Bellevue Medtech & Services (CH)
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.
Investment Focus
ISIN-No. CH0034334737
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: 28.06.2024)
NAV: CHF 3'513.52 (27.06.2024)
Rolling performance (27.06.2024)
AA-CHF | Benchmark | |
27.06.2023 - 27.06.2024 | 1.41% | 5.30% |
27.06.2022 - 27.06.2023 | 0.82% | -0.04% |
25.06.2021 - 27.06.2022 | -8.38% | -4.97% |
26.06.2020 - 25.06.2021 | 34.08% | 32.87% |
Annualized performance (27.06.2024)
AA-CHF | Benchmark | |
1 year | 1.41% | 5.30% |
3 years | -2.15% | 0.01% |
5 years | 5.52% | 7.04% |
10 years | 10.81% | 11.43% |
Since Inception p.a. | 8.00% | 7.98% |
Cumulative performance (27.06.2024)
AA-CHF | Benchmark | |
1M | -2.12% | -2.12% |
YTD | 10.20% | 8.78% |
1 year | 1.41% | 5.30% |
3 years | -6.33% | 0.03% |
5 years | 30.84% | 40.55% |
10 years | 179.28% | 195.28% |
Since Inception | 251.38% | 250.48% |
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 (30.04.2024, base currency CHF)
Beta | 1.19 |
Volatility | 19.10 |
Tracking error | 5.35 |
Active share | 28.92 |
Correlation | 0.97 |
Sharpe ratio | -0.03 |
Information ratio | -0.52 |
Jensen's alpha | -3.28 |
No. of positions | 32 |
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
Most of the healthcare services providers in the portfolio showed a positive return. US drug wholesale distributor McKesson (+4.4%) made another positive contribution to performance thanks to its better-than-expected outlook for fiscal year 2024/25.
HCA Healthcare (+7.9%), America’s largest hospital chain, rose after the CEO of UnitedHealth (+0.8%) said that patient volumes in its Medicaid business had been higher than normal in recent months. His remarks led to selling in Centene (-3.5%), Molina (-9.5%) and other US health insurers with heavy Medicaid exposure but did not drag down the shares of insurers that are more focused on employee health plans such as Elevance (+0.3%) or on Medicare Advantage plans such as Humana (+16.7%). Humana received an added boost from the problems at its competitor Aetna, a subsidiary of CVS Health (-13.4%), whose weakness detracted from the fund’s performance although the stock is significantly underweighted in the fund's portfolio. Aetna’s past calculations of health insurance premiums were too aggressive, so it will be recalibrating its premium rates during the next few years, which will present growth opportunities for its competitors (e.g. UnitedHealth and Humana) and generally ease competitive pressure.
Veeva (-13.6%) was also a performance detractor. Its first-quarter results were in line with expectations, but management lowered its sales forecast for 2024 as a whole. It did not change its guidance for EPS though.
Medtech companies ended the first-quarter reporting season on a positive note in May. Earnings announcements from Alcon (+13.3%) and Coopers (+4.2%) pleased investors and confirmed the global contact lens market’s solid growth profile.
Large medtech companies Intuitive Surgical (+6.8%) and Boston Scientific (+3.5%) continued to perform well, while Abbott (-5.1%) and Dexcom (-8.2%) weighed on portfolio performance. Abbott was weak due to investor worries about ongoing litigation over recalled baby formula. Comments by Dexcom management regarding the reorganization of its field sales force were interpreted as a harbinger of disappointing second-quarter results. Dexcom clearly said, however, that this was not the case.
All performance data is in CHF; AA shares.
Many of the medtech executives at Bank of America's Healthcare Conference 2024 were upbeat about the course of business in the first quarter and said that they expected high growth rates 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.
We think a slump in economic activity is unlikely during the next 12 months, but it cannot be ruled out either. Medical technology and healthcare services companies tend to outperform when the economy is weak.
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