Explained in 90 seconds
Obesity pandemic: unprecedented in scale, high unmet healthcare needs
Medical innovations (e.g. GLP-1 drugs) and public programs are raising awareness
Portfolio: «Best Ideas» across the entire value chain
Indexed performance (as at: 31.10.2024)
NAV: EUR 171.30 (29.10.2024)
Cumulative performance (31.10.2024)
I2-EUR | Benchmark | |
1M | 0.43% | -0.48% |
YTD | 12.92% | 12.57% |
1 year | n.a. | n.a. |
Since Inception | 14.03% | 15.70% |
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 listed companies focused on the prevention and treatment of severe overweight or obesity and its accompanying diseases. Experienced industry experts invest in companies in three areas: diagnostics and treatment, 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 | 30.11.2023 |
Year end closing | 30. Jun |
NAV Calculation | Daily "Forward Pricing" |
Cut of time | 15:00 CET |
Management Fee | 0.80% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU1725387622 |
Valor number | 39331631 |
Bloomberg | BBBII2E LX |
WKN | A2H8LJ |
Total expense ratio (TER) | 1.34% (30.09.2024) |
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
- The increasing prevalence of obesity, the numerous associated comorbidities and subsequent medical conditions, and its huge direct and indirect economic burden make obesity very attractive from an investment perspective.
- This mega trend has gained a very visible profile thanks to medical progress (e.g. GLP-1 agonists), high social interest and public campaigns.
- Companies active in this field have above-average growth potential for the above reasons.
- Access to innovative companies across the entire value chain, in nutrition and physical activity-related markets, obesity diagnostics and treatment, and in the treatment of the comorbidities and subsequent medical conditions.
- Bellevue – a pioneer in healthcare investing since 1993 and now one of the largest independent investors in the healthcare space in Europe.
Risks
- The fund actively invests in equities. Stocks are subject to price fluctuations, so there is a risk of falling prices.
- The investments the fund makes may be denominated in foreign currency, which can entail a foreign-exchange risk relative to the fund's base currency.
- The fund may invest some of its assets in financial instruments that may have relatively low levels of liquidity under certain circumstances, which may then affect the liquidity of the fund’s own shares.
- There are additional risks in the form of political and social unrest when investing in emerging markets.
- The fund may use derivatives. Derivatives offer greater upside potential yet also carry greater downside risk.
Review / Outlook
September began with a sell-off in risk assets, like in early August, followed by a rebound as the month progressed. Despite worries over inflation and a tight labor market, the Federal Reserve announced a bold 50 bp reduction in its benchmark interest rate on September 18. Its decision was based on signs of easing tension in the US labor market and the continued decline in inflation. Going forward, US stocks are now likely to take their cue from economic and inflation data readouts. In the healthcare space, three major clinical research conferences took place in September: EASD (European Association for the Study of Diabetes), ESMO (European Society for Medical Oncology) and WCLC (World Conference on Lung Cancer). At the EASD meeting, Roche presented clinical data for two incretin-based therapies, CT-388 (injectable) and CT-996 (oral), that was disappointing overall, especially with regard to tolerability. Tolerability will be a key factor of differentiation in this hotly contested market, and investors had clearly been expecting better data. Novo Nordisk presented long-awaited data from a Phase II trial of its oral CB1 receptor blocker. Its drug candidate achieved a statistically significant weight loss in obese patients, but there were also reports of mild to moderate neuropsychiatric side effects, primarily anxiety.
The following stocks were the best portfolio performers during the month under review: Innovent presented promising early-stage data on its bispecific PD-1/IL-2 antibody at ESMO. However, the main reason its shares traded higher late in the month was the Chinese government's announcement of a fiscal stimulus package. Rhythm Therapeutics also made good gains but with little news flow. Sun Pharma was marked up on the solid volume growth of its core therapeutic areas in India and Encompass Health showed a strong performance as did other healthcare services providers.
The following stocks detracted from fund performance: Novo Nordisk came under increasing selling pressure as investors trimmed their expectations for its Q3 results and uncertainty arose about the company’s CB1 receptor blocker’s safety profile and the eagerly awaited Phase III data on CagriSema. Ionis corrected on news of its USD 500 mn public offering of common stock. The biotech company plans to use the net proceeds from the offering to fund its independent commercial launches, late-stage clinical programs, early-phase pipeline programs, and general R&D activities. Regeneron corrected after a court ruled against the company in litigation over Amgen’s launch of a biosimilar to aflibercept (Eylea).
We expect positive catalysts for our investment strategy during the current year. Supportive factors include anticipated interest rate cuts in the US, which would favor growth stocks in particular, attractive stock valuations with price-to-sales multiples approaching historical lows (especially in the biotech sector), forecasts of continued high M&A activity, and growing interest in the high-quality investment opportunities that the healthcare sector offers. 2024 promises to be an exciting year in obesity therapeutics with several significant trial readouts on the agenda. Early in the year, we are expecting initial data readouts from Phase I trials of amylin analogs from both Zealand Pharma and Novo Nordisk. Viking and Structure Therapeutics will publish new data from their trials of oral GLP-1 drugs around the same time. Updates on experimental treatments that preserve muscle mass are also anticipated, for instance from Roche, Regeneron or Scholar Rock to name a few. In view of current demand, which far exceeds available supply, an increase in production is crucial for the GLP-1 market, which is currently dominated by Eli Lilly and Novo Nordisk. We are also closely monitoring whether this class of therapeutics could be approved for the treatment of other diseases such as cardiovascular disorders, obstructive sleep apnea and/or chronic kidney disease.
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