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
Indexed performance (as at: 28.10.2024)
NAV: CHF 3'484.08 (27.10.2024)
Rolling performance (28.10.2024)
AA-CHF | Benchmark | |
27.10.2023 - 27.10.2024 | 13.44% | 15.87% |
27.10.2022 - 27.10.2023 | -17.33% | -12.48% |
27.10.2021 - 27.10.2022 | -7.47% | -5.13% |
27.10.2020 - 27.10.2021 | 27.59% | 27.43% |
Annualized performance (28.10.2024)
AA-CHF | Benchmark | |
1 year | 13.44% | 15.87% |
3 years | -4.62% | -1.28% |
5 years | 4.91% | 6.65% |
10 years | 9.55% | 10.44% |
Since Inception p.a. | 7.78% | 7.93% |
Cumulative performance (28.10.2024)
AA-CHF | Benchmark | |
1M | -0.14% | -0.19% |
YTD | 9.28% | 10.67% |
1 year | 13.44% | 15.87% |
3 years | -13.22% | -3.79% |
5 years | 27.10% | 37.97% |
10 years | 148.96% | 169.94% |
Since Inception | 248.43% | 256.58% |
Annual performance
AA-CHF | Benchmark | |
2023 | -10.60% | -4.35% |
2022 | -12.56% | -11.48% |
2021 | 25.45% | 24.57% |
2020 | 6.56% | 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 | 1.80% |
Subscription Fee (max.) | 2.50% |
Performance Fee | 10.00% (with High Water Mark) |
ISIN number | CH0034334737 |
Valor number | 3433473 |
Bloomberg | ADAGMED SW |
WKN | A0RAUP |
Legal Information
Legal form | Investment funds under Swiss law |
SFDR category | Article 8 |
Redemption period | Daily |
Key data (30.09.2024, base currency CHF)
Beta | 1.18 |
Volatility | 19.22 |
Tracking error | 5.33 |
Active share | 29.23 |
Correlation | 0.97 |
Sharpe ratio | -0.10 |
Information ratio | -0.50 |
Jensen's alpha | -2.84 |
No. of positions | 31 |
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 global stock market (+1.1%) closed the month in positive territory, whereas the broader healthcare sector (-3.7%) gave up ground, as could be expected in such a setting. The Bellevue Medtech & Services Fund (-1.6%) performed better than the healthcare sector but was unable to beat its benchmark (-0.9%). Healthcare services had a negative effect of 1.8% on portfolio performance, while medtech stocks contributed 0.2% to performance.
HCA Healthcare (+2.1%), the largest US hospital chain, made another positive contribution to the portfolio's relative and absolute performance. Its management team mentioned at various investor conferences that business was going well.
Veeva Systems (-3.8%), a provider of cloud-based software solutions for more efficient drug development and commercialization, weighed on portfolio performance. At the 2024 Dreamforce conference, tech player Salesforce, which is not in the fund's portfolio, provided an initial glimpse of its plans in pharma CRM.
US health insurers traded lower and Elevance (-7.0%), Centene (-5.2%), Cigna (-4.6%), Molina (-2.2%) and UnitedHealth (-1.3%) detracted from portfolio performance. It appears that there was another big increase in surgical procedure volumes at hospitals and ambulatory surgery centers in the third quarter, while the Fed's rate cut portends somewhat lower returns from health insurers’ fixed-income investments in the medium term.
The performance of the medtech companies in the portfolio was uneven in September. While Insulet (+13.9%), Straumann (+10.2%), Align Technology (+6.4%), Cooper (+3.6%), Alcon (+2.5%) and Boston Scientific (1.7%) made positive contributions, Zimmer Biomet (-7.0%), Edwards Lifesciences (-6.4%), Dexcom (-4.0%) and Intuitive Surgical (-1.0%) detracted from performance.
Companies with fast-growing sales, such as Insulet, Straumann, Align, Cooper and Boston Scientific, benefited from the Federal Reserve's interest rate cut and other factors. Insulet’s management also made some positive remarks about new user growth in the second half of 2024.
Zimmer Biomet disappointed investors when it lowered its sales guidance for 2024, citing problems in connection with a new ERP system. Edwards Lifesciences confirmed its earnings guidance for 2024 but warned that earnings per share would likely be markedly lower in 2025 compared to 2024 after the divestment of its critical care business.
Danaher (+2.6%) and Thermo Fisher (-0.1%) also showed a divergent performance. Thermo Fisher confirmed its long-term sales guidance range of 7% to 9% but added that achieving this growth would be contingent on a full recovery of its end markets, and management made no reference as to the exact time frame here. All performance data is in CHF; AA shares.
In their talks with investors in March, the executives of many medical technology companies expressed positive views about the course of business during the first quarter and said that they expected fast growth in surgical procedure volumes in 2024. The approval and subsequent launch of relevant new products will continue to bolster sales growth, too. Examples here are Abbott’s TriClip, AVEIR and Libre products, Boston Scientific’s Farapulse PFA system and the new da Vinci 5 surgical robot from Intuitive Surgical. 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.
Economic growth could slow during the course of 2024. Medical technology and healthcare services companies tend to outperform in a weaker environment.
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