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
Explained in 90 seconds
Please find a more detailed description of share classes here.
Investment Focus
ISIN-No. LU0415391431
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: 01.12.2023)
NAV: EUR 610.24 (30.11.2023)
Rolling performance (30.11.2023)
B-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
30.11.2022 - 30.11.2023 | -7.77% | -4.97% | -7.00% |
30.11.2021 - 30.11.2022 | -1.38% | -11.78% | 12.69% |
30.11.2020 - 30.11.2021 | 19.31% | 20.16% | 21.57% |
30.11.2019 - 30.11.2020 | 4.09% | 11.31% | 4.93% |
Annualized performance (30.11.2023)
B-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1 year | -7.77% | -4.97% | -7.00% |
3 years | 2.76% | 0.25% | 8.41% |
5 years | 5.79% | 6.86% | 8.51% |
10 years | 11.84% | 13.47% | 11.07% |
Since Inception p.a. | 11.86% | 13.95% | 13.32% |
Cumulative performance (30.11.2023)
B-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1M | 8.40% | 9.51% | 3.42% |
YTD | -3.56% | -0.79% | -2.27% |
1 year | -7.77% | -4.97% | -7.00% |
3 years | 8.52% | 0.74% | 27.41% |
5 years | 32.52% | 39.38% | 50.47% |
10 years | 206.55% | 254.31% | 185.97% |
Since Inception | 389.48% | 536.55% | 488.39% |
Annual performance
B-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
2022 | -11.96% | -19.83% | 0.55% |
2021 | 24.81% | 23.65% | 28.63% |
2020 | 6.24% | 13.62% | 4.27% |
2019 | 28.45% | 34.08% | 25.69% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term. 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. Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | CACEIS Investor Services Bank, Luxembourg |
Fund Administrator | CACEIS Investor Services Bank, 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 | 1.60% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU0415391431 |
Valor number | 3882623 |
Bloomberg | BFLBBBE LX, M0U1 GF |
WKN | A0RP23 |
Total expense ratio (TER) | 2.17% (31.10.2023) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (31.10.2023, base currency EUR)
Beta | 0.98 |
Volatility | 18.50 |
Tracking error | 6.82 |
Active share | 35.46 |
Correlation | 0.93 |
Sharpe ratio | 0.14 |
Information ratio | 0.33 |
Jensen's alpha | 2.30 |
No. of positions | 42 |
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 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 a proportion of its assets in financial instruments that might under certain circumstances 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 significant divergence within the healthcare sector can be traced to the renewed uptrend in US Treasury yields, which climbed to new highs in September. Rising bond yields are particularly negative for small-cap growth stocks in the medtech and in the drug-making space. 10-year US Treasury yields closed the month 36 basis points higher at 4.93%.
Stocks of US health insurance companies delivered pleasing returns. Cigna (+8.1%), Humana (+7.7%), UnitedHealth (+6.3%), Elevance (+3.4%), Molina (+1.6%) and Centene (+0.2%) made positive contributions to the fund's performance in October. Rising bond yields translate into higher investment income from financial assets (reserves) for US health insurers. UnitedHealth, Elevance and Molina surprised investors with better-than-expected earnings, a guidance upgrade for the current year and positive remarks regarding next year. Profit growth was mostly attributed to lower-than-expected medical cost ratios, and higher net interest income also had a positive impact. Centene expressed a bit more caution in its outlook for 2024. US hospital giant HCA (-8.0%) reported a disappointing profit margin due to unexpected losses from a joint venture. HCA’s core business, on the other hand, showed above-average growth.
In the medtech sector, Shockwave (+3.0%) was a performance driver. It specializes in intravascular lithotripsy systems for the treatment of cardiovascular disease. Shockwave announced new groundbreaking products at its investor day and its 2026 sales forecast and its addressable market projection, which it almost doubled from USD 8.5 to USD 15 bn, were also positive surprises.
Novo Nordisk decided to stop its clinical trial of semaglutide (GLP-1) in kidney disease ahead of schedule based on the strong outcomes of an interim analysis of trial data. This news triggered heavy selling in dialysis stocks and in other stocks across the broader medtech sector.
Boston Scientific (-3.6%) and Abbott (-2.3%), for example, were also marked down even though both companies reported solid third-quarter results, as was Medtronic (-9.9%). Stocks of fast-growing companies such as Penumbra (-21.0%), Intuitive Surgical (-10.3%) and Edwards Lifesciences (-8.0%) sold off even more. Rising bond yields fueled the selling, and even a minor blemish in an earnings announcement added to the downward pressure. Align Technology (-39.5%) plunged after missing Q3 consensus expectations by a wide margin. Its management blamed the miss on a dip in consumer confidence in the US, which also dragged Idexx into the red (-9.1%).
Life sciences tools companies Danaher (-12.6%) and Thermo Fisher (-12.1%) corrected after they mentioned in their Q3 earnings reports that inventory destocking at customers would remain a headwind for their bioprocessing businesses. All performance data is in EUR / B shares.
We think the broad correction in the medtech sector triggered by GLP-1 trial readouts is an overreaction and will be short-lived. The low valuations give the sector considerable upside potential and offer investors attractive entry points.
The current stock-market situation is enticing not only for investors. We anticipate an upturn in M&A activity because the valuations of many promising, fast-growing companies have declined to such low levels. Should a recession actually materialize as some fear, the fund has delivered good relative returns in the past even during tough economic periods.
The Medtech & Services Fund invests in the entire healthcare market except for the drug developers. 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. We also expect procedure volume growth to remain high during the 2024 investment year.
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