stronger-than-average quarterly results and many expect strong surgical procedure growth in 2024. The approval and subsequent launch of relevant new products will continue to bolster sales growth too. Abbott’s TriClip, AVEIR and Libre products, Boston Scientific’s Farapulse PFA system and the next-generation da Vinci 5 surgical robot from Intuitive Surgical are but a few examples of products nearing market launch. 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 believe a slowdown in economic growth during the course of 2024 is possible. Medical technology and healthcare services companies tend to outperform in a weaker environment.
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