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. LU0767968745
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: 26.07.2024)
NAV: GBP 490.42 (26.07.2024)
Cumulative performance (27.07.2024)
I-GBP | Benchmark | |
1M | -1.49% | -0.25% |
YTD | 10.51% | 9.26% |
1 year | n.a. | n.a. |
Since Inception | 12.19% | 12.82% |
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 | LU0767968745 |
Valor number | 18316140 |
Bloomberg | BBBIOGI LX |
WKN | A1JWD8 |
Total expense ratio (TER) | 1.47% (30.06.2024) |
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
A dip in inflation combined with good US jobs market data fanned hopes that the Fed would announce a rate cut, which led Wall Street higher. However, the market gains were driven by only a handful of stocks. Much of the advance can be traced to chip manufacturer Nvidia, which accounts for 30% of the S&P 500’s total return so far this year. In the healthcare space, several clinical conferences took place in June. Late in the month Eli Lilly presented impressive Phase III data from its SURMOUNT-OSA trial of tirzepatide in patients with obstructive sleep apnea at the annual meeting of the American Diabetes Association (ADA). Novo Nordisk presented more data from its FLOW trial of semaglutide in patients with type 2 diabetes and chronic kidney disease, which, as previous data had already demonstrated, revealed consistent benefits on kidney and cardiovascular outcomes and survival.
The following stocks were the best portfolio performers in June: Zealand Pharma published keenly awaited results of its Phase Ib trial of petrelintide, an amylin analog. In the 16-week study, petrelintide reduced body weight by an average of 8.6% in patients with obesity and was very well tolerated. Petrelintide may demonstrate a similar weight loss as Novo Nordisk’s Wegovy in longer and more specific studies, but with a better tolerability and safety profile.
In one of this year's most closely watched biotech trials, Alnylam Pharmaceuticals announced that its RNA interference drug Amvuttra reduced the risk of all-cause mortality and recurrent cardiovascular events in patients with transthyretin-amyloid cardiomyopathy (ATTR-CM). This news also benefited Ionis, a portfolio company that is also developing a drug for ATTR-CM.
The following stocks detracted from fund performance: Insulin pump manufacturer Tandem was weak due to the general enthusiasm about GLP-1 therapies after the latter made headlines at the ADA conference in Orlando, especially as a potential therapy in other areas besides classic weight loss. Athletic footwear and apparel maker Nike shares sold after the release of the company’s latest quarterly results, which showed a decline in sales and gross profit margin. GSK came under selling pressure after another court ruling in the state of Delaware that allowed Zantac (an OTC drug to prevent or treat heartburn and gastric ulcers) lawsuits alleging that the drug increases the risk of developing cancer to go forward.
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.
Documents
Show moreShow less