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: 13.11.2024)
NAV: EUR 734.56 (12.11.2024)
Cumulative performance (13.11.2024)
I-EUR | Benchmark | |
1M | -1.33% | -2.26% |
YTD | 13.17% | 12.47% |
1 year | n.a. | n.a. |
Since Inception | 14.28% | 15.60% |
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 | 0.90% |
Subscription Fee (max.) | 5.00% |
ISIN number | LU0415392678 |
Valor number | 3882832 |
Bloomberg | BBBIOEI LX |
WKN | A0RPSQ |
Total expense ratio (TER) | 1.46% (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
October was a volatile month for financial markets. After making good gains during the first nine months of the year, equities headed south in October. Investors continued to worry about economic growth despite signs of resilience, particularly in the US economy. The elections in the US and how they might impact government policy, inflation and interest rates were an additional source of uncertainty. The healthcare sector underperformed the broader market in October for the second month in a row. The latest quarterly reporting season brought some disappointments in the form of negative news from a few favorite plays and because the cases of unblemished success in this segment have become increasingly rare. Eli Lilly's quarterly report was particularly disappointing due to its tirzepatide franchise: Management unexpectedly reduced its guidance for full-year sales in 2024, this after previously upping its sales forecast for two consecutive quarters. This dragged down Eli Lilly's share price and led to talk about various factors such as de-stockpiling by distributors during the third quarter after widespread inventory stockpiling in the second quarter. High end-market demand for GLP-1 agonists remains intact, but it is now being closely monitored by investors. Clinical data soon to be released by Amgen (Phase II MariTide study) and Novo Nordisk (Phase III CagriSema) will likely have a major impact on both the outlook for obesity therapy in general and on a number of market players.
The following stocks were the best portfolio performers during the month under review: Scholar Rock reported positive Phase III data for its anti-myostatin antibody for the treatment of a rare muscle disease (non-ambulatory SMA type 2/3 patients). The same antibody is also being investigated as a combination therapy with GLP-1 agonists to preserve lean mass and thus improve weight loss management. Viking Therapeutics was marked up on positive pipeline developments: A subcutaneous GLP-1/GIP agonist is scheduled to enter Phase III testing in Q4 2024/’25, an oral GLP-1/GIP agonist enters Phase II testing in Q4 2024, and an amylin candidate is scheduled to enter the clinical trial phase in 2025. A company presentation at the upcoming ObesityWeek 2024 also raised high expectations. Shares of Thule and New Amsterdam were also strong performers.
The following stocks detracted from fund performance: Regeneron continued to correct, pressured by the pending launch of Amgen’s Pavblu biosimilar for Eylea. The FDA had already approved Pavblu in August, but Amgen was unable to market the drug as long as a court decision regarding a temporary injunction was still pending. That injunction barring Amgen from launching Pavblu was just recently lifted. Innovent headed south after a transaction involving Innovent's founder, chairman and CEO was announced that raised some eyebrows in the marketplace. In that transaction, he acquired a stake in a subsidiary that owns one of Innovent’s key pipeline candidates at a price that was significantly lower than the fair value placed on it by the market.
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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