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. CH0113817040
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: 30.08.2024)
NAV: CHF 3'735.18 (29.08.2024)
Rolling performance (30.08.2024)
DT-CHF | Benchmark | |
29.08.2023 - 29.08.2024 | 9.44% | 12.24% |
29.08.2022 - 29.08.2023 | -8.75% | -6.27% |
27.08.2021 - 29.08.2022 | -7.03% | -6.39% |
27.08.2020 - 27.08.2021 | 28.40% | 28.62% |
Annualized performance (30.08.2024)
DT-CHF | Benchmark | |
1 year | 9.44% | 12.24% |
3 years | -2.45% | -0.51% |
5 years | 6.28% | 7.22% |
10 years | 10.91% | 11.06% |
Since Inception p.a. | 9.77% | 9.37% |
Cumulative performance (30.08.2024)
DT-CHF | Benchmark | |
1M | 0.59% | 0.73% |
YTD | 12.05% | 11.68% |
1 year | 9.44% | 12.24% |
3 years | -7.16% | -1.51% |
5 years | 35.60% | 41.69% |
10 years | 181.66% | 185.48% |
Since Inception | 273.52% | 254.78% |
Annual performance
DT-CHF | Benchmark | |
2023 | -10.07% | -4.35% |
2022 | -12.04% | -11.48% |
2021 | 26.20% | 24.57% |
2020 | 7.20% | 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 | 1.20% |
Subscription Fee (max.) | 2.50% |
Performance Fee | 10.00% (with High Water Mark) |
ISIN number | CH0113817040 |
Valor number | 11381704 |
Bloomberg | ADAGMEI SW |
WKN | A1C20J |
Legal Information
Legal form | Investment funds under Swiss law |
SFDR category | Article 8 |
Key data (31.07.2024, base currency CHF)
Beta | 1.18 |
Volatility | 19.10 |
Tracking error | 5.38 |
Active share | 29.11 |
Correlation | 0.97 |
Sharpe ratio | -0.08 |
Information ratio | -0.40 |
Jensen's alpha | -2.28 |
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
Higher prices for healthcare services stocks were fueled by quarterly results announcements and the changing dynamics of the US presidential election campaign: Joe Biden withdrew from the race and endorsed Kamala Harris.
HCA Healthcare (+10.7%), the largest operator of hospitals in the US, McKesson (+3.5%), a US pharmaceutical wholesaler, and Veeva Systems (+2.8%), a leading provider of cloud-based software solutions for more efficient drug marketing and drug discovery processes, made positive contributions to the portfolio’s relative and absolute performance. HCA exceeded profit expectations by a wide margin thanks to an increase in surgery volume, and management’s profit guidance for 2024 was revised higher. 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.
Stock prices of US health insurers Centene (+13.7%), Molina (+12.5%), UnitedHealth (+10.9%) and Cigna (+3.4%) delivered positive returns, while Elevance (-3.8%) and Humana (-5.2%) traded lower. The second-quarter results published by Centene, Molina and UnitedHealth beat consensus expectations, and Centene and Molina also benefited from Harris’s intention to support insurers participating in exchange markets.
Medtech names Cooper (+4.8%), Alcon (+3.9%), Becton Dickinson (+1.1%) and Abbott (+0.4%) traded higher but contributed only 0.2% to the portfolio’s absolute performance. Dexcom (-41.4%), Edwards Lifesciences (-33.1%), Boston Scientific (-6.0%), Stryker (-5.7%) and Intuitive Surgical (-2.1%) made a negative contribution of -3.3% to the fund's absolute performance.
Besides profit-taking after the strong performance of these stocks in June, high investor expectations and company-specific developments were mainly to blame for their weakness in July. Although Intuitive Surgical and Stryker both beat investor expectations for the second quarter, they didn't raise their forecasts for 2024 enough to please investors.
Dexcom, conversely, disappointed investors when it reported lower-than-expected sales for the second quarter and cut its guidance for 2024. It appears that Dexcom's recent problems have more to do with its sales force organization than the underlying end market.
Edwards Lifesciences fell short of expectations for transcatheter aortic valve implantation sales (TAVI), and it also announced strategically very sound acquisitions of JenaValve and Endotronix for USD 1.2 bn, which however will briefly dilute its earnings per share. We believe the specific issues confronting Dexcom and Edwards are short-term in nature and that their operating performance will quickly improve.
Life sciences tools companies Danaher and Thermo Fisher (both +8.7%) made positive contributions to portfolio performance thanks to better-than-expected quarterly results, which indicated that a long-awaited end-market recovery is under way. 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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