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: 13.11.2024)
NAV: CHF 169.06 (12.11.2024)
Rolling performance (13.11.2024)
U2-CHF | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
12.11.2023 - 12.11.2024 | 28.25% | 28.50% | 14.70% |
12.11.2022 - 12.11.2023 | -10.37% | -11.30% | -9.64% |
12.11.2021 - 12.11.2022 | -15.13% | -23.23% | -2.42% |
12.11.2020 - 12.11.2021 | 20.28% | 22.24% | 20.04% |
Annualized performance (13.11.2024)
U2-CHF | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1 year | 28.25% | 28.50% | 14.70% |
3 years | -0.82% | -4.47% | 1.56% |
Since Inception p.a. | 7.15% | 4.63% | 6.60% |
Cumulative performance (13.11.2024)
U2-CHF | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1M | 4.38% | 3.53% | -2.38% |
YTD | 19.57% | 17.76% | 13.40% |
1 year | 28.25% | 28.50% | 14.70% |
3 years | -2.44% | -12.81% | 4.76% |
Since Inception | 35.25% | 21.90% | 32.25% |
Annual performance
U2-CHF | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
2023 | -3.87% | -1.06% | -5.55% |
2022 | -15.13% | -23.60% | -4.32% |
2021 | 20.96% | 18.46% | 23.35% |
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 | 0.70% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU2194372772 |
Valor number | 55589718 |
Bloomberg | BBAMU2C LX |
WKN | A2P68L |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (31.10.2024, base currency EUR)
Beta | 0.98 |
Volatility | 18.22 |
Tracking error | 6.62 |
Active share | 24.70 |
Correlation | 0.93 |
Sharpe ratio | 0.01 |
Information ratio | 0.37 |
Jensen's alpha | 2.39 |
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
Global medtech stocks (MSCI World Healthcare Equipment & Supplies -0.4%) and the Bellevue Medtech & Services Fund (-0.4%) closed the month little changed despite the adverse market environment. Both benefited from the dollar's strength (US investments have a high weighting) but even more so from the excellent third-quarter results that were reported by US medical technology companies during the month under review. This also explains their hefty outperformance of the healthcare market as a whole, as measured by MSCI World Healthcare (-2.3%).
Large-cap medtech names in the portfolio made positive contributions to performance – Intuitive Surgical (+5.3%), Edwards (+4.2%), Boston Scientific (2.9%), Abbott (+2.5%), Medtronic (+1.7%) and Stryker (+1.2%). Third-quarter earnings announcements showed that almost all players are benefiting from the ongoing fast growth in surgical procedure volumes. Intuitive Surgical, Boston Scientific, Abbott and Stryker also raised their sales and earnings guidance for 2024. At the annual Transcatheter Cardiovascular Therapeutics Conference (TCT), Edwards Lifesciences presented clinical data that confirmed its innovation leadership in transcatheter aortic and tricuspid valve replacement systems. Shares of smaller-cap medtech players Penumbra (+20.9%), Procept BioRobotics (+15.3%) and Dexcom (+7.9%) also performed well.
Penumbra beat consensus sales estimates, as did Procept BioRobotics. Dexcom impressed investors with its announcement of record-high new customer additions in Q3 and the filing of a 15-day G7 CGM sensor to the FDA for approval. After the slump in growth in the second quarter, it appears that Dexcom's management is on track to resolve its biggest problems by the end of the year and return to a growth trajectory in 2025.
Performance detractors in October were companies affected by the weak or slower-than-expected recovery of the Chinese market (GE Healthcare -4.4%, Siemens Healthineers -11.1%) or by natural disasters in the US (Hurricanes Helene and Milton), which impacted major production plants for basic surgical supplies (e.g. IV fluids like saline) and which also had a negative effect on patient contacts and consumer spending (TransMedics -46.4%, Straumann -17.4%, IDEXX -17.3%, Align -17.3%).
Healthcare services providers (5% portfolio weighting) weighed on portfolio performance in October. US health insurers delivered negative returns: Elevance (-19.9%), Humana (-16.5%), Centene (-15.1%), Cigna (-6.7%), Molina (-4.3%) and UnitedHealth (-0.9%). In their earnings announcements for the third quarter, these companies reported higher medical cost ratios in their Medicare Advantage (for people age 65 and older) and Medicaid (for low-income households) lines of business. The impact of the higher cost ratios varied depending on the relative size of each insurer’s Medicare Advantage and Medicaid business and the skills and strategies of their management. 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