Explained in 90 seconds
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
Indexed performance (as at: 04.10.2024)
NAV: EUR 182.36 (03.10.2024)
Rolling performance (04.10.2024)
AI-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
03.10.2023 - 03.10.2024 | 17.90% | 19.30% | 14.49% |
03.10.2022 - 03.10.2023 | -3.82% | -1.56% | 0.65% |
03.10.2021 - 03.10.2022 | -5.21% | -17.79% | 8.68% |
03.10.2020 - 03.10.2021 | 24.83% | 26.56% | 20.30% |
Annualized performance (04.10.2024)
AI-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1 year | 17.90% | 19.30% | 14.49% |
3 years | 2.44% | -1.17% | 7.79% |
5 years | 8.14% | 7.04% | 11.57% |
Since Inception p.a. | 8.31% | 8.86% | 10.04% |
Cumulative performance (04.10.2024)
AI-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1M | -0.88% | -0.42% | -4.06% |
YTD | 10.99% | 10.51% | 12.60% |
1 year | 17.90% | 19.30% | 14.49% |
3 years | 7.49% | -3.46% | 25.24% |
5 years | 47.89% | 40.52% | 72.86% |
Since Inception | 59.48% | 64.33% | 75.03% |
Annual performance
AI-EUR | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
2023 | 1.61% | 5.08% | 0.45% |
2022 | -11.35% | -19.83% | 0.55% |
2021 | 25.69% | 23.65% | 28.63% |
2020 | 6.99% | 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 | LU1916265082 |
Valor number | 45074618 |
Bloomberg | BFLBAIE LX |
WKN | A2N92U |
Total expense ratio (TER) | 1.45% (30.09.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Redemption period | Daily |
Key data (30.09.2024, base currency EUR)
Beta | 0.98 |
Volatility | 18.33 |
Tracking error | 6.65 |
Active share | 25.12 |
Correlation | 0.93 |
Sharpe ratio | 0.09 |
Information ratio | 0.42 |
Jensen's alpha | 2.79 |
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
The good performance of the non-cyclical healthcare sector in the past month is not surprising. There were increasing signs of a slowdown in US economic activity in August. Inflation came in lower than expected and US job market data was clearly weaker. Bond yields retreated as a result, particularly at the short end of the curve. Declining interest-rates represent an additional positive trigger for fast-growing medical technology stocks.
Innovative, high-growth large-cap blue chips such as ResMed (+12.7%), Edwards (+8.5%), Intuitive Surgical (+8.4%), Boston Scientific (+8.3%), Stryker (+7.7%) and Abbott (+4.6%) were therefore performance drivers in the month under review. Even mid-cap companies such as Cooper (+10.8%), Sonova (+11.2%), Straumann (+11.9%), Glaukos (+11.8%), Penumbra (+18.4%) and Procept BioRobotics (+22.0%) showed very pleasing returns.
Procept BioRobotics received FDA approval for its AI-based Hydros robotic system sooner than expected. The new system for the removal of benign prostate tissue in males using high-velocity water jets fully integrates advanced image guidance and treatment and is equipped with value-added features such as AI-assisted treatment planning. Hydros is also a platform for developing new treatment options for other indications, such as the removal of prostate cancer tissue. Penumbra, a medtech company focused on vascular therapies, announced a USD 200 mn share repurchase program that was cheered by investors. Straumann and Cooper reported solid quarterly results, while Sonova launched the first hearing aid powered by AI technology.
Idexx (-1.1%), Becton Dickinson (-1.6%), GE Healthcare (-2.0%), Hologic (-2.6%), Ambu (-8.5%) and GN Store Nord (-14.9%) had a negative impact on performance. At GN Store Nord, business with its gaming and hearing solutions is going very well, but the anticipated recovery in the enterprise business (headsets and video solutions) has been pushed back. We are nevertheless confident that this recovery will soon be visible. Ambu announced its full results for the second quarter, following the earlier publication of preliminary financial results. The reported sales growth of its single-use endoscopes fell short of estimates, which led to profit-taking.
Life science tools companies Thermo Fisher (-1.9%) and Danaher (-4.9%) declined on profit-taking after making strong gains during the previous quarter.
US health insurers showed a subpar performance. Elevance (+2.4%), Cigna (+1.5%) and Centene (+0.2%), three insurers active in exchange markets, made positive contributions to performance. Humana (-4.1%), a health insurer specialized in Medicare Advantage plans, had a negative impact on performance.
Veeva Systems (+10.3%), a leading provider of cloud-based software solutions for more efficient drug development and commercialization, and HCA Healthcare (+6.6%), the largest hospital chain in the US, made positive contributions to the fund’s performance in August. Veeva beat street sales and profit estimates and raised its guidance a notch. 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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Senior Sales Germany
Alexander Jostes