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: 24.06.2022)
NAV: EUR 147.54 (22.06.2022)
Rolling performance (22.06.2022)
|22.06.2021 - 22.06.2022||-9.89%||-16.32%|
|22.06.2020 - 22.06.2021||25.04%||27.27%|
|21.06.2019 - 22.06.2020||3.42%||10.15%|
|22.06.2018 - 21.06.2019||15.90%||17.68%|
Annualized performance (22.06.2022)
|Since Inception p.a.||8.24%||11.04%|
Cumulative performance (22.06.2022)
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|
|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)||2.18% (31.05.2022)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (31.05.2022, base currency EUR)
|No. of positions||50|
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
Global stocks ended the month of May in slightly negative territory (MSCI World Net -1.6%), while the Euro Stoxx 50 (+1.3%) and Germany’s Dax index (+2.1%) delivered positive returns. The divergent monthly performance can be traced to the US dollar’s weakness versus the euro (-1.8%) as well as the persisting selling pressure in growth stocks, which also explains why medtech stocks (MSCI World Healthcare Equipment & Supplies -2.6%) and the Bellevue Medtech & Services Fund (-3.5%) lost ground during the month.
In the medical technology sector, stocks in the diabetes segment closed sharply lower. Insulin pump manufacturer Insulet’s (-12.2%) first time full year guidance undershot consensus expectations by one percentage point for the first time. The company also announced that Jim Hollingshead will succeed Shacy Petrovic as CEO effective June 1. Of greater relevance for the market moves were rumors that Dexcom (-28.3%) was interested in taking over Insulet, which dragged down the entire diabetes segment, including Tandem Diabetes (-30.5%). A Dexcom-Insulet tie-up would of course unleash significant cost synergies, but the financial market view was that any such transaction would be an admission by Dexcom's management that growth prospects were limited. Towards the end of the month, Dexcom officially announced that it was not engaged in any active discussions regarding a merger transaction “at this time,” but that statement was unable to completely dispel investor uncertainty. Dexcom's shares were also pressured by the announcement that the US FDA had approved the FreeStyle Libre 3, a competing product from Abbott (+1.7%), the largest position in the fund's portfolio. We will be attending the ADA diabetes conference in the US in June, where we will discuss this matter in detail. The latest clinical trial data will also be presented at the conference.
In the small and mid cap growth space, Procept BioRobotics (+8.1%), Shockwave Medical (+6.8%) and Straumann (+4.3%) made positive contributions to fund performance, while Inspire Medical (-15.5%) and Abiomed (-9.6%) detracted from performance.
US health insurers had mixed returns in May. Cigna (+6.9%) and Humana (+0.4%) advanced, while Molina (-9.0%) and UnitedHealth (-4.0%) declined. Cigna beat consensus expectations for first-quarter profits thanks to a lower medical cost ratio and an increase in net investment income. The healthcare services provider, 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. Investors are worried about unfavorable developments in the Medicaid risk pool when the coronavirus pandemic is over, which would squeeze the company’s profit margins. However, Molina has a successful management team that has demonstrated in the past that it can defend and grow its margins even in a challenging environment. All performance data is in EUR / B shares.
The outlook for the 2022 investment year in the medtech & services sector is attractive. New cases and hospitalizations in key medtech & services markets (North America, Europe and Japan) plunged after Omicron became the dominant strain of COVID-19. We believe that high population immunity levels will usher in a strong rebound in elective medical procedures during 2022. The sector’s risk-return profile is enticing for many investors. Regardless of when the pandemic and geopolitical situation returns to normal, 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. Sector valuations are moderate and that offers opportunities, not just for investors; we also expect takeover activity to pick up because the valuation multiples of many young and growing companies have declined so much.
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