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. LU0767969719
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: 13.05.2024)
NAV: GBP 603.99 (10.05.2024)
Rolling performance (10.05.2024)
I-GBP | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
10.05.2023 - 10.05.2024 | 4.04% | 1.60% | 8.34% |
10.05.2022 - 10.05.2023 | 13.17% | 10.90% | 5.62% |
10.05.2021 - 10.05.2022 | -2.61% | -7.22% | 15.21% |
08.05.2020 - 10.05.2021 | 14.53% | 17.25% | 6.98% |
Annualized performance (10.05.2024)
I-GBP | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1 year | 4.04% | 1.60% | 8.34% |
3 years | 4.66% | 1.49% | 9.64% |
5 years | 8.87% | 8.13% | 11.51% |
10 years | 14.39% | 15.04% | n.a. |
Since Inception p.a. | 13.88% | 14.81% | 11.13% |
Cumulative performance (10.05.2024)
I-GBP | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1M | -0.75% | -0.70% | 2.06% |
YTD | 7.81% | 5.58% | 7.48% |
1 year | 4.04% | 1.60% | 8.34% |
3 years | 14.66% | 4.54% | 31.84% |
5 years | 53.03% | 47.85% | 72.49% |
10 years | 284.12% | 306.65% | n.a. |
Since Inception | 383.19% | 433.51% | 119.40% |
Annual performance
I-GBP | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
2023 | -0.77% | 2.63% | -1.65% |
2022 | -6.31% | -15.28% | 5.82% |
2021 | 17.90% | 15.99% | 20.83% |
2020 | 13.01% | 20.03% | 10.29% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term. The fund actively invests worldwide in companies active in the medical technology and healthcare services sector. 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 | 0.90% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU0767969719 |
Valor number | 18316252 |
WKN | A1JWD9 |
Total expense ratio (TER) | 1.48% (30.04.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (30.04.2024, base currency EUR)
Beta | 0.98 |
Volatility | 18.20 |
Tracking error | 6.62 |
Active share | 29.37 |
Correlation | 0.93 |
Sharpe ratio | 0.16 |
Information ratio | 0.38 |
Jensen's alpha | 2.57 |
No. of positions | 44 |
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 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
In the medtech segment, Boston Scientific (+6.1%), Shockwave (+2.5%), Insulet (+1.4%) as well as TransMedics (+28.7%) and Procept BioRobotics (+8.4%) made positive contributions to portfolio 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 performance: +79.5%). Investors are very optimistic that TransMedics and Procept BioRobotics will publish excellent first-quarter results in the coming month of May, which explains their strong gains.
Large-cap medtech companies such as Edwards Lifesciences (-10.4%), Dexcom (-7.1%), Intuitive Surgical (-6.1%), Abbott (-5.3%) and Stryker (-4.9%) 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.
US health insurers (4.9% of portfolio assets as of the end of April) were performance laggards. With the one exception of Elevance (+3.1%), their performance contribution was negative: Molina (-15.8%), Humana (-11.9%), Centene (-5.9%), UnitedHealth (-1.2%) and Cigna (-0.6%).
Elevance, a US health insurer focused on employer-sponsored plans, exceeded expectations for Q1 profit and increased its full-year profit guidance for 2024. Molina’s higher-than-expected medical cost ratios for the first quarter and its earnings forecast for 2024 disappointed investors.
In early April a positive payment adjustment of 3.7% on average was announced for Medicare Advantage plans for 2025, which is the same as in the advance notice published by CMS in January. Investors, however, had been expecting that the proposed increase in January would be raised by 0.5% to 1%, just like in previous years. That didn't happen, though, which led to some uncertainty regarding insurer profit margins during the next few years. This situation could affect Humana the most and, to a lesser extent, UnitedHealth, Centene and Molina. We believe there are plenty of opportunities for insurers to expand their margins from a mid- to long-term perspective. All performance data is in EUR / B shares.
Hospitals stand to benefit from high patient volumes, higher prices, and only moderately higher labor costs. We expect health insurers to report rising premium income in the wake of solid membership growth and premium rate increases, although investors are currently most interested in insurers offering employer-sponsored health plans. Persisting high US government bond yields could have an accretive effect on earnings, too. Political risks are still low. We assume that the elections in November will not give either party a solid majority of seats in either chamber.
Unlike in 2023, we are anticipating tailwinds for our investment solution in 2024: Rate cuts by the Fed, attractive valuation levels (valued at a discount despite above-average earnings growth), a general repositioning as investors drop last year's outperformers and buy up high-quality stocks, plus a continued uncertain outlook for global economic growth (which in the past has been good for non-cyclical sectors). All of these factors argue for an investment in the Bellevue Medtech & Services (Lux) Fund.
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