Bellevue Obesity Solutions
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
Explained in 90 seconds
Please find a more detailed description of share classes here.
Investment Focus
ISIN-No. LU0415392322
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, comorbidities as well as nutrition and physical activity – providing investors access to the entire obesity value chain. Stock selection is based on fundamental company analysis and is bottom-up, independent of benchmark weightings. The fund takes ESG factors into consideration while implementing its investment objectives.
Indexed performance (as at: 16.08.2024)
NAV: USD 544.55 (15.08.2024)
Cumulative performance (16.08.2024)
B-USD | Benchmark | |
1M | 0.78% | 3.64% |
YTD | 13.19% | 13.91% |
1 year | n.a. | n.a. |
Since Inception | 15.65% | 18.95% |
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 | 1.60% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU0415392322 |
Valor number | 3882743 |
Bloomberg | BBBIOUB LX |
WKN | A0RPSP |
Total expense ratio (TER) | 2.19% (31.07.2024) |
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
July was also a volatile month as markets digested major macroeconomic and political developments. A better-than-expected reading from the US Consumer Price Index (CPI) at the beginning of the month followed by a weak jobs market report raised investor hopes that the Federal Reserve would soon cut its interest rates. The Fed's first rate cut is now expected to be announced in September. Stocks with a weak relative performance year to date made good gains in July as investors showed greater interest in small cap stocks, which are more sensitive to interest rate cuts. This large-scale rotation propelled the Russell 2000 to its best monthly outperformance vs the Nasdaq 100 in more than 20 years.
Market rotation was also observed within the healthcare sector, with stocks such as Bristol-Myers, Pfizer, J&J and Gilead gaining about 10%, while the top performers for the year shed value. The ongoing reporting season has revealed the following sector dynamics: Pharma beat expectations and management forecasts were revised upward; growth in the medtech segment has slowed; end markets for life sciences are beginning to recover; and profitability in healthcare services segment is rising.
The following stocks were the best portfolio performers in July: Lonza reported strong results from its Biologics division, especially in bioconjugates services, and lingering doubts about whether demand in its end-user markets would hold steady were removed after the publication of its latest quarterly results. New long-term commercial contracts and a healthy order flow for Lonza’s early-phase drug development services also contributed to strategic growth. Encompass Health was marked up without any specific triggers. Sandoz tacked on more gains in the wake of its successful launches of Hyrimoz (biosimilar to AbbVie’s Humira) and Tyruko (biosimilar to Biogen’s Tysabri) in terms of both prescription volume and sales.
The following stocks detracted from fund performance: Novo Nordisk corrected due to the widespread market rotation, which to some extent reflected profit taking in GLP-1 manufacturers. Positive early data on Roche’s GLP-1 agonist also put Novo Nordisk shares under pressure. Dexcom, a manufacturer of continuous glucose monitoring systems, was marked down after reporting lower-than-expected sales due to the restructuring of its sales force, lower revenue per customer due to discount offers, and a dip in market share. Edwards stock tanked after the company lowered its sales forecast for its transcatheter aortic valve replacement device.
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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