Bellevue Biotech (CH)
Biotech sector with sustainable, strong sales and earnings growth thanks to high innovation level
Expiring patents of pharma companies lead to high M&A activity (patent cliff)
Valuations very attractive on historical average over the last 10 years
Please find a more detailed description of share classes here.
The Bellevue Biotech fund focuses on the most promising companies in the biotechnology sector. The fund invests in 30 to 50 stocks that have met all of the stringent selection criteria applied by us.
Indexed performance (as at: 01.12.2023)
NAV: CHF 2'829.25 (30.11.2023)
Rolling performance (30.11.2023)
|30.11.2022 - 30.11.2023||-22.44%||-17.99%|
|30.11.2021 - 30.11.2022||-5.13%||-6.28%|
|30.11.2020 - 30.11.2021||7.34%||6.90%|
|30.11.2019 - 30.11.2020||9.60%||9.90%|
Annualized performance (30.11.2023)
|Since Inception p.a.||8.28%||10.77%|
Cumulative performance (30.11.2023)
Facts & Key figures
The Bellevue Biotech fund focuses on the most promising companies in the biotechnology sector. The fund invests in 30 to 50 stocks that have met all of the stringent selection criteria applied by us. These are biotech companies that have specialized in areas such as immunology, virology, neurology, oncology, cardiology, endocrinology, etc. Geographically, the fund’s investments are concentrated in North America, Europe and Asia. The fund takes ESG factors into consideration while implementing the aforementioned investment objectives.Show moreShow less
Investment suitability & Risk
|Investment Manager||Bellevue Asset Management AG|
|Fund Administrator||Swisscanto Fondsleitung AG|
|Auditor||Ernst & Young AG|
|Year end closing||30. Sep|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00 CET|
|Subscription Fee (max.)||2.50%|
|Performance Fee||10.00% (with High Water Mark)|
|Legal form||Investment funds under Swiss law|
|SFDR category||Article 8|
Key data (31.10.2023, base currency CHF)
|No. of positions||50|
Top 10 positions
Breakdown by sector
Benefits & Risks
- New innovative drugs are powering sustainable momentum in the biotech sector.
- Attractively valued large cap biotechs.
- Expiring pharmaceutical patents trigger a rise in M&A activity.
- Focus on US biotech companies with strong growth potential.
- Bellevue Healthcare team – top-performing pioneer in the management of healthcare portfolios.
- The fund invests in equities. Equities are subject to strong price fluctuations and so are also exposed to the risk of price losses.
- Biotech equities can be subject to sudden substantial price movements owing to market, sector or company factors.
- The fund invests in foreign currencies, which means a corresponding degree of currency risk against the reference currency.
- Investing in emerging markets entails the additional risk of political and social instability.
- The fund may invest a proportion of its assets in financial instruments that might under certain circumstances have a relatively low level of liquidity, which can in turn affect the fund’s liquidity.
Review / Outlook
In short, October was a challenging month for investors with prices declining for equities and bonds alike. Although the US economy has so far been remarkably robust, worries about a future economic slump pressured financial markets. Geopolitical troubles weighed on market sentiment too. The prospect of tight monetary policy over a prolonged period contributed to the sell-off, and the armed conflict between Israel and Hamas also reduced hunger for risk. In the biotech space, three major clinical conferences made headlines. At the European Society of Medical Oncology (ESMO) in Madrid, data from novel therapeutic approaches such as antibody-drug conjugates (ADCs) and bispecific antibodies attracted attention and there was also some exciting news about small-molecule targeted cancer therapies. At the World Sleep Congress, there was interesting data on orexin receptor agonists, a new class of drugs for the treatment of narcolepsy, and at an Alzheimer's research conference, collaboration partners Eisai and Biogen published eagerly awaited new data on the subcutaneous formulation of their anti-amyloid antibody Leqembi.
The following stocks made the biggest positive contributions to the portfolio's performance in October: Structure Therapeutics shares rose in the wake of growing attention for oral GLP-1 agonists and their application in the field of obesity and diabetes. Apellis Pharmaceuticals published preliminary sales for its eye injection treatment Syfovre for geographic atrophy that beat investor expectations. Cytokinetics presented the baseline characteristics of patients enrolled in its pivotal Phase III clinical trial of aficamten in patients with symptomatic obstructive hypertrophic cardiomyopathy (HCM). The clinical trial patients represent a subset of the HCM population with significant unmet treatment needs. This readout boosted confidence in the company’s ongoing Phase III study.
The following stocks detracted from portfolio performance: Akero was marked sharply lower after its lead product candidate efruxifermin failed to meet high expectations regarding liver fibrosis improvement in a Phase IIb study. Revolution Medicines headed south after it published data on its oral treatment for various solid tumors at the ESMO. Early Phase I data showed good tolerability, but the drug's efficacy fell slightly short of investor expectations.
The fund's exposure to Moderna, Akero and other companies was reduced and the proceeds were invested in Zealand and Exelixis, among other companies.
Our stance towards the biotech sector remains positive in view of its strong fundamentals and enticing valuations (average 2024 P/E of 13x and PEG of 1.1 for large caps). These are still very attractive multiples compared to the biotech sector's historical valuations and the current ratios for the pharma sector (P/E 18x, PEG 2.0) and the S&P Index (P/E 18x, PEG 2.3).
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. All performance figures reflect the reinvestment of dividends and do not take into account the commissions and costs incurred on the issue and redemption of shares, if any. Individual costs are not taken into account and would have a negative impact on the performance. With an investment amount of EUR 1,000 over an investment period of five years, the investment result in the first year would be reduced by the front-end load of up to EUR 50 (5%) as well as by additional individual custody charges. In subsequent years, the investment result would also be reduced by the individual custody account costs incurred. The reference benchmark of this class is used for performance comparison purposes only (dividend reinvested). No benchmark is directly identical to a sub-fund, thus the performance of a benchmark is not a reliable indicator of future performance of the sub-fund it is compared to. There can be no assurance that a return will be achieved or that a substantial loss of capital will not be incurred. All figures in base currency in %, calculated by the total return / BVI method.Show moreShow less