Bellevue Obesity Solutions (Lux)
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. LU0415392595
The fund’s aim is to achieve capital growth in the long term 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: 03.07.2024)
NAV: CHF 418.64 (01.07.2024)
Cumulative performance (27.06.2024)
B-CHF | Benchmark | |
1M | 0.43% | -0.24% |
YTD | 17.71% | 15.62% |
1 year | n.a. | n.a. |
Since Inception | 16.41% | 15.81% |
Facts & Key figures
Investment Focus
The fund’s aim is to achieve capital growth in the long term and actively 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 | LU0415392595 |
Valor number | 3882829 |
Bloomberg | BBBIOCB LX |
WKN | A0RPSN |
Total expense ratio (TER) | 2.19% (31.05.2024) |
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
It was a positive month for equities despite high inflation readings in the US and the signs of economic weakness in the US for the first quarter. At second glance, the data showed that consumer spending was holding up well, which, however, pushed the likelihood of an interest rate cut further into the future. Novo Nordisk presented full data from the FLOW that it had halted early at the European Renal Association's (ERA) annual congress. The data confirmed the interim results showing that treatment with Ozempic reduced the risk of severe kidney disease-related events by 24%. The diabetes drug also reduced the risk of cardiac death by 29% and all-cause mortality by 20%. Ozempic, a GLP-1 drug that is already widely prescribed to treat type 2 diabetes, could become the new standard of care for patients with kidney disease, which occurs in 40% of the type 2 diabetes patient population.
The following stocks made the best contributions to portfolio performance in May: Ypsomed reported sharply higher EBIT for fiscal 2023/24 and nearly 40% sales growth in its pens and autoinjectors business. The company announced that it was establishing two independent business areas, delivery systems and diabetes care, and was currently examining strategic options for the latter. Vertex reported strong quarterly sales for its cystic fibrosis franchise and is making good progress with the development of its new pipeline products. Garmin reported solid earnings growth during the first quarter of 2024 and better-than-expected sales and margins in most of its business segments, particularly in fitness and marine. It also highlighted the strong momentum of its top-of-the-line products in the wearables/health segment.
The following stocks detracted from fund performance: Scholar Rock traded lower for no apparent reason. At its investor day, management pointed out that the ultimate goal of obesity treatment was to improve overall patient health and that preserving lean muscle mass was crucial in this regard because of the positive impact lean mass has on basal metabolic rate, insulin sensitivity, metabolic profile and on total body fat percentage. Brazilian gym operator Smart Fit also traded lower, although its first-quarter results for 2024 with solid EPS growth of 13% were in line with expectations. Management made some encouraging remarks about its fitness center expansion efforts and membership growth.
We expect 2024 to be a positive year for our investment strategy. 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 investor interest in the healthcare sector. 2024 promises to be an exciting year in obesity therapeutics with several significant trial readouts on the agenda. Zealand Pharma is expected to publish initial data from a Phase I trial of its amylin analog by the end of the first half. Structure Therapeutics will also present new data from a Phase II trial of its oral GLP-1 drug candidate. Updates on experimental treatments that preserve muscle mass are also anticipated, for instance from Eli Lilly, Regeneron and Scholar Rock to name a few. There will also be important readouts from Zealand and Eli Lilly, both portfolio companies, at the International Liver Conference in early June organized by European Association for the Study of the Liver (EASL). In view of the current levels of demand in the GLP-1 market, which far exceed available supply, an increase in production capacity is crucial. 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 or chronic kidney disease.
Documents
Past performance is not a reliable indicator of future results and can be misleading. As the sub-fund is denominated in a currency that may differ than an investor’s base currency, changes in the rate of exchange may have an adverse effect on prices and incomes. Performance is shown net of fees and expenses for the relevant share class over the reference period. Show moreShow less