BB Medtech a year after its conversion from an investment company to an equity fund
(Thomson Reuters ONE) -
Bellevue Asset Management /
BB Medtech a year after its conversion from an investment company to an equity
fund
Processed and transmitted by Thomson Reuters.
The issuer is solely responsible for the content of this announcement.
Asia becomes increasingly important for the medtech industry
After being converted from an investment company to an equity fund, BB Medtech
looks back on a successful first year. It is gradually expanding its exposure to
the China and India's emerging healthcare markets. Besides the broader
geographic focus, the portfolio's key investment themes remain minimally
invasive technology, efficiency-boosting healthcare products and services and
molecular diagnostics.
One year ago an overwhelming 95% of the shareholders of the listed investment
company BB Medtech accepted the share exchange offer converting the company into
an investment fund. This decision enhanced the marketability of the investment
product and also eliminated the previous discount to Net Asset Value. In
compliance with equity fund regulations on diversification, BB Medtech's
portfolio was broadened to include 30-40 companies. The Fund (ISIN B-EUR
LU0415391431) is valued and traded at Net Asset Value, which is calculated
daily. In the past twelve months it has generated a performance of 14.0% in EUR,
the Fund's main currency (0.3% in CHF), clearly outperforming its benchmark, the
MSCI Healthcare Equipment & Supplies index (11.3% in EUR / -2.1% in CHF).
Emerging healthcare markets in newly industrialized countries
The Fund invests worldwide in mid- to large-cap medtech companies and is well
positioned to benefit from the growth opportunities they offer, also in Asia.
The portfolio managers recently returned from a fact-finding trip to China and
India that underscored the potential of these two countries. "Both markets are
developing at an incredible pace. The Chinese market is expected to expand by
18 to 20% per annum between now and 2015," says Stefan Blum, Lead Portfolio
Manager. "China is becoming a medtech Eldorado for investors while India holds
tremendous potential, comparable to where China was three years ago." Chinese
and Indian companies that cannot quickly develop certain skills and innovative
technologies on their own are increasingly turning to the European and US
markets and acquiring cutting-edge technology to cover their needs. Selecting
which companies to invest in is a process that must be managed with utmost care.
These markets have rules of their own, so straightforward basket solutions or a
simple country approach are not recommended.
Major change in China - selection criteria
The Chinese healthcare system has undergone profound change during the past two
years. There has been tremendous progress in large urban areas in the wake of
massive investments in infrastructure, which can now meet the most demanding
standards. The quality of healthcare services has improved significantly. The
graduating classes of Chinese and Indian universities in any given year now
exceed the total number of academics in Germany. Demands of Chinese consumers
have increased considerably due to the significant increase in urban incomes and
other factors. While the government continues to budget large sums of money for
healthcare infrastructure, household demand for medical services is growing even
faster. The Chinese healthcare market has come of age and this, in turn, has had
a fundamental impact on the investment decision process. Whereas several years
ago investors were concerned primarily about the trustworthiness of potential
investment partners, today factors such as regulatory requirements and consumer
demand are of greater relevance. The ability to acquire innovative foreign
technology and companies will also play a role in the future success of Chinese
companies.
India is a rising star on the medtech horizon
The healthcare market in India is well developed in urban areas but is only
accessible to the upper classes of society and it is largely in the hands of
multinationals due to the absence of language barriers. There are still more
than 1,000 cities with a population of more than 500'000 where the healthcare
system is still underdeveloped. Healthcare infrastructure in rural areas could
be developed more rapidly by the private sector but in India, too, there is a
lack of qualified specialists. Thanks to its language skills, Indian companies
can access the EU and US markets more easily, which facilitates the acquisition
of technology and innovative products. Therefore, one can expect a wave of
acquisitions from the Indian subcontinent. Locally active Indian players are
skillfully taking advantage of their locational advantages. These medtech
companies are just beginning to become firmly established, but Chinese companies
have already demonstrated that a local company can grab a market share of up to
75% within the space of two to three years. There are still only a few local
pure-play medtech companies listed on the stock exchange. Early investors will
be rewarded accordingly and will also acquire better knowledge of the market
before growth takes off.
For further information:
Bellevue Asset Management AG, Seestrasse 16/P.O. Box, 8700 Küsnacht/Zurich
Thomas Egger, Tel. +41 (44) 267 67 09,teg(at)bellevue.ch
www.bellevue.ch
Bellevue Asset Management
Bellevue Asset Management is an independent and highly specialized asset
management boutique focused on managing equity portfolios for selective sector
and regional strategies as well as institutional portfolios, particularly in the
areas of healthcare, new markets and Swiss/European equities.
[HUG#1450016]
--- End of Message ---
Bellevue Asset Management
Seestrasse 16 / P.O. Box Kusnacht/Zurich Switzerland
Media Release_BB Medtech_07.10.2010:
http://hugin.info/142988/R/1450016/391649.pdf
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Bellevue Asset Management via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 07.10.2010 - 19:14 Uhr
Sprache: Deutsch
News-ID 44634
Anzahl Zeichen: 0
contact information:
Town:
Kusnacht/Zurich
Kategorie:
Business News
Diese Pressemitteilung wurde bisher 177 mal aufgerufen.
Die Pressemitteilung mit dem Titel:
"BB Medtech a year after its conversion from an investment company to an equity fund"
steht unter der journalistisch-redaktionellen Verantwortung von
Bellevue Asset Management (Nachricht senden)
Beachten Sie bitte die weiteren Informationen zum Haftungsauschluß (gemäß TMG - TeleMedianGesetz) und dem Datenschutz (gemäß der DSGVO).
