Variopartner MIV Global Medtech I3
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Monthly report July 2021 Marketing document for private and institutional investors Facts Fund class I1 Company Headlines Net Asset Value per Fund share CHF 3’081.36 Assets CHF m (all Fund classes) 3’916 After a positive reporting season in the first quarter, various key Investment level 100% holdings of the Fund published second-quarter 2021 results in Liquidity 0% July which substantially exceeded expectations once again. Thanks to the advancing vaccination campaigns in many coun- tries, numerous companies are benefiting from elective sur- Industry breakdown geries and medical treatments being put back on the agenda. In-vitro Diagnostics 13% This applies primarily to the orthopaedics, dentistry, hearing Disposable Medical Supplies 9% aid, ophthalmology and hospital equipment sectors as well as Life Sciences Supply 8% sub-segments of cardiac surgery, cardiology and interventional Dentistry 7% radiology, which were temporarily hard hit during the waves of Hospital Equipment 6% COVID-19. This confirms the resilience of the business models Surgical Instruments 5% in the growth market of medical devices, even in these extraor- Orthopaedics 5% dinary times of pandemic. The very good business develop- Ophthalmology 5% ment in the first half of the year led the management of several Diabetes 4% holdings to revise their projections for revenue and earnings Other Medical Technology Sectors 38% growth for the current financial year upwards. The dominant supplier of surgical robots for minimally invasive Holdings surgical interventions in soft tissue, American group Intuitive Abbott Laboratories 10% Alcon 2% Surgical, increased revenue by 72% in the second quarter to Danaher 9% Straumann 2% USD 1.46 billion. This compares with a 22% fall in the same Medtronic 7% Sonova 2% quarter of the previous year due to the pandemic. In 2020, the Intuitive Surgical 7% ResMed 2% number of operations performed with the help of da Vinci Edwards Lifesciences 5% Baxter 2% surgical systems installed worldwide rose by only 1% to Becton Dickinson 4% West Pharmaceutical Serv. 2% 1.24 million due to COVID-19. For the current financial year, Align Technology 4% Teleflex 2% management increased its original growth forecast from Stryker 4% Sysmex 2% between 22% and 26% to between 27% and 30%. In the IDEXX Laboratories 4% DexCom 2% second quarter, the company placed 328 da Vinci surgical Boston Scientific 4% 19 small holdings 22% robots at an average price of USD 1.55 million, meaning that the number of systems installed globally rose to 6'335. Edwards Currency breakdown Lifesciences is the global leader for minimally invasive implant- USD 79% DKK 5% able transcatheter heart valves. The company increased organic CHF 7% EUR 4% revenue by 44% in the second quarter, beating expectations, JPY 6% after a 14% decline in the same quarter last year due to the pandemic. The corporation raised its revenue guidance for the 2021 financial year from between USD 4.9 billion and USD 5.3 Performance Fund class I1 CHF billion to between USD 5.2 billion and USD 5.4 billion, repre- senting a growth rate of nearly 19% to 23%. Due to COVID-19, NAV I1 Benchmark MSCI World Index US-based medical device corporation Boston Scientific posted 3’300 a decline in organic revenue of 11.3% last year. Thanks to busi- 3’000 ness performance in the second quarter significantly exceeding 2’700 the company’s own projections and the expectations of finan- 2’400 cial analysts, management revised its forecast for 2021 upwards 2’100 for a second time. The company is now estimating revenue 1’800 growth in the range of 19% to 20% on an organic basis. After 1’500 1’200 revenue decreased by 24% in the second quarter of 2020 due 900 to the pandemic, the broadly diversified US group Stryker 600 posted organic sales growth of 42.9% in the second quarter of 300 2021. For the current financial year, the company is anticipating organic sales growth of 9% to 10% versus 2019, the year before COVID-19 emerged. Following a slump of 41% in revenue in the same quarter of the previous year, the dominant supplier of clear aligners, US company Align Technology, exceeded all expectations with a jump in sales of 187% in the second quar- Important legal information: ter. Past performance is not a reliable indicator of current or future performance. Performance data take no account of the commissions and costs charged when units are issued and redeemed. The return of the Fund may go down as well as up due to changes in rates of exchange between currencies. Performance in CHF July 2021 1 year 3 years 5 years 10 years Inception MIV Global Medtech Fund I1 4.1% 18.4% 29.5% 49.4% 107.8% 417.5% 406.3% Benchmark * 3.7% 18.1% 29.4% 61.5% 126.2% 454.0% 341.6% MSCI World Index -0.2% 18.0% 34.6% 37.4% 82.8% 228.0% 151.2% 8.16-7.17 8.17-7.18 8.18-7.19 8.19-7.20 8.20-7.21 MIV Global Medtech Fund I1 13.6% 22.5% 13.6% 1.6% 29.5% Benchmark * 11.3% 25.9% 15.8% 7.8% 29.4% MSCI World Index 15.9% 14.8% 3.6% -1.5% 34.6% * MSCI World Healthcare Equipment & Supplies Investment Strategy The MIV Global Medtech Fund invests globally in listed medical device companies. The investment process is based on a combined top-down / bottom-up approach. Against the background of the particular macroeconomic environment, the most interesting markets and companies are determined based on an intensive primary analysis. Alongside an attractive valuation, a strong market position, good growth potential, excellent products, sustainable profitability and high-quality management are the decisive parameters for investment. The consideration of sustainability criteria (ESG) is integrated in the research, analysis and investment process. Risks are managed by means of portfolio diversification. The portfolio of the MIV Global Medtech Fund is structured more defensively or cyclically in the best possible anticipation of economic trends, with a view to achieving a higher return than the benchmark and the general market indices. Benefits Risks Owing to demographic trends and the desire for quality of life and The MIV Global Medtech Fund invests in equity securities and may therefore mobility, the medical device industry is a long-term growth market. be subject to high fluctuations in value. For this reason, a medium-term to Emerging markets will have a positive impact on the medical device long-term investment horizon and corresponding risk tolerance and capacity industry’s future growth thanks to the state-backed expansion of their are required for an investment into this Sub-Fund. As the MIV Global healthcare systems. Medical device suppliers’ priority is the Medtech Fund pursues an active management style, the Sub-Fund’s development of innovative, minimally invasive products. These are performance can deviate substantially from that of its reference index. The beneficial for patients and cost efficient for the healthcare system due focus on equity securities of medical device companies exposes the Sub- to shorter convalescence periods. Most interesting from an investor’s Fund potentially to additional specific risks of this area of the healthcare perspective are the industry’s high growth rates, above-average industry. The Sub-Fund may, for the purpose of hedging and the efficient profitability and oligopolistic market structures with their high entry management of the portfolio, make use of derivatives, which can lead to barriers for new competitors. Even in a demanding environment, additional risks (particularly counter party risk). All investments are subject to significant product innovations continue to offer attractive growth market fluctuations. Every Fund has specific risks, which can significantly prospects. increase under unusual market conditions. Information Website www.mivglobalmedtech.ch Legal structure Sub-Fund of Variopartner SICAV, an investment fund under Luxembourg law Fund class I1 (CHF) accumulation / ISIN: LU0329631377 / Swiss Valor Number: 3535028 / WKN: A0NETS Subscription/redemption On every bank working day in Luxembourg until 3.45 p.m. at net asset value (no calculation of net asset values on bank/stock exchange holidays in Luxembourg and/or the US) Management fee 0.8% p.a. Total Expense Ratio (TER) as of 31.12.2020 0.96% Launch of fund 11 March 2008 Close of financial year 30 June Benchmark MSCI World Healthcare Equipment & Supplies Reporting of the Portfolio manager Monthly, semester and yearly report Fund price monitoring www.mivglobalmedtech.ch / www.swissfunddata.ch / www.fundinfo.com Bloomberg: VARMVI1 LX / Reuters: LU0329631377.LUF / Neue Zürcher Zeitung Portfolio manager MIV Asset Management AG, Feldeggstrasse 55, CH-8008 Zurich, [email protected] Contact: Jürg Nagel, Christoph Gubler, Giuseppe Di Benedetto, Phone +41 44 253 64 11 Management company Vontobel Asset Management S.A., 18, rue Erasme, L-1468 Luxembourg (Kirchberg) Representative in Switzerland Vontobel Fonds Services AG, Gotthardstrasse 43, CH-8022 Zurich Custodian/Administrator RBC Investor Services Bank S.A., 14, Porte de France, L-4360 Esch-sur-Alzette Auditor Ernst & Young S.A., 35E, Avenue John F. Kennedy, L-1855 Luxembourg Minimum subscription CHF 500‘000 Admissions to distribution Switzerland, Germany, Austria, Liechtenstein, Luxembourg, France, Italy, Spain, United Kingdom, Netherlands, Finland, Norway, Sweden, Singapore (restricted scheme) Distribution restrictions USA / US persons Glossary Benchmark An index, which is used as a reference for the measurement of the performance of the Fund. Inception Launch date of the Fund and/or the Fund class. Management fee Portfolio manager‘s fee for the management and the distribution of the Fund. NAV Net Asset Value: total Fund assets divided by total number of Fund shares outstanding. TER Total Expense Ratio: sum of all fees and costs, which are charged to the Fund on a continuous basis.