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.
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: 24.06.2022)
NAV: CHF 3'476.02 (23.06.2022)
Rolling performance (23.06.2022)
|23.06.2021 - 23.06.2022||-9.19%||-5.89%|
|23.06.2020 - 23.06.2021||28.95%||27.84%|
|21.06.2019 - 23.06.2020||5.73%||7.64%|
|22.06.2018 - 21.06.2019||6.35%||6.96%|
Annualized performance (23.06.2022)
|Since Inception p.a.||10.99%||10.23%|
Cumulative performance (23.06.2022)
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|
|Fund Administrator||Swisscanto Fondsleitung AG|
|Auditor||Ernst & Young AG|
|Year end closing||30. Sep|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00 CET|
|Subscription Fee (max.)||2.50%|
|Performance Fee||10.00% (with High Water Mark)|
Key data (31.05.2022, base currency CHF)
|No. of positions||42|
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 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.
- 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.
- Increased opportunities through possible derivative transactions go hand in hand with increased risk of loss
Review / Outlook
The Bellevue Medtech & Services Fund (CH) retreated 4.2% in May and was unable to outperform its benchmark (-1.9%), the world healthcare sector (-0.9%), or the overall stock market (-1.3%). The performance contribution of healthcare services stocks was -1.3%, and the medtech contribution was likewise negative at -2.9%.
US health insurers showed a mixed performance. While Cigna (+7.2%), Humana (+0.7%) and Anthem (+0.1%) made a positive contribution to relative and absolute performance, Molina (-8.7%), UnitedHealth (-3.7%) and Centene (-0.3%) were performance detractors.
Cigna beat consensus expectations for its first-quarter profits thanks to a lower medical cost ratio and an increase in net investment income. The healthcare services company, which specializes in commercial health insurance plans and prescription drug programs (pharmacy benefit manager), also raised its profit outlook for 2022.
Molina, a health insurer focused on Medicaid plans for low-income households, came under pressure due to investor worries about unfavorable developments in the Medicaid risk pool when the pandemic is over, which would squeeze the company’s profit margins. However, Molina has a good management team that has demonstrated in the past that it can defend and grow its margins even in a challenging environment.
The medical technology companies Shockwave (+7.1%), Baxter (+5.5%), Alcon (+3.5%), Abbott (+2.0%) and Becton Dickinson (+2.0%) made positive contributions to portfolio performance.
Shockwave surprised investors with better-than-expected sales growth for the first quarter and increased its sales guidance for 2022 significantly. Abbott advanced after obtaining marketing approval in the US for its new FreeStyle Libre 3 continuous glucose sensor, which, however, is not able to interact with intelligent insulin pump devices like the Dexcom G6 due to an ascorbic acid interference issue. Abbott is conducting another clinical trial and expects FreeStyle Libre 3 to be approved for interaction with intelligent insulin pump devices by the end of 2022.
Tandem Diabetes (-30.3%), Dexcom (-28.1%), Inspire Medical (-15.3%), Insulet (-11.9%) and Intuitive Surgical (-6.2%) made negative contributions to absolute and relative portfolio performance (-2.1% and -1.4% respectively). Dexcom's share price came under pressure because of market rumors that Dexcom was engaged in acquisition talks with insulin pump manufacturer Insulet. Dexcom's stock performance was also negatively impacted by the news of FDA approval for the competing FreeStyle Libre 3 product. We expect the FDA to approve Dexcom's new G7 glucose sensor during the next few weeks. Dexcom has also said that it is currently not engaged in any M&A negotiations. Tandem Diabetes' shares came under pressure because of the takeover rumors swirling around Insulet. Fast-growing companies with relatively high valuations have also been marked sharply lower in the wake of rising inflation expectations.
The life sciences tools companies Danaher (+3.6%) and Thermo Fisher (+1.2%) advanced thanks to positive management commentary regarding business trends in the bioprocessing market and they made positive contributions to the fund's monthly performance.
In the healthcare services segment, we believe US health insurers offer the most upside potential. Key value drivers here are the rapidly growing number of members and the fast premium growth in Medicare Advantage plans among the 65 and older population, a high level of resistance to inflation thanks to contracts that shield health insurers from an increase in healthcare costs, and earnings accretion thanks to rising short- and medium-term bond yields.
In the medical technology space, we expect to see a strong rebound in surgical procedures thanks to a sharp decline in COVID-related hospitalizations and high levels of population immunity. This should more than offset the impact of higher materials and logistics costs. We additionally expect numerous approvals and market launches of relevant products for diabetes and structural heart disease.
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