Bellevue Biotech (Lux)
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 Fund invests worldwide in companies active in the biotechnology sector. Experienced sector specialists focus on profitable mid- and large-cap companies with an established product portfolio. Stock selection is based on fundamental analysis. The selection of portfolio companies is entirely bottom-up, independent of benchmark weightings.
Indexed performance (as at: 02.06.2023)
NAV: USD 572.55 (31.05.2023)
Rolling performance (01.06.2023)
|01.06.2022 - 01.06.2023||8.13%||11.17%|
|01.06.2021 - 01.06.2022||-19.99%||-22.43%|
|29.05.2020 - 01.06.2021||15.83%||11.95%|
|31.05.2019 - 29.05.2020||30.25%||34.73%|
Annualized performance (01.06.2023)
|Since Inception p.a.||11.37%||13.44%|
Cumulative performance (01.06.2023)
Facts & Key figures
The fund’s aim is to achieve capital growth in the long term. The fund invests worldwide in companies active in the biotechnology sector. Experienced sector specialists focus on profitable mid and large cap companies with an established product portfolio. Stock selection is based on fundamental analysis, in particular of the medical indications addressed, the means of efficacy and the market potential. A global network of experts spanning scientific and industrial fields supports the Management Team in forming opinions and making investment decisions. The selection of portfolio companies is entirely bottom-up, independent of benchmark weightings. 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|
|Custodian||RBC Investor Services, Luxembourg|
|Fund Administrator||RBC Investor Services, Luxembourg|
|Year end closing||30. Jun|
|NAV Calculation||Daily "Forward Pricing"|
|Cut of time||15:00 CET|
|Subscription Fee (max.)||5.00%|
|Total expense ratio (TER)||1.47% (31.05.2023)|
|Legal form||Luxembourg UCITS V SICAV|
|SFDR category||Article 8|
Key data (31.05.2023, base currency USD)
|No. of positions||60|
Top 10 positions
Breakdown by sector
Opportunities & 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 pioneer since 1993 and today one of the biggest independent investors in the sector in Europe.
- 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
April brought a handful of positive data readings on the world economy and showed that economic growth was still remarkably stable despite a series of interest rate hikes. PMI prints in the US, the euro area and the UK were all higher than expected, as was Chinese GDP for the first quarter. It appears that the short-term risk of a recession has subsided somewhat, but the failure of another financial institution in the US at the end of April indicated that the full impact of monetary policy tightening has not yet unfolded. The biotech sector was buoyed by M&A activity. Pharmaceutical giant GSK acquired Bellus Health for around USD 2 bn, a company developing a potential treatment for chronic cough. US drug giant Merck splashed out close to USD 9 bn for Prometheus and Astellas beefed up its ophthalmology pipeline with the USD 6 bn takeover of Iveric, a company in the fund's portfolio.
The following stocks were the portfolio's top performers in April: the Chinese biotech firm Legend Biotech published groundbreaking Phase III data on its cell therapy Carvykti in multiple myeloma. Of the 419 patients enrolled in its CARTITUDE-4 study, 208 were treated with Carvykti and 211 received standard of care as a second to fourth line of therapy. Carvykti showed a whopping 74% reduction in risk of disease progression or death compared to standard of care (hazard ratio of 0.26). Apellis Pharmaceuticals, a company focused on rare diseases and ophthalmology, rose sharply early in the month on takeover speculation. According to the business news platform Bloomberg, Apellis was drawing takeover interest from larger drugmakers.
The following stocks detracted from portfolio performance: Sarepta Therapeutics was marked down after STAT News published an article claiming that some FDA staff were skeptical about Sarepta's filing of its investigational gene therapy for Duchenne muscular dystrophy. Relay Therapeutics traded lower after the company presented data from a Phase I trial of a pan-mutant, isoform-selective PI3Kα inhibitor at a clinical conference.
Our stance towards the biotech sector remains positive in view of its strong fundamentals and enticing valuations (average 2024 P/E of 14x and PEG of 1.4 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 16x, PEG 2.2) and the S&P Index (P/E 17x, 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