Bellevue Medtech & Services
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
Digitalization and the use of GenAI is boosting sales and earnings growth
Explained in 90 seconds
Please find a more detailed description of share classes here.
Investment Focus
ISIN-No. LU0415391514
The Fund is actively managed and invests worldwide in companies 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: 16.08.2024)
NAV: EUR 758.98 (15.08.2024)
Rolling performance (16.08.2024)
I-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
15.08.2023 - 15.08.2024 | 7.04% | 9.31% | 14.63% |
15.08.2022 - 15.08.2023 | -5.21% | -6.55% | -3.15% |
15.08.2021 - 15.08.2022 | 3.51% | -7.29% | 12.04% |
15.08.2020 - 15.08.2021 | 24.72% | 28.29% | 22.81% |
Annualized performance (16.08.2024)
I-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1 year | 7.04% | 9.31% | 14.63% |
3 years | 1.65% | -1.80% | 7.54% |
5 years | 7.13% | 6.66% | 12.13% |
10 years | 12.90% | 13.77% | 11.54% |
Since Inception p.a. | 12.90% | 14.25% | 13.90% |
Cumulative performance (16.08.2024)
I-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1M | -0.52% | 1.78% | 2.96% |
YTD | 7.03% | 7.77% | 14.81% |
1 year | 7.04% | 9.31% | 14.63% |
3 years | 5.03% | -5.30% | 24.38% |
5 years | 41.08% | 38.06% | 77.29% |
10 years | 236.52% | 263.19% | 198.15% |
Since Inception | 508.79% | 626.58% | 594.31% |
Annual performance
I-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
2023 | 1.60% | 5.08% | 0.45% |
2022 | -11.34% | -19.83% | 0.55% |
2021 | 25.69% | 23.65% | 28.63% |
2020 | 6.98% | 13.62% | 4.27% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term, is actively managed and 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 BANK, LUXEMBOURG BRANCH |
Fund Administrator | CACEIS BANK, LUXEMBOURG BRANCH |
Auditor | PriceWaterhouseCoopers |
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 | LU0415391514 |
Valor number | 3882709 |
Bloomberg | BFLBBIE LX |
WKN | A0RP25 |
Total expense ratio (TER) | 1.46% (31.07.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (31.07.2024, base currency EUR)
Beta | 0.99 |
Volatility | 18.21 |
Tracking error | 6.57 |
Active share | 25.32 |
Correlation | 0.93 |
Sharpe ratio | 0.01 |
Information ratio | 0.40 |
Jensen's alpha | 2.61 |
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
Several factors led to the sub-par performance of the global medtech market and the Bellevue Medtech & Services Fund. Unexpectedly weak second-quarter results from two top-quality names, Dexcom (-40.8%) and Edwards Lifesciences (-32.4%), had the greatest impact. Together these two stocks knocked 2.3% off the medtech sector's and 3.2% off the fund's performance. Dexcom management appears to have made some mistakes in realigning and reorganizing its sales organization, but these should be remedied by the end of the year. Edwards blamed its slower growth on bottlenecks in its domestic operating infrastructure. However, lower market share or price cuts could also be a reason for its reduced revenue outlook. Medtronic, the number 2 in the transcatheter heart valve replacement market, will provide important insights about the market when it reports its quarterly results on August 20, 2024.
Moreover, profit-taking was seen in both the broader stock market and the healthcare sector as investors sold off stocks that had made great gains year-to-date, such as Boston Scientific (-4.9%), which reported outstanding second-quarter results. Business in China was another negative factor for some companies (e.g. Siemens Healthineers -9.0%). The recovery there has been more sluggish than expected and this has led to a few downward guidance revisions.
In the medical technology space, Resmed (+10.4%), Hologic (+9.0%), Terumo (+8.0%), GE Healthcare (+7.7%), Cooper (+6.0%), EssilorLuxottica (+5.2%), Alcon (+5.2%), Ambu (+4.4%) and Abbott (+1.6%) made positive contributions to fund performance, while Penumbra (-8.0%), GN Store Nord (-7.0%), Align (-4.8%), Insulet (-4.1%) and Idexx (-3.1%) detracted from performance.
Life sciences tools companies Thermo Fisher (+10.0%) and Danaher (+9.9%) reported very good results. A perennial bioprocessing inventory destocking process now seems to be over and should no longer weigh on their reported sales growth.
Prices of healthcare services stocks moved higher on quarterly results announcements and the changing dynamics of the US presidential election campaign. Joe Biden withdrew from the race and endorsed Kamala Harris. Privia (+18.3%), a healthcare IT platform provider, HCA Healthcare (+12.0%), the largest operator of hospitals in the US, and Veeva Systems (+4.0%), a leading provider of cloud-based software solutions for more efficient drug marketing and drug development processes, made positive contributions to the portfolio’s performance. HCA clearly beat consensus profit estimates (higher surgery volume) and raised its profit guidance for 2024. Kamala Harris, who, like Joe Biden, favors increased government funding for hospitals, has a good chance of winning the election in the eyes of many investors. As a result, they bought up shares of US health insurers Centene (+15.0%), Molina (13.8%), UnitedHealth (+12.2%) and Cigna (+4.6%). Centene, Molina and UnitedHealth reported better-than-expected results for the second quarter. Centene and Molina additionally benefited from Kamala Harris's intention to incentivize health insurer participation in exchange markets. 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. 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 move into high-quality stocks, and a meager 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.
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