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.
Investment Focus
ISIN-No. LU0415392751
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: 08.02.2023)
NAV: USD 599.14 (06.02.2023)
Rolling performance (07.02.2023)
I-USD | Benchmark | |
07.02.2022 - 07.02.2023 | 1.46% | 4.34% |
05.02.2021 - 07.02.2022 | -18.47% | -21.95% |
07.02.2020 - 05.02.2021 | 35.79% | 39.27% |
07.02.2019 - 07.02.2020 | 16.48% | 13.27% |
Annualized performance (07.02.2023)
I-USD | Benchmark | |
1 year | 1.46% | 4.34% |
3 years | 3.94% | 4.28% |
5 years | 3.80% | 4.69% |
10 years | 10.28% | 11.05% |
Since Inception p.a. | 11.98% | 14.25% |
Cumulative performance (07.02.2023)
I-USD | Benchmark | |
1M | -0.01% | 0.94% |
YTD | 0.98% | 2.74% |
1 year | 1.46% | 4.34% |
3 years | 12.31% | 13.42% |
5 years | 20.52% | 25.75% |
10 years | 166.15% | 185.45% |
Since Inception | 379.94% | 533.92% |
Annual performance
I-USD | Benchmark | |
2022 | -11.50% | -10.91% |
2021 | 1.57% | -0.63% |
2020 | 23.88% | 25.69% |
2019 | 28.76% | 24.41% |
Facts & Key figures
Investment Focus
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, Show moreShow less
Investment suitability & Risk
Low risk
High risk
General Information
Investment Manager | Bellevue Asset Management AG |
Custodian | RBC Investor Services, Luxembourg |
Fund Administrator | RBC Investor Services, Luxembourg |
Auditor | PriceWaterhouseCoopers |
Launch date | 02.04.2009 |
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 | LU0415392751 |
Valor number | 3882833 |
Bloomberg | BBBIOUI LX |
WKN | A0X8YS |
Total expense ratio (TER) | 2.17% (31.01.2023) |
Legal Information
Legal form | Luxembourg UCITS V SICAV |
SFDR category | Article 8 |
Key data (31.01.2023, base currency USD)
Beta | 0.89 |
Volatility | 26.30 |
Tracking error | 8.41 |
Active share | 34.15 |
Correlation | 0.96 |
Sharpe ratio | 0.31 |
Information ratio | -0.30 |
Jensen's alpha | -1.63 |
No. of positions | 54 |
Portfolio
Top 10 positions
Market capitalization
Geographic breakdown
Breakdown by sector
Opportunities & Risks
Opportunities
- 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.
Risks
- 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
January was a pleasing month for equity investors. The S&P 500 advanced 6.2%, the Nasdaq Biotech Index 3.5% and the Bellevue Biotech (Lux) Fund 2.1% (USD / B shares).
Markets took their cue from a brighter inflation outlook and the relatively quick economic recovery in China, where economic activity had initially dropped after the government abandoned its zero-COVID policy. Most biotech firms have presented a positive outlook for 2023. Drug makers were also able to increase their prices in 2022 for the first time since 2015, and more price increases also took affect early in 2023. In 2022, the US FDA approved a total of 37 new drugs, less than in the preceding record-breaking years, but still more than the historical average annual new drug approvals. In early January the FDA granted lecanemab, an antibody for the treatment of early Alzheimer’s disease developed by Eisai/ Bioarctic/Biogen, accelerated approval. It is the first drug ever that has been shown to slow the rate of cognitive decline associated with Alzheimer disease by 27% compared to placebo. The last time regulators approved a drug for patients with Alzheimer was 25 years ago, namely for Aricept , a medication that was also developed by Eisai. The biotech sector was also boosted by a resurgence in M&A in January. Among the deals that made the headlines were Astra’s USD 1.14 bn bid for Cincor, a mark-up of 121%; the Italian biotech Chiesi bid USD 1.48 bn for Amryt, a premium of 107%; and Ipsen offered USD 600 mn for Albireo, a premium of 103%.
The following stocks were the portfolio's top performers in January: Viridian Therapeutics shares rose on positive results from a Phase I/II trial evaluating low-dose VRDN-001, an antibody treatment (antagonist antibody to IGF-1R) for patients with active thyroid eye disease (TED); Relay Therapeutics surged on a positive outlook regarding clinical data for its investigational drugs RLY-4008 (selective FGFR2 inhibitor) and RLY-2608 (first known allosteric, pan-mutant PI3Kalpha inhibitor); and Beigene Pharmaceuticals advanced on data for Brukinsa (zanubrutinib) at the ASH Conference and the FDA’s approval of the drug in chronic lymphocytic leukemia (CLL) in January.
The following positions were performance detractors in November: Harmony Biosciences sold off on the surprising news that its CEO John Jacobs was leaving the company; Genmab corrected after giving an update on its clinical trial pipeline for 2023 that was lacking in detail for many investors; and Akero traded lower for no apparent reason.
Our stance towards the biotech sector remains positive in view of its strong fundamentals and enticing valuations (average 2023 P/E of 15x and PEG of 1.2 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 20x, PEG 2.5) and the S&P Index (P/E 18x, PEG 1.8).
The companies in our portfolio are working on technologies or products for novel treatment solutions. We are also invested in selected specialty pharma companies that offer high growth rates and moderate valuations. The Bellevue Biotech (Lux) Fund is well-positioned to profit from the milestones that are expected to be reached in 2023. The regulatory environment favors the innovation coming out of biotech labs and the coronavirus crisis has improved the image of drug developers. In addition to the growing piles of cash that the larger biopharmaceutical companies are accumulating, we also believe low valuations and the attractive pipeline candidates of biotech companies in the small and mid cap space could trigger M&A activity going forward.
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