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: 09.08.2022)
NAV: EUR 178.96 (18.08.2022)
Rolling performance (18.08.2022)
|18.08.2021 - 18.08.2022||-8.32%||-9.34%|
|18.08.2020 - 18.08.2021||24.23%||25.46%|
|16.08.2019 - 18.08.2020||19.99%||19.66%|
|17.08.2018 - 16.08.2019||-6.07%||-7.20%|
Annualized performance (18.08.2022)
|Since Inception p.a.||7.90%||8.28%|
Cumulative performance (18.08.2022)
Facts & Key figures
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.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)||2.21% (29.07.2022)|
|Legal form||SICAV Luxembourg jurisdiction|
|SFDR category||Article 8|
Key data (29.07.2022, base currency USD)
|No. of positions||56|
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 has been a Healthcare pioneer since 1993 and is one of the biggest independent investors in the sector in Europe today.
- Equities are subject to strong price fluctuations and so are also exposed to the risk of price losses.
- Market, industry or company factors can lead to strong short-term price fluctuations
- 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 in financial instruments that might have a rather low level of liquidity, which can in turn affect the fund’s liquidity.
Review / Outlook
June was a mixed month for stocks. The S&P 500 lost 8.3%, the Nasdaq Biotech Index advanced 1.1% and the Bellevue Biotech (Lux) Fund gained 1.8% (USD / B shares).
Market moves continued to be dictated by news about inflation, the war in Ukraine, and the risk of a recession. Unemployment in the US remains low and wage growth is high, but consumer confidence has turned sharply lower. The second quarter has ended and investor attention will soon be focused on the quarterly earnings announcements. The biotech sector showed signs of strength early in June with Bristol-Myers bidding USD 4.1 bn for Turning Point Therapeutics, a clinical-stage precision oncology company, which represented a markup of 122% from its previous closing price. This was followed by ASCO, the world's largest cancer conference. For the first time in three years, participants were able to attend the conference in Chicago in person. AstraZeneca and its partner Daiichi Sankyo presented transformational data from their groundbreaking trial of Enhertu in breast cancer. This antibody-drug conjugate delivered landmark results in previously hard-to-treat HER2-low patients. The trial data presented during a plenary session and published in the prestigious New England Journal of Medicine evoked a long standing ovation from the deeply impressed audience at the ASCO.
The following companies made the best contribution to the portfolio's performance in June: Argenx and Legend Biotech were again the top performers, like in the previous month. Harmony Biosciences presented new and impressive efficacy data on Wakix (Pitolisant) at a medical conference, which was already approved in the US in late 2020 for the treatment of excessive daytime sleepiness (EDS) in adults with narcolepsy. Shares of the Chinese biotech company Innovent were marked up after the company announced that its anti-PD1 monoclonal antibody had been approved in another indication in China, the fifth indication for this cancer drug, which had already been approved in lung, liver and various types of blood cancer.
Pacira Biosciences, which had published preliminary sales figures for its key products in May, was a performance detractor. Despite steady sales growth, Pacira was unable to fully meet expectations. The Japanese pharmaceutical company Ono Pharmaceuticals was also a weak performer, although its key sales drivers are still showing positive developments.
Our stance towards the biotech sector remains positive in view of its strong fundamentals and very attractive valuations (average 2023 P/E of 13x and PEG of 0.9 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 17x, PEG 2.1) and the S&P Index (P/E 16x, PEG 1.4).
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 2022. 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.
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