Bellevue Medtech & Services (Lux)
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
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Investment Focus
ISIN-No. LU0415391605
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: 03.07.2024)
NAV: CHF 442.28 (01.07.2024)
Rolling performance (27.06.2024)
B-CHF | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
27.06.2023 - 27.06.2024 | 3.78% | 2.24% | 13.34% |
27.06.2022 - 27.06.2023 | 6.54% | 6.35% | -3.29% |
25.06.2021 - 27.06.2022 | -13.48% | -19.30% | 3.26% |
26.06.2020 - 25.06.2021 | 32.69% | 34.04% | 20.81% |
Annualized performance (27.06.2024)
B-CHF | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1 year | 3.78% | 2.24% | 13.34% |
3 years | -1.46% | -4.25% | 4.20% |
5 years | 4.33% | 4.27% | 8.38% |
10 years | 9.83% | 11.17% | 8.81% |
Since Inception p.a. | 9.00% | 10.88% | 10.35% |
Cumulative performance (27.06.2024)
B-CHF | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
1M | -1.87% | -2.32% | -0.24% |
YTD | 13.60% | 10.99% | 15.62% |
1 year | 3.78% | 2.24% | 13.34% |
3 years | -4.33% | -12.26% | 13.19% |
5 years | 23.64% | 23.27% | 49.60% |
10 years | 155.49% | 188.66% | 132.73% |
Since Inception | 256.74% | 358.71% | 327.77% |
Annual performance
B-CHF | MSCI World IMI HC Equip. & Supllies | MSCI World HC Net Return | |
2023 | -5.00% | -1.06% | -5.55% |
2022 | -16.10% | -23.60% | -4.32% |
2021 | 19.58% | 18.46% | 23.35% |
2020 | 5.71% | 13.06% | 3.98% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term. The fund actively 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 | PWC, Luxembourg |
Launch date | 28.09.2009 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 1.60% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU0415391605 |
Valor number | 3882711 |
Bloomberg | BFLBBBC LX |
WKN | A0RP24 |
Total expense ratio (TER) | 2.17% (31.05.2024) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
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 first-quarter reporting season ended on a positive note in May. Earnings announcements from Alcon (+13.4%) and Coopers (+4.3%) pleased investors and confirmed the global contact lens market’s solid growth profile. Globus Medical (+32.7%) published a convincing set of results, but the news that the integration of recently acquired NuVasive was going better than expected attracted even more attention and erased investor fears that sales staff would quit in droves. The fast-growing companies TransMedics (+42.7%) and Procept BioRobotics (+23.4%) released excellent results and increased their guidance for 2024 as a whole. Both are making great strides in their corporate development; TransMedics has already entered the profit zone.
Large medtech companies Intuitive Surgical (+6.8%) and Boston Scientific (+3.5%) continued to perform well, while Abbott (-5.1%), Dexcom (-8.2%), Align (-10.3%) and Inspire (-35.3%) detracted from 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. Inspire’s quarterly results did not meet investors’ high expectations. A dip in utilization at its operating centers raised questions about the sustainability of the company’s growth trajectory.
Most of the healthcare services providers in the portfolio traded higher. HCA Healthcare (+8.0%), America’s largest hospital chain, rose after the CEO of UnitedHealth (+0.8%) said that healthcare use in the Medicaid side of the 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 insurers that are more focused on commercial insurance such as Elevance (+0.3%) or on Medicare Advantage plans such as Humana (+16.7%). Humana shares received an additional boost from the negative news about its rival Aetna (owned by CVS Health and not 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. 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, although investors are currently most interested in insurers offering employer-sponsored health plans. 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 buy up high-quality stocks, plus a continued uncertain 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.
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